With second quarter earnings season about 3/4 over, it's interesting to note that declines in the Consumer Discretionary sector are now worse than the declines in Financials. As shown below, year-over-year earnings growth for the Consumer Discretionary sector is currently at -86.7% for the second quarter, compared to -81.7% for Financials. Thank you GM and Ford! These are the only two sectors seeing negative growth, but they are big enough to put the entire S&P 500 at -20.2%. Technology has seen the strongest YoY growth at 19.5%, followed by Energy, Health Care and Consumer Staples.
At the start of earnings season, estimates for the Consumer Discretionary sector were for YoY declines of -19.9%. For the entire S&P 500, actual earnings declines are currently double the expectations on 6/27. On a positive note, all other sectors except for Energy have actually seen stronger than expected earnings growth this quarter.