Equity View: Macro Musings on Earnings So Far
- By John Tierney
- 3 min read
Summary
- Earnings have been mostly solid so far – no surprise there given near-full employment.
- Earnings confirm we are amid rolling recessions in specific sectors, affecting housing, semiconductors, and consumer-facing tech for now.
- Soft or even negative outlooks suggest gathering clouds on the horizon. Companies in the freight sector report demand for moving goods in coming months is already slowing.
- Some industrial companies are turning more cautious even as demand persists; others remain upbeat.
Market Implications
- We cannot confirm yet that the economy is headed for recession based on what companies are saying.
- Many may be managing expectations downward. But we suggest paying close attention to companies that are already seeing meaningfully soft demand.
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