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The Strong Dollar May be Hurting Corporate Earnings
July 15, 2019
Second-quarter earnings are beginning to roll in, and one trend is already emerging. While only about 5 percent of the S&P 500 companies have reported earnings, according to FactSet, more than half of them have cited the strength of the dollar as a headwind to their earnings. A strong dollar can be bad news for companies that do a lot of their sales overseas, as it makes exports less profitable and attractive to foreign buyers.
Investors anticipate earnings to be weak for the quarter. More than two-thirds of the companies that have issued pre-announcements have said that their earnings will fall below Wall Street expectations. FactSet is forecasting a 3 percent decline in earnings for the quarter.
