“With 90% of the companies in the S&P 500 reporting actual results, the percentage of companies reporting earnings above estimates (72%) is slightly below the four-year average, and the percentage of companies reporting revenues above estimates (55%) is below the four-year average. However, the percentage of companies reporting revenue above estimates is above 50% for the just the second time in the past five quarters….
…banks are by and large reducing their loan-loss provisions and reserves. The net effect is that bank earnings and year-over-year earnings growth are much higher than they would be in the absence of lower loss provisioning. Suffice it to say that this accounting gimmickry, which has been going on for several quarters, has contributed greatly to overall S&P 500 earnings growth. At some point, banks will no longer be able to rely on this source of earnings.” Full story at…
Monday, the S&P was down 0.1% to 1689 (rounded).