{"id":3069,"date":"2010-09-22T09:11:25","date_gmt":"2010-09-22T09:11:25","guid":{"rendered":"https:\/\/mmm.9dotdigital.ca\/?p=3069"},"modified":"2025-03-27T15:49:07","modified_gmt":"2025-03-27T15:49:07","slug":"equity-rally-doesnt-reflect-earnings-optimism","status":"publish","type":"post","link":"https:\/\/mmm.9dotdigital.ca\/?p=3069","title":{"rendered":"Equity rally doesn&#8217;t reflect earnings optimism"},"content":{"rendered":"<p>US stocks have rallied recently despite equity analysts making more downgrades to 12-month-forward company earnings estimates than upgrades. The &#8220;revisions ratio&#8221; (i.e. the difference between the numbers of upgrades and downgrades in a particular period, divided by the total number of earnings estimates) correlates with business surveys; current weakness suggests that the ISM manufacturing new orders index will fall further to around the break-even 50 level, while remaining above the 45 threshold consistent with a &#8220;double dip&#8221; &ndash; see chart.<\/p>\n<p><span class=\"full-image-block ssNonEditable\"><span><img decoding=\"async\" style=\"width: 680px;\" src=\"\/storage\/chart1_22-09-2010.gif?__SQUARESPACE_CACHEVERSION=1285147452587\" alt=\"\" \/><\/span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>US stocks have rallied recently despite equity analysts making more downgrades to 12-month-forward company earnings estimates than upgrades. The &#8220;revisions ratio&#8221; (i.e. the difference between the numbers of upgrades and downgrades in a particular period, divided by the total number of earnings estimates) correlates with business surveys; current weakness suggests that the ISM manufacturing new [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-3069","post","type-post","status-publish","format-standard","hentry","category-money-moves-markets"],"_links":{"self":[{"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/posts\/3069","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3069"}],"version-history":[{"count":1,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/posts\/3069\/revisions"}],"predecessor-version":[{"id":5378,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=\/wp\/v2\/posts\/3069\/revisions\/5378"}],"wp:attachment":[{"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3069"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3069"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mmm.9dotdigital.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3069"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}