Aug. 28 - Companies issuing negative guidance for Q3 earnings is at the highest level in eleven years, says analyst Jharonne Martis, and revenue growth could be near zero.
Investors may be in for a shot come Q3 earnings season -- issuing negative guidance for the current quarter. Outnumbered those with positive news by more than 401. And that is the worst showing since Q3 2000 line. Remarked on by Thomson Reuters analyst around artist Iran outs that does not sound good what in the world is weighing on companies right now. While there already warning us not to expect too much of them in the third quarter at this is mainly because of the European debt crisis slowdown in emerging markets in countries like China. And also the -- dollar has become significantly stronger and it's already has hurt US exports. And it's causing the revenue generated abroad to be worth less and balance sheets here in the United States. As a result analysts have become very bearish on the third quarter and have lowered their program. -- projections to negative 2% for the third quarter this will be the weakest showing since the third quarter of 2000. And that's over ten years ago and is not the best of times that. For a -- quarters now -- companies beat earnings and miss on revenue is that it change now our -- to the point where. They've already cut costs you know there's not much else they can do. That's correct there is no more tricks that a lot of hot. They're running as lean as possible and what's worrisome is that now revenue. Has decreased as well in fact it's expected to drop to 0%. And the third -- Is going to be also the weakest showing since the third quarter 2000. You find that the tech sectors actually had the most negative preannouncement that's. A switch from the past so how troubling is that Wendell white sector that had been holding up is now. It's been a troublesome because it shows that global demand has that has dropped significantly. In the past the technologies that there. Has invested in in in of the innovative products as a result consumers went out about Smartphones ipads. But now we're seeing a slow down. And demand because consumers feel there's too much uncertainty out there and also because there waiting for the new products like the iPhone 5 and when those eight to. Be introduced before they go out and spend some money we see some positive news durable -- orders picked up a little bit about filter in her earnings might there be a pick up. Admittedly it latter half of the quarter well it's very important that that. Happens because. Growth that Matt has been so weak that it has definitely eaten up wrapping up and back. Since the second quarter we haven't seen much change to the third quarter this much concern out there it's an election year unemployment is still high. And consumers don't feel be about the economy so it's very important for the -- to pick up in order to see an improvement even in the fourth quarter. What sectors are expected to be the worst in terms of their results this quarter -- five sectors expect to see negative growth but the two weakness. Our material and energy. And the energy sector companies have warned us that they're going to be spending more money on on finding sources of energy. And on the flip side we're seeing that consumer discretionary -- expect to be the strongest which is a slight beacon of hope. Because the consumers do make up consumer spending -- make up -- -- of the US economy any other bright spots in terms some group that might surprise. Well -- and that technology sector has decreased it is the second strongest performer. At three point 6% week. But. And that's just because consumers against tied up to the consumers expecting those new products to come out an act of -- and -- -- -- -- -- -- -- -- -- -- -- Featured at tech writers and thought it platform every day at 3 PM for more wealth strategies segments I'm rob the shop there this is writers.