Earnings are also known as profits. At the most basic level, a company’s earnings consist of what’s left over after all costs are taken out from the revenue generated. Earnings are also the basis for corporate taxes. Many corporations report EBITDA, or earnings before interest, taxes, depreciation and amortization. The most important thing to watch for when researching a company is where earnings are forecasted to move. Investors want to see that the future expectations are for the earnings to grow over time.
Could Weak Earnings Spark a Stock Market Crash in 2016?
Weak corporate earnings could result in a stock market crash in 2016, dashing the mainstream belief that the U.S. economy is in a recovery.
The Federal Reserve’s uncertain interest rate policies and lower commodity prices have jointly served as catalysts to spark market speculations..
Canada’s fourth-largest bank will be experiencing more loan losses from energy companies this year and next if oil prices stay low, despite beating analysts’ estimates.
Low oil prices have certainly taken their toll on the Bank of Montreal’s (NYSE:BMO) third-quarter earnings, but shares of the Canadian bank still managed .
Executives are spending billions buying back their own stock, but their efforts are slowing, destroying the American economy.A new report from Aranca Investment Research concludes that almost $2.3 trillion has been spent on buybacks since 2009, as corporate cash reserves have grown and borrowing costs have declined. More incredibly,.
Greece and China added quite a bit of uncertainty to the U.S. stock market. By around 10:30 a.m. E.T. on the first trading day of August, the Dow slipped more than half a percent, NASDAQ lost 0.2%, and the S&P 500 dropped 0.3%.
In Greece, the stock market plunged 23% on its first trading day after a five-week shutdown. Banking shares are.
As of July 24, 187 companies in the S&P 500 have reported their corporate earnings. For these 187 companies, their average decline in earnings has been 2.2%. If this is the final number, then it will be the biggest decline in quarterly earnings for the S&P 500 since 2009. (Source: FactSet, July 24, 2015.)
But it may get worse. Only.
Immediate term outlook:
The bear market rally in stocks that started in March 2009, extended because of unprecedented central bank money printing, is coming to an end. Gold bullion is up $1,000 an ounce since we first recommended it in 2002 and we are still bullish on the physical metal.
Short-to-medium term outlook:
World economies are entering their slowest growth period since 2009. The Chinese economy grew last year at its slowest pace in 24 years. Japan is in recession. The eurozone is in depression. With almost half the S&P 500 companies deriving revenue outside the U.S., slower world economic growth will negatively impact revenue and earnings growth of American companies. Domestically, America’s gross domestic product grew by only a meager 2.3% in the second quarter, which will negatively impact an already overpriced equity market.