Wall Street expects falls - New York Report

THE WEEK starts on a quiet note as US markets are closed today for Labor Day, and the rest of the week is relatively light in economic data terms.

China’s markets will reopen after a three-day break to mark the anniversary of the end of the Second World War.

Slowing growth in emerging markets and currency fluctuations in anti­ci­pation of a US rate hike may push third-quarter revenue and earnings estimates lower this month.

Wall Street expects a 3.4 per cent fall in earnings for the S&P 500. Estimates have already fallen for nine out of 10 of the index’s sectors so far this year, according to Thomson Reuters.

S&P revenue is expected to fall 2.8 per cent for the quarter, led by steep declines in the energy and materials sectors.

“Analysts will likely be pulling in their reins going into the quarterly reports and the pre-announcement season. This could happen fairly quickly,” said Tim Ghriskey, chief investment officer of Solaris Group.