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Second quarter predictions continue to decrease as stocks fall

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David Karp/AP

(Read caption) In this June 2012, file photo Specialists Frank Masello, left, and John T. O'Hara work on the trading floor of the New York Stock Exchange in New York shortly before the closing bell. All indications so far point to a slow summer as second quarter predictions continue to be adjusted downward.

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We've seen Q2 estimates slowly taken down for almost the entire spectrum of S&P sectors all spring and summer long.  Steven Russolillo at MarketBeat tells us what we can expect:

Analysts currently expect second-quarter earnings growth for S&P 500 companies to come in a negative 2.1% rate, according to S&P Capital IQ. That would mark the worst growth rate since the second quarter of 2009.

Specifically, only three sectors — industrials, tech and consumer staples — are expected to see earnings expand, while the rest are expected to register slower growth.

Materials and energy lead the laggards, as both sectors are forecasted to report earnings growth slowed by 12% and 11%, respectively. The expected slowdown in the materials sector — specifically in the manufacturing and aluminum industries — comes after manufacturer Cummins and aluminum producer Alcoa reported disappointing quarterly results earlier this week.

I'm doing very little little trading here, content to watch over a dividend-focused, large value-oriented portfolio as we head into what looks to be an earnings season not to remember.

What else is going on?  Everything good otherwise?


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