Will Earnings Be a Positive Catalyst for Stocks?

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Jan. 6 (Bloomberg) –- Standard and Poor’s Chief Equity Strategist Sam Stovall discusses his Q4 earnings outlook with Julie Hyman on Bloomberg Television's "Street Smart." (Source: Bloomberg)

Soon, later this week.

If you are looking at how many companies that have been coming out with missed estimates put and that ratio is higher than normal.

Air pushes a report several times a day, showing the earnings progression, but how and the coming quarter -- how many copies have not been how many of those have come out with the negative ratios.

Right now we are at a ratio of eight.

The thought is that we are looking at a times as many copies that are renouncing with negative as with positive.

Over the last 15 years, the number has been closer to five.

We are well above that longer- term average, and it has been creeping up over the past several quarters.

There is a good thing in that the earnings themselves have been improving over the past couple of quarters, so maybe you could overlook it, but then again maybe not.

On the one hand you could say business is tracking worse than the previous estimates than people thought.

Does this leave people any room, so they could come out and give the stocks a pop?

This -- do you think this will happen since they have lowered the estimate?

They have done a very good job of managing expectation, setting the bar so low.

If the bar is so low, you cannot help but exceed that far.

One thing that is good this quarter is that 5.7% ejected year-over-year growth, at the beginning of the reporting.

Time, that is equal to the reported percent we had the prior quarter.

Usually you work low and work your way up, we are starting exactly where we ended up last quarter, and so the expectation is that maybe we add two percentage points or so to the estimate, when we get the reality at the end of the season.

So is the earnings season going to be a positive or negative catalyst for s tocks?

The trend is still your friend when it comes to earnings, you can justify the higher pe ratios, the multiple expansion that was on 12 the -- in 2013, so now in a sense you're getting a justification.

So the market will be focusing more on global growth and deflationary worries in europe, and whether that spread here to the guide states.

What is your end of the year target?

1895. "money moves thank you.

For on the market, i'm julie hyman.

This text has been automatically generated. It may not be 100% accurate.


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