Double-digit growth run likely to end

NEW YORK – All streaks must come to an end. Investors accustomed to double-digit earnings growth should prepare for more earthbound numbers as Wall Street heads into the midpoint of the fourth-quarter reporting season.

As of Friday, 197 stocks in the widely watched Standard & Poor’s 500 index achieved a growth rate of about 9 percent, according to Thomson Financial. Without any unexpectedly strong reports in the offing, it means the 18 consecutive quarters calculated by S&P to have double-digit earnings growth will come to an end.

Stock analysts believe this is all part of a cycle that helps bring the stock market down from lofty levels, and hopefully sets it up again for another run.

“Investors need to get used to this and realize that it is not necessarily a bad thing,” said Howard Silverblatt, Standard & Poor’s senior analyst. “This is a retrenchment and consolidation after four years of growth. We had a nice run.”

There is a remote possibility the U.S. can still realize double-digit growth for the quarter, though most analysts admit this would likely be by a narrow margin and not without a few unexpected results. The best hopes are for energy companies, especially Exxon Mobil Corp. on Thursday and Chevron Corp. on Friday.