Trading statements beat Q3 market expectations

Almost 300 of America's largest firms issued profits warnings in October, while less than 100 suggested profits would beat expectations, according to Barclays Global Investors (BGI). Haydn Davies, chief economist at BGI, says: 'At the beginning of the month, stock markets seemed to be in freefall as investors reeled from a host of profit warnings from US firms. Investors had been braced for some disappointing trading statements but they were not expecting firms to be quite so pessimistic.' Davies says the slew of warnings spurred a downgrading of market expectations and resurrected ...