Hedgeye - CHART OF THE DAY: US Earnings #Slowing

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.

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:

282 of the SP500’s companies have reported aggregate year-over-year (y/y) EPS growth of +3.86%
Financials (53 of 68 have reported aggregate year-over-year (y/y) EPS growth of +4.0%)
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.