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Stock impact report

Banks head into fourth quarter priced for perfection [Investment Executive - News]

Canadian Imperial Bank of Commerce (CM) 
Last canadian imperial bank of commerce earnings: 2/26 05:53 am Check Earnings Report
Banks went into last quarter’s earnings results with analysts worried they might not be able to justify lofty valuations, only to have almost all of the banks handily beat earnings expectations. 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% in the second quarter, and although Q3 saw a rebound of 2.6% — as opposed to expectations of a modest 0.5% gain — early estimates for October again pointed to contraction. Unemployment has stayed elevated, coming in at 6.9% 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 m Show less Read more
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