Elections Overshadow Third Quarter Earnings

 

With two more crazy weeks to go, 62% of S&P 500 companies have reported Q3 earnings so far and 80% of them have beat EPS expectations (just over 18% have missed).  Fortunately or unfortunately, the Street doesn’t seem to care.  Maybe the first week of earnings they did, but the closer we get to election day and the next Fed meeting, the less interested they have become.  With few exceptions, (and those have probably been driven more from M&A speculation than earnings news), no matter how big the company or what the message, they have been overshadowed by  the likes of the dollar, Treasury yields, quantitative easing and foreign economic news.  Next week brings elections (and the threat of a lame duck congress which may try to enact new rules before year end) and the Fed’s official word on quantitative easing (how big and how they plan to distribute it are the big questions).  Sorry to those of you who haven’t reported yet, next week won’t be about you at all.