U.S. Stock Market – Earnings and Valuation

U.S. Stock Market – Earnings and Valuation The valuation is high relative to history, but not near historical extremes. The U.S. stock market should remain under pressure until Q3 earnings season. Picture source: Fidelity Investments

S&P 500 Earnings Estimates

S&P 500 Earnings Estimates Analysts are projecting S&P 500 earnings in 2020 will rise nearly 11%, but a downward revision is possible, due to the global slowdown and impact from the trade war. Picture source: Fidelity Investments

World Technology Earnings vs. Global Market

World Technology Earnings vs. Global Market World technology earnings have surpassed those of the global market. Picture source: Goldman Sachs Global Investment Research

Earnings, Margins and Valuation

Earnings, Margins and Valuation Considering earnings growth, operating margin and valuation, the S&P 500 should remain under pressure until Q3 earnings season. Picture source: Fidelity Investments

Earnings, Dividends and Valuation

Earnings, Dividends and Valuation Considering earnings growth, dividends and valuation, the U.S. stock market should remain under pressure until Q3 earnings season. Picture source: Fidelity Investments

Earnings Estimate Progression

Earnings Estimate Progression S&P 500 Q2 earnings have been better than expected, but Q3 earnings could turn negative at -2.3% amid the trade war. Picture source: Fidelity Investments

Earnings Growth and the Fed Cycle

Earnings Growth and the Fed Cycle Analysts remain optimistic on 2020. This chart shows the expected earnings growth over the next 12 months. Picture source: Fidelity Investments

Earnings Estimate Progression

Earnings Estimate Progression The earnings recovery seems better than 2016. The Fed’s dovish pivot and low interest rates should continue to support the stock market. Picture source: Fidelity Investments

S&P 500 Quarterly Operating Earnings Expectations

S&P 500 Quarterly Operating Earnings Expectations Despite the earnings squeeze, the Fed’s dovish pivot and low interest rates should continue to support the stock market. Picture source: Bianco Research

Global Manufacturing PMI Leads Earnings

Global Manufacturing PMI Leads Earnings The chart suggests that Global Manufacturing PMI leads earnings by 9 months. Picture source: Charles Schwab