Excerpt from Barron’s quoting DataTrek’s Nick Colas:
…. “DataTrek Research’s Nicholas Colas also sees signs for concerns. In a note to clients, Colas noted that Microsoft (MSFT), Alphabet ’s Google (GOOG), Facebook owner Meta Platform (META) and Nvidia (NVDA) hit 52-week lows on Friday even though the S&P 500 didn’t. “That is a bad sign going into third quarter financial reporting season and implies coming earnings misses and/or negative guidance,” Colas writes.
Though analysts have been reducing earnings expectations, earnings per share estimates for the S&P 500 for the next four quarters is still almost 5% higher than the trailing four quarters. “Any recession over the next year is still not factored into the Street’s earnings estimates,” Colas writes”….
Full article here on Barron’s.