While Energy is still lapping the very easy compares from 2016, the Financial sector is a big drag on Q3 ’17 earnings, with the key group showing earnings declines of -7.3% for Q3 ’17.
Ex-Energy and Ex-Financials, the SP 500 has grown earnings 8.1% in Q3 ’17.
Energy is about 6% – 8% of the SP 500’s market cap, and Energy sector earnings grew 162% y/y, while Financial’s are about 15% of the SP 500’s market cap, and fell roughly 7% in Q3 ’17.
8.1% is a decent growth rate for most environments.
Technology earnings grew 23.5% y/y, since Q3 ’16. some of that aided by the weak dollar.
The regular earnings review and preview will be out on Saturday, November 11th, 2017.
Whatever the issue is with the SP 500 this week, whether its the tax plan, or high yield credit spreads widening, or President Trump’s trade comments. it isnt SP 500 earnings, at least not yet anyway.
Thanks for reading. More to come tomorrow.