The final earnings season of the decade has been anything but dull. Half of the S&P 500’s companies have reported 19Q4 earnings, with 69.5% beating analyst expectations. As a result, Y/Y earnings growth expectations for the quarter have turned positive (1.6%) from an expected decline of 0.3% on January 1, 2020. However, much of the good news has been upstaged by a coronavirus outbreak in China and fears that the virus may impact multi-national earnings next quarter. Exhibit 1: S&P 500 % of Revenue from China & Hong Kong by Industry Group In aggregate S&P 500 companies generate 60.5% of

A clear trend has emerged within the energy sector, consistent negative earnings and revenue forecasts for the S&P 500’s oil & gas exploration & production (E&P) sub-industry. The group continues to face a weak pricing environment and is expected to stop the exponential production growth. Exhibit 1: S&P 500 E&P YoY Growth Rates vs. Net Profit Margin Analyst estimates for E&P’s 19Q3 aggregated earnings have fallen 20.1% since July 1 and revenue expectations have come down 9.0%. As a result, the outlook for 19Q3 YoY earnings are down 15.1 percentage points (ppts) to a decline of 39.5% and revenue fell