By Sarah Roden
Companies are beginning to report third quarter earnings after a summer impacted by economic uncertainty in Asia. Major banks including Bank of America Corp (NYSE:
Bank of America
Bank of America (NYSE:
BAC fell nearly 10% in the third quarter. The company is working to return to levels of assets and revenue achieved before the 2008 financial crisis. Last quarter, the company’s legal costs dropped as it settled a large bulk of claims. The significant decrease of legal claim backlog will boost earnings this quarter. Now, investors are looking forward to Bank of America changing its tactics and rhetoric from the defending legal claims to focusing on growth and revenue.
Thirteen of the 16 analysts polled by
Major bank JPMorgan Chase & Co. (NYSE:
The company will be the first major U.S. bank to post earnings this quarter and analysts will be looking for changes in FICC (fixed income, currencies, and commodities) revenue. Due to steady foreign exchange rates and low commodity prices, analysts expect a 17% decrease in this figure. The financial sector has underperformed this quarter, growing only 8.4% compared to expectations of 14.8%.
According to the nine analysts polled by
General Electric Company (NYSE:
Investors should look for notes on the company’s progress in its effort to shrink its financial segment. In April, GE announced its intentions to sell most of its capital assets and return to its industrial roots. The company is now facing pressure to execute change as Trian, a hedge fund operated by activist investor
According to the four analysts polled by
Online streaming company Netflix, Inc. (NASDAQ:
Investors are keeping an eye on the competition as Hulu and Amazon begin to increase efforts to create original content. Netflix spends a significant amount on creating original content such as Orange Is the New Black, House of Cards, and most recently, Narcos. Although the website continues to increase its collection of impressive shows, analysts are worried that a recent price hike will take a toll of subscriber levels. Last month, the company announced a $1 increase to its monthly plan for new users, though it promised current users that the hike would only be implemented in two years.
According to the 28 analysts polled by