S&P 500 link to earnings is seen producing `speed bumps’
Here’s my chart for today. I’ll talk about it shortly after 3:30 p.m. Eastern (12:30 p.m. Pacific) on the Bloomberg Businessweek radio show. Also, I’ll present my Stock of the Day just after 4:15 p.m. (1:15 p.m.) on social media. You can hear me on Bloomberg Radio or see me at Bloomberg Global News on YouTube.
U.S. stocks “may hit speed bumps entering third-quarter earnings season” because profit estimates have become increasingly optimistic, according to Morgan Stanley Wealth Management. The firm cited the link between the S&P 500 Index and forward earnings, based on forecasts for this year and next, in a report Monday. Forward estimates for 2021 climbed 24% through Friday, beating the S&P 500’s gain of 19%, according to data compiled by Bloomberg. Estimates for 2022 rose 15%. Higher costs for supplies, labor and shipping and potential corporate-tax changes pose risks for earnings, the report said.