End of Corporate America’s Profit Recession Comes With Concerns
- S&P 500 companies seen returning to growth late this year
- Focus is on consumers, high rates, weight-loss drugs, China
This article is for subscribers only.
Investors are growing more confident that a year-long slump in profits for Corporate America is about to end. Yet a fragile economic outlook, wary consumers and the highest interest rates in 16 years mean any relief for stocks could be short-lived.
Analysts predict the companies in the S&P 500 will report a 1.2% drop in third-quarter earnings — the fourth straight decline — before a 6.5% rebound in the final three months of the year, according to estimates compiled by Bloomberg Intelligence.