Earnings Outlook: Earnings Growth Has Flatlined
- By John Tierney
- 4 min read
Summary
- Equities capitalized on improved labour market news to claw back much of the August selloff.
- We continue to expect the (Federal Reserve) Fed will err on the side of dovishness and avoiding a hard landing, making a major selloff unlikely.
- But earnings growth has flatlined for the S&P 500 and declined for NASDAQ 100, and that funk shows little sign of abating. We expect equities to trade in a narrow range, with little prospect of the rally resuming until earnings show signs of rising again.
- It will be a quiet week, with only 14 mostly small companies reporting and no major economic news.
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