| As of Friday, November 6th: |
As of October 1st, the earnings growth rate was at -24.8%.Of the 440 S&P 500 companies who have reported Q3, 80% beat estimates, 6% were in-line, and 14% were below estimates. The blended earnings growth rate for the S&P 500 for Q3 2009 is currently at -14.8%. (Data provided by Thomson Reuters)
LATEST EARNINGS RESULTS
- Kraft to Formalize Hostile Cadbury Bid on Monday
- GE, Comcast Agree on NBC Universal Valuation
- US Health Care Reforms Face Tough Path in Senate
- Northrop to Sell $1.65 Billion Unit to Private Equity
- Obama Delays Start of Asia Trip to Attend Memorial
- China Urges US to Control Deficit to Stabilize Dollar
- BofA Board in Civil War Over Lewis' Succesor
- US Home Values Follow Sales Higher, For Some
- Hottest Zip Codes for Home Prices
- Tamminen: Why Does Oklahoma Want To Drown New York?
- Food Network, HGTV Drive Scripps Networks' Upside Surprise
- Tommy Lee, Medical Tourism and Nasty Santa, Your Emails
- U.S. Markets Gain 3% for the Week Despite 10.2% Unemployment
- Disney's 'Carol' Tests Widest 3-D Release Ever
- Stimulus II? Jobs Tax Credit=Cash For Clunkers
- Rockwell Automation Earnings: What Options Are Saying
- Gold Will Touch Higher Lows and Higher Highs: Analyst
- Is Misery Alive And Well in Your Office?
MOST SHARED
- Sweeping Health Care Overhaul Bill Passes House
- US Becomes Top Country Brand Under Obama: Survey
- BofA Board in Civil War Over Lewis' Succesor
- What Stocks to Buy Amid Health Care Overhaul: Strategist
- GE, Comcast Agree on NBC Universal Valuation
- Kraft to Formalize Hostile Cadbury Bid on Monday
- Obama Delays Start of Asia Trip to Attend Memorial
Text Size 
Wall Street is bracing for a big round of second-quarter earnings reports. But few expect them to deliver good news for the state of Corporate America.
 |
"All of my expectations for everything are low, and really I'm looking at not necessarily what I'm buying on the stock market—I'm looking at what I'm shorting," says Matthew Tuttle, president of Tuttle Wealth Management. "I'm not in the second-half-we're-going-to-have-a-nice-recovery camp."
Some have speculated, in fact, that earnings could be so bad that they'll precipitate a market-bottoming, or capitulation, that would ultimately lead stocks back up again.
It's a theory, though, that is considered cautiously optimistic at best.
"I think panic-selling is much more likely than panic-buying, and we're short the US," Tuttle says. "I don't see changing that anytime soon."
July 7-10: Alcoa, GE Bookend the Season's Start
The first big company to report will be Dow component Alcoa, which checks in after the closing bell Monday, and the aluminum manufacturer is expected to see quarterly profit below last year. Analysts are looking for a 69 cents per share profit, against last year's 85 cents, according to analysts surveyed by Briefing.com.
Soleil Securities upgraded Alcoa to "hold" from "sell" on Friday, based primarily on the notion that the stock's 21 percent drop in 2008 made the price more attractive.
Alcoa's stock has bucked the trend of metal-oriented companies rising. The company has been hit by higher oil prices because of its energy-intensive operations. Also, the company once was seen as a target for takeover, but that talk has faded, again in part because of pressure from energy costs.
Wednesday's earnings feature hotelier Marriott and tech leader Texas Instruments, both of which probably will show lower profits than the year before. Marriott is likely to report a profit of 49 cents a share against 57 cents for the same quarter last year, while Texas Instruments probably will show 89 cents a share, off from last year's $1.09.
The week culminates with one of the market's earnings bellwethers, CNBC.com-parent General Electric, which stunned the market by badly missing its first-quarter numbers.
For the second quarter, GE is expected on Friday to post a profit of 54 cents per share, narrowly ahead of last year's 53 cents. Aerospace company Rockwell Collins also reports Friday, with analysts expecting the company to buck the trend of falling profits by reporting a $1.02 per share gain against last year's profit of 86 cents.
About the only thing that has investment advisers optimistic is the chance to swoop in and pick up some undervalued companies whose earnings send their stock prices down.
"The sensitivity to the earnings reports is going to be magnified because of everything else that is happening," says Randy Carver, president of the Carver Financial Services affiliate of Raymond James. "I do think the market is going to be more sensitive to individual companies and that's going to create some opportunities for people."
July 14-18: Dow Components, Financials
Things get busier during the second full week of the month.
July 10 features M&T Bank reporting before the bell and pharmaceutical leader Genentech after the bell. M&T is seen posting a $1.58 profit against last year's $1.95, while Genentech is expected to see an 85 cent-profit against 2007's 72 cents.
The rest of the week's numbers, with expected profit first, followed by last year's number in parentheses:
On Tuesday of that week, the market will hear from consumer staple company Johnson & Johnson, $1.12 ($1.05) and financials State Street, $1.35 ($1.07) and US Bancorp, $0.60 ($0.65), all before the bell. After the bell will feature Nasdaq leader Intel $0.26 ($0.20), which should provide direction for technology heading into the third quarter.
On Wednesday, Delta Air Lines, $0.09 ($0.70), will provide a picture of what's happening in the battered airline industry, while private equity leader BlackRock, $2.03 ($1.80), also reports and bank Wells Fargo, $0.51 ($0.67) looks to reverse its steep declines. Fast-food leader Yum! Brands, $0.42 ($0.39), reports after the closing bell.
Merrill Lynch could post its second consecutive quarterly loss Thursday, with analysts anticipating the Wall Street titan to show a $1.22 loss against a profit of $2.24 for the same period in 2007.
Some of the biggest names on the Dow report the same day, led by Coca-Cola, $0.96 ($0.85); JPMorgan Chase, $0.52 ($1.20); International Business Machines, $1.81 ($1.50) and Microsoft, $0.47 ($0.39).
Google also will be watched closely, with the search engine leader expected to report a profit of $4.72 a share, soaring far above last year's $2.93. Ford reports as well, and probably will post a loss of 25 cents a share, against a 13-cent profit from a year ago.
Financials close the week out on Friday, with Citigroup, -$0.57 ($1,24), also likely to post its second consecutive quarterly loss. Global energy firm Schlumberger $1.12 ($1.02) and manufacturer Honeywell $0.94 ($0.78) also report.
When the earnings finally wash out completely, analysts say, there probably won't be any major surprises to either side.
"I don't think you're going to see a big turnaround until after the election, because so many people are going to be looking for things to worry about," Carver says. "Oil prices will fall back later this year, so I think that's going to be a bigger factor psychologically and physically."
Print
Email
- Sun Micro Sales Fall as Oracle Deal Remains Delayed
The computer maker suffered a 25 percent fall in quarterly revenue, as uncertainty over its delayed sale to Oracle Corp hurt its business.
- AIG in the Black Again, Operating Profit Tops View
AIG, the giant insurer bailed out by the U.S. government, posted its second straight quarterly profit on Friday, helped by recovery in the value of its investments.
- Starbucks Profit Beats Forecasts; Shares Rise
Starbucks reported a quarterly profit that outstripped analysts' forecasts, and it provided a bright earnings outlook that helped push its shares higher in extended trading.
- Sun Micro Sales Fall as Oracle Deal Remains Delayed
- Fannie Mae Seeks $15 Billion in Aid After Posting Loss
Fannie Mae is asking for an additional $15 billion in government aid after posting another big loss in the third quarter as the taxpayer bill from the housing market bust keeps rising.
- Fannie Mae Seeks $15 Billion in Aid After Posting Loss
- Nvidia Profit, Sales Top Wall Street's Forecast
- CBS Beats Expectations on Improved Ad Market
- Cisco CEO: Tech Sector Hit Bottom, Recovery Under Way
- Activision Posts Profit That Matches Street View
- Qualcomm Outlook Misses Street, Samsung Deal Helps
- News Corp Profit Tops Estimates on Film, Cable Revenue
- Allstate Swings to Profit, Misses Expectations
- Comcast Profit Beats Street as Users Add Services
- Time Warner Posts Lower Profit, Raises Outlook
- Pulte Homes Posts Wider-Than-Expected Loss
- Nissan Returns to Profit in Latest Quarter
- Kraft Won't Overpay for Cadbury as Revenue Misses
- MasterCard Profit Beats With Higher Bank Fees
- Viacom Profit Tops Views on Box Office Strength
Data is a real-time snapshot *Data is delayed at least 15 minutes