As third-quarter earnings reports start to come in, an unusually large number of companies remain reluctant to offer financial guidance for their full-year 2020 and 2021 results, owing largely to uncertainty from the pandemic. Globally, the pace of COVID-19 cases continued to rise, weighing on prospects for economic growth. As of Friday, 147 companies in the S&P 500 that have traditionally issued annual earnings guidance had done so, compared with 138 that hadn’t, according to FactSet.
Markets dropped initially on news the President was linking the aid package to the election. Market sentiment was later boosted by signs that White House officials and congressional leaders were bridging differences on measures to help airlines, small businesses, and households. These measures are unlikely to take effect before the election, but the resumption of coronavirus relief talks fueled optimism.
U.S. Federal Reserve Chairman Jerome Powell issued a warning to Congress and the White House, saying the risks of not doing enough to provide further coronavirus-related economic relief are greater than the risks of doing too much. Powell said that the economic recovery is still at an early stage and the current expansion is “far from complete.”I am here to help at any time. If you would like to schedule a phone/web conference appointment, I have included a link to my calendar below and you can self schedule. For those of you who prefer an in person meeting I am now scheduling in person meetings as well, please email me if you would prefer an in person appointment.