| These three things are driving the market towards an 'earnings recession' | |
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(Mario Tama/Getty Images)
Bank of America has declared that we are heading into an earnings recession.
On Tuesday, the bank slashed its expectations for S&P 500 earnings per share to $117.50 from $119.50, implying that for the first time since the financial crisis earnings are set to drop over the prior year.
In an afternoon email on Thursday, NYSE floor governor Rich Barry outlinedthree reasons why earnings are headed this way:
- A ~50% drop in the price of crude oil which is having a catastrophic impact on earnings in the energy sector, (down ~65% year-over-year)
- The US dollar rising by ~20% since June which has a negative impact on the earnings of multi-national companies who are members of the S&P index;
- Lastly, it is always safe to throw the 'bad weather' excuse into the mix as well.
And the only reason why stocks are not tanking in response is that investors see these three things as temporary.
Stocks were trading in a tight range on Thursday, though all of the major indexes were marginally positive near 2:00 pm ET.
Aluminium group Alcoa unofficially kicked off earnings season Wednesday, reporting that first quarter earnings topped investors' expectations though revenues fell short of estimates. More From Business Insider
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Stellar Pacific Ventures Inc.
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EXPLORATION STAGE |
CODE : SPX.V |
ISIN : CA85855B1022 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Stellar Pacific is a gold and copper exploration company based in Canada. Stellar Pacific holds various exploration projects in Canada and in Guinea. Its main exploration properties are HEVA, MONSTER LAKE and VASSAN in Canada and BALANDOUGOU GUINEA in Guinea. Stellar Pacific is listed in Canada. Its market capitalisation is CA$ 240 641 as of today (US$ 175 562, € 163 992). Its stock quote reached its highest recent level on February 18, 2011 at CA$ 0.95, and its lowest recent point on April 24, 2024 at CA$ 0.01. Stellar Pacific has 24 064 050 shares outstanding. |