S&P 500, Dow, Nasdaq Hit Records Together First Time Since 1999

[progree]

4. I'd be gurgling in ecstasy if we weren't in a prolonged earnings recession

Last edited Thu Aug 11, 2016, 07:04 PM - Edit history (1)

The gloomy profits narrative underlying the stock market just got worse, 7/22/16

Earnings growth for America’s biggest companies has been lackluster for a while. We’re currently getting confirmation that S&P 500 earnings fell by around 4% year-over-year during the second quarter, which would reflect the fifth straight quarter of declines.

It has been the case that experts had forecast a sharp rebound in earnings growth during the second half of 2016 and accelerating in 2017. But even that story is deteriorating.

http://finance.yahoo.com/news/q3-2016-negative-earnings-growth-000000892.html

Earnings expectations for Q3 over Q3 is now -0.1% (it was +3.3% in early April, and +0.6% on June 30). For Q2 over Q2 its looking like about -4.0%

A Q3 over Q3 earnings decline would be 6 straight quarters of decline.

And the forward P/E ratio is even higher now than it was at the market peak in October 2007 -- the peak before the greatest stock market crash since 1929-1932.

http://l.yimg.com/ny/api/res/1.2/KLZfrBNmu7SjTz_AiB_iUA--/YXBwaWQ9aGlnaGxhbmRlcjtzbT0xO3c9NzQ0O2g9NDgx/http://media.zenfs.com/en/homerun/feed_manager_auto_publish_494/b9c1d98c9abd22d686d2458b21d8434b