Economic, Manufacturing, Market, and Earnings Update. S&P 500 at $100.00 for 2011. Lange Financial Services Update
These two items below are in line with what we are thinking and have been posting on this site since the last half of 2010, with input from Fred and Rob Lange of Lange Financial Services. LFS went to $100.00 on S&P 500 earnings for 2011 in mid 4th quarter of 2010, and now others, as seen below, are raising estimates to match. We expect more to come.
Barron’s February 19, 2011
The stock market may look toppy to some, but Robert Maltbie, founder of Singular Research and owner of a hedge fund, thinks the Standard & Poor’s 500 Index could hit 1,600 by year end and S&P 500 earnings will come in at $100.00 for 2011.
Investors Business Daily: Saturday February 19, 2011
Caterpillar touts sales growth
The No. 1 maker of earth-moving equipment said retail sales of machinery jumped 49% in Jan., led by a 58% surge in N. America and a 56% increase in Latin America, as those regions started catching up to the recovery that began earlier in Asia. Caterpillar’s(CAT) global engine sales rose 23% in Jan. Bucyrus, which is being bought by Cat, said Q4 EPS leapt 48% as sales nearly doubled, helped by an acquisition. Cat climbed 2.4% to 105.86.
Providing another sign of global economic growth, especially in China, the construction equipment giant’s Q4 EPS soared 259% to $1.47, beating views by 20 cents. Sales rose 62% to $12.81 bil, also above views. Caterpillar (CAT) guided Q1 profit and revenue forecasts higher. It plans to invest about $3 bil in capital projects in ’11, more than half of that on U.S. projects.
LANGE FINANCIAL SERVICES COMMENTS ON ABOVE:
THIS SUPPORTS OUR BELIEF THAT MANUFACTURING ACTIVITY IS SURGING WORLD WIDE. OUR FORECAST FOR ECONOMIC GROWTH TO CONTINUE IS STILL IN PLACE AND RUNNING HIGHER THAN CONSENSUS FORECASTS. MANUFACTURING ACTIVITY SUPPORTS OUR LONG STANDING PROJECTION ON THIS SITE FOR THE PAST SEVERAL MONTHS THAT ECONOMIC FORECASTS WILL BE RAISED. FURTHERMORE, EARNINGS EXPECTATIONS FOR THE S&P 500 FOR 2011 WILL LIKELY SURPASS $100.00 PER SHARE AND REACH $110 FOR 2012.
We continue to recommend accumulation of good quality growth stocks during periods of weakness.