{"id":1847517,"date":"2023-02-15T06:50:53","date_gmt":"2023-02-15T11:50:53","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1847517"},"modified":"2023-02-15T06:52:00","modified_gmt":"2023-02-15T11:52:00","slug":"u-s-companies-face-more-pain-as-expected-earnings-recession-looms","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/u-s-companies-face-more-pain-as-expected-earnings-recession-looms\/","title":{"rendered":"U.S. Companies Face More Pain as Expected Earnings Recession Looms"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">20<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fu-s-companies-face-more-pain-as-expected-earnings-recession-looms%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1847517&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47-->\n<div><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2023\/02\/Sign-for-Wall-Street-1200x800-1.jpg\" class=\"ff-og-image-inserted\" alt=\"image\"   style=\"display:none\"><\/div>\n<p>NEW YORK\u2014U.S. <a href=\"https:\/\/www.theepochtimes.com\/t-companies-2\">companies<\/a>\u2019 earnings woes are likely to extend beyond the weak fourth quarter, as a booming labor market weighing on margins looks set to hurt <a href=\"https:\/\/www.theepochtimes.com\/t-results\">results<\/a> in the first half of this year.<\/p>\n<p>Expectations for U.S. earnings to decline in the first and second quarter come amid weaker-than-expected fourth-quarter results for 2022, which Credit Suisse estimates will be the worst earnings season outside of a <a href=\"https:\/\/www.theepochtimes.com\/t-recession\">recession<\/a> in 24 years.<\/p>\n<p>With fourth-quarter 2022 earnings estimated to have fallen from a year ago, a subsequent decline in the first quarter of 2023 would put the S&#038;P 500 into a so-called earnings recession, a back-to-back decline in earnings that hasn\u2019t occurred since COVID-19 blasted corporate results in 2020.<\/p>\n<p>Fourth-quarter results are in already from 344 of the S&#038;P 500 companies, and the quarter\u2019s earnings are estimated at this point to have fallen 2.8 percent from the year-ago period, according to IBES data from Refinitiv.<\/p>\n<p>Most strategists expect little improvement for the season, and analysts now forecast S&#038;P 500 earnings falling 3.7 percent year-over-year in the first quarter of 2023 and 3.1 percent for the second quarter.<\/p>\n<p>\u201cWhat\u2019s clear is the speed with which the 2023 numbers are falling is just worse than (usual),\u201d said Jonathan Golub, chief U.S. equity strategist &#038; head of quantitative research at Credit Suisse Securities in New York.<\/p>\n<p>The darkening earnings picture bolsters the case for investors who believe the stock market\u2019s early-year rally is unlikely to last, adding to worries over how high the Federal Reserve will need to take interest rates in its fight to keep inflation on an easing trajectory.<\/p>\n<p>The S&#038;P 500 notched its biggest percentage weekly decline since mid-December last week, though the index is up about 7 percent for the year to date.<\/p>\n<p>\u201cThe reality for equities is that monetary policy remains in restrictive territory in the context of an earnings recession that has now begun in earnest,\u201d wrote analysts at Morgan Stanley, including Michael Wilson, the bank\u2019s U.S. equity strategist, in a Monday report.<\/p>\n<p>Recent results and guidance from some of the most heavily weighted names in the tech-related space like Alphabet, Amazon.com, and Apple have been among the most memorable disappointments this earnings season.<\/p>\n<p>Golub and other strategists say a tight labor market that is pressuring margins for companies as a key reason for the decline in earnings, and expect these costs to remain stickier than other pressures.<\/p>\n<p>The recent blowout U.S. jobs report for January, which showed job growth accelerating and the lowest unemployment rate in 53 and a half years, has bolstered that view, while also stirring worries that strong job growth could lead to more rate increases from the Federal Reserve.<\/p>\n<p>The central bank last year embarked on its most aggressive policy tightening since the 1980s in response to soaring inflation.<\/p>\n<p>\u201cIf you look at revenues, they\u2019re coming in fine,\u201d Golub said. \u201cSo you say, well, then what\u2019s the problem? Margins are collapsing from really high levels.\u201d<\/p>\n<p><em>By Caroline Valetkevitch<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>NEW YORK\u2014U.S. companies\u2019 earnings woes are likely to extend beyond the weak fourth quarter, as a booming labor market weighing on margins looks set to hurt results in the first half of this year. Expectations for U.S. earnings to decline in the first and second quarter come amid weaker-than-expected fourth-quarter results for 2022, which Credit &hellip;<\/p>\n","protected":false},"author":1,"featured_media":1847520,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[547],"tags":[6997,11333,4183,9080,8046,10069,7238],"class_list":["post-1847517","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-bongino-report","tag-companies","tag-earnings","tag-expected","tag-looms","tag-pain","tag-recession","tag-u-s"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1847517","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1847517"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1847517\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1847520"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1847517"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1847517"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1847517"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}