S&P 500’s Earnings Miracle Is Failing to Take Hold in the Second Half
- Third and fourth-quarter estimates are swiftly deteriorating
- Projections for the year are still ‘too high’: Morgan Stanley
This article is for subscribers only.
Behind the scenes of another middling earnings season is evidence that analysts are deceiving themselves when they predict things will be much better by Christmas.
While second-quarter results have been a bit better than expected, estimates for the third and fourth are moving the wrong way, worsening over the last two weeks. Companies that are beating estimates now are refusing to raise guidance -- effectively lowering the outlook for the second half.