US companies are warning about Q3 earnings at the second highest level since 2001, with estimates well below what they were just three short months ago. Of course, the US equity markets don't care - having rallied aggressively in the face of this collapse; lubricated by multiple-expanding QE and rev. repo. As Reuters reports [7], companies issuing negative outlooks outnumber positive ones by 5.2-to-1, the most negative since the 6.3-to-1 ratio in the second quarter, when however the "second half recovery" (which has been once again indefinitely delayed, perhaps to the third half?) was said would take place momentarily and lead to another mythical rebound. Industrials, Materials, and Tech top the list for negative pre-announcements.
Via Reuters, [7]
Third-quarter earnings for S&P 500 companies were expected to increase by 4.6% compared with a year ago, down from a forecast of 8.5% on July 1.
[8]
...
Technology is the sector with the highest number of third-quarter negative outlooks, with 27 warnings. Among them was Autodesk Inc, which anticipates lower demand for its computer-aided design software used in construction, manufacturing and engineering.
Consumer discretionary companies have the second highest number of warnings, including Target Corp. Target said in August that shoppers remained cautious and that its new Canadian stores were not doing as well as anticipated.
[9]
...
"there's a lot of noise right now that's driving sector performance, and not the fundamentals."
Of course, the complete disconnect between corporate profitability and forward earnings, has been well-documented, but just in case some have forgotten here it is again.
[10]
(h/t @Not_Jim_Cramer)