Weakening corporate profit forecasts may provide the latest headwind to US stocks, which are likely to fall further before bottoming during the second-quarter earnings season, according to Morgan Stanley strategists.
“In the absence of an obvious shock like a recession, companies are slow to guide down,” strategists led by Michael Wilson wrote in a note on Monday. “This time should be no different, which means stocks can hang around current levels until the second-quarter earnings season when the next leg lower is likely to begin and end.”
