U.S. companies are creating equity at the fastest pace on record, causing future earnings to be divided among a larger number of shares. Harman International Industries Inc., the maker of audio equipment, and Marshall & Ilsley Corp., the largest bank in Wisconsin, slumped more than 15 percent this week on share sales. One-hundred seventy-nine U.S. companies have raised $89.7 billion this quarter, according to data compiled by Bloomberg.
Earnings of companies in the S&P 500 have dropped for a record seven straight quarters and will continue to fall before rebounding in the fourth quarter, according to analyst estimates compiled by Bloomberg. Companies scheduled to report next week include Oracle Corp., Monsanto Co. and Nike Inc.
Consumer spending in the U.S. probably rose in May for the first time in three months and home sales increased as Americans became more confident the recession will end this year, economists said before reports next week.
To contact the reporter on this story: Elizabeth Stanton in New York at estanton@bloomberg.net
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