Bank of America announced a 4 percent drop in net income for the final quarter of 2019, while that of Goldman Sachs fell by 24 percent.
Investors, meanwhile, are eyeing numbers closely as the financial reporting season comes into full swing and income growth of firms listed on the S&P 500 in previous quarters has remained flat.
Stock markets have performed well despite near-zero corporate earnings growth, with many investors anticipating a turnaround in profits in 2020 as global growth stabilizes and trade tensions diffuse.
“The market rally indicates that investors expect higher earnings growth again in 2020,” Alexander Voigt, Founder and CEO at daytradingz.com, told The Epoch Times in an email. “The China trade deal and presidential elections are the main influential factors. I expect a stronger outlook during the current earnings release period and a subsequent higher earnings growth for 1Q20 and 2Q20,” he added.
Others expect lackluster figures…CLICK for complete article