{"id":48,"date":"2012-06-04T13:09:44","date_gmt":"2012-06-04T13:09:44","guid":{"rendered":"https:\/\/fundamentalis.com\/?p=48"},"modified":"2012-06-04T16:21:48","modified_gmt":"2012-06-04T16:21:48","slug":"sp-500-corporate-earnings-update-sp-500-tests-key-support","status":"publish","type":"post","link":"https:\/\/fundamentalis.com\/?p=48","title":{"rendered":"S&P 500 corporate earnings update \/ S&P 500 tests key support"},"content":{"rendered":"
\"\"<\/a>
Click to enlarge.<\/figcaption><\/figure>\n

The S&P 500 is sitting at critical technical support near its 200-day moving average, as well as the longer-term 50-week moving average on the attached chart.<\/p>\n

The upward-sloping trend line off the 2008 – 2009 lows comes into play right around 1,250 so we should be seeing solid technical support in this area over the next few weeks.<\/p>\n

Fundamentally, according to ThomsonReuters data, the “forward 4-quarter” earnings estimate for the S&P 500 was $108.62, down from $108.75 last week and unchanged since early April, as we entered the new quarter, leaving the market trading at 12(x) earnings as of Friday’s close.<\/p>\n

While y\/y earnings growth for q1 ’12 was expected to be 3.1% on April 1, since earnings started the actual earnings growth is closer 8%, and 5.8% ex Apple.<\/p>\n

For q2 ’12, or the current quarter, analysts are looking for 7% y\/y growth, down from 9% on April 1.<\/p>\n

The ThomsonReuters data calls for “mid-single-digit” earnings growth until q4 ’12:<\/p>\n

q1 ’12 = 8%<\/p>\n

q2 ’12 = 7.4%<\/p>\n

q3 ’12 = 4.6%<\/p>\n

q4 ’12 = 15%<\/p>\n

Two interesting fundamental observations we read on Bespoke over the weekend:<\/p>\n

1.) Economic data – of the 21 economic indicators Bespoke tracked last week,\u00a018 were weaker-than-expected, in what Bespoke called “the worst week ever” for economic data;<\/p>\n

2.) Only 13% of S&P 500 stocks are trading\u00a0above their 50-day moving average.<\/p>\n

The stock market is very oversold, and yet earnings should be one seen as one fundamental positive.<\/p>\n

Oracle is the only one of our companied scheduled to report earnings this week – June 8th.<\/p>\n

Watch 1,250 on the S&P 500.<\/p>\n

(Long AAPL, smaller position in ORCL)<\/p>\n","protected":false},"excerpt":{"rendered":"

The S&P 500 is sitting at critical technical support near its 200-day moving average, as well as the longer-term 50-week…<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3],"tags":[],"class_list":["post-48","post","type-post","status-publish","format-standard","hentry","category-earnings"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"post_mailing_queue_ids":[],"_links":{"self":[{"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts\/48","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=48"}],"version-history":[{"count":7,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts\/48\/revisions"}],"predecessor-version":[{"id":55,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts\/48\/revisions\/55"}],"wp:attachment":[{"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=48"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=48"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=48"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}