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Stock impact report

Banks head into fourth quarter priced for perfection [BNN Bloomberg (Canada)]

Canadian Imperial Bank of Commerce (CM) 
Last canadian imperial bank of commerce earnings: 2/26 05:53 am Check Earnings Report
Company Research Source: BNN Bloomberg
Heading into fourth-quarter results that kick off Dec. 2, valuations are even higher, but analysts are somewhat divided on whether it means market optimism has overshot underlying economics risks. Earnings come as the overall Canadian economy has been shaky. GDP shrank 0.4 per cent in the second quarter, while expectations are that it could show a modest 0.5 per cent gain for the third. Unemployment has stayed elevated, coming in at 6.9 per cent for October. Uncertainty caused by U.S. trade policy has also helped keep home sales below long-term trends and left businesses hesitant to invest. The overhangs have meant loan growth at banks has also been modest, but analysts still expect earnings to be boosted by buzzing capital markets, wealth management and steady performance in other divisions. “We expect another solid quarter from the large Canadian banks to end a very strong year,” said Scotiabank analyst Mike Rizvanovic in a note. The encouraging outlook comes as Rizvanovi Show less Read more
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