The Traderszone Network

Published in TZ Latest News 2 January, 2016 by The TZ Newswire Staff

Earnings Revisions Tumble To Weakest In 9 Months, BofAML Warns "More To Come"

Until recently healthcare had been the only sector offering any optimism from an earnings perspective but even that has collapsed now. The three-month earnings revision ratio (ERR) fell for the fifth month in a row to 0.53 from 0.55 – its lowest level in nine months, indicating twice as many cuts as increases. As BofAML notes, this is well below the long-term average of 0.84, and given S&P 500 sales revisions have collapsed to April 2009 lows, they forecast more cuts are likely to come… and a muted January effect looms.

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