The US earnings season slows this week with retailers starting to report.
Walmart, America’s largest retailer leads the way this week with more to follow next week.
Other companies include Hormel Foods, Hewlett Packard, Baker Hughes, Albermarle (a lithium processor big in WA) and Newmont Goldcorp.
According to the AMP’s chief economist, Shane Oliver around 80% of US S&P 500 companies have so far reported December quarter results with 75% beating on earnings (which is in line with the long-term average) by an average of 5% and 67% beating on sales.
He says earnings growth looks like it’s up about 2.5% year on year, compared to expectations a few weeks ago for a 2% decline.
“Market expectations for 10% earnings growth this year look a bit too high, but it’s likely to be around 5-7% which is still reasonable,” he wrote at the weekend.
Source: AMP Capital
