Will Financials see red again; the race is nearing an end

Posted by: Howard Silverblatt on May 9, 2008

While there is no insurance on any charged or slimed down bets, there is a chance that the Financials could post negative earnings this quarter, which would be their second in a row.
Energy, which now represents 14.3% of the market value of the S&P 500 (a record high), accounts for 24.8% of the Q1 operating earnings, compared to 13.6% for Q1 2007 (10.09% of the market value); Financials contributed 29.65% last year (21.63% of the value then, 16.74% now). I’ve had to add digits to my formula when calculating future growth rates.

As far as the neck-n-neck heated public current race goes, it appears that we are near an end, but it’s not over yet. Currently milk is selling for $3.89 a gallon vs. $3.61 a gallon for regular gas. While Oil has the momentum, $126.20 high set today, Milk’s got that $4 finish line in site.

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Bloomberg Businessweek’s Ben Steverman focuses on the latest moves in financial markets and emerging trends in stocks, bonds, and funds, always with an eye toward giving readers a better understanding of the sometimes confusing and often chaotic world of money. Standard & Poor’s senior index analyst Howard Silverblatt will also provide his take on companies’ finances and the markets. Voted one of the “Top 100 Finance Blogs” in 2007.

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