3Q S&P EPS Could Near $30 Amid Big Declines: Deutsche Bank

Deutsche Bank’s profit indicator suggests 3Q S&P EPS had little or no growth from 2Q and the firm’s analysts believe that unless oil climbs sharply, quarterly S&P EPS will likely be $30-$31 through 1H17.  The DB analysts, led by David Bianco, said in their September 9 research piece titled “Death of volatility? A risky view” that they believe 3Q S&P EPS results will not impress, with companies lowering their 2017 expectations.

8% to 10% S&P EPS decline looms

Bianco and team point out that S&P realized volatility has been extremely low for the past six weeks. However, they believe the trend is the quiet before the storm. They ascribe five catalysts to enhanced volatility this autumn, such as macro data suggesting an “L shared”...