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Second quarter earnings season winding down of more than 90% of companies in the S&P releasing results let's.
Break down the numbers get the inside scoop on this season's biggest winners and losers not only for this season but what we can expect next earnings season joining us.
-- comedies Thomson Reuters senior research analyst and all around Brady -- and happy to -- and the first thing lastly thank you let's say listen let's first discuss.
How we've done 90% of S&P companies have reported.
What do you think the the temperature gauge trillions.
And that's that's interest and you're right 90% of the companies have reported and so that's a large part of -- second quarter and it's behind us.
And it's really two stories that we're seeing here one is of course -- the headline.
Companies have beat earnings estimates but that's not -- port security earnings estimates have been brought down quite a bit before the beginning of the quarter.
In fact if if you take the beginning of the year earnings estimates -- -- point 4% for the fourth quarter.
Those who brought down to two point six at the beginning of the quarter of -- of course company managed to beat that and another in a -- point seven for the -- up for the second quarter so yes they did beat those estimates but did beat severely into it estimates.
So -- so that's really.
The story of the second quarter.
All right we'll treat our -- let me just jump in here you're on the show in July I'm Rebecca I think I was hitting -- -- of government yes.
And this is -- -- was just kicking off yes I or I remember this you said the top performing sector would be.
Haven't we do.
They would -- the farming sector for this quarter -- financials and consumer description that fantastic this quarter.
They were the standouts.
And of course the west -- energy materials and utilities.
They've been mired for quite some time but financial interest -- -- -- had a 30% growth create and and that's because -- with a loss quarter.
-- victory -- and now they've started creeping up so our -- with me not get that.
Big boost from new more -- going full -- But -- -- -- IE finance my my apartment just -- -- -- and I'm sure a lot of other people did but there it's been good at that level as they work.
The financials really different -- -- it forward how will they do in the current quarter especially considering the regulators are certainly piling it higher and deeper on JPMorgan for example.
Yes -- act so let's take a look at what happened before the second quarter.
Just to give us an idea what might happen in the third quarter crack in the second quarter -- -- companies reported earnings didn't do -- -- guidance.
He wanted to take down estimates for their company because -- who fought too optimistic going forward.
So what we saw in the second quarter with -- every one company that had a positive guidance six point -- -- companies had negative guidance.
So that was really -- because quarter in terms of guidance for the second quarter.
We've seen similar numbers for -- -- field and not as bad that that was actually the worst quarter in ten years the numbers are still bad.
A full every one positive.
Guidance facing four point site -- are you anticipating street that the financials will -- again.
That -- financials will do well again they expected to have a a healthy growth creative over 11%.
-- Harden didn't did not going to -- that the level they've beaten the second quarter that's definitely not gonna be the case and because of that you would guidance what we knew it at this because there was estimates might be taken even Louis so what that 11% now -- -- be brought human to a before the beginning of the quarter.
And then once those estimates that brought you what you see is companies -- goes into it estimates so that's kind of maybe look what we're looking at for the second quarter.
Estimates for the second quarter up 45 point 3% growth picked for the S&P 500 that is -- the -- be taken down for that we've seen that in the cost it's likely to happen again.
And then these companies might be just -- -- estimates by -- on the other side over the week his stuff performers -- weakest sectors in this quarter and do you expect those to continue to be weak as we in this present -- Yes me we actually see this team attendant put it to -- quarter through the weakest sectors were you utilities.
Energy and materials and we see that -- continued that -- quarter.
What -- the big reasons for that is especially the McCain has been -- commodity prices of course for.
But what's even more -- is these companies maybe 23 years ago when commodity prices were higher invested in large amount of money and infrastructure and you mining projects.
New oil and gas exploration projects.
Now in those prices that come down -- projects are coming on line.
Those projects on quite being the dividends or returns that they were expecting so.
So what and the supply is going -- so you can do is present half demeaned and that's for sometime after that I get that -- unfortunate.
A quick mention -- immaterial it's.
-- What we're not here there's actually.
I dashed to the week it's off the -- bill of course dependent on commodity prices -- BC out cool all -- cool would not have -- miners.
All of them -- have to be in pretty weak because of the new commodity prices.
They've invested a lot of money that that cap -- spending with -- all time high input 2012 and taking.
Not that capex needs to be justified but -- these new costs and -- the cost commodity costs.
Unfortunately did didn't they may not be justified.
Companies may not be able to recoup all -- -- and you're gonna see them continue to tighten you're attends going forward so.
Could definitely see McCain is doing re going forward is a mind of information as Liz says he is a brainy actually -- and thank you so much -- -- -- joining us once again and for room policy not so much information very good thank century we'll see -- next quarter but it.
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