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Market Insights

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For the Week of 10/26/09 - Earnings

10/26/2009
The EARNINGS that matter most to investors

The market heads into the final week of October clearly tired and running out of momentum. Overhead resistance in the spot S&P futures between 1104-1112 remains in place from the September 2008 credit crisis. In fact, on three attempts this past week, the spot S&P futures failed to advance above 1100, closing down 1% for the week. A modest near term correction may be unfolding heading into month-end.

This past week was the peak week for the Q3 earnings season. So far this season, the majority of firms that reported beat on the bottom line. About 35% have beaten on the top line, with some clear standouts in the technology sector. Last quarter, the top line beats were less than 25%, so there is clear improvement. Natural resource and energy names continue to perform well in the Q3 season.

About 56% of the S&P 500 has reported; next week another 23% report.  This week the energy and consumer discretionary sectors have the most companies reporting.  This week's critical earnings come from:

Monday October 26
National Oilwell Varco
Corning Inc.
CF Industries Holdings
Verizon Communications

Tuesday October 27
United States Steel
Norfolk Southern Wynn Resorts
Massey Energy

Wednesday October 28
ConocoPhillips
Hess
Avalon Bay Communities
 
Thursday October 29
AutoNation
Procter & Gamble
Exxon Mobil
Apache
Chicago Merc Exch
PG&E
Aetna
Newmont Mining

Friday October 30
Chevron
Simon Property Group
NYSE Euronext
Weyerhaeuser
Sun Microsystems

Virtus Investment Partners provides this communication as a matter of general information. The opinions stated herein are those of the author and not necessarily the opinions of Virtus, its affiliates or its subadvisers. Portfolio managers at Virtus make investment decisions in accordance with specific client guidelines and restrictions. As a result, client accounts may differ in strategy and composition from the information presented herein. Any facts and statistics quoted are from sources believed to be reliable, but they may be incomplete or condensed and we do not guarantee their accuracy. This communication is not an offer or solicitation to purchase or sell any security, and it is not a research report. Individuals should consult with a qualified financial professional before making any investment decisions.