Courtesy of Russ Winter of Winter Watch at Wall Street Examiner
Three minute podcast on the earnings cliff.
Seeing more of this: the earnings cliff may be here. Reaction is very perverse, these individual stocks get hit, but the indexes look rigged with little response so far.
– Norfolk Southern (NSC) lowers its Q3 earnings outlook due to declines in certain markets and lower revenues from fuel surcharges. NSC expects decreased coal and merchandise shipments, offset in part by growth in intermodal volumes, to reduce revenues by ~$120M Q/Q. NSC -5.8% AH
– Bed Bath & Beyond (BBBY): Earnings of $0.98/share up 5.4% Y/Y. FQ2 comparable store sales +3.5% vs. +5.6% in 2011 FQ2. FQ3 earnings guidance is roughly inline with previous guidance at $0.99-1.04. The miss on the bottom line gives investors an excuse to sell and they don’t pass it up. Shares -5.4% AH.
– Adobe sees Q4 revenue of $1.08 billion-$1.13 billion. Est. $1.21 billion
– MMM CEO Inge Thulin says its initial 7%-8% revenue growth forecast is now a “stretch target… The market has changed since that target was put in place. It was done in a different economic environment.”
– Fed Ex CEO on China, ”I’ve been somewhat amused watching some of the China observers, I think, completely underestimate the effects of the slower exports on the overall China economy.”
– Food set to soar after animal slaughter, a full freezer might be in order. How do restaurants deal with this?
Durable goods orders track the S&P closely, and are rolling over. The fiscal cliff is already starting to cause a retrenchment. Yes, I know what you thinking, this is based on pre-central planning principles, how quaint.
PE ratios have blown out in anticipation of QE. Now what?
source: Zero Hedge
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