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.
- November 01, 2018
Domestic equity markets have not performed well in October. Through Monday October 29, the S&P 500 Index is down 9.36%, and the smaller-capitalized Russell 2000 Index is down 12.92%, on a price return basis. These declines have occurred against the backdrop of what appears to be—at least on the surface—a strong third quarter earnings season.