TradingFloor.com highlights: S&P500 falls as revenue disappoints

EQUITIES: S&P500 – analysts cut earnings outlook for 2012 & 2013

Peter Bo Kiaer, Strategist and Equity Analyst at Saxo:

“During the last 3 months, consensus EPS has declined 23c or 0.2% to USD 103.1 for 2012, while the downgrades for 2013 have been a bit harsher. For 2013, EPS has declined by USD1.53 or 1.3% to USD114.4. Earnings in 2014 have been taken down in absolute EPS terms, but analysts have kept the growth rate at 11%. It is clear that consensus EPS has declined over the last 3 months, but perhaps the analysts went too far: EPS has risen USD 0.10 since the season began. Overall, analysts have lowered the coming earnings quarters by 0.6-0.7 percent. Analysts are therefore not changing their big picture, and this does not bode well for the upside of the S&P500 index. Investors will need to have their optimism reinforced, or the markets will become too stretched.”

FOREX: EURUSD takes out 1.3000 ahead of tomorrow’s FOMC meet

John Hardy, Head of FX Strategy at Saxo:

“There seems to be a pendulum swinging around the world lately. Friday saw a vicious and ugly close in the US equity markets that suddenly yielded to yesterday’s mini-meltup in risk appetite and then today we get the pendulum swinging back the other way, with a positive close in the US yielding to a swoon in risk appetite today. EURUSD managed to work its way back through 1.3000, setting up that level as resistance now ahead of the FOMC meeting as it looks like the frame of 1.2800 and 1.3000 will provide the spark for the next bigger move from here. I’ve argued that downside is the greater risk, but seeing is believing now that we’ve been carving out a range for about 6 weeks."