Author: Zac Martin, Investment Associate
Week Ending August 8th – At Bat
The ISM manufacturing survey reported a slight decline, while also reporting below analyst estimates. New orders and employment remain in contraction territory, continuing the six-month trend. However, customer inventories are reporting at the “too low” level which could be a tailwind for future production.
Earnings: According to LSEG, there has been about a 5% revision to quarterly earnings so far, only one sector has been revised lower (energy). Currently, 452 companies have reported and 80.3% have beat, while 15% are below estimates. The average company that has beaten estimates, has done so by 8.8%. The technology sector is estimated to have the largest growth rate of the S&P 500 sectors, followed by Industrials. Additionally, companies using the term “recession” within their earnings calls have materially decreased, see charts below.
The Week Ahead:
- Consumer Price Index (8/12)
- Producer Price Index (8/14)
- US Retail Sales (8/15)
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