The Corporate Earnings Fiction in Q3

The Corporate Earnings Fiction in Q3:

The Biggest Sinners in the Dow.

All 30 companies in the Dow Jones Industrial Average have now reported earnings for the third quarter. As required, they reported these earnings under Generally Accepted Accounting Principles (GAAP). These standardized accounting rules are supposed to allow investors to compare the results of different companies. But that’s too harsh a fate for many of our corporate heroes, and so they proffer their own and much more pleasing accounting strategies – as expressed in “adjusted” earnings and “adjusted” earnings per share (EPS).

Of the 30 companies in the DJIA, 14 reported “adjusted” or “non-GAAP” earnings in Q3 that were significantly higher than their GAAP earnings. Total “adjusted” EPS of these 14 Dow components exceeded their total EPS under GAAP by 26%! Nice work!

Read moreThe Corporate Earnings Fiction in Q3

Dow Jones Tops 18,000 – Highest In 9 Months (Earnings At 12-Month Lows)

Dow Tops 18,000 – Highest In 9 Months (Earnings At 12-Month Lows):

Was it ever in doubt?

Dow Jones Tops 18,000

Oh just one thing…

Dow Jones Forward EPS Expectations

Earnings expectations have plunged over 6% since the last time The Dow was here.

Chart: Bloomberg

 

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PANIC!!! All Major US Equity Indices Halted – The S&P 500 Futures Is Halted For The First Time In History

Panic!! All Major US Equity Indices Halted (ZeroHedge, Aug 24, 2015):

20150824_halt

Nasdaq was the first to be halted at 0758ET.

The Dow is now down 850 points from Friday’s close and halted…

The S&P 500 Futures is halted for the first time in history.

Read morePANIC!!! All Major US Equity Indices Halted – The S&P 500 Futures Is Halted For The First Time In History

BofA Pushes The Panic Buttton: “Dow Theory Sell Signal, Key Supports Broken, Semis Sinking, No Capitulation”

dow 1_0

–  BofA Pushes The Panic Buttton: “Dow Theory Sell Signal, Key Supports Broken, Semis Sinking, No Capitulation” (ZeroHedge, Aug 21, 2015):

Dow Theory flashes sell signal. S&P 500, NYSE & Russell 2000 all closed below key supports.
No tactical capitulation. Not 90% down. ARMS below 2.0. 10-day total put/call ratio not showing panic. But VXV/VIX oversold.

 

Dow-Stockalypse-Wow: Bonds & Bullion Soar As Equities Crash

20150820_EOD

All the charts you need here:

Dow-Stockalypse-Wow: Bonds & Bullion Soar As Equities Crash (ZeroHedge, Aug 20, 2015)

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Dow Dumps 1200 Points From Record Highs To 7-Month Lows – Unchanged Since The End Of QE3 (ZeroHedge, Aug 20, 2015)

Read moreDow-Stockalypse-Wow: Bonds & Bullion Soar As Equities Crash

Dow Down 1000 Points From Highs, Small Caps Swing Red Year-To-Date

Dow Down 1000 Points From Highs, Small Caps Swing Red Year-To-Date (ZeroHedge, Aug 7, 2015):

But but but… the smart men on TV said a) rate-hikes are priced-in, 2) rate-hikes are bullisher for stocks than rate-cuts (why would The Fed raise rates if everything was not awesome?), and thirdly) buy the dip! It appears The Fed knows it is going to need some ammo sooner rather than later…

From 18,351.36 on May 19th, The Dow (cash) is now at 17,345…

Dow Jones

But it’s not just the mega-caps, The Russell 2000 (small caps) has tumbled back into the red year-to-date…

Read moreDow Down 1000 Points From Highs, Small Caps Swing Red Year-To-Date