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 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
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
STOXX Europe 600 EPS Revisions This year, SXXP EPS revisions have not been worse than a typical year. Image: Goldman Sachs Global Investment Research
GDP Growth Revision for 2020 The recovery in global economy is expected to remain weak in 2020. Image: Financial Times
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
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