S&P 500 Equal Weight Index/S&P 500 Index vs. S&P 500 Three-Month Earnings Revisions The current gap between the equal- and cap-weighted indexes has usually ended with the underperformance of mega-cap stocks. Image: Morgan Stanley Weath Management
S&P 500 vs. ISM PMI and S&P 500 Earnings Revisions Breadth Chart suggesting that the S&P 500 is simply following the rebound in both PMIs and earnings revisions breadth. Image: Morgan Stanley Research
S&P 500 Earnings Revisions Breadth vs. Dollar Index (DXY) Chart suggesting the good correlation between S&P 500 earnings revisions and the U.S. dollar. Image: Morgan Stanley Research
S&P 500 Earnings Revisions Breadth This chart suggests that S&P 500 earnings revisions have likely bottomed. Image: Morgan Stanley Research
S&P 500 and Earnings Revisions In recent history, the S&P 500 has bottomed when the second derivative of earnings revisions have bottomed. Image: UBS
S&P 500 Earnings Revisions Breadth and S&P 500 YoY Performance Morgan Stanley points out that S&P performance doesn’t match revisions. Image: Morgan Stanley Research
Earnings Revisions Strategy Outperforms Around First Fed Rate Cut Around first Fed rate cut, earnings revisions is the top factor out of 200 strategies. Image: Ned Davis Research
S&P 500 Price Return vs. 2021 EPS Revisions This chart highlights the positive correlation between price return and 2021 earnings revisions. Image: Goldman Sachs Global Investment Research
U.S. ISM Manufacturing Index and Cyclicals EPS Revision This chart shows the correlation between the ISM Manufacturing Index and cyclicals EPS revision, suggesting that 4Q19 will see a reset, with capital goods pricing in an actual earnings recession. Image: Morgan Stanley Research