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U.S. firms see worst outlook in a decade. Thanks Europe!

Monday, July 23, 2012 - 01:54

July 23 - Corporate America is seeing its bottom line sink as fears of a euro zone breakup increase, according to Thomson Reuters analyst Jharonne Martis.

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McDonald's IBM and Johnson & Johnson went to these Dow stocks all have in common. Well the bottom lines have been sunk by the European debt crisis the big question how bad will things get for US companies doing business in the eurozone. When joining me now is Thomson Reuters analyst -- more. We -- let's look ahead at the next quarter or what kind of comments and outlooks are companies issuing. While -- today 25 companies have issued guidance of which eighteen are negative. This is the weakest showing in over a decade. And pretty much the guidance revolves around the slowdown in the global economy especially we're seeing emerging markets already slowing down. The witnessing -- -- which is contributing to a stronger dollar and it's interesting because in the past it a weak dollar actually helped corporations -- earnings estimates. And that -- we're seeing the opposite sides of detail when becomes ahead winter time but. Why is that particularly worrisome. Well it's worth some because that means that corporations now all that ran the revenue that they generate abroad it's worth less on their financials. Also we've seen US exports already shrank in the first time in nearly three years because experts now worth more abroad. On top of that we're seeing that analysts are becoming very bearish and are lowering their third and fourth quarter projections for the rest of this year is still looking at that line up of companies -- which companies are you most concerned about. Put forward we're very concerned about Cisco Priceline. As they -- water fossil and Kraft Foods. All these companies get a huge portion of their revenue from abroad especially Europe to -- -- for example over 50% of their revenues generated in Europe. As a result a lot of these companies are very likely to be hit by stronger dollar -- guilty that I am those companies thanks lecture. Or thinks it Thomson Reuters analyst -- Marcus I'm Fred Katayama and this is Reuters.

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U.S. firms see worst outlook in a decade. Thanks Europe!

Monday, July 23, 2012 - 01:54