Editor's Note: Below is a chart and brief excerpt from today's Early Look written by Hedgeye U.S. Macro analyst Christian Drake. Click here if you'd like to learn how to subscribe and get a step ahead of consensus.
"...With ~40% of SPX constituent companies having reported earnings for 3Q, the growth data remains dismal – particularly for a private sector economy purportedly still flirting with a multi-year march higher in policy rates.
...Taking a 2nd derivative view of the data, operating momentum has remained decidedly underwhelming with just 43% and 45% of companies registering sequential acceleration in sales and earnings growth, respectively. More than 50% of companies have reported sequential contraction in operating margins as well. Our operating performance scorecard for 3Q to-date can be seen in the Chart of the Day below."