Chicago, Oct. 16, hot stock picks .- The bar is so low for third quarter profits that the earnings season may end up leaving some stock market bargains in its wake. Tuesday is the biggest reporting day so far for third quarter reports, expected to show the first cumulative profit decline in three years. Thomson/Reuters expects S&P 500 earnings to drop 2.3 percent from a year ago.
Goldman Sachs, Coca-Cola, Johnson and Johnson, United Health, Domino’s Pizza, PNC, State Street and Mattel are among companies reporting Tuesday before the opening bell. IBM, Intel, Cree, CSX and Intuitive Surgical report after the market close.
The message from multinationals, so far, is that soft global growth is hurting profits. The worst hit sectors are those that flourish when the developing world is growing – materials and energy. The ratio of companies guiding negatively versus positively on their earnings this quarter was 4.1 to one, the worst since the third quarter of 2001.
124.50
4.30
+3.58%
6,227,952
38.13
-0.10
-0.26%
13,558,178
68.60
0.63
+0.93%
14,563,404
57.49
0.42
+0.74%
4,160,975
38.24
0.54
+1.43%
792,539
62.93
0.20
+0.32%
3,006,654
41.58
0.20
+0.48%
3,461,220
35.42
-0.59
-1.64%
4,118,063
208.93
1.13
+0.54%
3,000,744
21.73
0.2497
+1.16%
48,837,146
25.45
0.34
+1.35%
1,046,613
21.45
0.14
+0.66%
5,222,113
512.53
17.95
+3.63%
464,756
It could be that the companies that are influenced by the U.S. consumer will perform better than expected, according to James Paulsen, Wells Capital Management chief investment strategist. “One of the things we’re finding out there is the domestic consumer is in much better shape than we thought 30, 45 days ago,” he said, noting that consumer sentiment rose to a five-year high and September retail sales were better-than-expected. “I’ve got a feeling retail establishments could report maybe better than anticipated.” ... Continue to read.
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