Analyst earnings downgrades for US companies dominate for first time in 23 weeks

MacroAnalyst Impact 4
โดย Bloomberg·US·Read original
Summary · why it matters

Analysts' outlook for US corporate earnings has turned bearish, with the number of analysts cutting profit forecasts exceeding those raising them for the first time in 23 weeks. According to a Citigroup index, the streak of upward revisions dominating, which had been the longest since September 2021, has come to an end. Stefan Kemper, chief investment officer at BNP Paribas Wealth Management Germany, cited consumer-related sectors including both consumer staples and consumer discretionary, materials, and financials as the main sources of weakness, saying this is directly linked to the combined effects of rising living costs and higher energy prices. Morgan Stanley strategist Michael Wilson warned this week that if equity valuations continue to decline further and monetary policy is tightened by a further rise in energy prices, the S&P 500 could fall by as much as 7%. The Organisation for Economic Co-operation and Development said in a report on the 23rd that global inflation in 2027 is expected to run at a faster pace than anticipated, requiring further monetary tightening, and the US Federal Reserve raised its policy interest rate this month for the first time in three years to address inflationary pressures.

Impact on assets 4

Financials▼ · 1 stocks
Morgan Stanley
MS
▼ NegativeMonetaryrelevance

Morgan Stanley strategist Michael Wilson warns the S&P 500 could fall up to 7% if valuations decline and monetary policy tightens further on rising energy prices.

Digital Finance & Tokenization▲ · 1 stocks
Citigroup Inc.
C
± Mixedrelevance

Citigroup's index is cited as the source showing analyst downgrades now exceed upgrades, but no company-specific development for Citigroup itself.

Others▲ · 2 stocks
％Effective Federal Funds Rate
EFFR
▲ PositiveMonetaryrelevance

The Fed raised its policy rate this month for the first time in three years to address inflationary pressures, lifting the effective federal funds rate.

Off-coverage companies 1

BNP Paribas Wealth Management GermanyPrivate± Mixed
relevance

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