Fairval

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4Q07 US earnings -20%

Posted by fairval on March 10, 2008

Interesting bit of data.

Reuters Estimates finds that for the fourth quarter of 2007, earnings for the S&P 500fell 20.4% (negative) compared to a positive 11.5% when the fourth quarter started (October 1st). This apparently is the worst in 6 years.

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One Response to “4Q07 US earnings -20%”

  1. Anonymous said

    a strong negative short-term call across commodities and Asian equities ). Strategists are looking for a correction across the commodity group, with oil to $90/bbl in the very near future and then to $80 or less.. highlights the massive divergence between global industrial production and commodity prices and noting that this has happened on twice before, 1974 and 1980, and both were periods of US recession that happened to coincide with major supply shocks and/or sharp increases in investment and speculative demand for commodities. Financial buying (pension funds, CTAs, hedge funds and prop desks) has been the primary recent driver of prices and that the market is now vulnerable as real demand triggers liquidation. Research is, coincidentally, calling a further correction in the equity markets of another 20-35%, with corporate P&Ls expecting an impact from large provisions and costs to increase further as inflation continues its rally – fresh data shows that import prices from China to US were up a further +3.4% in February, tipping the country to a net exporter of inflation. .bc

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