As the S&P 500 has bad rates for the recession for the very first time since 2017, some giant names that justify most of the responsibility. Economic consequences from the second quarter did show that the earnings for S&P 500 SPX, is -0.16% which works for dropping of the second quarter consecutively, a new trend was mentioned as an earnings recession. The profits did fall from 0.40% in second quarter of the financial year, which was in progress on firms that were in the index as of the end of the prior earnings, which followed a 0.30% downfall in the first quarter of the financial year.
The five companies that did suffer the recession downfall was Apple, Facebook, Beoing Co., Exxon Mobil Corp, and Micron Technology Inc. As per the market analysis, these are the five main contributors to the market. The earning recession for the companies was: Apple was down by -0.14%, Boeing Co, was down by 0.46%, Exxon Mobil Corp was down by -0.29%, whereas Facebook and Micron Technology Inc. was down by -0.49% and -0.53% respectively. The profits downfall did vary for each company depending on various reasons, and also the recession cannot be blamed for this. Boeing Co. went into loss due to its two deadly crashes and also because it did ground 737 jets for its safety purposes. Boeing Co ultimately reported a loss of $3.3 billion which is one of the most significant contributors to the downfall. Fall in oil prices and also through business lines got down Exxon Mobil Corp’s profits for the second quarter. Apple also did suffer from a similar issue which made it the worst contributor in the technology sector. Facebook and Micron Technology Inc. earnings also slipped by other problems trailing these big tech companies.
As the earnings did decline this year for the second quarter as the stock prices also dropped for these companies. The S&P 500 index also has gained around 18.5% so far in 2019. While these companies saw the biggest downfall, these companies also did see the rise for this year.