Sunday, February 4, 2018

Why Did the US Stock Market Drop So Precipitously Recently? It’s All About Earnings .................................................................................... Large US Corps Total Real US GAAP Pretax Earnings Decline Unexpectedly and Precipitously By 4.4% So Far For the Quarter Ending in December 2017 ..................................................................................... In Comparison, These Same Large Corps Generated Total Real US GAAP Pretax Earnings Which Increased By a Very Robust 15.0% For the Quarter Ending in September 2017: That's What a Call a Massive, Very Quick Deterioration in Pretax Income From Up 15.0% in the Sept 2017 Quarter To a Decline of 4.4% in the Current Dec 2017 Quarter (Whew!) ..................................................................................... The 247 US Corps With Stock Market Caps Above $10 Bil Which Have Released Their December 2017 Quarter Earnings By Friday, February 2, 2018 Registered Total US GAAP Pretax Income of $221.8 Bil in the December 2017 Quarter, Down 4.4% From Their December 2016 Quarter Total US GAAP Pretax Income of $231.9 Bil ..................................................................................... These Same 247 US Corps Registered Total US GAAP Pretax Income of $256.0 Bil in Their September 2017 Quarter, Up a Very Robust 15.0% Over Their September 2016 Quarter Total US GAAP Pretax Income of $222.7 Bil ....................................................................................... I Used US GAAP Pretax Income Amounts Because They Are the Most Reliable December 2017 Earnings Data Available Since the December 2017 Income Tax Expense Amounts Being Reported Are Not Even Close To Being Sufficiently Reliable

From reviewing daily Morningstar Earnings Calendars and Company Financial Statements filed with the SEC, below here are the 247 US Corps with Stock Market Caps Above $10 Bil recently which have released their  Earnings For the Quarter Ended December 2017 and which have disclosed Pretax Income From Continuing Operations Amounts through Friday, February 2, 2018.  This is the best 4Q 2017 Earnings data available since the Income Tax Expense amounts being reported are not even close to being sufficiently reliable.

 The Chart below compares the US GAAP Pretax Income (Loss) From Continuing Operations of these 247 Corps in both the Dec 2017 Quarter vs the Dec 2016 Quarter and also in the Sept 2017 Quarter vs the Sept 2016 Quarter:

 US GAAP   US GAAP   US GAAP   US GAAP 
Pretax Pretax Pretax Pretax
Earnings Income Income Increase Income Income Increase
Release US Company With Market Caps Above $10 Bil Dec Qtr Dec Qtr (Decrease) Sept Qtr Sept Qtr (Decrease)
Date Releasing Dec 2017 Qtr Earnings Thru 2-2-18  2017 2016 Amount % 2017 2016 Amount %
mils $ mils $ mils $ Change mils $ mils $ mils $ Change
1-11-18 Delta Air Lines         1,089            952            137         1,805         1,900             (95)
1-12-18 BlackRock         1,490         1,187            303         1,404         1,210            194
1-12-18 JPMorgan Chase         8,254         8,679           (425)         9,556         8,939            617
1-12-18 PNC Financial Services         1,074         1,366           (292)         1,539         1,348            191
1-12-18 Wells Fargo         4,599         7,562        (2,963)         6,858         8,255        (1,397)
1-16-18 Citigroup         5,099         5,100               (1)         6,003         5,620            383
1-16-18 Comerica            330            226            104            334            213            121
1-16-18 CSX Corp            983            751            232            750            715              35
1-16-18 First Republic Bank            237            229                8            242            202              40
1-16-18 Interactive Brokers Group            364              28            336            268            183              85
1-16-18 UnitedHealth Group         3,669         2,919            750         3,794         3,311            483
1-17-18 Alcoa            216           (123)            339            288            102            186
1-17-18 Bank of America         6,161         5,803            358         7,866         7,304            562
1-17-18 Fastenal            201            181              20            226            201              25
1-17-18 Goldman Sachs         3,108         3,397           (289)         2,976         2,868            108
1-17-18 Kinder Morgan            324            388             (64)            547            194            353
1-17-18 Charles Schwab            953            824            129            945            794            151
1-17-18 US Bancorp         1,311         2,040           (729)         2,158         2,082              76
1-18-18 American Express         1,821         1,161            660         1,827         1,735              92
1-18-18 Atlassian Corp             (14)               (1)             (13)             (22)               (4)             (18)
1-18-18 Bank of New York Mellon            728         1,152           (424)         1,368         1,317              51
1-18-18 BB&T Corp            876            930             (54)            942            915              27
1-18-18 JB Hunt Transport Services            140            188             (48)            157            176             (19)
1-18-18 International Business Machines         4,469         4,986           (517)         3,065         3,263           (198)
1-18-18 KeyCorp            447            270            177            497            188            309
1-18-18 M&T Bank Corp            629            510            119            581            550              31
1-18-18 Morgan Stanley         2,471         2,246            225         2,482         2,381            101
1-18-18 PPG Industries            376            138            238            521           (426)            947
1-19-18 Citizens Financial Group            503            414              89            513            427              86
1-19-18 Kansas City Southern            193            166              27            212            158              54
1-19-18 Regions Financial            548            428            120            451            471             (20)
1-19-18 Schlumberger Ltd        (2,210)           (213)        (1,997)            677            200            477
1-19-18 SunTrust Banks            668            660                8            765            691              74
1-19-18 Synchrony Financial            875            908             (33)            879            963             (84)
1-22-18 Halliburton            244           (175)            419            496             (52)            548
1-22-18 Netflix            131              90              41            116              79              37
1-22-18 Resmed            142              96              46            108              93              15
1-22-18 Steel Dynamics            161                3            158            234            243               (9)
1-22-18 TD Ameritrade            303            339             (36)            338            270              68
1-22-18 Zions Bancorp            259            207              52            243            192              51
1-23-18 Capital One Financial         1,308         1,135            173         1,585         1,512              73
1-23-18 Fifth Third Bancorp            393            509           (116)         1,489            694            795
1-23-18 Huntington Bancorp            412            313              99            365            152            213
1-23-18 Johnson & Johnson         2,560         4,324        (1,764)         4,790         5,281           (491)
1-23-18 Kimberly Clark            743            760             (17)            779            757              22
1-23-18 Procter & Gamble         4,033         3,256            777         3,751         3,738              13
1-23-18 Prologis            351            485           (134)            931            323            608
1-23-18 State Street Corp            717            345            372            822            636            186
1-23-18 Texas Instruments         1,550         1,497              53         1,789         1,381            408
1-23-18 Total Systems Services            146            100              46            171            125              46
1-23-18 Travelers Companies            860         1,302           (442)            320            947           (627)
1-23-18 United Continental Holdings            600            884           (284)            980         1,510           (530)
1-23-18 Verizon Communications         2,934         6,949        (4,015)         5,511         5,576             (65)
1-23-18 Waters Corp            226            203              23            154            145                9
1-24-18 Abbott Labs            574            875           (301)            626           (179)            805
1-24-18 Ameriprise Financial            600            469            131            628            238            390
1-24-18 Amphenol            379            324              55            358            311              47
1-24-18 Baker Hughes GE           (135)            265           (400)           (167)            161           (328)
1-24-18 Comcast Corp         3,422         3,736           (314)         4,096         3,724            372
1-24-18 Crown Castle            113            129             (16)            118            103              15
1-24-18 Discover Financial Services            899            883              16            903            961             (58)
1-24-18 Ford Motor         1,889        (1,117)         3,006         1,757         1,387            370
1-24-18 General Dynamics         1,008            745            263         1,027            994              33
1-24-18 General Electric      (12,603)         2,893      (15,496)         1,466         2,074           (608)
1-24-18 WW Grainger            207            145              62            250            293             (43)
1-24-18 Illinois Tool Works            796            726              70            906            763            143
1-24-18 Lam Research            734            385            349            688            293            395
1-24-18 Las Vegas Sands            931            659            272            758            675              83
1-24-18 Norfolk Southern            893            641            252            800            705              95
1-24-18 Northern Trust            436            390              46            417            374              43
1-24-18 Progressive Corp            691            538            153            251            259               (8)
1-24-18 Raymond James Financial            312            208            104            282            243              39
1-24-18 Rockwell Automation            298            258              40            274            237              37
1-24-18 Rollins Inc              69              53              16              83              80                3
1-24-18 Royal Caribbean            288            261              27            753            693              60
1-24-18 Stanley Black & Decker            342            282              60            354            328              26
1-24-18 TE Connectivitity Ltd            561            460            101            520            489              31
1-24-18 United Rentals            336            242              94            322            303              19
1-24-18 United Technologies         1,705         1,273            432         1,940         2,026             (86)
1-24-18 Varian Medical Systems            123              19            104            110            143             (33)
1-24-18 Whirlpool            209            308             (99)            268            305             (37)
1-24-18 Xilinx            195            163              32            187            176              11
1-25-18 3M         1,672         1,610              62         1,997         1,862            135
1-25-18 Alliance Data Systems            306              62            244            334            313              21
1-25-18 American Air Lines            425            500             (75)         1,004         1,189           (185)
1-25-18 Biogen         1,400            838            562         1,610         1,367            243
1-25-18 Caterpillar         1,111        (1,348)         2,459         1,523            383         1,140
1-25-18 Celanese            265            156            109            289            281                8
1-25-18 Celgene         1,131            499            632            991            256            735
1-25-18 E Trade Group            299            205              94            223            225               (2)
1-25-18 Freeport McMoran         1,325            492            833            626            177            449
1-25-18 Arthur J Gallagher & Co            155            124              31              97              95                2
1-25-18 Intel         6,035         4,440         1,595         5,930         4,318         1,612
1-25-18 Intuitive Surgical             339            276              63            289            267              22
1-25-18 KLA-Tencor            347            307              40            336            222            114
1-25-18 L3 Technologies            226            241             (15)              26            180           (154)
1-25-18 Maxim Integrated Products            198            148              50            181            165              16
1-25-18 Northop Grumman            684            748             (64)            785            769              16
1-25-18 NVR Inc            261            229              32            245            185              60
1-25-18 Praxair            595            561              34            585            454            131
1-25-18 Raytheon            834            825                9            816            780              36
1-25-18 Sherwin-Williams            285            304             (19)            428            536           (108)
1-25-18 Southwest Air            737            809             (72)            791            618            173
1-25-18 Starbucks         3,006         1,133         1,873         1,152         1,215             (63)
1-25-18 SVB Financial Group            260            158            102            251            193              58
1-25-18 Union Pacific Corp         2,092         1,831            261         1,983         1,805            178
1-25-18 Western Digital            774            321            453            710           (271)            981
1-26-18 AbbVie         1,193         1,998           (805)         2,095         2,014              81
1-26-18 Air Products & Chemicals            455            337            118            479            391              88
1-26-18 Colgate Palmolive            896            934             (38)            900         1,046           (146)
1-26-18 Honeywell         1,617         1,432            185         1,783         1,632            151
1-26-18 Lear Corp            367            308              59            385            310              75
1-26-18 Nextera Energy              86         1,521        (1,435)         1,220         1,207              13
1-26-18 Rockwell Collins            257            203              54            274            296             (22)
1-29-18 Affiliates Managers Group            264            282             (18)            283            226              57
1-29-18 Alexandria Real Estate Equities              46              20              26              60              29              31
1-29-18 Dominion Energy            620            585              35            968            958              10
1-29-18 Idex Corp            124              73              51            114              99              15
1-29-18 Lockheed Martin         1,692         1,255            437         1,259         1,427           (168)
1-29-18 Principal Financial            315            381             (66)         1,158            371            787
1-29-18 Reinsurance Group            255            296             (41)            340            288              52
1-29-18 Seagate Technology            371            310              61            188            173              15
1-30-18 Advanced Micro Devices              53             (44)              97              92           (397)            489
1-30-18 Aetna            526            275            251         1,274         1,074            200
1-30-18 Align Technologies            112              61              51            103              64              39
1-30-18 Ally Financial            410            380              30            395            391                4
1-30-18 Amdocs Ltd            122            119                3            130            119              11
1-30-18 Autoliv             (11)            228           (239)            133            185             (52)
1-30-18 Boston Properties            132            165             (33)            148              72              76
1-30-18 CA Inc            282            292             (10)            258            306             (48)
1-30-18 CDK Global            120            119                1            120            119                1
1-30-18 CH Robinson Worldwide            153            122              31            184            204             (20)
1-30-18 Chubb         1,151         1,869           (718)           (155)         1,637        (1,792)
1-30-18 CNH Industrial            168            162                6            100              58              42
1-30-18 Corning Inc            566         2,404        (1,838)            479            257            222
1-30-18 Danaher            979            696            283            730            477            253
1-30-18 Dover            274            216              58            237            181              56
1-30-18 Electronic Arts             (16)               (6)             (10)             (38)             (52)              14
1-30-18 Equity Residential            130            302           (172)            144            217             (73)
1-30-18 Fidelity National Financial            220            341           (121)            221            247             (26)
1-30-18 Franklin Resources            652            620              32            658            636              22
1-30-18 Harris Corp            229            235               (6)            231            203              28
1-30-18 HCA Healthcare         1,377         1,565           (188)            778         1,018           (240)
1-30-18 Illumina            224            134              90            175            154              21
1-30-18 Juniper Networks            200            272             (72)            226            237             (11)
1-30-18 McDonalds         1,885         1,735            150         2,820         1,905            915
1-30-18 Nucor Corp            322            255              67            371            484           (113)
1-30-18 Paccar            604            419            185            582            495              87
1-30-18 Packaging Corp of America            224            169              55            217            183              34
1-30-18 Pentair plc            124            125               (1)            175            150              25
1-30-18 Pfizer            953            777            176         3,585         1,604         1,981
1-30-18 PulteGoup            409            414               (5)            268            212              56
1-30-18 A.O. Smith            141            116              25            132            118              14
1-30-18 Stryker            649            588              61            471            419              52
1-30-18 T Rowe Price            633            576              57            616            564              52
1-30-18 Zimmer Biomet           (109)              31           (140)            127            104              23
1-31-18 AFLAC            999         1,153           (154)         1,075            963            112
1-31-18 American Financial Group            267            317             (50)              29              78             (49)
1-31-18 Anthem            124            659           (535)         1,119         1,137             (18)
1-31-18 AT&T        (1,283)         3,191        (4,474)         4,974         5,193           (219)
1-31-18 Automatic Data Processing            566            786           (220)            548            529              19
1-31-18 AvalonBay Community            237            242               (5)            238            356           (118)
1-31-18 Avery Dennison            157            126              31            147            128              19
1-31-18 Boeing         2,972         2,103            869         2,647         2,203            444
1-31-18 Cadence Design Systems              77              52              25              87              64              23
1-31-18 Check Point Software Technologies            280            252              28            237            219              18
1-31-18 Citrix Systems            182            192             (10)            134            122              12
1-31-18 D R Horton            391            318              73            486            433              53
1-31-18 Duke Realty              54              41              13              42            108             (66)
1-31-18 eBay            561         2,004        (1,443)            697            533            164
1-31-18 Enterprise Products Partners LP            803            680            123            627            648             (21)
1-31-18 Facebook         7,462         4,533         2,929         5,236         3,164         2,072
1-31-18 Intersoll Rand plc            325            268              57            445            451               (6)
1-31-18 Invesco Ltd            399            311              88            398            346              52
1-31-18 Johnson Controls Intl plc            538            385            153         1,062           (102)         1,164
1-31-18 Eli Lilly            284            892           (608)            592            971           (379)
1-31-18 Lincoln National           (388)            196           (584)            510            612           (102)
1-31-18 Microsoft         9,169         8,022         1,147         7,984         6,827         1,157
1-31-18 Mid America Apartment Communities            128              42              86            119              89              30
1-31-18 Mondelez Intl            724             (68)            792         1,162            557            605
1-31-18 Nasdaq Inc            214           (404)            618            236            199              37
1-31-18 PayPal Holdings            864            469            395            451            360              91
1-31-18 QUALCOMM             (27)            870           (897)            434         1,960        (1,526)
1-31-18 SEI Investments            152            133              19            141            131              10
1-31-18 ServiceNow             (25)             (31)                6             (23)             (33)              10
1-31-18 Simon Property Group            660            456            204            593            588                5
1-31-18 Sirius XM Holdings            237            224              13            385            305              80
1-31-18 Symantec            705             (61)            766             (69)             (50)             (19)
1-31-18 Textron            223            294             (71)            203            107              96
1-31-18 Thermo Fisher Scientific            820            652            168            481            428              53
1-31-18 Tractor Supply            180            193             (13)            145            141                4
1-31-18 Unum Group            345            371             (26)            367            332              35
1-31-18 Vertex Pharmaceutical            112              20              92           (417)             (39)           (378)
1-31-18 WEC Energy Group            358            306              52            345            346               (1)
1-31-18 WestRock              60              82             (22)            246           (156)            402
 2-1-18  Abiomed              46              26              20              32              15              17
 2-1-18  Alphabet         8,018         6,857         1,161         7,979         6,045         1,934
 2-1-18  Altria Group         2,183       15,708      (13,525)         2,644         1,727            917
 2-1-18  Amazon.com         1,872         1,166            706            316            491           (175)
 2-1-18  Ametek            198            145              53            204            174              30
 2-1-18  Amgen         2,214         2,283             (69)         2,381         2,418             (37)
 2-1-18  Apollo Global            732            423            309            451            264            187
 2-1-18  Apple       27,030       24,180         2,850       13,917       12,188         1,729
 2-1-18  Aptiv plc            350            181            169            466            353            113
 2-1-18  Baxter Intl            293            279              14            290            128            162
 2-1-18  Blackstone Group LP         1,359            818            541            906            719            187
 2-1-18  Boston Scientific            227              89            138            309            257              52
 2-1-18  Cigna            758            605            153            824            742              82
 2-1-18  CME Group            575            594             (19)            607            549              58
 2-1-18  ConocoPhillips         1,325               (8)         1,333            653        (1,654)         2,307
 2-1-18  DowDupont        (2,874)           (198)        (2,676)         1,125         1,089              36
 2-1-18  Eastman Chemical            199            113              86            403            289            114
 2-1-18  Eaton Corp plc            635            559              76         1,691            573         1,118
 2-1-18  Edwards Lifesciences            324            200            124            212            185              27
 2-1-18  Fortune Brands Home & Security            142            153             (11)            189            171              18
 2-1-18  Hershey            260            199              61            401            328              73
 2-1-18  Idexx Labs              90              77              13              92              82              10
 2-1-18  Ingredion            187            171              16            217            206              11
 2-1-18  International Paper            197            244             (47)            503            373            130
 2-1-18  Magellan Midstream Partners LP            239            214              25            199            195                4
 2-1-18  Marathon Petroleum Corp            959            417            542         1,419            294         1,125
 2-1-18  Marsh & McLennan            642            588              54            537            525              12
 2-1-18  Mastercard         1,484         1,311            173         1,932         1,633            299
 2-1-18  McKesson            697            780             (83)            178            525           (347)
 2-1-18  Motorola Solutions            465            362            103            286            293               (7)
 2-1-18  MPLX LP            239            182              57            218            194              24
 2-1-18  MSCI Inc            127              87              40            121              98              23
 2-1-18  Parker Hannifin            360            321              39            374            292              82
 2-1-18  Quest Diagnostics            234            242               (8)            258            289             (31)
 2-1-18  Sensata Technologies            115              77              38            103              81              22
 2-1-18  Time Warner            617            411            206         1,921         1,689            232
 2-1-18  United Parcel Services         1,388           (516)         1,904         1,944         1,953               (9)
 2-1-18  Valero Energy            765            529            236         1,241            789            452
 2-1-18  Visa         3,239         2,979            260         3,099         2,510            589
 2-1-18  Xylem            466            340            126            131              95              36
 2-2-18  Charter Communications            431            779           (348)            431            779           (348)
 2-2-18  Chevron         1,481            512            969         2,658         1,109         1,549
 2-2-18  Clorox            227            227               -              279            264              15
 2-2-18  Estee Lauder            690            600              90            549            403            146
 2-2-18  Exxon Mobil         3,017            617         2,400         5,583         3,226         2,357
 2-2-18  LyondellBasell Industries         1,342         1,052            290         1,438         1,281            157
 2-2-18  Merck         2,105        (1,356)         3,461            200         2,887        (2,687)
 2-2-18  Phillips 66            654              62            592         1,256            813            443
 2-2-18  Roper Technologies            303            258              45            265            240              25
 2-2-18  Spirit AeroSystems            218            153              65            203            202                1
 2-2-18  Sprint Corp            104              50              54              50             (23)              73
 2-2-18  Weyerhaeuser            374              87            287            103            184             (81)
Total all 247     221,763     231,923      (10,160) -4.4%     256,017     222,683       33,334 15.0%
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