CHART OF THE DAY: US Earnings #Slowing

07/31/19 08:47AM EDT

Editor's Note: Below is a brief excerpt and chart from today's Early Look written by Hedgeye CEO Keith McCullough. Click here to learn more about the Early Look.

CHART OF THE DAY: US Earnings #Slowing - z12

To be fair (and I’m always hugely fair when it comes to being very very fair), Q2 Earnings Season has not only been “better than expected”, but non-recessionary (i.e. NEGATIVE y/y EPS). Here’s the real-time data dump on that: 

  1. 282 of the SP500’s companies have reported aggregate year-over-year (y/y) EPS growth of +3.86%
  2. Financials (53 of 68 have reported aggregate year-over-year (y/y) EPS growth of +4.0%)
  3. Technology (32 of 67 have reported an aggregate year-over-year (y/y) EPS DECLINE of -3.5%) 

Oh, you weren’t told about Part 3 of the ongoing US Earnings #Slowing story, eh? Of course not. The Old Wall and its media only talks about the upside. “So” let’s only talk about AAPL’s beat today!

As Tech enters its #EarningsRecession, the 2 Sectors of the SP500 who are already in a clean cut #EPSRecession remain: 

A) Energy (12 of 29 companies have reported an aggregate year-over-year (y/y) DECLINE of -8.8%)
B) Materials (16 of 26 companies have reported an aggregate year-over-year (y/y) DECLINE of -12.4%) 

If you’ve been long and/or “overweight” either Energy or Materials since we made the Full Cycle Investing turn call back in SEP of 2018, I’ll pray for your family and their offices. 

CHART OF THE DAY: US Earnings #Slowing - Chart of the Day

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