{"id":7622,"date":"2018-03-24T12:27:42","date_gmt":"2018-03-24T12:27:42","guid":{"rendered":"https:\/\/fundamentalis.com\/?p=7622"},"modified":"2018-03-24T12:27:42","modified_gmt":"2018-03-24T12:27:42","slug":"sp-500-earnings-yield-jumps-to-6-11","status":"publish","type":"post","link":"https:\/\/fundamentalis.com\/?p=7622","title":{"rendered":"SP 500 Earnings Yield Jumps to 6.11%"},"content":{"rendered":"<p>The SP 500 earnings yield ended Friday, March 23, 2018 at 6.11%, higher than the 6% print on February 9th, 2018.<\/p>\n<p>Of course since the week of February 9th, the SP 500 forward estimate has risen from $157.28 to this week&#8217;s $158.02.<\/p>\n<p>The SP 500 index fell 5.95% on the week.<\/p>\n<p>The 10-year Treasury yield still has not closed below the 2.788% low of the week of 2\/15\/18 despite the equity market weakness.<\/p>\n<p><em><strong>Thomson Reuters data by the numbers:\u00a0<\/strong><\/em><\/p>\n<ul>\n<li><em><strong>Fwd 4-qtr est:<\/strong><\/em> $158.02<\/li>\n<li><em><strong>P.E ratio:<\/strong> <\/em>16.4x<\/li>\n<li><em><strong>PEG ratio:<\/strong><\/em> 0.79x<\/li>\n<li><em><strong>SP 500 earnings yield<\/strong><\/em>: +6.11% vs last week&#8217;s +5.75%<\/li>\n<li><em><strong>Y\/Y growth of the fwd estimate:<\/strong><\/em> +20.71% vs last week&#8217;s +20.8%.<\/li>\n<\/ul>\n<p>The SP 500 is now sitting near key technical support from the lows of Fenruary 8th and February 9th, with Friday&#8217;s close in the SP 500 at 2,588.26.<\/p>\n<p>February 8th low: 2,580.56<\/p>\n<p>February 9th low: 2,532.69<\/p>\n<p>The February 9th flush is another 50 SP 500 points lower than Friday&#8217;s close so if Monday morning&#8217;s open is ugly and lower, that is your line in the sand.<\/p>\n<p>With an ugly open Monday morning, the SP 500 earnings yield could get really attractive. Prior to this latest SP 500 flush, the last time the SP 500 sported a 6% earnings yield, were the weeks prior to the Presidential election in November, 2016, and for that stretch, the SP 500 earnings yield was over 6% for 5 straight weeks.<\/p>\n<p>It isn&#8217;t a hard-and-fast metric or buy signal, but an SP 500 earnings yield above 6% has typically meant good value for the SP 500.<\/p>\n<p>The SP 500 earnings yield is calculated by dividing the current &#8220;forward 4-quarter estimate&#8221; by the closing value of the SP 500: $158.02 \/ 2,588.26 = 6.1%.<\/p>\n<p>Thanks for reading.<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The SP 500 earnings yield ended Friday, March 23, 2018 at 6.11%, higher than the 6% print on February 9th,&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":[190,162,91],"tags":[],"class_list":["post-7622","post","type-post","status-publish","format-standard","hentry","category-10-year-treasury-yield","category-sp-500-earnings-yield","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\/7622","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=7622"}],"version-history":[{"count":4,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts\/7622\/revisions"}],"predecessor-version":[{"id":7626,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts\/7622\/revisions\/7626"}],"wp:attachment":[{"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7622"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7622"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7622"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}