S&P 500’s Rebound Is at Risk From a Souring US Earnings Outlook
- Forward guidance increasingly trails analysts’ expectations
- Tighter financial conditions are starting to weigh on growth
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The stock market just finished its best week in almost a year, but lurking beneath the euphoric surface are fears about Corporate America’s profit outlook.
Among companies that have issued guidance this earnings season for next quarter and beyond, more have been providing estimates that trail analysts’ expectations. A gauge of forward guidance that compares corporate forecasts with the Wall Street consensus has been lower only once since 2019, data compiled by Bloomberg Intelligence show.