, Columnist
Corporate Earnings Go From Savior to Nemesis for Stocks
The 10% growth in profits that was forecast for this year is now probably out of the question.
The S&P 500’s 4% selloff on Wednesday was the worst since June 2020.
Photographer: Spencer Platt/Getty Images
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Earnings were supposed to save the US stock market, but they may well prove to be its downfall.
In the latest example of trouble, networking equipment giant Cisco Systems Inc. told investors late Wednesday that supply disruptions would erase sales growth in the current quarter, adding to negative outlook revisions this week from retailers Walmart Inc. and Target Corp. In all cases, stock bloodbaths ensued, the broader market came under attack and analysts started slashing their estimates for where share prices might end this year.