Unexpectedly good first quarter earnings coupled with positive economic data had some people heralding the beginning of a stronger recovery.
However, recent data has been markedly worse, and people are increasingly pessimistic. If analysts are right, a weak earnings season may confirm those fears.
Take a look at this chart from Bespoke Investment Group:
Photo: Bespoke Investment Group
But this is not to say things are all bad. Indeed, Wall Street has a long history of lowballing earnings estimates.