Third quarter earnings and revenues are expected to drop, according to Thomson Reuters. Bobbi Rebell reports.
Earnings season started with disappointing profit from Alcoa, hurt by slumping prices for commodities and the mighty dollar. Investors are bracing for more bad news. Decision Economics Cary Leahey. (SOUNDBITE) CARY LEAHEY, CARY LEAHEY, DECISION ECONOMICS, DECISION ECONOMICS (ENGLISH) SAYING: "There are lots of good reasons why earnings are going to be weak. Perhaps the domestic economy slowed in the third quarter, and, more importantly, any export driven or related earnings are probably going to be very soft, both, because growth overseas is clearly slowed a lot, and you have a strong dollar " The bad news will likely have investors focusing on the future, according to Jonathan Corpina of Meridian Equity Partners. (SOUNDBITE) JONATHAN CORPINA, SENIOR MANAGING PARTNER, MERIDIAN EQUITY PARTNERS (ENGLISH) SAYING: "I don't think investors are really going to be looking at earnings per share and revenue. It is really going to be about more about outlook. What is the growth looking forward? What is the exposure to Europe and China? What is the exposure to the variant oil prices that we have seen here?" One area of concern - banks. Some of them have already warned of weakness in areas like investment banking and trading. JPMorgan Chase, Bank of America, Wells Fargo, Citigroup and Goldman Sachs are set to report next week.