Piecing Together the Margin Puzzle

(1) Lots of S&P 500 data on Q2 revenues, earnings, and margins. (2) Comparing S&P vs. Thomson Reuters earnings composites. (3) The big news was a new high for the S&P 500 profit margin by one measure. (4) Weak oil price and strong dollar aren’t likely to weigh on revenues and earnings next year. (5) Financials, IT, and Utilities profit margins at new highs. (6) Energy and Materials margins down. (7) LargeCap margins consistently exceed SMidCap margins. Why? (7) Small companies tend to be more labor-intensive than large ones. (8) Many may also be losing money.