Biggest S&P 500 Bull Signal Seen in Bottoming Earnings Revisions
- Analyst revision breadth has improved after plunging in April
- The turn reinforces view profit growth troughs this quarter
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A hard-to-see shift in how Wall Street views the future of S&P 500 profits may have set the stage for days like today, when stocks are rising the most in nearly three weeks.
While earnings expectations continue to embed a world of pain for demand-depleted companies, projections on the scope of the disaster have recently undergone a mild easing, going by analyst estimates. On a relative basis, the number of companies experiencing upward revisions have outpaced those with downward revisions for three weeks, the longest stretch since January, data compiled by Morgan Stanley showed.