The corporate earnings picture continues to deteriorate, with companies exposed to tariffs taking a particularly strong hit.
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MON, JUN 24, 2019
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DJIA |
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+% |
+
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S&P 500 |
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+% |
+
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NASDAQ |
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+% |
+
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| DOW |
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NAME |
LAST |
CHG |
%CHG |
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MSFT |
137.78 |
+0.81 |
+0.59% |
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AAPL |
198.58 |
-0.20 |
-0.10% |
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CSCO |
57.18 |
+0.15 |
+0.26% |
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| S&P 500 |
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NAME |
LAST |
CHG |
%CHG |
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AMD |
29.26 |
+0.16 |
+0.55% |
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BMY |
45.69 |
-3.65 |
-7.40% |
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BAC |
27.98 |
-0.14 |
-0.50% |
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| NASDAQ |
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NAME |
LAST |
CHG |
%CHG |
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AMD |
29.26 |
+0.16 |
+0.55% |
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MU |
33.19 |
-0.06 |
-0.18% |
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SIRI |
5.59 |
-0.01 |
-0.18% |
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Major indexes are hovering around record highs, erasing May’s massive sell-off, thanks in part to recent optimism on trade talks. But the corporate earnings outlook paints a less rosy picture.
Forecasters already were looking for negative earnings growth in the second quarter. The outlook has now swung to red numbers for the third quarter, CNBC’s Jeff Cox reports, based on the latest FactSet calculations. The data firm estimates that the third-quarter outlook dropped from a slight gain as recently as June 7 to a slight decline of 0.3% at the end of last week.
The primary reason for the downward trajectory has been multinational companies, Cox reports. FactSet estimated that companies that do more than half their business outside the U.S. likely will see an earnings decline of 9.3% in Q2. By comparison, those that do a majority of sales domestically were projected to see a 1.4% growth rate.
Companies such as Apple, Boeing and Intel — all of which get a bulk of sales from overseas — are especially susceptible to fallout from the ongoing U.S.-China trade war and resulting tariffs. Wall Street strategists are expressing more concern over what it will mean for a market that has recovered back around all-time highs.
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