This US Stocks Earnings Season Worst Since 2009
$USO, $OIL, $UGA, $SPY
This US earning season is on track to be the worst since Y 2009 as profits from Oil & Gas and commodity-related companies dive.
So far, about 75% of the S&P 500 have reported results, with profits down 3.1% on a share-weighted basis. This would be the biggest Quarterly decline in earnings since q-3 of Y 2009, and the 2nd straight Quarter of profit declines. Earnings growth turned negative for the 1st time in 6 years in Q-2 of this year.
The damage is the biggest in commodity-related industries, with the energy sector showing a 54% drop in Quarterly EPS so far the Quarter, with profits in the materials sector falling 15%.
The earnings picture is brighter for the telecom services and consumer discretionary sectors, with EPS growth of 23 and 19% respectively so far this Quarter.
When compared with analyst expectations, about 72% of companies have beaten profit forecasts. That is only because the consensus has been sharply cut in the past few months
On the year, S&P 500 earnings are expected to fall 0.5%. For Y 2016, earnings growth is now seen at 7.9%, down from 10.9% forecast in late July.
Next year’s consensus for earnings is very optimistic because of the negative impact from the sharp slowdown in the US energy sector.
Thursday’s US major market indexes finished at: DJIA -4.15 at 17863.43, NAS Comp -14.74 at 5127.74, S&P 500 -2.38at 2099.93
Volume: Trade was average with about 870-M/shares changing hands on the NYSE.
- NAS Comp +8.3% YTD
- S&P 500 +2.0% YTD
- DJIA +0.2% YTD
- Russell 2000 -1.1% YTD
| HeffX-LTN Analysis for USO: | Overall | Short | Intermediate | Long |
| Neutral (-0.24) | Neutral (-0.14) | Bearish (-0.38) | Neutral (-0.22) |
| HeffX-LTN Analysis for OIL: | Overall | Short | Intermediate | Long |
| Neutral (-0.24) | Neutral (-0.24) | Bearish (-0.25) | Neutral (-0.22) |
| HeffX-LTN Analysis for UNG: | Overall | Short | Intermediate | Long |
| Very Bearish (-0.53) | Very Bearish (-0.62) | Bearish (-0.47) | Very Bearish (-0.50) |
| HeffX-LTN Analysis for SPY: | Overall | Short | Intermediate | Long |
| Neutral (0.09) | Neutral (0.19) | Neutral (0.10) | Neutral (-0.03) |
Stay tuned…
HeffX-LTN
Paul Ebeling
The post This US Stocks Earnings Season Worst Since 2009 appeared first on Live Trading News.