Mixed Q3 earnings season looms as sectors face economic challenges

With the third quarter closed, various sectors are bracing for mixed earnings reports amid slowing business activity expansion. The Federal Reserve's recent rate cut is expected to have a limited impact on US regional banks' third-quarter earnings, which are likely to reflect weak loan growth and only modest improvements in deposits. Loans across domestically chartered US banks increased by 0.4% from June 26 to Sept. 25, while deposit growth has remained steady at around 1% to 2% year over year since late March, according to Fed data.

For US property and casualty insurers, the aftermath of Hurricane Helene is set to dominate earnings calls. The storm's Sept. 26 landfall as a Category 4 storm on Florida's Big Bend coast marked the start of a destructive trek into Georgia and South Carolina that also devastated eastern Tennessee and most of western North Carolina. Torrential rain from the storm triggered massive flooding that spawned between $8 billion and $14 billion in insured losses.

In the managed care sector, most insurers anticipate another decline in revenue and earnings per share. Of the nine largest publicly traded US managed care insurers, all but three — UnitedHealth Group, The Cigna Group and Molina Healthcare — are expected to report lower EPS from the second quarter, while seven are expected to log higher EPS year over year.

Among the five S&P 500 sectors projected to experience a drop in earnings, analysts expect the energy sector to post the steepest year-over-year loss with a 25.4% decrease in EPS, followed by the real estate sector with a 7.7% fall. The consumer discretionary, industrials and materials sectors stand to record more modest losses.

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Deep Dives

In-depth features looking at the impact of major news developments in key industries.

Financials

Street Talk:?Bank boards capitulating, pushing for scale to combat challenges

In the latest "Street Talk" podcast, three veterans from Raymond James said the operating environment remains challenging for many banks, but there is a growing acceptance and willingness to pursue deals to counter headwinds.

—Read more on S&P Global Market Intelligence.

European banks' capital offerings down 15% in 2024 as of end of September

As of Sept. 30, banks have raised €278.16 billion, down about 15% year over year from €324.28 billion.

—Read more on S&P Global Market Intelligence.

Japanese megabanks' implied upside surges after share prices drop

Steep declines in the stock prices of Japan's Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group pushed their implied upside to the highest level in at least three quarters, potentially making them attractive for investors.

—Read more on S&P Global Market Intelligence.

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Insurance

IN/sights 2024: Insurer risk officers flag evolving cyber, geopolitical risks

Guardian Life Chief Risk Officer Sarah Williams and Ascot Group Chief Risk Officer Steve Guijarro highlighted significant risks they are focused on during S&P Global Market Intelligence's Insurance IN/sights Symposium 2024 in New York City.

—Read more on S&P Global Market Intelligence.

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Real Estate

US equity REIT capital offerings nudge higher in September

US real estate investment trusts raised $7.13 billion through capital offerings in September, up around 1.5% from August, and 61.0% compared with a year ago.

—Read more on S&P Global Market Intelligence.

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Private Equity

Private equity and venture capital deal value up in Q3 2024

Global private equity and venture capital-backed investments rose to $161 billion in the third quarter of 2024 from $126.56 billion in the year-ago period, according to S&P Global Market Intelligence data.

—Read more on S&P Global Market Intelligence.

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Credit and Markets

After a month of buying, institutional investors back to selling stocks

Institutional investors sold off nearly $30 billion in stocks during the month of September, a sharp reversal from August when they bought nearly $6.82 billion worth of equities.

—Read more on S&P Global Market Intelligence.

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Energy and Utilities

Surging datacenter power demand fuels rally by utility stocks in Q3 2024

The utility sector kicked off the quarter on a somewhat flat note but started pulling ahead of the broader S&P 500 index by mid-July.

—Read more on S&P Global Market Intelligence.

US spot power prices fall in September on low gas prices, soft demand

On-peak spot power prices in the Lower 48 fell 21.51% year over year to an average of $36.57/MWh in September, according to S&P Global Market Intelligence data.

—Read more on S&P Global Market Intelligence.

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Technology, Media and Telecommunications

AI deepfake detection gains urgency ahead of US election

Pindrop CEO Vijay Balasubramaniyan talks to S&P Global Market Intelligence about how detection technology can be used to prevent fraud and cyberthreats from the misuse or impersonation of others' voices through AI-generated deepfakes.

—Read more on S&P Global Market Intelligence.

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Metals and Mining

Silver demand growth set to slow amid solar panel glut

The International Energy Agency pointed to a slowdown in solar photovoltaic manufacturing in its Renewables 2024 report.

—Read more on S&P Global Market Intelligence.

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Supply Chain

Three storms, three shortages: Supply chains wrestle to react to storms

While primarily human tragedies, hurricanes also provide significant challenges for supply chains.

—Read more on S&P Global Market Intelligence.

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The Week in M&A

Credit unions, upstate activity reheat frozen New York state M&A

Read on S&P Global Market Intelligence

US bank branch deals surge to 3-year high

Read on S&P Global Market Intelligence

US power sector's corporate M&A values rise, asset deal values slide in Q3'24

Read on S&P Global Market Intelligence

Antitrust regulators approve nearly all US oil and gas megadeals

Read on S&P Global Market Intelligence

Rio Tinto's $6.7B lithium deal leads metals, mining M&A for week ended Oct. 11

Read on S&P Global Market Intelligence

Deal Wrap: Firmament sells Pinnacle stake to Blue Point; Gimv divests beer maker

Read on S&P Global Market Intelligence

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The Big Number

—Read more on S&P Global Market Intelligence.

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Trending

—Read more on S&P Global Market Intelligence and follow Shipping by S&P Global Commodity Insights on LinkedIn.

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