Bloomberg Intelligence's 'Equity Market Minute' 8/14/2019

Gina Martin Adams from Bloomberg Intelligence discusses the second quarter earnings season, noting that despite better-than-expected results, earnings are not currently supporting stock prices. She highlights the decline in analysts' forecasts for forward earnings growth and emphasizes the need for stabilization in these estimates. A trade truce could help stabilize the ISM index, which is crucial for improving the outlook for earnings growth and stock prices.

What is the main reason given for why earnings are not supporting stock prices currently?

• Analysts' forecasts for forward earnings growth are declining.

• The S&P 500 companies are underperforming.

• Earnings are lower than expected.

• There is a lack of investor interest.

What do the yellow and blue lines on the graph represent?

• Future earnings growth for 2021 and 2022.

• Forward earnings growth forecasts for 2019 and 2020.

• Past earnings growth for 2018 and 2019.

• Current stock prices.

What is suggested as necessary for stabilizing forward estimate revision momentum?

• Higher interest rates.

• An increase in consumer spending.

• A decrease in stock prices.

• A trade truce.

What has been the trend of the ISM index since last year?

• It has been falling.

• It has been fluctuating wildly.

• It has remained stable.

• It has been rising steadily.

How might a trade truce affect the ISM index and stock prices?

• It could cause stock prices to fall.

• It might stabilize the ISM index and support stock prices.

• It could lead to a decrease in the ISM index.

• It would have no effect on the ISM index.