Earnings season is normally the time when investors use freshly reported results to update their expectations. It is a time to evaluate whether a company is on track to achieve its targets, exceed them, or perhaps fall short. Those results, combined with management’s forward-looking comments, form the basis for updated expectations. However, this earnings season will not fit into that framework. A recent article from Bloomberg highlighted the lack of information currently facing investors.
- April 30, 2020
Corporate earnings cool slightly and the mood on Wall Street is becoming more pessimistic. The 361 Capital Wall Street Mood Monitor assesses the climate for active management based on three factors: earnings trends, sentiment and correlations. The data behind those factors points to a mixed outlook for active managers.
Businesses delivered another quarter of strong earnings results but the mood on Wall Street remains glum; In June, analysts revised earnings estimates downward at the highest rate in more than three years.
Fewer companies are delivering inspiring earnings results…and it’s not helping the mood on Wall Street.
- January 24, 2019
Market conditions were challenged with spiking correlations and negative sentiment presenting headwinds for stock pickers. Earnings trends were the only bright spot.