Institutional: Dow has Negative Real Growth

September 03, 2012, 10:50 am ET, BY Quantitative Research Desk - Contributor | Editor: Thomas H. Kee Jr. (Follow on LinkedIn)

Stock Traders Daily has published a comprehensive earnings analysis for the Dow Jones Industrial Average (NYSEARCA:DIA) which reveals the real revenue and earnings growth for the Dow between the second quarter of 2011 and the second quarter of 2012.  This report is available to all subscribers of Stock Traders Daily and through Reuters, Yahoo Finance, and The Wall Street Journal.   PROFIT FROM THESE STOCKS TODAY!

Significant anomalies exist in three companies that must be recognized to evaluate the real growth rate of the Dow, and those are Hewlett Packard (NYSE:HPQ), Exxon Mobil (NYSE:XOM), and Bank of America (NYSE:BAC).  Adjustments for 1-time events have been made which increases the real earnings growth for the Dow in the second quarter of 2012, but reduces the real revenue growth.  Last year, the second quarter of 2011, Bank of America was allowed to write down $13 Billion from revenue for bad mortgages, and that skewed its revenue growth Y/Y. 

In summary, the report reveals that there is no real growth in the Dow either on a revenue of real $$$ earnings basis, and had it not been for share buybacks EPS would also have contracted. 

For details and a comprehensive breakdown of all sectors, including a much more comprehensive study of the 2200 companies having reported earnings for the second quarter of 2012, please register and request a free copy.

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