How Will US Election Affect This Earnings Season?

Capital_Insights
11-05

During the Q3 earnings season, many S&P 500 companies mentioned the potential impact of the upcoming U.S. election on their business operations.

Between September 15 and October 31, 116 out of 324 companies (36%) referred to the term “election” in their earnings calls. This number is higher compared to the 102 companies that mentioned the election during the same period in 2020.

  • The Industrials and Financials sectors led in election-related mentions, with 30 and 27 companies, respectively.

  • The highest percentages were found in the Industrials (48%), Consumer Discretionary (46%), and Financials (45%) sectors.

  • Notably, 38 companies reported economic or business slowdowns linked to election uncertainty, but many anticipate conditions will improve post-election.

Only a few companies referred to specific candidates, with "Harris" mentioned by 3 companies and "Trump" by 6.

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However, policies were a more common discussion point, with tariffs and trade cited by 7 companies, followed by housing and regulations (4 each).

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