Comment
Q3 earnings reports will begin next week. Year-over-year operating earnings growth estimates for all of the S&P 500 (blue) have slumped to 4.28%. Ex-energy earnings (red) are expected to grow by just 2.56%.
As the second chart shows, Q3’s expectations of 4.28% growth (light blue) are well below Q2’s growth rate. Remember about 70% of the companies beat and this estimate will bounce higher eventually.
