Second quarter earnings roundup

Looking at some of the most widely held institutional holdings, second-quarter earnings were on par with consensus estimates, with a few notable surprises. Alphabet (formerly Google), the most-owned stock, reported earnings per share nearly 40 cents above estimates, while Facebook and Microsoft outperformed EPS estimates by 15 cents and 11 cents, respectively. Royal Dutch Shell was the most notable negative surprise, missing estimates by 21 cents.

According to data from Factset, year-over-year earnings of the S&P 500 are expected to decline 3.5% after all constituent companies report. First quarter year-over-year earnings contracted 6.7%.

Analysts expect the S&P 500 index to close 2016 with negative earnings growth, marking the first time since 2008/2009 that the index experienced a drop in earnings growth for two consecutive years. The bulk of the earnings decline has been energy-related.

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