Banks, lenders and other financial companies rose slightly ahead of earnings reports.
Wall Street estimates remain conservative for third-quarter earnings season and this could mean continued strength for financials, technology and energy stocks, said one brokerage. "We've noticed a pattern over the past few quarters: US equities rally sharply into earnings season as investors realize earnings estimates are too low," said analysts at brokerage Morgan Stanley, in a note to clients. "We think the third quarter will be no different given the low earnings-per-share growth currently assumed and low negative-to-positive guidance ratio leading into earnings season."
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One likely exception to the positive tone of financial earnings, according to Morgan Stanley and others: insurance companies. "Overall earnings from the group will struggle, as the insurers take some $100 billion in insured losses due to the hurricanes," said Ryan Detrick, senior market strategist at brokerage LPL Financial. Meanwhile, "banks and other financial institutions will need to impress to warrant their big moves recently."
Indonesia is investigating whether dozens of citizens with trust accounts at Standard Chartered owe taxes after a transfer of $1.4 billion from Guernsey to Singapore in 2015.
Rob Curran, firstname.lastname@example.org
(END) Dow Jones Newswires
October 10, 2017 16:33 ET (20:33 GMT)