Fourth-Quarter Growth for S&P 500 Corporations Tracking at 8.26%, With 18% of Companies Yet to Release Results, Says S&P Capital IQ Report

NEW YORK, Feb. 21, 2012 /PRNewswire/ -- In the most recent issue of the Lookout Report -- a biweekly research note from S&P Capital IQ's Global Market Intelligence unit that draws upon the firm's unique analytical assets -- analysts observe that 8% growth is quite respectable as well as considerably healthier than the 5% growth previously expected.  The number suggests, they add, that S&P 500 companies should be able to achieve low- to mid-single-digit growth over the first three quarters of 2012, and possibly the return to double-digit earnings growth forecast for the fourth quarter. 

These views are published in the Lookout Report for February 17, 2012.  The report, which also features market insights and commentary on corporate earnings, leveraged loan trends, commodity index activity and more is available here.

Following are additional highlights in this issue of the Lookout Report:

S&P Index Commentary: The S&P 500 Index Will Inevitably Reach 1,500--The Question Is Just When?

S&P Capital IQ anticipates that increasing consumer and investor confidence will drive some degree of P/E expansion from the current 14.0x trailing level as long as U.S. economic activity remains robust. Companies continue to earn record profits, investors now just need to believe that this trend will continue for the foreseeable future.

Leveraged Commentary And Data: The Gift That Keeps On Giving: A Hot Market Spurs A Renewed Dividend Push

Strong conditions in leveraged finance have sparked a nascent revival in dividend financing. In all, issuers launched $5.1 billion of such paper during the first 10 days of February, including $4.1 billion of loans and $1 billion of bonds. That is the largest figure since last May.

Market Derived Signal Commentary: Retail Sales Should Provide Support To Consumer Discretionary Credit Default Swaps

Consumer discretionary CDS spreads, as reflected in the S&P/ISDA CDS U.S. Consumer Discretionary Select 20 Index (Select 20), widened Tuesday, despite a U.S. retail sales report that was anything but grim. However, economists polled by Reuters expected a slightly better result.

Capital Market Commentary: The Escalating Equity Market Buoys New IPOs

As the S&P 500 Index has risen by 7.49% so far this year, the typical IPO priced on major U.S. exchanges this year, excluding closed-end funds, has climbed 15.8%, according S&P Capital IQ data. Of the 15 IPOs priced in the U.S. this year, 11 have gained ground from their respective offer price.

S&P Index Commodity Commentary: Energy Risk Fears Accelerate

Early 2012 optimism has been replaced a bit by fear--fear of spiking petroleum prices. The January recovery in industrial metals prices has begun to fade as petroleum prices have rallied, reintroducing geopolitical risk back into the market.

Solutions Architect Market Commentary: U.S. Macroeconomic Fundamentals

As U.S. economic prospects continue to brighten, at least relative to the pervasive gloom that dominated financial markets this past summer, the improving rate of U.S. light vehicle unit sales continues to underpin this growing optimism. Unit vehicle sales increased to 14.13 million in January 2012 from 13.48 million in December 2011, the healthiest sales rate since May 2008, excluding cash-for-clunkers.

The Lookout Report provides cross-market and cross-asset class views of current data and forward-looking insights from leading S&P market specialists.  Key areas of focus include aggregated corporate earnings, market and credit risk evaluation, capital markets activity, index investing and proprietary data and analytics.  The report previews the issues most likely to drive market expectations or cause a market disturbance in the weeks ahead.  It can be accessed on S&P.com, the S&P Global Credit Portal and Capital IQ.

About S&P Capital IQ
S&P Capital IQ, a brand of the McGraw-Hill Companies (NYSE:MHP), is a leading provider of multi-asset class data, research and analytics to institutional investors, investment advisors and wealth managers around the world. We provide a broad suite of capabilities designed to help track performance, generate alpha, identify new trading and investment ideas, and perform risk analysis and mitigation strategies. Through leading desktop solutions such as Capital IQ, Global Credit Portal and MarketScope Advisor desktops; enterprise solutions such as S&P Securities Evaluations, Global Data Solutions, and Compustat; and research offerings including Leveraged Commentary & Data, Global Market Intelligence, and company and funds research, S&P Capital IQ sharpens financial intelligence into the wisdom today's investors need.

SOURCE S&P Capital IQ