MBA FaceOff Blog

"What's On the Horizon as Earnings Approach?"

Matthew R. Stoeckle

Its October, the leaves are starting to change, Halloween costumes are in stores, ciders are starting to be spiked and apparently you can flavor anything with pumpkin and sell it (beer, coffee and even ice cream). It also means that Q3 earnings are upon us.

We just had a nice 7 day run in the market where it seemed like Europe was getting closer to an answer, the dollar strengthened and there was a slightly positive tone in the jobs market. But, I guess all good things do come to an end. Earnings season started with Alcoa disappointing and now it looks like financials might let us down once again. JPMorgan’s earnings were disappointing after decent results in Q2 and the outlook for the rest of the banking sector and financials at large will likely suffer because of this.

It has proven difficult to stay the course of a long-term strategy in this 10-week competition…especially when there are no commissions on trades. That being said, our team is committed to our strategies (event driven M&A, Earnings Surprises, Leveraged ETFs, Currency, and Commodities) and we are on the hunt for companies that have capitalized on the positive economic indicators and have solid market technicals. We plan on evaluating consumer products companies and retailers during this period because of the strong numbers that have been seen in retail sales and same store sales in recent months.

It should be an interesting couple of weeks as more companies report their Q3 earnings.


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