Investment Advice on the Radio
Markets are extending there gains this morning in the US, Europe and Asia. US stocks opened higher after several top retail chains reported better-than-expected sales in June, and new claims for jobless benefits fell more than forecast. Oil rose above $75 a barrel after a report showing a sharp fall in crude inventories came out. The TSX is currently lower, challenged by negative gold prices.
Yesturday I said I would expand on earnings reports and it's impact on the market. While there are alot of concerns about the global economy, Scotia Capital doesn't see an outright contraction in earnings. Recent earnings came in at about $70 on the S&P 500 and current earnings are trending to $80. A 20% contraction would bring earnings in at about $64. Under this scenario we would expect a floor of 950 and a ceiling of 1200 for the S&P 500. It is currently trading around the 1060 range. That gives us further downside risk of about 10% with 15% upside. Based on leading indicators, it appears premature to turn outright negative on earnings. For more on earnings expectations call me at 868-5525 or visit yourlifeyourplan.ca.
Yesturday I said I would expand on earnings reports and it's impact on the market. While there are alot of concerns about the global economy, Scotia Capital doesn't see an outright contraction in earnings. Recent earnings came in at about $70 on the S&P 500 and current earnings are trending to $80. A 20% contraction would bring earnings in at about $64. Under this scenario we would expect a floor of 950 and a ceiling of 1200 for the S&P 500. It is currently trading around the 1060 range. That gives us further downside risk of about 10% with 15% upside. Based on leading indicators, it appears premature to turn outright negative on earnings. For more on earnings expectations call me at 868-5525 or visit yourlifeyourplan.ca.
posted by David Allard at
7:35 AM
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