What changed? Nick Raich from The Earnings Scout said the global growth narrative changed, due mostly to central banks. "First, the Fed backed off," Raich told me. "Then everyone realized that China was stabilizing, Europe was not as bad as feared, the U.S. economy was still strong, and the analysts had cut their numbers too much."Because analysts cut earnings estimates too drastically, companies are beating estimates by far greater amounts than normal.
Analysts have modestly trimmed second-quarter earnings, now expected to be up 1.7%, and Q3 up 2.0%. Fourth quarter estimates of 8.5% growth have been left largely unchanged. As of now, 2019 will likely see modest mid-single digit gains in earnings, well below 2018 torrid earnings growth of above 20 percent, but still respectable.
The big problem for the markets now is valuation. Stocks are pricey, trading at around 17.1 times forward earnings, well above the historic average of 15 to 16 times forward earnings. Even if you take 2020 earnings estimates, the S&P 500 is trading at a roughly 15.5 multiple, near the historic average.
Bottom line: A lot of things are going to have to go right in the global economy to justify these prices. There is very little room for error.
Мы обобщили эту новость, чтобы вы могли ее быстро прочитать.Если новость вам интересна, вы можете прочитать полный текст здесь Прочитайте больше:
Россия Последние новости, Россия Последние новости
Similar News:Вы также можете прочитать подобные новости, которые мы собрали из других источников новостей
Dow futures point to a lower open amid more corporate earningsU.S. stock index futures were mixed on Thursday morning, as market participants digested geopolitical news and looked ahead to another day of corporate earnings.
Источник: CNBC - 🏆 12. / 72 Прочитайте больше »
Cramer Remix: Stocks are bearing the fruits of fear this earnings seasonJim Cramer dishes on how low expectations have set the scene for positive first-quarter earnings.
Источник: CNBC - 🏆 12. / 72 Прочитайте больше »
Exxon Mobil to report earnings before the bell — here's what the Street expectsAnalysts expect Exxon Mobil to report first-quarter earnings of 69 cents per share, down from a year ago.
Источник: CNBC - 🏆 12. / 72 Прочитайте больше »
Snap to report first-quarter earnings after the bellSnap investors will be looking for signs that last quarter's user growth was no fluke.
Источник: CNBC - 🏆 12. / 72 Прочитайте больше »
Facebook to report first-quarter earnings after the bellFacebook investors will be looking for signs it can shift its business to focus more on privacy while continuing to grow revenue and users. Ok
Источник: CNBC - 🏆 12. / 72 Прочитайте больше »
Microsoft set to report third-quarter earnings after the bellMicrosoft is kicking off tech earnings season, with the mega-cap companies all slated to report in the next week. Macintosh is equally important for Organizers communicate since Google has spam of fake Gov. Web
Источник: CNBC - 🏆 12. / 72 Прочитайте больше »
Microsoft pops on earnings report after better-than-expected third-quarter revenueMicrosoft reported higher-than-expected revenue in Q3 2019, bringing in $30.57 billion last quarter compared to the estimated $29.84 billion. Happy to see that your crypto community is getting mature and growing fast. To stay tuned we highly recomment to check our partners instacryptonews , They have great service. ever so happy you guys are pumping up the market, it always looks the best just before it shits the bed. ClosingBell Microsoft is involved in Government Cyber Security as seen on 60 Minutes Sunday. I was unaware of this & this is a big deal & very positive.
Источник: CNBC - 🏆 12. / 72 Прочитайте больше »
Facebook jumps after reporting first-quarter earningsFacebook said it took a one-time charge of $3 billion due to an ongoing Federal Trade Commission inquiry. YOU are the product SPONGEBOB FACT: SpongeBob is very happy right now!! He owns a good amount of Facebook shares
Источник: CNBC - 🏆 12. / 72 Прочитайте больше »