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Strong third quarter earnings.
By the way that brings a number of S&P 500 companies that have reported so father 275.
Have beaten analysts' estimates bringing the beat rate to about 63%.
Expectations -- -- -- halfway into this earnings season what themes are we seeing a spring in -- Scott Wren senior equity strategist stuff.
But Wells Fargo advisors will Scott let's bring the start but that's that's 63% -- -- better than what we expected going in the this earnings season.
T -- actually it really is it's a it's a little bit better you know most of these earnings seasons we've seen over the last.
The last two or three years it's been you know 65 to somewhere maybe in the low seventy spent.
We're initially a touch below sixty a little earlier after about a quarter of the company's reported.
But -- 63% it is a little bit better and I would -- expected to get too much higher.
-- as we go through the second half of the reporting season so where does that lead to -- for -- of the fourth quarter where what are you expecting something slightly better -- a nice rebound.
Yeah I think I think slightly better I think you know if -- -- something in the mid to have maybe upper single digits something like that.
The consensus a few months ago was for something higher than that but it's come down but you know we have a 103 number out there for the full year and I think we're gonna.
I think we're gonna end up end up pretty close to that but you're really actually for us you know working -- -- retail clients and we want those clients -- third third quarter earnings that's a lagging indicator you know fourth quarter were and that right now we want we want our clients you know we -- what's gonna happen over the next you know four -- five quarters so yeah we don't want them to focus heavily on the fourth quarter.
It's you know it's going to be -- -- to be better -- allows -- third quarter but you know -- what we weren't focused out of what's going on in 2013.
What about the profit margins.
Scott -- companies are getting used to being able to operate quite quite well with -- with regard to work is send up.
I can see that -- cut costs will go up overheads will go up how much of the profit margins going to be affected going forward.
Well you know we've had -- we've had you know great margins here for vote for a for a really of much of this.
Much of this recovery and they're not at their highs but they're pretty close.
And if and if I look ahead I think in GDP is going to be a little bit better next year maybe two and a half percent I think China has a decent chance of maybe.
Lifting in terms of their GDP next year.
Might be a chance that you know Europe is less bad I don't -- think -- -- -- but be less bad.
You -- all all of those things mean that business will be a little bit better I think companies have stripped out about all the costs they can't.
Other likely to continue hiring people albeit a slow pace so.
You know these margins you know they may stay at elevated levels vs history.
But I don't think we're going to see -- make new highs again.
Well before -- -- -- Scott what about targets on the -- some pain you from what I see here 1411450.
For this year but looking ahead what are you what are you targeting.
Well actually a couple of weeks -- released our target for your next your fifteen and a quarter 1575.
Or else we -- in the middle of our range that's gonna be a nice year in 2013.
That you'd like to see more of a pullback you say.
What would love to I mean I think pullback as an opportunity.
We can buy stocks cheaper if we think they're going to finish at that range at the end of 2013.
We want our clients in -- in -- looking to buy.
Yep -- dip all right thank you so much Scott -- -- Wells Fargo appreciate it.
Thanks for joining us thanks -- Good thing you can continues -- dismal earnings season kindness and a while he says fourth quarter -- a little -- but really should be looking to tonight.
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