Tuesday, August 2, 2011

Schwab/Yahoo report -- Economy stalling

Schwab link (lots of nice charts, too)
Key points
  • Although the debt deal remains top-of-mind, the latest GDP report's weakness didn't ease the angst.
  • The economy is now operating at "stall speed" and is at a crucial inflection point.
  • There's no much good news other than corporate profits, which have boomed.
Building on the last bullet point, Yahoo report link:
I didn't believe it myself until I was joined by John Butters, the Senior Earnings Analyst from FactSet. With roughly 2/3 of the S&P500 having reported Butters has cut into the data. Frankly if you saw the figures in a vacuum you'd have to be impressed:
* 78% of companies reporting have beaten expectations EPS estimates
73% of have beaten revenue estimates
Earnings and revenue have been growing at roughly the same rate
45 companies have lowered estimates while 25 have raised guidance
8/9/11:  And now, of course, we have to really check this out.  Post from 8/09/11 sheds some light on this

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