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Consumer & Financial Sector ETFs Lead Way

TedTed
in Fund Discussions
FYI: Heading into 2019, one of the biggest fears among investors was the idea of an “earnings recession,” a situation where corporate profits decline for two quarters or more in a row. A few months later, those concerns are starting to fade.

The latest figures from FactSet suggest that first quarter earnings for S&P 500 firms will be down 0.5% from a year ago, much less than the 3.9% decline analysts were expecting at the end of March.

Moreover, with 76% of companies beating estimates by an average of 5.5%, there is a good chance that when the earnings reporting season is officially over, first quarter profit growth will end up in positive territory. About 10% of S&P 500 companies have yet to report.

Flat earnings for the first quarter is a much better situation than investors had feared only weeks ago, and raises hopes that full-year 2019 earnings can grow by 3.3% or more, as analysts currently expect.
Regards,
Ted
https://www.etf.com/sections/features-and-news/consumer-financial-sector-etfs-lead-way

Comments

  • OpenSeSaFi
    Investors should keep an eye on the health of the U.S. economy, especially relative to the rest of the world, to determine whether the outsized profit growth for consumer discretionary, financials and utilities can continue—three sectors closely tied to domestic growth
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