A Scary Warning For The Rest Of Earnings Season...

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Photo: Flickr / pushthisbutton

From Dan Greenhaus at BTIG:As earnings growth is expected to decline on a YOY basis, much negativity is already expected. But with many companies warning about demand levels, we question whether sales and margin expectations have been appropriately reduced. With the S&P up nearly 2% from the end of the last earnings season (defined as five weeks from AA’s report date), we think not and again repeat that these are not the environmental factors that drive sustainable expansions in PE multiples.

The meat of earnings season really begins this week, and then peaks next week.

So far the first week of earnings were pretty miserable, but then, so was the first part of last earnings season, and then things got better as more companies reported.

This is the story to watch right now.

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