4 Things Worrying Corporate Executives Right Now

• Analysts at JP Morgan highlighted four key themes from Wednesday's trading session that are worrisome for executives.
• The analysts discussed concerning issues stemming at Delta Air Lines, Inc. DAL, Linear Technology Corporation LLTC, Wal-Mart Stores, Inc. WMT, and Bank of America Corp BAC.
• With the exception of Wal-Mart, the three other issues ended Wednesday's session in positive territory.

Analysts at JPMorgan highlighted four key themes that presented themselves on Wednesday and are worrisome for executives.

Delta Airlines: ‘Seeing A Bubble'

Following Delta Airlines third-quarter print, management hosted a conference call with analysts.

JPMorgan's analysts highlighted a specific phrase that management said: "We're seeing a huge bubble in excess wide-body airplanes around the world." The executives did add that the aircraft market is "going to ripe" for the company over the next 12 to 36 months but the weakness it identified is going to spread to narrow bodies. However, that will create "huge buying opportunities" as low interest rates "have created a huge wide-body bubble in the world."

Related Link: Wal-Mart's Crashing Because It Over-Earned (Here's How To Play The Dip)

Linear Technology: ‘Down Cycle' Not Over Yet

Shares of Linear Technology spiked higher on Wednesday after management said on a conference call that the worst of the inventory correction within the semiconductor space is "behind us."

The executives noted that they said last quarter that the correction would be a "relatively short one." However, the executives added that they are "not yet ready to say we were right" but are still sticking with the view that the down cycle "does not appear to be one that will be prolonged" as it takes "at least a few quarters" for inventories to be rebalanced.

Commenting on China, the executives are "just sort of standing back and listening to the sentiment. They added that the Chinese economy is "still going to grow" and "people are doing well there."

Wal-Mart: EPS Decline of 6-12% In Fiscal 2017

Shares of Wal-Mart plunged after the company issued forward looking guidance and commentary as part of an Analyst Day event.

JPMorgan's analysts singled management's commentary that its operating income will be impacted by around $1.5 billion from the second phase of a previously announced investment in wages and training. The executives add that they also expect its earnings per share to decline 6 to 12 percent in fiscal 2017. However, over the next three years the company expects to see tremendous sales growth.

"This is a growth company, it just happens to be a really large growth company."

Bank Of America: Revenue Growth ‘Challenging'

Finally, Bank of America reported a better-than-expected third-quarter print on Wednesday. However, JPMorgan's analysts focused on commentary from the bank's post-earnings conference call where executives said that "revenue growth remains challenging in this interest rate environment."

The executives added that it is important for them to focus on variables that are under their control that can yield "sustainable" profits and returns. Specifically, the company kept their costs "in check" while investing in their business.