Today is Tuesday, October 11, 2022, and here’s your weekly selection of essential intelligence on financial markets and the global economy from S&P Global Market Intelligence. Subscribe to be notified of each new Insight Weekly
In this edition of Insight Weekly, we continue to examine U.S. stocks. The bear market risks declining further if third-quarter earnings fall short of optimistic outlooks. S&P Global Market Intelligence economists forecast that S&P 500 earnings per share will decline in 2022 and grow modestly in 2023. The strength of the dollar has impacted stocks with overseas exposure: the S&P 500 Foreign Revenue Exposure Index fell more than 28.9% from the start of 2022 to the end of September, according to S&P Dow Jones Indices. The Federal Reserve continues to tighten monetary policy to constrain inflation, causing the median return for major U.S. bank stocks to fall to negative 4.3% in September.
Only 15 U.S. bank branch acquisition deals have been announced in 2022 as of Sept. 28, down from 44 in all of 2021, according to an analysis by S&P Global Market Intelligence. Digitization and online banking have forced banks to cut down on their branch networks. At the same time, banks are looking to strike a balance between increasing digital adoption and maintaining a physical footprint.
U.S. companies that accumulated debt to fortify their balance sheets as the COVID-19 pandemic swept the globe now are burning through their cash reserves in order to pay down debt instead of refinancing at higher costs. Debt ratios are notably lower compared to the pre-pandemic era.
The Big Number
Forecast of cloud gaming revenue by 2026
Capital IQ Pro link
Seek & Prosper
Essential Intelligence from S&P Global — a powerful combination of data, technology, and expertise — helps you push past the expected and renders the status quo obsolete. Because a better, more prosperous future is yours for the seeking.
Additional Insights from S&P Global Market Intelligence
Increase your competitive edge with essential insights delivered straight to your inbox. We offer complimentary newsletters on a wide variety of topics to help you stay on top of what’s moving the markets, separating the immaterial from the invaluable. Review our newsletters and sign up here.
IHS Markit is now part of S&P Global.
Written and compiled by Alex Virtucio