MarketWatch: S&P 500 profits are doomed

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S&P heads to first quarter ever of negative earnings
Financials the biggest factor in decline, but ConocoPhillips a big hit as well

By Kate Gibson, MarketWatch


NEW YORK (MarketWatch) - As Wall Street tracks Washington's moves to help the beleaguered banking sector and pass more economic stimulus, nearly 400 of the S&P's 500 companies have weighed in and reported a collective loss -- even excluding financials.

"This is the worst, after the sixth quarter of negative growth, it will be the first quarter ever of negative earnings," said Howard Silverblatt, senior index analyst, at Standard & Poor's.

A sixth quarter of negative growth ties the prior record set when Harry Truman was president, and ran from the first quarter of 1951 to the second quarter of 1952.

"And next quarter we're expected a new record of seven quarters of negative growth," Silverblatt said.

As of the close of business Thursday, Silverblatt calculates S&P earnings-per-share, on a reported basis, at a loss of $10.44 for the quarter. If financials were taken out of the equation, that EPS deficit would drop to $2.35.

"The majority of it is financials, but the biggest issue to hit as reported -- the worst charge -- was ConocoPhillips . That one charge accounted for $3.66," said Silverblatt. ........(more)

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