US stocks finish slightly higher, although a tech selloff ends the Nasdaq Comp’s winning streak, and the DJIA completes its best two-week stretch in more than nine years.
DJIA rises 25 to 9094, up 11.7% for the past two weeks – its best stretch since the two weeks ending March 24, 2000 (and does that ring a bell?) S&P 500 adds 3 to 979, Nasdaq Comp loses 8 to 1966. For the S&P and Nasdaq, it’s their best two weeks percentagewise since March and April, respectively. Crude had a nice little week as well, rising 5.4% to crest over $68/barrel.
This rally has come amid widespread consensus that corporate earnings are coming in far better than expected. But how good have earnings really been? Not very good.
Earnings for the S&P 500, after the 2Q reporting period is done, are likely to be down 98% from the peak in 3Q07, according to Chart of the Day, and relayed by Prieur du Plessis. That’s the largest decline on record.
“This provides a sobering picture indeed,” he says, “causing concern that in a number of instances a disparity is developing between stocks prices and fundamental reality.”
Additionally, S&P estimates that earnings for the 12 months ending in September will be down $1.01 – something that has never happened before.
July 24, 2009
well… looks like that part about the market staying irrational longer than my solvency is true.