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Analysts Are Slashing Guidance Ahead Of Q3 Earnings Results
While CNBC's Bob Pisani prevaricates on low "high" volume rally days and "the important things," ahead of Q3 earnings and a horde of hungry commission-takers explain to a gullible public how fundamentals are strong (ignoring entirely the massive manipulation buybacks and financial engineering) and earnings will confirm the equity market's wisdom any day now; we thought it worth a glance at the dismal evolution of earnings expectations for Q3.
Since the start of July, S&P 500 Q3 earnings expectations have collapsed from 11.0% to just 6.4% with 9 of the 10 sectors lower and Consumer Discretionary now expected to see negative growth. But... that's probably not the important thing, right?
h/t @Not_Jim_Cramer
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Weather? Too warm to shop, perhaps? It'll be better next quarter. Promise!
"Taste of Africa coming to Dallas"
http://blogs.dallasobserver.com/unfairpark/we_apologize_in_advance_for_th/
You all wanna see a world economy strop "dead"?
Go ahead assholes, don't impose quarantines on W Africa.
On cities and areas with the sick and infected.
Go for the culling!
Most discretionary budgets have been allocated to Obozocare. Forward!
Corporations have run out of tricks to make their quarterly numbers after cutting staff to the bone, stock buy-backs, inventory tricks and inversions... Time for the pain in equities we all know is coming...
I think you're right. Buybacks have been pretty much all the improvements in EPS the last few years. Now they're loaded with debt from the buy-backs. Unloading those shares (at a lower price than when they were bought) to raise cash in the next downturn will be a dowdraft-multiplier.
That being said, I've never been less than a year early on my calls.
It'll be interesting to see how much paranoia they have programmed into HFT algo's....
Don't worry, the earnings releases will be on the basis of EPS (After buybacks) and non-GAAP (Adjusting for "one-time" items like Wall St. legal fees and penalties)..
If its not god, then someone likes irony. Popcorn for the show anyone?
This disease culls the cullers. That would be actual doctors.
How's that for spending a trillion on healthcare a year!
Big deal I just consolidate my 80k debt from my four credit cards and pay it off in like 10 - 20 years? Kinda like the gov.
It is important that monopoly corporations and banks lose massive amounts of money in order to save the planet.
And just how does an economic meltdown save the planet? If you think this is Huffpo, then you're lost...
Defense companies aka "militaryindustrial complex" received some scraps from the tables by renewed bombing in the Middle East...
strong dollar caught them by surprise. 6% earnings growth damn good considering the strong dollar.
Who the hell needs Consumer Discretionary going into Christmas!?
Oh.. Wait.. I forgot, it's always going to be "better" next quarter. Got it.
They are just preparing for this years highly anticipated new sequel.
Polar Vortex 3.0
I thought it was polar vortex 4,510,124,971. Who knew we have only had 3???
"Since the start of July, S&P 500 Q3 earnings expectations have collapsed from 11.0% to just 6.4% with 9 of the 10 sectors lower and Consumer Discretionary now expected to see negative growth."
Just a rounding error...lol.
Not only that. I'm pretty sure there will be "weather" in the fourth quarter,
and we know what that shit does to the economy;)
Standard operating procedure. Promise them the moon, then convince the investor they received it by ignoring the past and promising the moon once again.
Lower "expectations" to zero and then beat expectations by .02%.
What a racket...lol.
I've been thinking a lot lately about the corrosive effects of the FED fighting the natural deflationary forces of a free market economy. All these flipped crap-shack houses with lipstick-on-a-pig upgrades would be torn down and replaced in a sane market. Construction could naturally flourish. The volume of activity we could see given natural creative destruction would be staggering. People want to spend money. People want to build and buy things. It's only when TPTB crush purchasing power to maintain there oligarchy does capitalisim NOT work. Imagine a world where fortunes were made AND lost by the elites. There would always be a mad scramble of assets and capital from week hands to strong.
The oligarchy detests prosperity for anyone but themselves. As the saying goes "It is not enough that I win, my enemy must also lose."
Yes, natural creative destruction, as much as no one wants to admit it, it is the law of the jungle and there is nothing wrong with that in the context of capitalism.
The weak are allowed to fail, in fact preyed upon by the strong because they suck as a viable profitable concern, never government subsidized...these are afterall only corporations we're talking about.
Aries K cars all around, on me ;-)
I can just see our Kenyan American Leader standing in front of a banner now ...
M I S S I O N A C C O M P L I S H E D!
"Wall Streets doing great!" - Mr. Hard Pivot.
Please! I am EXTRODINARILY negative about our economy but every quarter they slash em into earnings. Go ahead look it up
WTF does an "Analyst" do? - apropos - the study of? - BWAH HA HA HAAAAA!
"Analysts Are Slashing Guidance"...
oxymoron much? > Analysts / Guidance - BWAH HA HA HAAAAA!
Mission, Objectives, Goals, Strategies, Press Releases, Investor Guidance, Sales Pitch, Forward Looking Analysis.
Customers are the Mark.
ebola will do wonders for retail sales. ho ho ho
Overlay of USD and S&P500 monthly - very telling
http://bullandbearmash.com/spx-inverted-relationship-usd-usd-sharply-spx...
USD has rocketed - but not much movement on the US indexes - yet.
Biggish POMO tomorrow - ends at 11a NY Time (EST) - good time to short into an up move, right Yellen?
The term "the new normal" has not been used much as of late, but going forward it may be about to return. Many investors and the public at large may be about to realize that central banks can only do so much through printing money and lowering interest rates. Both these actions carry with them some very strong and nasty side effects.
Markets have become very distorted as money has flowed into risky assets in search of higher yields. It could be we are about to see the markets morph into a "realizing market", one that grinds slowly downward. Another possibility is that at some point the wisdom of buying every pullback changes and the market simply drops like a stone. More on what the future might hold in the article below.
http://brucewilds.blogspot.com/2013/06/realistic-expectations-for-econom...
Oh boy... got pretty cool here last night in central Georgia. Expect shoppers to go into hiding!
Bye bye 4th Qtr GDP.... We hardly knew ye.... :(
(heading out to chop firewood and I am going to fashion a pair of snow shoes out of some old trash can lids)
Wait, I thought it was HOT there the day before and that was keeping people home?
Which is it?
Hmmm. "Short the tax base" that's fer sure. I mean whatever you think of sales "you can't tax what you don't earn."
A State cannot live on Bloodmoney alone it would appear.
Don't worry...the American people have learned to live with the non debtate on this as well. "Fukushima, Ebola, dropping bombs on civilians, the economy"...sometimes you really have to make it all about the nothing.
"you can't tax what you don't earn"
Actually, a government can.
In Canada we have HST; it's a 13% tax on pretty much all transactions. When you INVOICE (not paid) you have to pay the 13%. I have a client who has not paid for 2 years; I wrote it off as a bad debt and applied to get the HST back that I had paid on invoices where I did not receive any monies.
The govt. has refused and now I am going to tax court.
Simple game played. Slash right before earnings release, bam, they beat expections. magical stock levitation ensues.
How much you want to bet that when the earnings are announced, Bubble TV will say that they beat earnings estimates and ignore that they were cut just weeks earlier. The analysts are in bed with the companies massaging earnings to beat. This ponzi has been going on for 5 years, but now they are leveraged to the hilt and have no where to run.
This will get ugly, just when is the question.