Earnings Outlooks Are Key to Determining If Stocks Hit Bottom
- Morgan Stanley says 3Q results to drive near-term equity moves
- Resilient profits may push earnings debate to January: Weaver
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The rebound in US equities this week is stoking an argument that’s raged all year on Wall Street: When will this bear market end?
The answer may lie in the current earnings season, which kicked off last week, specifically Corporate America’s outlook for future profits, according to Morgan Stanley. A reset in earnings expectations could prompt investors to seek an inflection point in the market, with the S&P 500 Index set for its biggest annual decline since the global financial crisis.