U.S. stocks advance amid signs of progress on debt-ceiling talks

Recession Risk

“If there is that degree of disruption, that lack of certainty, that lack of trust in the U.S. signature, it would mean massive disruption the world over,” Lagarde said in an interview on NBC. “And we would be at risk of tipping, yet again, into recession.”

In China, exports unexpectedly fell 0.3% in September from a year earlier, according to a report from the General Administration of Customs on Oct. 12. That trailed all 46 estimates in a Bloomberg survey.

The S&P 500 has gained 1.7% since the shutdown began Oct. 1 after rallying 4.7% in the third quarter as the Federal Reserve unexpectedly maintained the pace of monetary stimulus and corporate earnings surpassed estimates.

Third-quarter earnings season resumes tomorrow with expected reports before the market opens from Citigroup Inc., Coca-Cola Co., Johnson & Johnson and Omnicom Group Inc. Yahoo Inc. and Intel Corp. are scheduled to report after the market closes.

Profits for companies in the S&P 500 probably increased 1.4% during the three months while sales rose 2%, according to analysts’ estimates compiled by Bloomberg.

JPMorgan Chase & Co. and Wells Fargo & Co. last week began the earnings season for banks. JPMorgan reported its first quarterly loss under Chief Executive Jamie Dimon amid a $7.2 billion charge to cover the cost of litigation and regulatory probes. Wells Fargo reported record profit even as mortgage banking revenue plunged 43%.

www.bloomberg.com

<< Page 2 of 2

Copyright 2014 Bloomberg. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Comments
comments powered by Disqus