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The broad rally lifted even companies that reported pessimistic earnings forecasts.
This implies real average earnings growth of approximately 14% relative to CPI Pessimistic – earnings are assumed to continue their 2008-2013 trajectory, which means there'll be a fall in real average earnings of around 6% relative to CPI Yet this table illustrates that if wages and employment rise in accordance with OBR projections, there will still be 21% of children in relative child poverty.
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"Some are pessimistic about earnings two quarters out, but they're probably taking a naïve stance," said Dan Rivera, chief investment officer at the large-capitalization growth division of American Express Asset Management.
Increasing indications that the economy is slowing, combined with oil prices at decade-high levels and Europe's weak currency, have the market pessimistic about earnings for many companies.
Since the spring of 2000, he has been more pessimistic about corporate earnings and the stock market than just about any other strategist.
"Consumers also remain quite pessimistic about their future earnings, a sentiment that will likely constrain spending during the holidays," said Lynn Franco, director of the Conference Board's Consumer Research Center.
[C7.] Stocks Surge After Reassuring Economic Reports Stocks surged as a decline in oil prices and a reassuring assessment of the economy helped investors overcome their disappointment over Intel's earnings and pessimistic sales forecasts.
Morgan Stanley analysts were more pessimistic, citing poor corporate earnings.
At an average of 75 cents per share, analysts' estimates for GM's 2005 earnings are more pessimistic than the low-end of the company's guidance.
Today, Qwest emphasized its Bell-ness by posting quarterly results that read just like those of the other three Bells: tepid earnings, lower revenue, pessimistic guidance.
They assign too-low multiples of earnings and put unfairly pessimistic projections of declining margins in their discounted cash flow models.
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CEO of Professional Science Editing for Scientists @ prosciediting.com