Wall Street Strategists Sound Alarm on Dimmer Profit Outlook

Morgan Stanley and JPMorgan note weakening revisions trends
RBC says commentary shows uncertain macro, but lifts forecast

WATCH: RBC’s Lori Calvasina says she expects energy and financial stocks to provide some earnings competition to the so-called “Magnificent Seven.” Source: Bloomberg

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By Farah Elbahrawy

October 16, 2023 at 9:49 AM UTC

Updated on

October 16, 2023 at 1:35 PM UTC

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The outlook for earnings is weakening and could remain subdued, according to strategists from Morgan Stanley to JPMorgan Chase & Co.

As the reporting season kicks off, Morgan Stanley’s Michael Wilson said the earnings revisions breadth — referring to the number of stocks seeing upgrades versus downgrades — for the S&P 500 has fallen sharply over the past couple of weeks.