Reuters Insider - Inside the News: S&P 2011 Earnings Seen Hitting Record
13/06/2016 10:59
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Source: Thomson Reuters
Description: S&P 500 companies are estimated to earn a record
$95.98 per share next year, based on Thomson
Reuters data.
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Transcript (May be auto-generated)
Time to go inside the news at 3PM. Stocks are holding on to strong gains in the
final hour of trading with the S&P erasing all of the loses it incurred
following the Lehman Brothers bankruptcy back in September 2008. Financials
leading the way higher, continuing their December rally after underperforming
the broader market for much of the year. KBW Bank Index is up 1.5%. Also adding
to the positive tone, AIG is rising better than 3% after officials briefed on
the situation told Reuters the US government plans to sell a large piece of its
stake in the company. Portugal's government says its fiscal consolidation
measures are starting to produce results and that they will do everything
possible to eliminate risk cited in Moody's review of its debt. The country's
leadership says Portugal's banking system is solid and it's confident the banks
have appropriate capital ratios. Ratings mornings on both Portugal and Greece
knocked the Euro lower. One currency strategist tells Reuters if it weren't for
the thin market conditions, we probably be testing $1.30 on the Euro.
Earnings are set for a record 2011, thanks to strengthening overseas demand
especially from emerging markets. S&P 500 companies are estimated to earn a
record $95.98 per share next year, based on Thomson Reuters data. The materials
sectors expected to lead earnings with growth of 29.9% followed by financials
and energy. This year, the industrial and material sectors are the second and
third best S&P 500 sectors in terms of year-to-date performance after consumer
discretionaries. Du Pont is among the leaders in that group, up 48% so far this
year.
It scores 95 out of 100 in StarMine's Value Momentum model. Business borrowing
rose again in November. The Equipment Leasing and Finance Association tells
Reuters US businesses originated $4.5 billion in loans last month, that's up
12.5% from a year ago. This sees companies in the trucking, technology and
healthcare industries increase their investment in equipment and software. The
lending group said 72% of all credit applications were approved in November that
is up from 67.2% last year.
The FCC has adopted new rules on Internet traffic. The legislation would prevent
providers from blocking lawful content but still lets them ration access to
their networks. The FCC's decision was made three to two along party lines. FCC
Chairman Julius Genachowski defended the plan as one that protects consumers. We
have adopted, for the first time, rules that protect consumers and entrepreneurs
when it comes to wireless broadband, the transparency rule, no blocking of
websites, no plucking of certain competitive applications. He added that it's
his hope Internet innovation will diminish the necessity for regulation. Coming
up at 4PM; find out why Ernst & Young could potentially settle out of court
after being accused of helping hide Lehman Brothers financial problems. I'm
Rhonda Schaffler, this is Reuters Insider