• GoldCore
    08/04/2015 - 06:08
    The headlines are dramatic, ugly and depressing to anyone who holds gold right now. Broad market sentiment has shifted from disdain and dismissive to highly negative. Hedge funds are shorting gold...

Dow Jones Industrial Average

Tyler Durden's picture

Nostalgia’s Not What It Used to Be





Nic Colas, of ConvergEx, waxes nostalgic at the dreadful deja-vu he sees in his monthly review of the Street’s revenue expectations for the companies of the Dow Jones Industrial Average. Finding that while markets may be in rally mode, analysts are still fretful about near term sales momentum at these large multinationals. Currently, they expect the average Dow company to post only a 3.6% sales “Comp” in Q1 2012 versus last year, or 5.0% for the non-financial companies in the index.  That is the lowest expected growth rate for the current quarter since we started keeping tabs on what the analysts had in their models a year ago. They don’t have to bump numbers to pound the table on their favorite names.  The current rally has been more about valuation than revenue and earnings momentum – our revenue expectation data is all the proof you need on that score.  So why raise numbers if your “Buy” rated names are rallying without the need to put yourself on that limb? All of this sets up market psychology on a razor’s edge for Q1 earnings reports. And what about ‘Sell in May and go away?'  Only 31 trading days left until May 1st. 

 
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