Morning Stock Talk - Phil Dow: Corporate guidance is clearing up

While "there might be some concern about nonperforming assets and possible loan losses" when it comes to financials, Phil Dow, the director of equity strategy at RBC Wealth Management says the bulk of their profit results are still pretty good. He says "profit margins are high for these institutions" and that they'll probably be able to work their way out of the downturn. When it comes to what he's seen so far for all companies reporting, Dow says "this time you're getting a little bit better guidance perspective from companies." And while he tells Steve Potisk "that's not always good...it gives you a better picture of the future." According to Dow that future is bright with most analysts saying in the fourth quarter, "you're going to have a pretty dramatic turn in terms of earnings versus last year, to the positive."

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Dow Jones' MarketWatch Morning Stock Talk discusses the big stock movers, economic data and investment trends with Wall Street's top analysts, strategists and traders. Hear about what's driving the stock market from those in the know..