You're watching...
FBN’s Liz MacDonald on companies and analysts lowering expectations for first-quarter earnings.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
Well despite the market -- -- that we've got our hands today it's actually been a great run for the S&P here's the last six months for the S&P.
But here's the other thing that's been happening in the past six months expectations for first quarter earnings growth.
Have been dismal earnings season is gonna kick off tomorrow what do you think that analysts are expecting now.
Let's -- Elizabeth MacDonald joins me now on set with that so here we got this huge run six month chart looks amazing for the -- and yeah.
And net net I -- -- the analysts now saying the fun is over.
Yes essentially and what's happening is is that when you do the year to year comparisons.
In those prior quarters yet -- comparisons look great.
Sure -- because the prior quarters were being compared to really bombed out periods in the market during the financial crisis.
Now the comparisons are a lot tougher it's about fundamentals it's about oil it's about Europe it's about an economy in -- troops year so since October.
Analyst had been expecting S&P 500 profit growth to be up about 10%.
They've dramatically ratcheted that down to -- knocking off that growth rate by about two thirds.
Some analysts are saying you're only gonna see anywhere from 1% to 2%.
For profit growth vs the prior year quarter finale in its pressure on us -- I think yeah the that is -- lending we had as its double it was it is like.
Not even 1% -- Yeah 1% yeah that's right and so you know we have JPMorgan reporting later in the week they're gonna reporting.
And be reporting ratcheting down profit expectations -- -- for share out collect tomorrow same story.
We've got a list of the companies that have been lowering their revenue and profit projections out calling ATT.
Cisco in the mix also -- saying lower possible revenues Wal-Mart is -- out in the market saying.
Watch out for their earnings results and low coming in lower than expected but you know that thing is -- don't know double dip we're a double dip was all the rage that talk last summer no talk of a double -- just that the fundamentals -- say going to be tougher to do near year comparisons when you look at the -- of the earnings report.
No more -- great comparison to really poor earnings in prior quarters.
Whether we run the ballot the top that's the question is is this all priced into the market that's a question -- analysts that I -- our analysts in -- bar so low.
That you know a Caterpillar can step over and.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- I mean this could be and -- several analysts come on the show actually in say you better watch out if you didn't get in on in on the game in the first quarter.
Here Ottawa for the rest of -- -- -- the story as well will the markets over react to stimulus no longer be in a market.
I mean the Fed forward guidance has been a story maybe that's not for this story it's about fundamentals not the Fed.
Lives in McDonald's -- is -- with a smile on your face this try to have a great news like this mom and he said it was like.
