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gristy

(10,667 posts)
Sun Jul 12, 2020, 06:35 PM Jul 2020

Get ready for an awful earnings season

New York/London (CNN Business)Major companies are about to tell investors how they fared during the second quarter as the coronavirus swept over America. And there's no sugarcoating it. To paraphrase the title of a popular children's book: It was a terrible, horrible, no good, very bad three months.

Brace yourself: According to estimates compiled by FactSet, analysts predict that earnings for the S&P 500 plummeted nearly 45%, which would be the biggest drop since a 69% plunge during the depths of the Great Recession in the fourth quarter of 2008. Revenues are expected to have fallen more than 10%. Retailers, energy companies and industrial firms likely reported the biggest declines in sales and profit.

Financial firms take center stage this week. JPMorgan Chase (JPM), Wells Fargo (WFC), Goldman Sachs (GS), Bank of America (BAC) and BlackRock (BLK) are just a few of the big banks and asset managers that will post their latest results.

more: https://www.cnn.com/2020/07/12/investing/stocks-week-ahead/index.html

And yet, DOW futures are right now +110: https://money.cnn.com/data/premarket/
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Hoyt

(54,770 posts)
1. Question is -- Did these companies do better or worse than anticipated, considering everything?
Sun Jul 12, 2020, 06:40 PM
Jul 2020

I suspect it will wake some folks up to the realities.

TheFarseer

(9,308 posts)
2. Ok, but
Sun Jul 12, 2020, 06:41 PM
Jul 2020

The headline could be “not as bad as we thought” or they might say “we already knew it would be bad” It could go higher despite poor earnings. The only thing that matters is if traders think prices are headed higher or lower and believe me, there’s no telling that!

gristy

(10,667 posts)
4. Yes, the poor earnings might be properly priced in already
Sun Jul 12, 2020, 06:52 PM
Jul 2020

But with the Nasdaq at an all-time high and the DOW down "only" 8.8% from its all-time high, it would seem to this bad prognosticator (i.e., me) that they are not.

progree

(10,864 posts)
5. S&P 500 down only 5.9% from its all time high (just to add to the list)
Sun Jul 12, 2020, 07:06 PM
Jul 2020

Yes, it doesn't make sense, particularly after 2 weeks of really bad news on the Covid front and reclosings and delayed reopenings.

progree

(10,864 posts)
6. Big New Obstacle for Economic Recovery: Child Care Crisis
Sun Jul 12, 2020, 07:12 PM
Jul 2020
Big New Obstacle for Economic Recovery: Child Care Crisis , New York Times, 7/11/20
https://news.yahoo.com/big-obstacle-economic-recovery-child-140531497.html

Under the plan announced by Mayor Bill de Blasio this week, classroom attendance would be limited to only one to three days a week in an effort to protect public health. The city’s approach is similar to that being followed by many school districts, which are concerned that crowded schools might intensify the outbreak.


And then about how many parents will be compelled to cut back their hours of work (or quit) to be able to close the childcare gap.

Warpy

(110,913 posts)
7. I expect earnings to dive enough that stockholders, robbed for 40 years,
Sun Jul 12, 2020, 08:53 PM
Jul 2020

start to scream bloody blue murder if a corporation tries to buy back a single share or give a single executive bonus.

I just don't know if it's going to do any good. They've been robbing shareholders on dividends for years. I sincerely doubt rebellion in the ranks will get through to them....until people get disgusted enough to sell.

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