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Earnings Winners and Losers

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    S&P Capital IQ senior manager Christine Short on earnings and how they impact the markets.

  • Duration 3:47
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Good call thanks so much so earning season underway and even know expectations are pretty grim there could be some standouts -- -- -- the likely winners and losers.

What is it gonna mean for the market as a whole joining us now is Christine short senior manager at some IQ Christine it's great -- -- this afternoon.

Our can be heard after the bell yesterday from Alcoa and Yum! Brands both beating -- -- is to distract stupid.

Do you expect that maybe things won't be as bad as US and PIQ right -- Predicting about a 2% decline recipe earnings xxx actually come down a bit it's actually here decline about one point 2% -- -- -- couple weeks ago we were expecting a decline as much as negative 2% so.

-- with a negative one point 2% but still bringing us back to the lowest growth rate in about three years but five of the ten sectors being down.

I guess it's not so surprising we do tend to see quite a few at least 62%.

On average of companies beating estimates.

I think this -- Harvard's going to be less about who need to be some who messes and more about what the guidance of thank you.

July -- and what's forgotten is telling you so -- what you heard I mean what it what did you make about cut.

William looking out calling him into different stories here but as you've been reporting on mostly about China -- -- Dropping their estimates for global aluminum demand from 7% down 6% now.

And we've seen them come out with -- 7% figure for the last three quarters so to see now that they're dropping it.

And then -- add to you know -- -- I'm not in the S&P 500.

The coming out the other day also -- saying there haven't confronted.

China has while on this China -- it seems like all of these US based companies are looking to China to determine their outlook do you agree with that.

Think really that if you look back to 20102011.

That's where US companies are getting -- and nice.

Boost for their growth so although Europe was on her.

The US in some cases they -- planning growth opportunities -- and 500 companies were looking to China could they could depend on that double digit about GDP growth.

Now I have to be capped by Q we're looking at GDP growth for China that's dropped our estimates from 8% on -- seven point 5% so.

Not a terrible estimate for you're just not get a -- that you once.

War and the other big problem is backed companies have -- all the costs out that they possibly could.

Now they're at the point where they have to see some real growth right -- and is there anything -- -- driving that growth.

What you're correct and companies are running as -- -- that they can't at this point it seems as though they've trimmed off all all the everyday everything so although you still see some companies coming out of Rio Tinto Dan.

Saying there were going to escalate their cost cutting plan in many of the banks dropping more of their workforce numbers.

But we can't consent continued to see that happen at some point got -- -- reckon you have to grow their top line and you know right now our revenue estimate for the third quarter is only 1% so that's pretty dismal.

When you're looking at the overall pick.

Sure so we're looking at earnings a decline overall for the first time Michael Latin quarter and we've got US overall growth way below 2% -- what is it.

What is this earnings quarter mean for the health of the overall US market because a lot of people been so critical the Federal Reserve in this.

-- -- accommodative policies saying it's artificially boosting the US stock market what's your take on where we go from here from from here.

Broader market.

Where there's a disparity rate between what the markets are -- What we're seeing analysts saying company saying regarding corporate profits you know we're trading at a four time high in the markets and we're looking in a three year low for for profit growth so.

You know -- is a bit alarming they're considering the overall picture we do know in the last couple quarters however.

Investors haven't fully reacted on on what the earnings numbers -- saying.

They're reacting more to what central banks are saying and other economic indicators of real quick before we go what would you focus on it are there positive signs anywhere is -- -- that you like -- -- the company right now the two leading sectors are financials it's nice to see a rebound Merritt they're looking to be up about nine point 8%.

Consumer discretionary about four point 8% so those are the two bright spots this quarter Christine short thank you so much -- here just today making it.

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