corporate earnings

Stock Market: Three Reasons Why It’s About to Get a Whole Lot Worse

By Monday, August 17, 2015
Stock MarketThe downside momentum in the U.S. stock market is gaining traction. And unless the Federal Reserve does a complete about-face and launches QE4, the sell-off in stocks that started in mid-May of this year will accelerate. Today, I present three very strong arguments for lower stock prices. First, looking at the chart below, you will see the Dow Jones Industrial Average has been trading below its 50-week moving average for .

Global Economy: Here Cometh Deflation

By Friday, August 14, 2015
global economyEarly this year, I started writing about how falling copper prices were a leading indicator of trouble in the global economy. Since then, we’ve all come to know about the economic slowdown in China. But the further collapse in copper prices over the past three months could be warning of something much bigger than just a slowdown ahead. Commodities Price Plunge Suggests There’s No Growth Below is a chart of .

Stock Market Top: Three Things Investors Need to Know About It

By Friday, August 7, 2015
Stock Market: Broad Market Sell-Off Here No matter how you look at it, the U.S. stock market is a dangerous place to be right now. In the chart below of the Dow Jones Industrial Average, pay attention to the circled area.

Corporate Earnings: Second Quarter 2015 Worst Since 2009

By Friday, July 31, 2015
Corporate EarningsAs 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 one-third of the companies in the S&P 500 have reported .

Whole Foods Market, Inc. (NYSE/WFM) Stock Plunges on Q4 Missed Earnings

By Thursday, July 30, 2015
Whole Foods MarketImage by Leon Brocard
Whole Foods Market, Inc.’s (NYSE/WFM) stock price plunged 11% on Thursday, July 30th, after the company reported disappointing results. During the third quarter, total sales increased eight percent to a record $3.6 billion. But diluted earnings per share landed at $0.43 below consensus expectations of $0.44 cents per share. (Source: Whole Foods Market, July 30, 2015.) The company said on Wednesday, July 29th that sales at

Global Economy in Sharp Slowdown; U.S. Companies’ Earnings at Risk

By Wednesday, July 22, 2015
Global EconomyNo matter where you look, major economic hubs in the global economy are struggling to show growth. According to the German finance ministry, Germany’s economy grew at only 0.3% in the second quarter of this year after growing a similar amount in the first quarter. (Source: Reuters, July 19, 2015.) Germany is the fourth biggest economy in the world. China, the second biggest economy, saw its gross domestic product (GDP) .

Stock Market: Watch Earnings, the Only Metric That Matters to the Bull Market

By Monday, July 20, 2015
Watch EarningsStock market advice for a market already at or near its all-time high is just guesswork. This market could crash on some material event, it could stay in consolidation for several quarters, or it could tick higher in anticipation of a better 2016. What has happened is that expectations for corporate earnings have come down tremendously. So it doesn’t take much for the Street to be fairly pleased with mediocre .

Stock Market Investing When Sales Go South

By Friday, July 17, 2015
Stock Market InvestingWhile corporate earnings are managed and the whole Wall Street “consensus” game is kind of a misnomer, financial reporting is the backbone of business. And it’s valuable information when it comes to stock market investing in a variety of companies. Early corporate reporting is often from mature, brand-name companies that can crunch the numbers and get them to the marketplace much faster than smaller businesses with fewer resources. So far .

NASDAQ Opens Higher on Strong Economic Data

By Thursday, July 16, 2015
NASDAQ Opens Higher Economic DataThe NASDAQ opened higher on Thursday, July 16th, as investors cheered a Greek bailout approval and strong corporate earnings. European stocks climbed and bond yields fell on Thursday after the Greek’s parliament approved a proposed bailout plan. Eurozone stocks rose 1.5% to 3,676 points and Germany’s DAX rose 1.6% to 11,722 points. Federal Reserve Chair Janet Yellen insisted the U.S. is on track to raise interest rates this year. Amid .

Corporate Earnings; Why They Are Screaming Sell-Off for Stocks Ahead

By Monday, July 13, 2015
Corporate EarningsA significant number of companies on the U.S. stock market continue to “engineer” their corporate earnings with stock buyback programs. Sadly, investors have become too complacent with this and remain overly optimistic. Beware! This is dangerous. Earnings Now Outright Misleading at Very Best I know I am one of the only few talking about it; companies on the key stock indices are showing better earnings per share due to share .
Sep. 1, 2015
Trailing 12-month EPS for Dow Jones companies (Most Recent Quarter) $1014.15
Trailing 12-month Price/earnings multiple (Most Recent Quarter)


Dow Jones Industrial Average Dividend Yield 2.71%
10-year U.S. Treasury Yield 2.14%

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.


Will slowdown in China affect the U.S. economy?

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From: Michael Lombardi, MBA
Subject: 200% Profit on the Ultimate "Fear Gauge" Play

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