Goldman Strategist Says U.S. Earnings Are `Awful'

Discussion in 'Wall St. News' started by ASusilovic, Apr 14, 2008.

  1. The U.S. corporate earnings season got off to an ``awful'' start and stocks will continue to fall, according to Goldman Sachs Group Inc.

    ``Early signs are awful,'' a team led by New York-based David Kostin, Goldman's U.S. investment strategist, wrote in a note today. ``We expect generally disappointing results and a swath of lowered profit guidance that will drive the Standard & Poor's 500 Index lower in coming weeks.''

    Futures on the S&P 500 lost 0.6 percent as of 8:11 a.m. in New York after Wachovia Corp., the fourth-largest U.S. bank, reported an unexpected loss on subprime-infected mortgage holdings and slashed its dividend.

    The S&P 500, the benchmark index for American equities, dropped 2.7 percent to 1,332.83 last week after General Electric Co. said the credit-market crisis caused an unexpected earnings decline, while slowing economic growth and rising energy prices eroded profit at United Parcel Service Inc. and Alcoa Inc.

    Kostin, 44, last month said he expected the S&P 500 to fall to 1,160 in the ``near term'' before rebounding to 1,380 by year's end. His predecessor as Goldman's chief forecaster for the U.S. stock market, Abby Joseph Cohen, in December had predicted the S&P 500 would reach 1,675 in 2008.

    Cohen, 56, was known for her bullish predictions during the 1990s at New York-based Goldman, the world's biggest securities firm by market value.

    Goldman Sachs is annoying me with their uninterrupted recession calls....yawn...:mad:
  2. Market may ignore bad earnings, this being a supposed "kitchen sink" quarter..
  3. That "kitchen sink" saying is one of the dumbest of all time, I heard that 6 months ago from the MSM. Check yourself for brainwashing residue.

    THIS JUST IN:Analysts don't have a clue what they are talking about!!!

    ONLY 17% change in 4 months, keep up the good work guys!

    "Analysts surveyed by Bloomberg have cut their projections for first-quarter earnings at S&P 500 companies every week since Jan. 4. They now predict a 12.3 percent drop, compared with an estimate for an increase of 4.7 percent at the start of 2008."
  4. Ya think? Let's see... "Earnings down a TON or negative. Therefore, we should BUY 'EM... " Duh?
  5. Analysts have never known their head from their ass unless markets are booming. There is the whole conflict of interest thing, so they almost always come in too bullish.
  6. 1160? LOL not gonna happen
  7. Like most traders.