How Has Expected 2019 S&P 500 Earnings Growth Changed?

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Includes: DHVW, DMRL, EPS, FTA, IVE, IVV, IVW, PPLC, PQLC, RPG, RPV, RSP, RVRS, RYARX, SDS, SFLA, SH, SPDN, SPLX, SPUU, SPVU, SPXE, SPXL, SPXN, SPXS, SPXT, SPXU, SPXV, SPY, SPYG, SPYV, SSO, UPRO, USMC, VFINX, VOO, VOOG, VOOV
by: Brian Gilmartin, CFA

Energy and Basic Materials, as well as Technology - led by Apple (NASDAQ:AAPL) - have been the biggest drag on expected full-year 2019 earnings growth for the S&P 500.

Energy is the biggest drag, falling from an expected 26% growth rate on October 1 '18 to today's 8.5% decline (Clients have not owned any Energy for years, ever since the bounce failed to materialize in the sector following the Q1 '16 bottom. Energy's market cap as a percentage of the S&P 500 has fallen from 14-15% in mid-2014 to just 5-6% today. The sector is becoming less important to the benchmark over time, and for good reason).

Surprisingly, the Financial sector's expected full-year earnings growth looks surprisingly stable for the calendar year. Clients remain overweight Financials as they did in '18.

More detail coming over the weekend.

Thanks for reading.

Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors.