And you thought football season was fun - get ready for some 3Q 2009 Earnings Season. Subplots include: Revenue growth versus profit based on further cost-cutting; identifying how the consumer is spending (via Wal-Mart versus higher end corporate profitability); and businesses finally investing in tech updates or continuing to utilize tech services to maintain existing equipment. Yes, its all here and then some, so get ready. This market needs improved earnings to support the current price/earnings ratios that stocks have risen to and it also needs revenue growth to support the recovery story that was created in March and been sown throughout the past 3 months in particular.
Check out future blog posts to see how the following companies report:
(1) Alcoa reports Wednesday and is considered an economic bellweather stock - everything uses aluminum and so if products are being produced and sold then this company should be seeing sales and revenue growth. This will be a newspaper headline number and could affect market momentum (pos or neg) as it truly kicks off earnings season.
(2) Family Dollar and Costco are examples of the new spendthrift consumer and they report on Wednesday to show that the consumer continues to shift from expensive goods to more budget-friendly items.
(3) Yum Brands (which owns T-Bell, Pizza Hut and KFC) reports after the bell today and should provide insight on consumer spending.
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