Canada markets close in 2 hours 37 minutes
  • S&P/TSX

    20,801.55
    +50.50 (+0.24%)
     
  • S&P 500

    4,180.11
    +60.90 (+1.48%)
     
  • DOW

    33,998.34
    -94.62 (-0.28%)
     
  • CAD/USD

    0.7513
    -0.0014 (-0.19%)
     
  • CRUDE OIL

    76.80
    +0.39 (+0.51%)
     
  • BTC-CAD

    32,054.04
    +1,270.21 (+4.13%)
     
  • CMC Crypto 200

    550.72
    +5.40 (+0.99%)
     
  • GOLD FUTURES

    1,927.70
    -15.10 (-0.78%)
     
  • RUSSELL 2000

    1,999.96
    +39.15 (+2.00%)
     
  • 10-Yr Bond

    3.3800
    -0.0170 (-0.50%)
     
  • NASDAQ

    12,198.33
    +382.01 (+3.23%)
     
  • VOLATILITY

    18.10
    +0.23 (+1.29%)
     
  • FTSE

    7,820.16
    +59.05 (+0.76%)
     
  • NIKKEI 225

    27,402.05
    +55.17 (+0.20%)
     
  • CAD/EUR

    0.6876
    +0.0031 (+0.45%)
     

J.P.Morgan cuts 2023 S&P 500 earnings forecast by 9%

A person enters the JPMorgan Chase & Co. New York Head Quarters in Manhattan, New York City

(Reuters) - J.P.Morgan on Thursday cut its 2023 earnings forecast for S&P 500 companies, citing weaker demand and pricing power, margin compression, and limited buy-backs.

JPM strategists now estimate S&P 500 earnings per share for next year to be $205, down 9% from an earlier forecast of $225.

They also flagged that the S&P 500 index could "re-test" this year's low of 3,491.58 in the first six months of 2023, as the U.S. Federal Reserve's monetary policy tightening weakens fundamentals.

"This sell-off combined with disinflation, rising unemployment, and declining corporate sentiment should be enough for the Fed to start signaling a pivot, subsequently driving an asset recovery," they said, adding that the index could claw back up to 4,200 by year-end, to reflect a near 3% upside from current levels.

(Reporting by Subhadeep Chakravarty and Siddarth S; Editing by Dhanya Ann Thoppil)