May – 2016 Newsletter
Of the S&P 500 companies, 99% have reported their first quarter numbers for 2016 and aggregate sales are down by -2.24% and aggregate earnings are down -8.35%. These are actual sales and earnings vs. the previous quarter. However, equity prices are still showing a positive correlation to oil, which touched above $50 per barrel on May 17th - the first time this year. Although the IMF and World Bank have lowered their domestic and global GDP growth rates for 2016 and beyond, domestic equities increased during the month.