Growing disparity is seen in U.S. earnings, GDP estimates
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.
Comparing estimates for U.S. earnings and economic growth leads to “a riddle, wrapped in a mystery, inside an engima,” Tavis McCourt, an institutional equity strategist at Raymond James Financial Inc., wrote in a report Tuesday. While S&P 500 Index profit projections for 2021 have held up, he wrote, the Federal Reserve Bank of Atlanta’s GDPNow Index for the third quarter has tumbled. The S&P 500 estimate rose by 1.9 percentage points from the end of July through last week to 45%, according to data compiled by Bloomberg. During the same period, the GDPNow estimate sank to 1.3% from 6.1%.