Hot inflation slows 3Q earnings growth forecasts

Wall Street expects the latest round of quarterly profits to show burn marks from the hottest inflation in four decades, and the damage could linger into 2023.

Analysts have been trimming their forecasts, especially in the retail and communications sectors, as inflation drives up costs and saps consumer spending on everything from food to clothing. Companies within the broad S&P 500 index are expected to notch earnings growth of roughly 2.6%, down from June projections of 9.5% growth.