Saturday, June 2, 2018

All 1,040 US Companies With Market Caps of $1 Bil to $5 Bil Generated March 2018 Quarter Total Pretax Income of $33.746 Bil, Up 21% From Their March 2017 Quarter and Nearly Double the 11% Total Pretax Income Growth of the 776 US Companies With Market Caps Above $5 Bil ........................................................................................ This Explains Why the Russell 2000 Small-Cap Stock Index Has Outperformed Both the Dow 30 Industrials Stock Index and the S&P 500 Stock Index ........................................................................................ Driving This 21% Total Pretax Income Growth Was the US Oil & Gas Sector, Whose 78 Companies Posted Total Pretax Income Growth of a Blistering 166% ........................................................................................ On the Other Hand, the 203 US Manufacturing Companies Posted a Disappointing Total Pretax Income Decline of 6% ........................................................................................ The Huge Problem Here is That the US Manufacturing Sector, Where Most of the Good-Paying US Jobs Are, is Where the Very Robust Pretax Income Growth is Needed, Not in the US Oil & Gas Sector (Up 166%), in the US REITs (Up 28%), in the US Financial Banks (Up 22%), in the US Financial Insurance (Up 19%) and in the US Investment-Related Financial (Up 52%) Sectors

From a review of SEC filings, the below chart shows the Total US Sector US GAAP Pretax Income (Loss) From Continuing Operations for the March 2018 and 2017 Quarters for all US  Companies including both Partnerships and REITs, with March 2018 Quarter Ends, with stock market caps of $1 Bil to $5 Bil recently and which have released their March 2018 Quarter Earnings by June 1, 2018.
 US GAAP   US GAAP 
Total Total
Pretax Pretax        
US Sector Income Income
# Market Caps $1-5 Bil (Loss) (Loss) Better Better
of Releasing March 2018  March Qtr March Qtr (Worse) (Worse)
Cos  Qtr Earnings Thru 6-1-18 2018 2018 Amount %
mils $ mils $ mils $
2 Financial:Fannie Mae&Freddie Mac        9,066        7,477        1,589 21%
203 Manufacturing        5,524        5,865          (341) -6%
93 Financial: Banks        4,229        3,462           767 22%
78 Oil & Gas        3,185        1,198        1,987 166%
91 Financial: REIT        2,986        2,326           660 28%
33 Financial: Insurance        2,422        2,034           388 19%
35 Retail        1,603        1,571             32 2%
27 Financial: Investment Related        1,337           879           458 52%
24 Utilities        1,262        1,153           109 9%
44 Services           911           516           395 77%
20 Wholesale           528           655          (127) -19%
128 Technology          (860)          (659)          (201) -31%
140 Health Care       (2,727)       (1,953)          (774) -40%
122 All Other US Sectors        4,280        3,465           815 24%
 1,040 Totals      33,746      27,989        5,757 21%