Happy Monday. Good Luck out there this week.
Global Spotlight
The Brexit Saga Continues. Lawmakers in the United Kingdom’s House of Commons voted Oct. 19 to force Prime Minister Boris Johnson to ask the European Union to delay Brexit from Oct. 31 to Jan. 31.
Another Layer of Complication Has Been Added to the U.S.-China Dynamic. The U.S. House of Representatives passed the Hong Kong Human Rights and Democracy Act by unanimous voice vote Oct. 15, requiring the U.S. secretary of state to review annually whether Hong Kong “is sufficiently autonomous to justify special treatment by the United States” and allowing sanctions against officials responsible for violating Hong Kong’s autonomy.
South Africa’s Ongoing Power Woes Underscore the Deep Economic and Infrastructure Problems It Will Continue to Face. The South African government was dealt a blow this week after power generation units failed at Eskom, the embattled state-owned power utility, causing forced and unplanned blackouts for several days and leaving South Africa’s lackluster economy even more threatened amid blackout uncertainty.
A Wobbly Cease-Fire in Syria Solves Little and Delays Much. The Trump administration brokered an unstable cease-fire between Turkey and the Kurdish-led Syrian Democratic Forces (SDF), the U.S. ally in the fight against the Islamic State, on Oct. 17 as Turkey’s invasion of northeastern Syria continued.
China’s Slow Growth Won’t End Anytime Soon. China’s GDP growth slowed to 6 percent in the third quarter, its lowest quarterly growth rate since 1992 and down from 6.2 percent in the second quarter and 6.4 percent in the first.
Stratfor.com
Economic Calendar
Briefing.com has a good U.S. economic calendar for the week. Here are the main U.S. releases.
Briefing.com
Last Weeks Numbers
Review Last weeks numbers here.
Form Money.net
Earnings
Source I/B/E/S data from Refinitiv
Aggregate Estimates and Revisions
- Third quarter earnings are expected to decrease 3.1% from 18Q3. Excluding the energy sector, the earnings growth estimate is -0.6%.
- Of the 73 companies in the S&P 500 that have reported earnings to date for 19Q3, 83.6% have reported earnings above analyst expectations. This compares to a long-term average of 65% and prior four quarter average of 74%.
- 19Q3 revenue is expected to increase 3.1% from 18Q3. Excluding the energy sector, the growth estimate is 4.3%.
- 61.6% of companies have reported 19Q3 revenue above analyst expectations. This compares to a long-term average of 60% and an average over the past four quarters of 59%.
- For 19Q3, there have been 78 negative EPS preannouncements issued by S&P 500 corporations compared to 33 positive, which results in an N/P ratio of 2.4 for the S&P 500 Index.
- The forward four-quarter (19Q4 –20Q3) P/E ratio for the S&P 500 is 17.2.
- During the week of Oct. 21, 131 S&P 500 companies are expected to report quarterly earnings.
If you find this post helpful, please pass along to the investment community. If you would like to see any additional information, drop us a line and let us know.
