Earnings will enter a recession, says Wunderlich Securities' Art Hogan, but drastically lowered estimates will make it easier for companies to beat targets. Fred Katayama reports.

Video Transcript:

It's kick off time — for the fourth quarter earnings season. Investors are worried that they'll see an earnings recession. Analysts have drastically revised earnings estimates lower for the latest quarter, mostly due to falling oil prices and worries about slowing growth in China. But JPMorgan Chase, the biggest U.S. bank, reported increased profit and revenue that beat estimates.

Wunderlich Securities' Chief Market Strategist, Art Hogan:

SOUNDBITE: WUNDERLICH SECURITIES CHIEF MARKET STRATEGIST, ART HOGAN (ENGLISH) SAYING:

"Of all the quarters we've seen in the last four, this is probably going to be the one that's the easiest to beat on the earnings line, but we'd like to see some healthy beats on the revenue line."

Expect earnings at S&P 500 companies to drop more than 4 percent in the fourth quarter for their second-straight quarterly decline, according to Thomson Reuters data. Revenues are expected to be slightly less bad - with a 3 percent fall.

SOUNDBITE: WUNDERLICH SECURITIES CHIEF MARKET STRATEGIST, ART HOGAN (ENGLISH) SAYING:

"We will indeed be in an earnings recession at the end of this earnings reporting season. Back out energy and we're actually doing ok. I think what's more important is, are we in a revenue recession. What's revenue growth look like and what does guidance look like for companies heading into 2016."