Since then, the growth forecast has been trimmed down because of some negative pre-announcements by Computer Associates and BMC Software. Basic materials, while still at the top of the list of earnings growth, has seen estimate reductions the last two months, but the really deep cuts in earnings have happened the last month. On the bottom of the list, sectors that have been hit the most because of higher interest rates. Consumer cyclicals have been hurt from higher rates mainly because retail sales have slowed as well as home builders, building materials, and furniture and appliances. Estimates have not change as much as they are just much lower than the past four quarters.
All data is for earnings from continuing operations.
All estimates for the index are calculated from the broker analyst consensus estimates for each of the 500 companies. There is no right answer as to whether these items should or should not be excluded, but the basis the majority is using is likely the basis that will be reflected in the stock price and, therefore, First Call believes the best basis to use in calculating not only the consensus for an individual company, but for the index as well. Copyright 2000 Thomson Financial Thomson Investors Network is a product of Thomson Financial Interactive , a Thomson Financial company .