Gregory Branch, Veritas Financial Group managing partner, and Julie Biel, Kayne Anderson Rudnick portfolio manager and senior research analyst, join ‘Squawk Box’ to discuss the latest market trends, earnings season so far, the Fed’s inflation fight, and more. For access to live and exclusive video from CNBC subscribe to CNBC PRO:
» Subscribe to CNBC TV:
» Subscribe to CNBC:
Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide.
Connect with CNBC News Online
Get the latest news:
Follow CNBC on LinkedIn:
Follow CNBC News on Facebook:
Follow CNBC News on Twitter:
Follow CNBC News on Instagram:
#CNBC
#CNBCTV …(read more)
BREAKING: Recession News
LEARN MORE ABOUT: Bank Failures
REVEALED: Best Investment During Inflation
HOW TO INVEST IN GOLD: Gold IRA Investing
In the world of finance, the term “earning recession” is not a new phenomenon. It refers to a period of consecutive quarters where corporate earnings decline compared to the previous year. While various sectors may go through such phases at different times, it is crucial to identify those sectors that are currently experiencing an earnings recession. According to Julie Biel, a portfolio manager at Kayne Anderson Rudnick, certain sectors are already facing this challenging situation.
One of the sectors that is deeply affected by an earning recession is the energy sector. Biel explains that declining oil prices have had a far-reaching impact on energy companies, resulting in a significant drop in their earnings. As a result, many firms in the sector have been facing financial difficulties and struggling to maintain profitability. The decrease in demand due to the pandemic and the ongoing transition towards cleaner energy sources have further exacerbated the situation, making it a challenging time for energy companies to recover.
Another troubled sector is the financial industry. Biel highlights that low interest rates, coupled with decreased economic activities and a rise in loan defaults, have severely impacted financial institutions’ earnings. This can be particularly observed in banks, which heavily relied on interest rates as a primary source of revenue. With the Federal Reserve keeping rates at historically low levels, banks are forced to navigate this challenging environment and explore alternative sources of income.
Furthermore, the consumer discretionary sector is also struggling. Biel points out that consumer spending has significantly declined, as people have become more cautious about their expenses given the uncertain economic outlook. This decrease in demand has hit companies in the sector hard, ultimately leading to declining earnings.
While the sectors mentioned above are undoubtedly experiencing an earning recession, it is essential to note that some industries are thriving amidst these challenges. Technology and healthcare, for instance, have seen improved earnings due to increased demand for digital solutions and healthcare services. However, these industries cannot single-handedly outweigh the negative impact on the broader market.
The earning recession faced by certain sectors not only affects the companies within these industries but also has wider implications for the overall economy. Decreased earnings can lead to job cuts, reduced investment, and a slowdown in economic growth. Additionally, it can have a profound impact on investor sentiment and market performance.
As the world continues to grapple with the ongoing effects of the pandemic, it is uncertain how long the earning recession will persist in these specific sectors. Nevertheless, investors and market participants must pay close attention to these industries and adapt their strategies accordingly. Diversifying investments across different sectors and staying well-informed about the trends and developments in each industry can help investors navigate through these challenging times.
In conclusion, certain sectors, such as energy, finance, and consumer discretionary, are currently experiencing an earning recession. Julie Biel of Kayne Anderson Rudnick highlights the various factors contributing to the decline in earnings within these industries. Understanding the impact of an earning recession on specific sectors is crucial for investors and market participants to make informed decisions and adapt their strategies accordingly.
Recession fears mount on Wall Street and inflation remains well above the Fed's 2% target, some of the top commentators in markets, business, and economics have been sounding off on just how bad they think the next downturn might be — and how far stocks may have to fall. I need ideas and advice on what investments to make to set myself up for retirement, my goal is to have a portfolio of at least $850k at the age of 60.
A recession as bad it can be, provides good buying opportunities in the markets if you’re careful and it can also create volatility giving great short time buy and sell opportunities too. This is not financial advise but get buying, cash isn’t king at all in this time!
"Big Short" investor Steve Eisman said the sizzling stock market rally of 2023 can run on as long as the US economy stays strong. I’ve been sitting on over $345K equity from a home sale and I’m not sure where to go from here, is it a good time to buy into stocks or do I wait for another opportunity?
Stocks extended their year-to-date rally following the CPI report, with the S&P 500 last up 0.8% in afternoon trading. but I don't know if stocks will quickly rebound, continue to pull back or move sideways for a few weeks, or if conditions will rapidly deteriorate. I am under pressure to grow my reserve of $250k.
These two are money managers? What?
Greg only buys at the top
Don't ask these analysts what FED will do. Ask them what they will do.
man Greg just can't let the FED go, half a year after the market has…. strange.
America bote libing 2024 mundial
Kanye is the GOAT
Wonder if shows like this that have extremely low viewership, that are propped up by wealthy donors will ever go away.
I still foresee a 10% to 20% pull back end of 2024.
Making money is action. keeping money is behavior. Growing money is knowledge. I'm excited I started earning upto 15thousand dollars extra income.
What has been fixed in the economy? Consumer spending is propping up this house of cards. Add to it weak banks and bad government fiscal decisions.
Euphoria doesn’t make an economy. Worker production and creation of capital markets is what this country needs. Not quiet quitting or “not”working from home. Staring with every government employee, back to offices.