Economics
JPMorgan Says Analysts Are ‘Unusually’ Pessimistic on Earnings
- U.S. companies start off earnings season with profit beats
- Profit upgrades could again coincide with equity gains: JPM
Photographer: Michael Nagle/Bloomberg
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JPMorgan Chase & Co. strategists believe analysts are starting 2020 with an overly negative outlook on earnings and say positive surprises will give a boost to global equities.
Forecasts for the S&P 500’s earnings growth over the next two reporting seasons are below those seen in the second and third quarters of last year and are likely “too low,” JPMorgan strategists led by Mislav Matejka wrote in a note on Monday. Typically, fourth-quarter earnings are 3% to 4% higher than in the second quarter, instead of lower, they said.