Core Viewpoint - Goldman Sachs CEO David Solomon has not yet formed a definitive opinion on whether U.S. public companies should reduce their earnings reporting frequency from quarterly to semi-annually, a topic recently raised by former President Trump [1][2][3]. Group 1: Current Reporting Standards - Current regulations mandate that publicly traded companies report earnings quarterly, while forecasts remain voluntary [4]. - Changes to these reporting requirements can be enacted by a majority vote at the U.S. Securities and Exchange Commission (SEC), which currently has a Republican majority [4]. Group 2: Arguments For and Against Change - Proponents of reducing reporting frequency argue that longer reporting cycles can still provide adequate financial disclosure, allowing companies to focus on long-term business strategies and investments [4]. - Opponents, including Solomon, caution that such a shift could reduce transparency for investors, emphasizing the importance of regular financial disclosures [4]. Group 3: Industry Perspectives - JPMorgan Chase CEO Jamie Dimon has criticized the quarterly earnings practice, suggesting it encourages a short-term focus detrimental to the economy [5]. - Charles Schwab CEO Rick Wurster expressed that any changes promoting a longer-term orientation could be beneficial for the economy, but acknowledged the ongoing demand from shareholders and analysts for regular communication [5][6].

Key Points European companies are only required to report earnings twice a year. Moving to semiannual reporting would free up time and money for companies, and potentially reduce short-term thinking. It would also deprive investors of valuable information. 10 stocks we like better than S&P 500 Index › Quarterly earnings reports might seem like a law of nature in the U.S. investing world, but not every publicly-traded company is delivering results every three months. It's specifically a requireme ...

Group 1 - President Trump proposed that companies should report earnings semiannually instead of quarterly, suggesting it would save costs and allow managers to focus on long-term strategies [10][22][39] - The debate centers around the balance between reducing the compliance burden for companies and maintaining transparency for investors, with concerns that less frequent reporting could disadvantage individual investors [14][23][42] - Historical context shows that the SEC initially required semiannual reporting in 1955, but shifted to quarterly in 1970, with some European companies allowed to report semiannually in recent years [12][13] Group 2 - Advocates for semiannual reporting argue it could lead to a greater focus on long-term planning and strategy, reducing the pressure of meeting quarterly expectations [40][41] - Critics highlight that less frequent reporting could create larger information gaps, potentially favoring institutional investors over individual ones [15][42] - Research indicates mixed outcomes regarding the impact of reporting frequency on market efficiency and company valuations, with some studies suggesting that more frequent reporting leads to smaller price jumps and cheaper fundraising [16][19] Group 3 - The Long-Term Stock Exchange (LTSE) is expected to petition the SEC regarding this issue, advocating for a focus on long-term investment strategies [17] - Investor groups prioritizing transparency are likely to push back against changes that reduce reporting frequency, emphasizing the need for frequent and comparable data [18][19] - The conversation around reporting frequency is part of a broader discussion on corporate governance and the pressures faced by companies in the current market environment [60][61]

So this is I you know welcome that uh that posting by the president and uh have talked to him about it and so you have to realize that right now uh semiannual uh reporting is no stranger uh to our markets foreign private issuers do it right now and uh and it was actually the rule until 1970 when uh the SEC promulgated the whole concept of 10 Q's. So there's been a lot of discussion over the past few years about how this uh quarterly reporting uh kind of emphasizes a short-term type of thinking. And I hear h ...

Core Viewpoint - The discussion around quarterly earnings reports is shifting, with President Trump advocating for fewer reports to benefit companies, which could have significant implications for the ecosystem of white-collar jobs that support these earnings processes [2][3][4]. Group 1: Impact on Companies - President Trump has requested the SEC to investigate the potential benefits of reducing the frequency of earnings reports, suggesting that it could save costs and allow management to focus on running their companies [2]. - A survey by Nasdaq indicated that in 2019, 75% of 180 companies favored a transition to semi-annual reporting, highlighting a strong preference within corporate America for fewer earnings disclosures [3]. - Companies have expressed that the costs associated with quarterly earnings reports are substantial, involving extensive preparation and coordination among various teams [4]. Group 2: Implications for White-Collar Jobs - The potential reduction in earnings reports raises questions about the future of white-collar professionals, including investor relations and communications experts, who play a crucial role in conveying a company's financial narrative [5][6]. - Despite the possibility of fewer reports, industry experts believe that the demand for information from investors will not diminish, suggesting that many companies may continue to provide quarterly updates even if allowed to report semi-annually [7]. - The current economic climate and advancements in artificial intelligence are putting additional pressure on white-collar jobs that support the earnings reporting ecosystem [4].

Core Viewpoint - The recent strong retail sales data indicates consumer resilience, suggesting a positive outlook for sectors like consumer discretionary, financials, and technology, despite muted reactions in the bond market [2][5][6]. Retail Sales and Consumer Behavior - Retail sales data showed strength across all categories, indicating that consumers are adapting to price increases and continuing to spend, which is crucial as consumer spending accounts for 70% of GDP [2][3][4]. - The revision of July data also supports the notion of a robust consumer environment, challenging previous market assumptions about consumer spending limitations [3][4]. Market Reactions and Sector Performance - The bond market's muted response to strong consumer data suggests that interest rates may remain stable, which could benefit sectors like consumer discretionary and technology [5][6]. - The Russell 2000 small-cap index is close to an all-time high, but small-cap companies, which often rely on borrowing, may need further interest rate cuts to sustain growth [16][17]. Federal Reserve Dynamics - The upcoming Federal Open Market Committee (FOMC) meeting is expected to be influenced by the recent retail sales data, with speculation around a potential 25 basis point cut [8][9]. - The dynamics within the Fed are complex, with new confirmations and ongoing court cases affecting decision-making processes [7][9]. Regulatory Considerations - The discussion around moving from quarterly to biannual earnings reports has resurfaced, with potential implications for transparency and market volatility [12][13][14]. - The SEC is prioritizing this issue, which could lead to significant regulatory changes affecting how companies report earnings [12][14].

Group 1 - The core proposal is to change the reporting frequency of publicly traded U.S. companies from quarterly to semiannual, which is argued to allow better business management by executives [1] - President Donald Trump has revived this proposal, indicating it is subject to SEC approval [1]