Wall Street Bears Say Stock Rally Will End If Profits Underwhelm

Raptors return on investment is the real dealMLS Cup the winning goal in record-breaking season for soccer in North AmericaNorth America’s oldest sport catches momentum in new professional localesCanadian Football League fanatics fuel financialsCanada’s Davis Cup team finding love

Morgan Stanley and JPMorgan Chase & Co. are growing concerned as the outlook for profits has been weakening even as the S&P 500 reaches fresh highs. Equity gains over the past five months have been driven by easier financial conditions and higher valuations rather than improving fundamentals, according to Morgan Stanley’s Michael Wilson.

According to data compiled by Bloomberg Intelligence, consensus earnings estimates have been revised lower over the past five months, with analysts currently expecting earnings-per-share to grow about 9% this year versus 11% at the start of November. But while profit estimates have been falling, US stocks have continued to rally amid optimism about potential rate cuts and developments in artificial intelligence, with a stronger-than-expected fourth-quarter results season also helping.

“Our concern is that profit growth could underwhelm, for a number of reasons,” a team led by Matejka wrote in a note. “If the earnings acceleration fails to materialize, this could act as a constraint.”

Finance Finance Latest News, Finance Finance Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Wall Street and Main Street see green lights for gold prices next weekThe Kitco News Team brings you the latest news, videos, analysis and opinions regarding Precious Metals, Crypto, Mining, World Markets and Global Economy.
Source: KitcoNewsNOW - 🏆 13. / 78 Read more »

Wall Street advises caution on gold prices next week, Main Street mashes the gasThe Kitco News Team brings you the latest news, videos, analysis and opinions regarding Precious Metals, Crypto, Mining, World Markets and Global Economy.
Source: KitcoNewsNOW - 🏆 13. / 78 Read more »

Wall Street Doom Prophesy Falls Flat on Hottest Rally Since 2016In the telling of Wall Street worrywarts, as 2023 drew to a close, the biggest financial markets on the planet were heading into the danger zone.
Source: BNNBloomberg - 🏆 83. / 50 Read more »

Stock market today: US stocks mixed as Wall Street watches and waitsStocks have lost momentum as investors regroup after the tumultuous run-up last week and as focus sharpens on the health of the US economy.
Source: YahooFinanceCA - 🏆 47. / 63 Read more »

Stock market today: Premarket trading on Wall Street muted as markets await Fed's rate decisionHONG KONG — Trading on Wall Street was quiet and mixed early Wednesday as markets awaited a decision on interest rates from the Federal Reserve and possible ...
Source: YahooFinanceCA - 🏆 47. / 63 Read more »