CNBC Stock Blog
- Portfolio Prep for Next Week: 'Don't Get Crazy'
- Strategists on Dubai: Avoid 'Rash Moves' Now
- Dubai Stock Market Fear Has 'Legs': Dennis Gartman
- Surprising Options Trades in TiVo Shares
- 10 Dividend Picks For Your Portfolio: Chief Investors
- 4 Thanksgiving Week Buys For Your Portfolio: Market Pros
- There's a 'Great Chance' For a Double-Dip Recession: Strategist
- Retail Earnings and Sales to Improve in Q4: Analyst
- 4 Food Stocks to Stuff in Your Portfolio: Analyst
- S&P at 1050-1200 Trading Range Next Year: Strategist
MOST SHARED
- U.S. Stocks Fall on Dubai Worries
- Black Friday at Best Buy
- Strategists on Dubai: Avoid 'Rash Moves' Now
- Longer Lines, Fuller Carts This Black Friday
- Dubai Stock Market Fear Has 'Legs': Dennis Gartman
- Obama's Emission Reduction Pledge Paints Future for Autos
- Is Super Bowl Halftime Act Too Old?
- Surprising Options Trades in TiVo Shares
- EA Sports Hopes to Pump Up Sales Through Pop-Up Locations
- Abu Dhabi Will Aid Debt-Fraught Dubai 'Case by Case'
- Banks With The Biggest Exposure to The UAE
- Dubai's Debt Woes Signal New Era for Creditors
- Next Week: Cash In Now Or Wait For A Santa Rally?
- Dubai Stock Selloff May Bring Buying Opportunity
- Longer Lines, Fuller Carts This Black Friday
- Big US Banks May Be Forced to Raise Capital: Bove
- Bank of America Amends Pay for Senior Executives
- Tiger Woods Out of Hospital After Accident
RSS FEED
Text Size 
CNBC News Associate
The quarter ends on Wednesday and so far, 197 companies have posted positive outlooks while 282 companies posted negative. Will earnings be the market’s next challenge or are expectations so low that it will end up being a blow-out quarter? Craig Peckham, equity trading strategist at Jefferies & Co., and Ashwani Kaul, global head of research at Thomson Reuters, shared their insights.
“Expectations have been ratcheted up but companies are going to outperform analysts’ expectations,” Kaul told CNBC. “It will be the second quarter where they’ve done it.”
Kaul said topline growth in companies is still missing and projects an 11 percent decline in revenues. But that should change in 2010, he predicts.
“The first quarter of next year, we’re finally going to start seeing real topline growth,” he said. “We’re looking at 7.5 percent topline growth for the first quarter of 2010.”
Kaul said sectors that will do well include consumer discretionary and financials, while sectors that will disappoint include energy, materials and industrials.
In the meantime, Peckham said the second quarter was driven entirely by cost production that was greater than most analysts had expected.
“You didn’t see the kind of topline positive variance that the market is hoping to see more of in the third quarter,” he said. “It boils down to a question of earnings quality, and that quality really dictated by what you see happen in the revenue streams in the third quarter.”
Peckham said he expects the tech and consumer discretionary sectors will do well and warned investors against oil services and utilities companies.
______________________________
Disclosure:
No immediate information was available for Kaul or Peckham.
______________________________
CNBC Slideshows:
______________________________
CNBC's Companies in the News:
JPMorgan [JPM
Loading...
()
]
Apple [AAPL
Loading...
()
]
Walt Disney [DIS
Loading...
()
]
Starbucks [SBUX
Loading...
()
]
______________________________
Data is a real-time snapshot *Data is delayed at least 15 minutes