Darren Sinden – Market commentator for Admiral Markets – joined Nick Batsford and Zak Mir to discuss how earnings for Q3 have been dragged down by energy and commodities.
With 70% of the S&P 500 reporting their earnings over the next few weeks, expectations average at between -3% and -5.5%. Despite that, JP Morgan believe overall earnings growth to be +4% when discounting the energy sector.
Sinden also talked about the impact that manufacturing can have on economic growth that cannot be achieved from services. This further suggests that earnings growth will be muted by the poorest performing sectors in Q3.