By Tom Burnett CFA In the most recent FACTSET report dated September 18, 2020, the consensus estimates for earnings for the S/P 500 Index companies have been revised to $166.35 for the 2021 year. In the July 24 report, the estimate was $163.17. Similarly, the consensus estimate for the 2020 year has…
By Tom Burnett CFA On September 16, 2020, the Federal Reserve Open Market Committee released its monthly view on economic policy. The Statement was not unanimous, but the two dissenting members gave complex statements and neither one opposed the current low interest rate policies. The Fed is concerned…
By Tom Burnett CFA According to the latest compilation from research firm FACTSET, corporate earnings estimates for the S/P 500 companies have reversed their earlier downtrend. For example, the 2020 estimate is now $132.12, up from $126.79 in the July 10 report. Earnings are now expected to rise 25%…
By Tom Burnett CFA On September 4, 2020, the Bureau of Labor Statistics announced that the economy added 1.37 million new jobs in August. In addition, the report indicated that the unemployment rate declined to 8.4% from 10.2% in July and 11.1% in June. The rate in February was just 3.5% before the impact…
By Tom Burnett CFA On August 27, 2020, Federal Reserve Chairman Jerome Powell delivered an online speech which describes a new approach to inflation, interest rates and employment. In his speech, Powell indicated that the Fed would no longer raise rates and slow the economy if inflation approached the…