Earnings Growth Slowing, Investor Sentiment Complacent Despite Economic Concerns
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S&P 500 earnings growth is slowing, with Q4 estimates much lower than Q3 actuals. JPMorgan doesn't see improvement.
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Investor sentiment is complacent and valuations have rerated higher, requiring earnings upgrades, not just beats.
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Early earnings season shows beats not being rewarded - stocks losing ground post-report.
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Profit margins look vulnerable given economic weakness evident in PMIs and potential jobs market deterioration.
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Semiconductor stocks have detached from fundamentals; gap could start closing with sector overbought.