Dow Companies Report Worst Revenues since 2010, Dow Rises to 20,000 (LOL?)

(By Wolf Richter)

Wall Street hocus-pocus has done an awesome job.

The Dow-20,000 hats have come out of the drawer after an agonizingly long wait that had commenced in early December with the Dow Jones Industrial Average tantalizingly close to the sacred number before the selling started all over again.

What a ride it has been. From the beginning of 2011 through January 27, 2017, so a little more than six years, the DJIA has soared 73%, from 11,577 to 20,094. Glorious!!

But when it comes to revenues of the 30 Dow component companies – a reality that is harder to doctor than ex-bad-items adjusted earnings-per-share hyped by Wall Street – the picture turns morose.

The 30 Dow component companies represent the leaders of their industries. They’re among the largest, most valuable, most iconic American companies. And they’re periodically booted out to accommodate a changed world. For example, in March 2015, AT&T was booted out of the Dow, and Apple was inducted into it, as its ubiquitous iPhone had become the modern face of telecommunications. New blood with booming revenues replaces the stodgy old companies. In aggregate, revenues should therefore rise, right?

READ MORE HERE: Dow Companies Report Worst Revenues since 2010, Dow Rises to 20,000 (LOL?) 

NEXT WEEK:  I will publishing a very interesting article about GOLD-SILVER-COPPER ratios.  Furthermore, Tom Cloud will be posting a new Precious Metals Update.

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12 Comments on "Dow Companies Report Worst Revenues since 2010, Dow Rises to 20,000 (LOL?)"

  1. Good indicator…..only for those who want to keep their eyes and ears open…..thanks. regards

  2. Why doesn’t any of this matter to the precious metals buyers? Tom Cloud says we are out of silver in 5 to
    7 years. 1.6 billion Muslims are now permitted to buy silver starting March 31. India will import more silver since gold restrictions are in place. China’s commitment to solar increase their silver imports. As
    your previous article shows there has been a deficit in silver these past 10 years clearing away the
    surplus the prior 7 years. Minting demand has increased and a few mines have closed. Yet, with all of this and production costs beginning to rise, silver was under $17 last week. Something is missing? I
    think it is buyers i.e. demand. No one gives a rats ass about silver. They make their money in the
    stock market. All other issues you have cited are 10 years down the road i.e. oil, debt etc.

    • People like me who buy gold and silver don’t want it to go up. Because if it does, people like you are f*&ked. Just like I don’t want to see my house burn down so I can receive the insurance on it. I’d rather it didn’t thank you very much.
      Many people, like you, have no idea of the role of gold and silver as insurance.
      Ironically I have been buying gold and silver gradually since 1998 and my insurance has been one of my best performing assets. Not that I would sell it outside of an emergency, which it is for.

      • Are you inferring “insurance” against a currency devaluation like Venezuela? If you are “insuring” yourself with gold and silver for a economic collapse you are in for quite a big
        surprise. If that occurs in the USA then it will be dog eat dog, with riots in every Mall. Imagine 1 in every 100 or so people in the USA have PM. Then imaging where can you spend it without being robbed, mugged or ravaged by people that “ain’t” got any PM. If you are
        saving for that occurrence, not only must you wait another 10 to 20 years, but you better buy
        quite a few shotguns to carry with you when you go shopping. And invest in a bicycle because
        no one will delivery any gasoline.

        • I live on a five acre property in Northern NSW Australia completely self sufficient with solar and water and I grow some of my own food.
          I worked in the Middle East in 2002 and made friends with the oil guys there. The stories they told were very similar to the ones told on this site which is why I am interested in Steve’s work.
          If you don’t like investing in gold and silver all the power to you and I hope you have the best of luck with your investments.
          I don’t see why you are here if you don’t believe in the danger that a falling EROI represents which is the crux of Steve’s work.
          I personally think one would be better off in Venezuela with gold and silver than without it. That is why I feel comfortable owning some.
          I am not a gold bug I am a futures trader who channels part of his wealth into the stuff.
          It is the energy side of Steve’s work that I am interested in not gold and silver. Until I came here I didn’t even know there was a kind of counter culture revolving around it that aroused emotions similar to what you are exhibiting. Personally I find the whole debate a bit boring. But I find the energy side very interesting.

          • Barry,

            Excellent comment. Thanks for bringing the subject matter back DOWN TO EARTH. However, I doubt you will make a DENT into Mr. Joe Lindell’s mentality on the precious metals.

            steve

            Steve

  3. Joe , “Something is missing?” Big time ! Namely the absence of the physical side countering the bulls*** that the paper side has been deceitfully enjoying for years.
    Apparently we were awash in the physical as a nation back when JFK was a walking president. That was 1964. Fifty three years later and no one knows for sure where the real price for physical should be in the markets. The actual truth is to this day still under the surface. As Barry has said , take advantage of these low priced silver days and accumulate the physical , while you still can. One thing is for sure. Nothing stays the same.

  4. There are NO markets any longer. Just manipulation and intervention.

    The thirty DOW Jones companies reporting earnings is nothing but fairy dust. These companies use non-GAAP procedures and play with the end numbers until they say what the e-suite denizen’s want!

    The Dow Jones Industrial Index.
    What is “Industrial” about it? Not that much really.
    About the only two companies listed that come close to industrial are Caterpillar and Boeing.
    Yet CAT has not shown a global positive retail sales line in over 4 years! And the Seattle plane maker is hunkering down for some harder public sale times coming. Fortunate that they have military sales to keep them out of red ink.
    The remainder of the former “Industrial” index is composed of “soft” consumer sectors. eg: Banks, Drugs, e-Phones, Entertainment, etc.
    This stock index and market balloon, is full of nothing but accounting chicanery and hot air. When the bubble explodes, it will spread financial excrement far and wide. Don’t get caught in the fallout.

    • Incredible that just 8 companies of the 30 that comprise the DOW have the weight to move it to nose bleed levels at 20,000!
      eg: Goldman Sachs is given a weighting of over 8 while GE has a weighting of just 1.
      So if the index moves up one point, GS has an advantage of 8X that of GE in moving the index.
      Incredible!

  5. DisappearingCulture | January 31, 2017 at 7:19 am | Reply

    A pretty good perspective on the 20K Dow in this under 9 minute audio/video:
    DOW 20K: Is The Stock Market Really Setting New Highs?
    https://www.youtube.com/watch?v=fp6K7aiHNoU

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