In a recently released report by S&P Dow Jones Indices and authored by Howard Silverblatt, Senior Index Analyst, an analysis is provided for the sales generated outside the U.S. for S&P 500 companies. Although the reporting of foreign sales data is less than complete, S&P's report provides detail on the 239 companies that do provide foreign sales data. The report provides a comprehensive discussion on the companies used in the analysis with a snapshot provided below.
A number of important facts can be gained from reviewing the report; however, one important factor is the impact of a strong U.S. Dollar on reported earnings for U.S. domiciled firms. We touched on the strong dollar issue in a recent post, September And Beyond, and a number of strategists highlighted this issue last week as well. The issue with a strong dollar is the negative
In the wake of the FOMC meeting and the IPO hype, we face a week with little new information - the lull before earnings season. This sort of vacuum makes it difficult to predict the week ahead, but I have an interesting idea:
This week will feature discussion about market divergences - gold, oil, small caps, and bitcoin are losers. Large cap stocks have been winners. Why?
A lot of buzz came from a Bloomberg article saying that 47% of NASDAQ stocks were "mired in a bear market." This was portrayed as showing a narrowing appetite for risk and loosely links it to prospective changes in Fed policy. It is an intriguing topic for further study.
Prior Theme Recap
In my last WTWA I predicted that the media focus would be the FOMC and the potential for changing course. That was very accurate, since the Fed meeting was the center