Earnings Season Off To Dismal Start: Warnings, Guidance Cuts, Mass Layoffs

Earnings season has yet to officially begin when the big banks report next week and it already looks like Wall Street is in for a rude awakening when it comes to corporate profits in both the last quarter of 2018 and the rest of 2019 just one quarter after the best earnings season in history.

The recent warnings, guidance cuts and layoff announcements to date have been nothing short of dismal. Here is a quick summary of what we have observed in just the last week:

  • Apple cut revenue guidance (for the first time in 16 years)
  • Macy’s cut profit guidance, sending its shares plunging the most on record
  • Barnes and Noble cut profit guidance
  • FedEx cut profit guidance
  • American Airlines cut guidance
  • Delta cut profit guidance
  • Kohl’s reported a plunge in comp store sales
  • Ford announced it will cut thousands of jobs in Europe
  • Jaguar announced it will cut 10% of its workforce
  • Blackrock announced it will cut 500 jobs
  • State Street announced it will cut 15% of its senior management
  • AQR announced it will cut dozens of jobs
  • United Technologies ended sale of Chubb fire-safety as bids were too low.

Virtually every single sector is telegraphing weakness, from transports to techs to autos to retail and finance. Here are some additional details courtesy of Bloomberg:

Source: ZeroHedge

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