We’re midway through earnings season for 2015’s fourth quarter and the results appear rather grim. While large-cap corporations’ earnings were clobbered by substantial global exposure, their small-cap counterparts don’t look particularly good either.
S&P 500’s Q4 2015 Scorecard
Total earnings reported by companies accounting for 79.6% of S&P 500’s total market cap reveal earnings decline of -5.7% on -4.6% lower revenues in Q4 2015 (from the same quarter the previous year) – this reflects weaker growth than recent periods.[…]
S&P 500 Stages February Rebound – the month of February looked much better for stocks – not quite a “v-shaped” recovery from January but still a good showing. The S&P 500 rose nearly 2% on the month meaning it’s still down for the year but not meaningfully (~2.5%).[…]Read More
Nope, this is not a Chicago sports piece. It is, however, a review of the storm and stress of the current Bull vs. Bear “conversation” pitting the emotional vs. the rational, the headlines vs. the fundamentals and the reactive vs. the steady.[…]Read More
Spillover from the recent global market rout has challenged the tech sector, and the stronger dollar isn’t helping either. Apple stated in its Q1 fiscal 2016 earnings that dollar appreciation cost it $5B in revenues – at constant currency, its revenues would have been $80.8B versus $75.9B.[…]Read More
Good News for Chinese Markets? – Chinese equities markets have been plagued by several factors, but one of the more notable ones, in our view, is the constant government meddling. First, there was the unannounced currency devaluation of around 5% last August (and another to start the New Year),[…]Read More
Janet Yellen raised eyebrows earlier this month when she hinted at the possibility of negative interest rates in the U.S. “We wouldn’t take those off the table” were her exact words. Since then, I’ve gotten a few questions about whether negative rates could be a useful tool in stimulating the economy or whether this is a sign of central banks grasping desperately for that objective.[…]Read More
The Standard & Poor’s and Moody’s ratings agencies recently downgraded energy giants like Chevron, EOG Resources, Royal Dutch Shell and Hass. Top-tier companies, once thought fairly insulated from oil’s downturn due to their sheer size, are now seen as under serious stress.[…]Read More
Last December, U.S. Congressional leaders surprised the markets with a massive agreement on year-end spending and tax breaks which helped lawmakers avoid yet another government shutdown, at least until September 2016. This deal was the broadest tax and spending deal since the January 2013 “fiscal cliff” agreement,[…]Read More
According to the advance estimate released by the Bureau of Economic Analysis, the U.S. economy stuttered in Q4 – growing a mere +0.7% from +2.0% growth in Q3.
Although this flattish growth was in-line with expectations, it has still created some worries.[…]
The largest central banks around the world are making moves – just not necessarily in the same direction. While the U.S. Federal Reserve is tightening credit, the European Central Bank (ECB) and the Bank of Japan (BOJ) are easing their monetary policies to stimulate their economies.[…]Read More