There Goes The Earnings Story
October 10th, 2007 by 
reality
Bulls have at least had strong earnings to support their story, whether or not the earnings are real being another question. However, it appears that story is on the way out.
“NEW YORK (MarketWatch) — Third-quarter earnings of S&P 500 companies have “a good chance” of turning negative for the first time in five years on Thursday, after factoring in Wednesday’s profit-warnings from a slew of energy stocks, Thomson Financial said.
“There’s a good chance that we’ll go negative tomorrow,” said John Butters, analyst at Thomson Financial, which tracks earnings estimates at S&P 500 companies.
The third-quarter earnings growth rate is currently at 0.1%, and that’s without factoring in the profit warnings from Chevron Corp., Valero Energy and others,” he said.
Just as an aside, I saw that September house sales were down 42% in the Washington, D.C., area, very consistent with the other early reports that I have mentioned. Jim The Realtor sees a lot of transactions having fallen out of escrow (presumably due to financing issues). Did I mention they’re buying the homebuilders today?
Posted in Real Estate, Stocks | 
October 10th, 2007 at 1:16 pm
GOOG has gone up $100 per share in the past 17 trading days.
Will it be $725 a share at the end of October? I wonder what the breakdown is of the companies who pay their advertising revenue? I don’t think YouTube is in the black yet.
6 more changes for a “black monday or tuesday” in October
October 10th, 2007 at 8:03 pm
the process of lowering the bar in terms of earnings is such a sham.
they just lower the bar so it’s easier to clear it.
a month from now everyone is going to say how great 3Q earnings were because they beat estimates.
if they expect -0.7%, and get +0.2%, they’ll take the market higher.
it’s pretty ridiculous that they resort to this, but it works for whatever reason.
October 11th, 2007 at 8:49 am
The mortgage mess and the Fed rate drop flushed me out of money market funds and into foreign funds a month ago. I am earning one percent a week which is fantastic but this reminds me of the end of the last stock bubble.
I have my finger on the sell button and I expect that a lot of other people do too. When this thing turns it will be a gut wrenching ride…