Earnings Outlook: Welcome a New Canary in the Coal Mine
- By John Tierney
- 3 min read
Summary
- The firm labour market all but guarantees the Fed will raise rates at least several more times.
- We continue to think the combination of high inflation and higher rates will hurt earnings in coming months. We reiterate our equity underweight view.
- Tech companies catering to corporate and industrial demand continue to report strong earnings and outlooks. Watch closely – should this one bright spot slow, that may be when we are on the brink of recession.
- Only 11 companies report this week – among them, small but high-visibility GameStop Corp and super-sized grocer Kroger Co.
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