It May Be Impossible for Earnings to Satisfy the Bulls Right Now
- Banks lag for second day even as JPMorgan, BofA top estimates
- Stretched valuations, tighter labor market pose headwinds
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While nobody doubts earnings are soaring, the question is whether they’re soaring enough to restore order in the stock market. And while there are signs investors expect them to, right now the verdict is worrying.
As of Monday morning, the impact of early income reports had been muted. Stocks were mostly falling after companies released results, almost regardless of how good they were. Among 29 members of the S&P 500 that announced earnings through Friday, even those that beat analyst estimates saw shares trail in first-day reactions, data compiled by Wells Fargo & Co. showed.