Not a great indicator of market strength

JonBooth

Newbie
2 1
In the U.S, Q2 2019 earnings season is rolling! Whaley Global Research (whom I got this from) is not aware of any other firm calling for an earnings recession (two consecutive quarters of contracting earnings growth) this year, but I’m standing by mine. The aggregated earnings growth of the companies that have reported so far is an anemically low single-digit and trending towards contraction.

So far, 449 of the 497 companies in the S&P 500 have reported aggregate sales and earnings growth of +3.9% and +2.3% year-overyear, respectively:

• All 68 financials companies have reported aggregated sales growth of +2.7% and earnings growth of +3.0%.

• All 27 basic material companies in the S&P 500 have reported their Q2 results. The aggregated sales growth of those companies is -21.4% and earnings growth registered a crashworthy -13.4%.

• We’ve had 66 (of 68) industrial companies announce earnings. Sales growth for those companies is +1.5%, while aggregated earnings growth is expanding at a pace of just +2.6%.

• Tech companies are on the board as well. Fifty-three of the 67 companies in the index have reported an average sales growth of -0.47% and a contracting earnings growth of -6.6%.

• One of the larger components of the S&P, in terms of the number of companies, is the consumer discretionary sector. So far, 41 of the 61 companies have reported aggregated sales growth of +6.6% and earnings growth of -1.4%.

• All of the energy companies in the S&P 500 have reported aggregated sales growth of -2.1%, and earnings growth of -2.2%.
 

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