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Analysts' estimates compiled by Luft show that as of Tuesday, earnings of S & P 500 companies are expected to decline 0.1% from the fourth quarter of 2018. The latest estimates are in sharp contrast to the 11.5% increase expected at the beginning of the year and the 4.1% increase expected on October 1.
Almost all S & P 500. SPX components have reported results, and their third quarter earnings are expected to fall 0.4% year-on-year, according to Luft.
Two consecutive quarters of year-on-year profit decline will mark a decline in performance. The last time this happened was from July 2015 to June 2016, which coincided with a period of sluggish stock market performance.
But the data of the fourth quarter is likely to change, because the actual performance of many companies tends to exceed the conservative profit forecast, which may lead to a positive growth of profits in the fourth quarter.
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