There was no end in sight on Tuesday, analysts said, only more signs of weak corporate earnings, economic contraction and reduced consumer spending.
For small states, where tourism forms about 25% of export earnings, the contraction was tough.The IMF offers other possible explanations for weak economic performance, including high emigration.
Price-earnings-multiples contraction continued as the tech world broadly witnessed a shift from high value enterprise to consumer applications that, no less sophisticated, still called for greater emphasis on cost even as performance thresholds rose.
In addition to the threat of fiscal contraction, "downgraded earnings projections due in part to weaker overseas growth and recession in Europe offer businesses little incentive to expand capacity," Paul Edelstein, the director of financial economics at IHS Global Insight, wrote in a note to clients.
I'll settle for $550, assuming some contraction in Google's price-earnings multiple below 30 times my 2008 earnings projection of $19 a share.
Similar indices for China and the United States recorded either a sharp slowdown or a contraction in manufacturing.BP 's quarterly earnings disappointed investors, as it wrote down assets in America by $5 billion.
If oil falls below $50 a barrel or we see some sort of economic contraction, you may have lower earnings comparisons with the third quarter of 2005.
"You've been hearing comments that earnings season is going to show a continued contraction in the rate of growth," said Robert Pavlik of Banyan Partners.
The stock market sniffs more than minimal GDP contraction and a 10% decline in earnings.
Our 12-month price target of $70 assumes a P/E contraction to 37.4 times our 2008 earnings per share estimate of $1.87 and as result, our rating is "sell".
