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CHART OF THE DAY: PUTTING EARNINGS INTO PERSPECTIVE

29 May 2010 by Guest 3 Comments

By Chartoftheday.com

With first-quarter earnings basically in the books (99% of S&P 500 companies have reported for Q1 2010), today’s chart provides some long-term perspective to the current earnings environment by focusing on 12-month, as reported S&P 500 earnings. Today’s chart illustrates how earnings declined over 92% from its Q3 2007 peak to Q1 2009 low — the largest decline on record (the data goes back to 1936). Since its Q1 2009 low, S&P 500 earnings have surged (up over 700%) and currently come in at a level that has only been exceeded during the latter years of the dot-com and credit bubbles.

Notes:
- Where’s the Dow headed? The answer may surprise you. Find out right now with the exclusive & Barron’s recommended charts of Chart of the Day Plus.

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Comments
  • Kyle

    If you take out financials, how different does this chart look? Probably a lot.

    05/29/2010 at 10:46 AM
  • quark

    You can’t pick and choose the composition of the market. It is what it is.

    05/29/2010 at 12:22 PM
  • Jeff

    So large (and too big to fail) companies are doing well. Meanwhile, small companies are not hiring and financing may be a combination of tight credit and small companies not interested in expanding. A stock market going higher and jobless recovery? Strange times.

    05/30/2010 at 9:11 AM