Here’s how much the S&P 500 companies that make most of their money in the US have outperformed their global rivals

Multinational is one thing, but 2022 was not the year for stocks to have a truly international presence.

According to Goldman Sachs analysis, S&P 500 companies with high exposure to domestic sales have outperformed stocks with high international sales by 9 percentage points. Granted, it’s not a great performance, with the domestic basket down 15%, but it’s better than the 24% drop for overseas-facing companies.

Part of the reason domestic companies fared better is the strengthening of the US dollar. The other main reason is simply the collapse of the sector – the sector with the highest percentage of foreign sales is information technology, which has been dragged down by rising interest rates, making long-lived assets less attractive.

What the analysis also finds is that only 3% of the S&P 500’s revenue was explicitly derived from China, which compares to the country’s roughly 18% share of global gross domestic product. Companies have discretion in how they report international exposure — accounting rules require them to identify any geographic segment that contributes at least 10% of sales, and they can choose to report by region or country.

Goldman’s analysis was done by analyzing 10,000 records, and even then, the bank was only able to get revenue, not profit figures, by country. So to make a profit, they rely on US government data to show that only 17% of profits are from abroad.

The investment bank divided the findings into different investment baskets. Goldman’s domestic sales basket includes Verizon Communications VZ,
-0.87%,
T-Mobile US TMUS
+0.12%,
target TGT,
+1.11%,
Altria MO,
-0.26%,
Wells Fargo WFC,
+3.30%,
Charles Schwab SCHW,
+2.00%,
CVS Health CVS,
+0.54%,
Anthem ANTM,
-0.08%,
and Intuit INTU,
+3.67%,
and its international sales basket includes Alphabet GOOGL,
+2.47%,
META Metaplatforms,
+4.74%,
Philip Morris International PM,
-0.20%,
ExxonMobil XOM,
+1.37%,
Abbott ABT Laboratories,
+0.57%,
Caterpillar CAT,
+1.19%,
Nvidia NVDA,
+2.10%,
Broadcom AVGO,
+1.41%
and Qualcomm QCOM,
+2.02%.

the hum

The final reading of the University of Michigan consumer confidence index is due on Friday. The preliminary version of the index showed high inflation expectations. “The University of Michigan preliminary reading — it’s a preliminary reading, it can be revised — however, it was quite compelling, and we noticed that,” Federal Reserve Chairman Jerome Powell said at this month’s news conference after raising rates. in 75 bases. spots.

New home sales data should also be released.

The Fed said 33 financial institutions, including JPMorgan Chase JPM,
+0.73%,
Bank of America BAC,
-1.51%
and Citi C,
-1.02%
passed their annual stress tests. Banks next week may announce their dividend and share buyback plans. “Clearly, the days of over 100% pay rates are long gone for most,” said Mark Conrad, portfolio manager at Algebris Investments, who said regional banks received the strongest ratings.

Ukraine ordered forces to withdraw from the eastern city of Severodonetsk. President Joe Biden is traveling to Germany for the Group of Seven meeting this weekend, where energy and the Russia-Ukraine war are to be discussed.

Zendesk ZEN,
+29.00%
The stock is up 55% premarket as it nears a deal to be sold to private equity firms for about $7 billion, according to The Wall Street Journal.

The US Senate passed a bipartisan bill on firearms, the most important firearms legislation in decades.

The market

US stock futures ES00,
+1.14%

NQ00,
+1.48%
advanced, after gains in three of the last four sessions of the S&P 500 SPX,
+1.38%.

CL.1 oil,
+1.30%
futures rose, the dollar DXY,
-0.16%
fell, and the 10-year Treasury yield TMUBMUSD10Y,
3.096%
was 3.09%.

main quotes

Here are the most active stock market tickers as of 6am in the east.

Highlighter

security name

GME,
+3.86%

GameStop

TSLA,
+3.12%

Tesla

AMC,
+3.91%

AMC Entertainment

NIO,
+2.97%

NIO

AAPL,
+1.74%

Litter

TWTR,
+1.68%

twitter

AMZN,
+1.69%

Amazon.com

BABYSITTER,
+3.41%

alibaba

MUNL,
-0.92%

Mullen Automotive

BHAT,
+23.08%

Blue Hat interactive entertainment technology

random readings

The cleanest accounting firms have mafia connections, according to an Italian study.

Billionaire Bill Gates angered residents by purchasing 2,100 acres of potato farmland in North Dakota.

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