Earnings recession is expected to swallow all of 2019 after holiday forecasts disappoint

[libertybele]

Well, this should put the "Happy" in your Thanksgiving and the "Merry" in your Christmas.   Gee, count me informed, I had no idea that corporate earning have been in a recession the entire year. 

Earnings recession is expected to swallow all of 2019 after holiday forecasts disappoint

The holiday season is no longer expected to pull corporate earnings out of a recession that has lasted the entire year.

Earnings in the S&P 500 index SPX, +0.63%  are now projected to decline 1.51% in the fourth quarter from the year before, according to a FactSet computation of analysts’ average forecasts for individual companies. An earnings recession is defined as two quarters or more of consecutive year-over-year declines, and earnings for S&P 500 components dipped in the first two quarters of 2019 and are all but certain to do so again in the third quarter — with nearly 95% of calendar third-quarter reports posted, earnings have dropped 2.34%, the biggest decline so far this year.

The last time profits decreased for four quarters in a row was in the period beginning with the third quarter of 2015, FactSet’s senior earnings analyst John Butters told MarketWatch in an email.

Three-fourths of earnings recessions since World War II have morphed into economic recessions, said CFRA Chief Investment Strategist Sam Stovall, who told MarketWatch that he has been “scratching his head” trying to reconcile analyst pessimism around earnings with continued stock-market rallies...

https://www.marketwatch.com/story/earnings-recession-is-expected-to-swallow-all-of-2019-after-holiday-forecasts-disappoint-2019-11-22?mod=home-page

[IsailedawayfromFR]

Day in and out, this is one of the most liberal financial news sites one can find, beating out even Yahoo Finance.

I read it only to find out what it says so I can envision the exact opposite is occurring.

[PeteS in CA]

Why does "earnings recession" sound like a made-up, it-means-whatever-I-want-it-to-mean, term?

[IsailedawayfromFR]

Why does "earnings recession" sound like a made-up, it-means-whatever-I-want-it-to-mean, term?

It is made up to support an agenda, just like the newly coined 'polar vortex'

[libertybele]

It is made up to support an agenda, just like the newly coined 'polar vortex'

   Exactly. 

[libertybele]

Day in and out, this is one of the most liberal financial news sites one can find, beating out even Yahoo Finance.

I read it only to find out what it says so I can envision the exact opposite is occurring.

I visit it on occasion to track our investments and to get the latest numbers on Wall Street.  I agree, it seemingly is becoming more and more liberal as time goes on.  There is a local financial 'guru' that airs his 'opinion' on Sunday for a few hours and a few minutes during the day...he normally says the opposite of what Market Watch reports.

[Free Vulcan]

Meh.

[Wingnut]

I read on the web that there have been 12 earnings recessions since 1954 and 3 of them did not accompany an actual economic recession. The instance that occurred in 1985-86 for example, was caused by a sudden drop in oil prices (sound familiar?) and occurred in the midst of a period of economic expansion. The good news is that this doesn’t meant the world is coming to an end.  It doesn’t even mean the recent rally will necessarily end.

But much like a weather reporter, these "economic experts" have to hype the negatives, or the chance of a economic storm, or what the hell, just make some shit up and use insider jargon to fool the rubes..

[libertybele]

I read on the web that there have been 12 earnings recessions since 1954 and 3 of them did not accompany an actual economic recession. The instance that occurred in 1985-86 for example, was caused by a sudden drop in oil prices (sound familiar?) and occurred in the midst of a period of economic expansion. The good news is that this doesn’t meant the world is coming to an end.  It doesn’t even mean the recent rally will necessarily end.

But much like a weather reporter, these "economic experts" have to hype the negatives, or the chance of a economic storm, or what the hell, just make some shit up and use insider jargon to fool the rubes..

Companies still have to appease their investors and make their stock attractive to traders.  If you do a little research dividends paid out may be somewhat lower but for the most part they stay relatively even and some even manage to go a bit higher.

The talk of a threat of a recession has been on going since Trump took office.  Those on the left salivate every time they think the economy will tank to lower Trump's chances of re-election.