PLS EXPLAIN long, but understandable and explainable. ! =] Earnings: Nowhere to go but up: NEW YORK (CNNMoney com.) – Results Weak, by the banks during the fourth quarter is likely to cause the biggest drop in quarterly profits for large U.S. companies for six to 73 anni . Con% of companies in the index S & P 500 having reported results, overall earnings for the fourth quarter is on track to fall 20. 1% from a year ago, according to latest data of Thomson Financial.Questo is much worse than what was provided recently by 1 January, when analysts expected a drop was about 9. 4% “really see the impact of the credit crunch here,” said Jack Ablin, chief investment officer at Harris Private Bank.Sfortunatamente for investors, the economic slowdown is likely to make things worse for the next two quarters. Thomson provides a slightly reduction in profits during the first quarter and only 1% increase in profits during the second trimestre.Ma some market experts provide the results should improve in the second half, assuming that most of the depreciation of the financial sector strada.Entro the second half of 2008, year-over year comparisons will get easier by the third quarter and fourth quarter 2007 earnings were so miserable, “said David Dropsey, senior research analyst at earnings tracker Thomson Financial.Dropsey said that if, as some analysts predict that banks are writing most of their exposure to bad loans by mid-year, earnings could rebound in the second part of 2008.Certo depends on what happens economy. Except as Dropsey called “full implementation of the recession,” earnings growth could return to a “rhythm” standard, which historically has averaged about 7. 6% quarter compared precedente.4Q blues mainly limited bancheSì, banks had a terrible fourth quarter. With 77 of the 92 companies that reported financial results for the fourth quarter of this group is on track to be the worst of any sector since Thomson Financial began monitoring revenues in 1997.Il hit loss of mass from heavy-weighted companies such as Merrill Lynch (MER, Fortune 500), Bear Stearns (BSC, Fortune 500), E * Trade Financial (ETFC), the Morgan Stanley (MS, Fortune 500) and Citigroup ( C, Fortune 500) and the losses, Thomson has not yet been able to determine how big a percentage drop of the economic gains were adottate.Ma whether to lift the economic benefits for the S & P 500 is on track to increase 11. 8% from last year, thanks to sound effects from various other settori.Tech energiaIn and provide very useful technology is expected to have risen by 26% in the fourth quarter, while revenues in the energy sector is expected to have increased by 20%. The force is expected to continue during the first quarter of 2008, with gains in technology are expected to increase by 10% and 24% of energia.Le benefits of technology and energy could add weight to the argument that outside property sector and financial economy more resilient to market psychology, I would say, “said Peter Brodie, director of investments at Bryn Mawr Trust Wealth Management. “Investors are wondering if we’re in a recession and if so, how would you see a deep,” said Brodie.Ha, said the profits of the financial sector on Wall Street seem to manage mortgage situation, but that earnings growth in other areas shows economic Outlook is not as terrible as it seems essere.Homebuilders and materials lottaMa is not fair to blame all the ills of the market for profit financial sector. Consumer discretionary companies, including homebuilders, is expected to post a 15% reduction in profits from a fa.Togliete year if the homebuilders and the profit sector is up 6%. The failure of economic and homebuilders reflects the credit crunch and the housing market that have sent the economy is poised on the edge of a recessione.Al Beyond housing, there is some evidence that other sectors have begun to feel the pinch from Slow pure.Utile materials companies, including chemical companies, is expected to decline by 17% from a year ago, partly due to tough comparisons, but for an economy stagnante.Nel second half surge? An encouraging sign for investors is that the system of revenue the financial services companies should begin to improve after the fourth quarter triste.Certo, economic benefits are still expected to slip inside the first quarter. But the erosion is expected to decline, with analysts expected profits decline by 21%. In addition, consumers discretionary companies are required to report only 1% drop in profit during the first quarter, the forecast S Thomson.L ‘& P 500 is expected to return to profit growth in the second quarter and will need to install another more growth for the remainder of the year, as the comparison becomes easier and technology gains in the energy sector continue to show strong crescita.Tuttavia, Ablin is not so sure the second half will be sturdy enough, as some estimates. He believes that the forecasts are rosy for the third and fourth quarter and 2008 overall, particularly for companies outside the technology energia.Ablin said he is looking for 2008 earnings growth of 3% compared with current projections more than 15%.
