The forecasters of the Wall Street who are eternally optimistic expect the growth of corporate profits to surge by mid next year. These views are soon going to face a reality check as many companies are going to report their financial results and update their investors on their prospects.
This is a ritual which the American companies go through every quarter as they share their financial statements as well as hold conference calls in which they often offer their future expectations for the next quarters. The process is called by Wall Street as guidance. For the current quarter it is beginning on Tuesday with the reports from a lot of big banks
In the midst of such reports, the executives continuously issue their guidance in an attempt to nudge the expectations up or down through their speeches at events and conferences so that the actual results are not a shock to their investors.
Off-late there has been less of the in-between nudging which could make the reports this time more important than it usually is.
Experts have said that the companies have begun doing what they usually do at the time of uncertainty which is stopping the issuance of guidance in other words they begin to go dark.
In the three months which have ended in the month of September, the companies in S&P 500 had offered the least amount of updates either positive or negative to the investors after 2000 as per the analysts of the bank.
This rampant uncertainty is referred to the flows of resources from a lot of sources, which are signs of slowdown in the economy and growth and evidence that the manufacturing industry may be in a state of recession already.