Credit Market Commentary: Market Derived Signal: CDS Investors Express Fear Of Financials Sector Oct 11
- ID: 1931272
- October 2011
- Standard & Poors
As uncertainty about the global economy persists, expected third-quarter earnings growth for S&P 500 firms has decreased since the beginning of the third quarter, to less than 13% as of Oct. 5 from 16.9% on July 1. Yet, the cuts have been most severe in the financials sector. On July 1, analysts polled by Capital IQ expected financials to report earnings per share of $4.29, implying an increase from the third quarter of 2010 of 14.5%. As of Oct. 5, analysts expect a collective per-share profit of $3.83, or growth of 2.2%. Worries about contagion in the U.S. from Europe is one factor driving the revisions. According to a Wall Street Journal report on Sept. 30, Morgan Stanley's share price...
Companies mentioned in this report are:
- Bank of America Corp.
- Goldman Sachs & Co.
- Morgan Stanley
- JPMorgan Chase & Co.
- Citigroup Inc.
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Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.