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Zacks earning watch

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I always keep an eye on this Zacks report as it gives very good indications of sectors likely to lead and lag.
Stick a fork in it, the fourth-quarter earnings season is done, with 97% of the reports in. So far, 485 S&P 500 firms have reported. Despite some high profile misses, the results were strong. Positive surprises have out numbered disappointments 304-106, with 75 hitting expectations exactly. The median growth rate was 14.5%. This will marks the 15th straight quarter of double-digit earnings growth for the S&P 500. Positive surprises outnumbered disappointments by almost a three to one margin.

However, it looks like this may be the last quarter of double-digit growth, as earnings growth is expected to decelerate sharply in the first quarter. Every sector but Materials is expected to post lower growth in the first quarter than in the fourth quarter. Materials was the lowest growth sector in the fourth quarter, and is not exactly expected to light the world on fire with growth of 4.6% in the first quarter, even if it is up from the fourth quarter. The median S&P 500 growth expectation for the quarter is only 8.9%, well below the 14.8% posted in the fourth quarter.
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