Two of the other big industry sector losers: information technology at 7.2 per cent and materials at 5.7 per cent. Mr Butters said it is "interesting to note" that energy, information technology and materials "are three of the four sectors with the highest international revenue exposures in the index". Utilities, up 1.8 per cent, and health care, up 0.2 per cent, were the two sectors were EPS estimates were lifted for the first half. In a note dated January 11, Mr Butters said in aggregate, companies were reporting earnings that were 3.2 per cent above the estimates, which was below the five-year average. In terms of sales, fewer companies (56 per cent) were reporting actual sales above estimates compared to the five-year average. Earnings season in the US began last week and has begun to accelerate this week. "The blended (combines actual results for companies that have reported and estimated results for companies that have yet to report), year-over-year earnings growth rate for the … [Read more...] about S&P 500 first-half EPS estimates cut by largest percentage in four years
Earnings growth sp 500
"The BofA Merrill Lynch Research team is bearish stocks, bonds, and the US dollar; bullish cash and commodities; and long on volatility. We expect to turn tactically risk-on in late spring [in the US], but to start 2019 with a bearish asset allocation of 50 per cent stocks, 25 per cent bonds and 25 per cent cash." Still, it's not all negative for US equities. "Earnings growth also is likely to slow in the US, though the near-term outlook remains somewhat positive. "The Standard and Poor's 500 Index is expected to peak at or slightly above 3000 before settling in at a year-end target of 2900. We forecast earnings per share (EPS) growth of 5 per cent, which would put the S&P 500 EPS at a record high of $US170 next year. Our US equity strategists are overweight health care, technology, utilities, financials and industrials, and underweight consumer discretionary, communication services and real estate." The S&P 500 closed at 2700.06 on Tuesday in New York. US markets are closed on … [Read more...] about S&P 500 earnings to peak in 2019: Bank of America Merrill Lynch
-A +A (Nov 27): Mike Wilson, the biggest equity bear on Wall Street whose prediction has proved prescient this year, has a similar outlook for 2019. The chief U.S. equity strategist at Morgan Stanley forecast that the S&P 500 will end next year at 2,750, the same level he forecast for 2018. That’s about 3 percent above the index’s current level. With five weeks to go for the year, Wilson’s is by far the closest of all estimates to coming true. Wilson has stood out this year in predicting a “rolling bear market,” where financial assets suffer a series of blows amid rising interest rates and a less-synchronized global economic expansion. That’s just how things have unfolded, with turmoil in emerging markets followed by a tech-led rout in U.S. equities and then a sell-off in the credit market. Prospects for a “material” deceleration in corporate profits underpin Wilson’s persistent caution. As the benefit from tax cuts wears off … [Read more...] about Analyst Who Nailed 2018 Has Same S&P 500 Forecast for 2019
-A +A NEW YORK (Nov 16): The S&P 500 edged lower on Friday as gains in energy stocks were offset by declines in chip and retail companies, after weak results from Nvidia and Nordstrom. Energy stocks rose 0.6 percent as oil prices recovered from sharp losses this week on expectations that OPEC and its allies would agree to cut output next month. Markets opened lower following weak forecasts from Nvidia Corp and chip equipment supplier Applied Materials Inc , which fell 17.6 percent and 1.9 percent respectively. The Philadelphia Semiconductor index was down 1.9 percent, while technology stocks fell 0.5 percent. "Technology has been a sector that has been the most overvalued this year. Despite the fact that these are strong US companies and will continue to generate earnings growth, what is priced into the market is almost perfection," said Andrew Lill, Americas chief investment officer of Morningstar Investment Management in Chicago. Taking some pressure off the markets were comments … [Read more...] about S&P 500 edges lower on chip, retail weakness
Adam Shell USA TODAY Published 5:42 PM EDT Oct 29, 2018 Wall Street took investors on a wild ride Monday, with the Dow swinging more than 900 points before closing down for the day. The Standard & Poor's 500 also shifted violently but avoided ending in official "correction" territory. The latest sell-off was prompted by renewed tariff worries. The Dow Jones industrial average rose more than 350 points in morning trading before going into a free-fall that dragged it down 566 points from Friday's close. When trading ended, the blue-chip average was down 245 points, or 1 percent, at 24,443. The broad S&P 500, which was up as much as 2 percent and fell nearly 4 percent from its high point for the day, closed down 0.7 percent at 2641.25 – or 9.9 percent off its Sept. 20 high. That left the index just shy of the 10 percent drop needed for a correction. Stocks, which have been under pressure for weeks since the S&P 500 hit … [Read more...] about How did stock market do today? Wild day but S&P 500 avoids correction.