The Briefing Room
General Category => Economy/Business => Topic started by: catfish1957 on July 13, 2020, 09:45:03 pm
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(http://theeconomiccollapseblog.com/wp-content/uploads/2014/10/Stock-Market-Crash-Ebola-Public-Domain.jpg)
https://www.marketwatch.com/story/sp-500-earnings-set-to-plunge-as-the-coronavirus-batters-all-sectors-with-wall-street-counting-on-a-bounce-that-may-not-come-2020-07-11?mod=mw_latestnews (https://www.marketwatch.com/story/sp-500-earnings-set-to-plunge-as-the-coronavirus-batters-all-sectors-with-wall-street-counting-on-a-bounce-that-may-not-come-2020-07-11?mod=mw_latestnews)
S&P 500 earnings set to plunge as the coronavirus batters all sectors — with Wall Street counting on a bounce that may not come
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The one certainty about the outlook for companies in a COVID-19 world is that second-quarter earnings will be very bad — the worst, in fact, in more than 10 years.
Although Wall Street is betting that earnings will start bouncing off the bottom in the third quarter, the beginning point for that bounce is unknown, and early indications suggest the rebound’s magnitude may not match investors’ hopes.
As usual ahead of earnings season, since the reports cover the three-month period that has already passed, what companies say about the current quarter or the full year is more important than the results they’re reporting. But this earnings season may be different, as uncertainty over the impact of the COVID-19 pandemic has led many companies to withdraw guidance, leaving analysts more blinkered than usual when setting estimates.
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I have been warning of this for some time now. The exuberance of equity prices seemed over done, considering there was little or no idea in most cases what the actual COVID-19 impacts would on earnings. If we start seeing consensus earnings misses, I think we are going to start seeing a part II of a correction.
Now, I see that the goobner of CA is pretty much shutting down the state. Seeing all this play out going into August is not working well in Trump's favor. Furthermore if it looks like a Biden win come November? Watch for an accelerate drop in stock prices.
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That's why I invested in semi-precious metal...
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Big day for earnings estimates for the financial sector....
So far JP Morgan, has well beat analyst estimates, Wells Fargo, a bad quarter.
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The market it definitely toppy and treacherous right now.
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The market it definitely toppy and treacherous right now.
VIX @31 and rising sharply. That definitely confirms your suspicions. Article after article ia basically yelling the same thing. Upcoming earnings are going to skew the P/E's ratios up so sharply, equity prices can't sustian, and we really can't avoid a bear market.
And sadly politically, it couldn't come at a worse time.
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VIX @31 and rising sharply. That definitely confirms your suspicions. Article after article ia basically yelling the same thing. Upcoming earnings are going to skew the P/E's ratios up so sharply, equity prices can't sustian, and we really can't avoid a bear market.
And sadly politically, it couldn't come at a worse time.
Volatility is where the money is made.
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Volatility is where the money is made.
And lost :cool: