Morgan Stanley's top US equity strategist says investors want signs of improving earnings growth, and thinks the market is poised for disappointment.
. While analysts think profits will start growing again in the second quarter and wind up with growth of about 5% this year, Wilson expects an"earnings recession," meaning at least two quarters of flat or negative earnings growth.
That's illustrated by this chart. Wilson says analysts are expecting earnings growth to quickly recover to its 2017 pace, but he doesn't see much evidence that that's going to happen. Analysts expect company earnings to improve later this year, but Mike Wilson of Morgan Stanley has doubts about that pickup.Earnings consistently come in better than analysts expect, which might create some hope that profits will end up a bit better than the first quarter of last year. Wilson warns investors not to expect that because estimates have fallen so sharply. When that happens, he said, companies typically don't beat expectations by very much.
"A lowered bar into the quarter does note mean the likelihood of a beat is greater," he wrote."The forecasts for have been lowered substantially and we do not think we are going to see a beat big enough to lift index growth into positive territory."simply click here to claim your deal and get access to all exclusive Business Insider PRIME content.
इंडिया ताज़ा खबर, इंडिया मुख्य बातें
Similar News:आप इससे मिलती-जुलती खबरें भी पढ़ सकते हैं जिन्हें हमने अन्य समाचार स्रोतों से एकत्र किया है।
Health care is one of Apple's most lucrative opportunities: Morgan StanleyHealth represents a huge business for Apple, and Morgan Stanley lays out some unique opportunities the company has in the space.
और पढो »
Lyft is threatening litigation against Morgan Stanley, accusing the firm of supporting short-sellingIn a letter sent to Morgan Stanley on April 2, Lyft questioned the firm about its role in helping market certain products that would help pre-IPO investors bet against the stock.
और पढो »
Morgan Stanley to become top shareholder in China funds venture with stake increaseMorgan Stanley has won an auction to buy an additional 5.5 percent stake in its ...
और पढो »
Apple could eventually top $300 billion in annual sales from health care: Morgan StanleyHealth represents a huge business for Apple, and Morgan Stanley lays out some unique opportunities the company has in the space.
और पढो »
Stocks making the biggest moves premarket: Boeing, Wells Fargo, Morgan Stanley, GE & moreSome of the names on the move ahead of the open.
और पढो »
Morgan Stanley cuts Tesla price target and lowers Model S and Model X sales forecastTesla's disappointing first quarter delivery number led Morgan Stanley analyst Adam Jonas to lower his price target on the stock from $260 to $240, and cut forecasts for a number of key financial metrics.
और पढो »
Morgan Stanley: Wall Street is wrong, there will be an earnings recession this yearMorgan Stanley is calling for a full-blown earnings recession, while many other analysts see one negative quarter and a return to positive profit growth by the second quarter.
और पढो »
Morgan Stanley slashes its Tesla target for the 3rd time this yearMorgan Stanley's team of auto analysts, led by Adam Jonas, cut its price target on Tesla shares on Monday for the third time this year.
और पढो »
Challenges Stack Up For Big Banks Ahead Of JP Morgan, Wells Fargo, CitigroupLower trading volume. Falling mortgage rates. An inverted Treasury yield curve. A slowing U.S. and global economy. The odds seem pretty stacked against big banks on multiple fronts as earnings season starts tomorrow.
और पढो »
GE shares fall as J.P. Morgan analyst downgrades, lowers PT furtherShares of General Electric Co fell about 6 percent on Monday after J.P. Morgan&...
और पढो »