Article Index
Corporate Earnings

The stock market is becoming a dangerous place to be. Going into the New Year, my stock market forecast for 2016 is negative on the S&P 500 for the three reasons I outline below. Corporate Earnings and Revenues Are Contracting at an Accelerated Pace Rising corporate earnings and…

The stock market cannot continue to rally when corporate earnings and revenues are contracting. For the third quarter of 2015, earnings on the S&P 500 are expected to decline by five percent and revenue is expected to decline by 3.5%. (Source: FactSet, October 23, 2015.) If these are…

Here are four reasons why the stock market will continue to fall, starting with contracting earnings and revenue. On June 30, analysts were expecting S&P 500 companies to report a decline of one percent in corporate earnings. As of September 25, they now expect a decline of 4.5%.…

Is the U.S. stock market poised to crash in 2016? Absolutely. The writing has been on the wall for ages. It’s not as if anything has happened of late to point to a stock market crash, it’s just that the rest of the investing community is waking up…

By deciding on Thursday not to raise interest rates, the Federal Reserve gave the world the wrong message. How I interpreted the Fed’s lack of courage to act yesterday: “After keeping interest rates at zero for seven years, and having printed trillions of dollars in new currency out…

For the second quarter of 2015, companies in key stock indices like the S&P 500 reported a decline of 0.7% in their corporate earnings. This was the first decline in profits since the third quarter of 2012. But what was more alarming was that revenues for the S&P…

The 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,…

Early 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…

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. Chart Courtesy of www.StockCharts.com Of importance to note, the Dow Jones Industrial Average…

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…

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…

No 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…

While 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…

The 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…

A 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…

Investors were jumping into stock buying on Thursday morning. But while it may be an encouraging sign for the stock market, my advice is not to be fooled by this dead cat bounce. We will likely see oversold buying after bouts of deep selling (as we have been…

The stock market’s second quarter is over and reporting is lackluster at best. While it’s in the very early days, so far the numbers are mostly coming in soft—disappointing on at least one financial metric. What we’re also seeing is confirmation of existing full-year outlooks and good expectations…

This morning, the news is full of talk about Greece. This weekend, the government there introduced capital controls in what’s looking more and more like a country on the brink of financial collapse. Greece leaving the eurozone is of importance as it opens the door for other struggling…