{"id":6835,"date":"2017-04-14T13:25:22","date_gmt":"2017-04-14T13:25:22","guid":{"rendered":"https:\/\/fundamentalis.com\/?p=6835"},"modified":"2017-04-14T13:25:22","modified_gmt":"2017-04-14T13:25:22","slug":"sp-500-weekly-earnings-update-whatever-the-stock-markets-issue-it-isnt-earnings","status":"publish","type":"post","link":"https:\/\/fundamentalis.com\/?p=6835","title":{"rendered":"SP 500 Weekly Earnings Update: Whatever the Stock Market&#8217;s Issue, It isn&#8217;t Earnings"},"content":{"rendered":"<p>Ironic that the SP 500 and the major equity indices are correcting &#8211; with the SP 500 falling below its 5-day moving average this week &#8211; for the first time since the Presidential election, in front of what will likely be the strongest year-over-year quarter of earnings growth since early-to-mid 2014.<\/p>\n<p><em><strong>Thomson Reuters I\/B\/E\/S data (by the numbers):\u00a0<\/strong><\/em><\/p>\n<ul>\n<li><em><strong>Forward 4-quarter estimate:<\/strong><\/em> $135.18, up from last week&#8217;s $135.14 and again showing sequential strength<\/li>\n<li><em><strong>P.E ratio:<\/strong><\/em> 17(x)<\/li>\n<li><em><strong>PEG ratio:<\/strong><\/em> 2.0 (x)<\/li>\n<li><em><strong>SP 500 earnings yield:<\/strong><\/em> 5.80%, up from last week&#8217;s 5.74%<\/li>\n<li><em><strong>Year-over-year growth of the forward estimate:<\/strong><\/em> 8.25%, down 1 basis point from last week&#8217;s 8.30%<\/li>\n<\/ul>\n<p>Thomson Reuters published &#8220;This Week in Earnings&#8221; Thursday night given the Good Friday market holiday so we received the typical week-ending SP 500 earnings data a day early.<\/p>\n<p>With several of the big bank&#8217;s reporting their Q1 &#8217;17 quarters before the open on Thursday, April 13th, the numbers look good and the Financial sector should see a steady-to-higher drift in Q1 &#8217;17 earnings growth estimates into the next week or two.<\/p>\n<p>Readers need to know that &#8211; even without any tax reform built into the SP 500 earnings estimates &#8211; as of right now 2017 is expecting the strongest year of earnings growth for the benchmark since 2010&#8217;s 40% y.y growth rate, and that 40% was only because 2008 and 2009 were down 30% &#8211; 35% cumulatively.<\/p>\n<p>The sector distortions caused by the Energy sector will dissipate with 2017 earnings and this should be a robust year for earnings growth.<\/p>\n<p>Whether the SP 500 P.E expands or contracts in the face of this, is another question.<\/p>\n<p>More to come Saturday and Sunday of Easter weekend.<\/p>\n<p>Enjoy the 3-day holiday and &#8220;thank you&#8221; for reading.<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Ironic that the SP 500 and the major equity indices are correcting &#8211; with the SP 500 falling below its&hellip;<\/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":[184,9,91],"tags":[],"class_list":["post-6835","post","type-post","status-publish","format-standard","hentry","category-184","category-sp-500","category-weekly-earnings-update"],"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\/6835","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=6835"}],"version-history":[{"count":3,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts\/6835\/revisions"}],"predecessor-version":[{"id":6838,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts\/6835\/revisions\/6838"}],"wp:attachment":[{"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6835"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6835"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6835"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}