Only one-quarter of companies offering earnings advice so far have positive expectations, so far making this the worst reporting period since 1Q 2016 by comparison.
This evidence stands in direct opposition to the Fed’s choice to raise rates September 26th (to the highest rate in about a decade), and guidance that they are likely to do it again in December.
Time will tell if the Fed’s decisions are the correct, nuanced response to a potentially too-hot market, AND if the recent 4Q guidance and 1Q 2018 results are the appropriate result of carefully-managed monetary policy.
So far, 98 have provided guidance, with 74 percent negative and just 24 positive, the worst ratio since the first quarter of 2016 when corporate America was in an earnings recession.