This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

AIG Controls S&P 500's Fate

NEW YORK ( TheStreet)--S&P 500 growth projections for the fourth quarter are unusually bullish in large part because of AIG (AIG - Get Report) rebound from a disastrous fourth quarter last year.

S&P 500 companies are expected to earn $30 billion more in the fourth quarter of 2011 than they earned in the fourth quarter of 2010, according to analyst consensus projections from FactSet. However, AIG is expected to account for $15 billion of that total.
Hank Greenberg

AIG lost a whopping $16.20 per share in the fourth quarter of 2010, largely due to a $4.2 billion charge to strengthen loss reserves at Chartis, its global property casualty business. This year, analysts expect AIG to earn $0.63 per share.

Include the projected $15 billion in growth at AIG, and the S&P 500 would grow by 14% comparing the fourth quarter of 2010 to the fourth quarter of 2011. Take out AIG, and growth projections fall to 7%. AIG's $15 billion accounts for all but $3 billion of the projected $18 billion in financial sector earnings growth.

In separate AIG news, former CEO and Chairman Hank Greenberg is suing the government for its $25 billion takeover of AIG, arguing the move was unconstitutional, The Wall Street Journal reported Monday.

The government's bailout of AIG stands at more than $60 billion, as of June 30, according to company data .

-- Written by Dan Freed in New York. Follow this writer on Twitter.
Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AIG $55.83 0.00%
AAPL $93.75 -1.10%
FB $117.53 0.69%
GOOG $693.00 0.29%
TSLA $240.75 -2.80%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs