FYI:
S&P 500 close on 8/14/19: 2,840.60
S&P 500 close on 8/14/18: 2,839.96
Investors counting on a corporate earnings rebound in the second half of the year are risking disappointment.
Wall Street analysts have cut their third-quarter profit estimates in recent weeks, painting a bleak picture for investors already grappling with a simmering trade war, pockets of economic weakness and ominous signs from the bond market.
Despite this week’s partial reprieve from the Trump administration, the latest round of tariffs on Chinese imports compound the problems already facing many companies and threaten to stifle their profit margins. Especially vulnerable are manufacturers, miners and retailers.
At best, earnings across the companies in the S&P 500 will grow 1.5% this year, FactSet projects, far short of estimates for growth of more than 6% that analysts initially forecast in January. Worse, a few analysts predict earnings could end up contracting for 2019 as a whole.
Regards,
Ted
https://www.wsj.com/articles/earnings-outlook-for-s-p-500-companies-looks-bleak-11565861402
