Earnings this week pretty much confirmed what investors already knew — the global economy is weak and consumers are hesitant. Consumer staples companies, however, have been consistently beating earnings estimates so far this earnings season. With some big names on tap this week, the question is: will the trend continue?
Reports from all types of consumer companies, from McDonald’s and Starbucks to Apple — which posted a rare quarterly earnings miss — have suggested that the global consumer is pulling back as economic uncertainty continues to grind on. (See also: Why We Bought More Apple: Expert ).
Economic data tell the same story: U.S. gross domestic product grew at a tepid 1.5 percent annual rate in the second quarter, the weakest pace of growth since the third quarter of last year.
U.S. multinationals are also facing headwinds from the stronger U.S. dollar.
So far, 290 of the S&P 500 firms have reported results, with 67 percent beating earnings expectations and 22 percent posting below forecasts. When it comes to revenue, however, 60 percent of companies missed revenue estimates, according to data from Thomson Reuters.Page 1 of 3 | Next Page