According to CNN investors will have a lot to contend with this week: a deluge of earnings and economic reports are due out, including Facebook's (FB) first report as a public company and the first look at U.S. economic growth during the second quarter.
This week, 138 S&P 500 companies are on tap to report
second-quarter earnings. Of the 119 S&P 500 companies that have reported so
far, 69% have beat expectations, according to S&P Capital IQ. But the bar
has been set pretty low. And only 40% of
companies reported sales above estimates. That's the lowest percentage since
2009, according to research firm FactSet.
At the same time, analysts say that companies have also been
adjusting guidance for third-quarter earnings downward.
"The guidance has been down, but that's natural given
the pessimism around the fiscal cliff in the U.S. and how what's going on in
Europe is impacting U.S. companies," said Robert Baur, managing director
and chief global economist for Principal Global Investors. "And it's
always better for them to surprise on the upside."
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