S&P 500 earnings revision breadth going deeply negative means that a substantial number of companies in the S&P 500 index are revising their earnings forecasts downward, signaling potential challenges and contributing to market concerns.
Uh oh. S&P 500 earnings revision breadth has gone deeply negative. 🫤 pic.twitter.com/timlZF3xV6
— Markets & Mayhem (@Mayhem4Markets) November 6, 2023
Investors withdrew approximately $2.3 billion from tech funds over the last week, the largest outflow in 8 weeks pic.twitter.com/lls2NSO6YW
— Barchart (@Barchart) November 6, 2023
Financials massive outflows pic.twitter.com/maRcPIdtPm
— Win Smart, CFA (@WinfieldSmart) November 6, 2023
JPMorgan says this stock market rally is not sustainable By Investing.com
JPMorgan strategists anticipate that the tradeoff between economic growth and policy challenges will persist, impacting sentiment towards stocks as the year draws to a close.
“We believe that equities will soon revert back to an unattractive risk-reward into year end,” the analysts wrote in a note to clients.
The factors contributing to this outlook include the expectation of sustained high interest rates, downward adjustments in earnings projections, potential erosion of pricing power, threats to profit margins, and a continued slowdown in revenue growth.
The strategists also highlight that U.S. stock valuations appear unattractive when compared to Treasury real yields. Technical indicators do not suggest a bullish trend, implying that any market bounce may be short-lived.
Morgan Stanley insists this is just another bear market rally