Interesting breakdown of SPX Earnings by Sector, via Zacks.
My key takeaway is Energy, Utilities and Materials showed alot of strength, while Financials and Consumer were particularly weak. Note that Telecom and Industrials were surprisingly strong. In terms of Revenue and Earnings gains, however, Energy was the best game in town.
What does this mean? Energy being up is hardly a good thing — it has a tendency to suck all the air out of the room; Two other points: Consumer staples and discretionary were at the bottom of the heap (we’ve addressed this previously).
Lastly, its hard to imagine any rally having much legs — measured in months, not quarters — with Financials doing so poorly.
2Q 2005 SECTOR SCORECARD S&P 500
| Sector | EPS Growth | Sales Growth | Total | Reported | % Reported |
| Energy | 51% | 27% | 29 | 29 | 100% |
| Industrials | 28% | 13% | 54 | 53 | 98% |
| Materials | 24% | 7% | 33 | 33 | 100% |
| Telecom Services | 23% | 2% | 10 | 10 | 100% |
| Utilities | 20% | 7% | 33 | 32 | 97% |
| Health Care | 14% | 12% | 55 | 55 | 100% |
| Technology | 11% | 7% | 78 | 78 | 100% |
| Financials | 8% | 12% | 83 | 81 | 98% |
| Consumer Staples | 6% | 7% | 37 | 35 | 95% |
| Consumer Discretionary | 5% | 6% | 88 | 86 | 98% |
| Total | 14% | 10% | 500 | 492 | 98% |
(Note: EPS and sales growth compare current quarterly results vs. prior year ago quarter)
Source: Zacks
Barry,
Attempted to trackback, but “Pinging http://www.typepad.com/t/trackback/3207051… Malformed response: (Target does not appear to be a valid trackback URL).”
Here’s the trackback text:
Is earnings growth in the Energy Sector really “sucking all the air out of the room” as Barry Ritholtz suggests? Political Calculations notes that it’s all in how you look at it.