Morgan Stanley On The Latest Consensus Earnings Estimates

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From Morgan Stanley, the latest on S&P earnings:We have seen a modest downward revision to the 2011 S&P 500 consensus EPS estimate, due in part to BAC’s lowered guidance and lower oil prices. However, seven of the 10 GICS sectors have witnessed downward revisions over the past two weeks, including financials (-6.4%), materials (-0.9%), and consumer discretionary (-0.2%). The 2012 S&P 500 EPS estimate has fallen a slight 0.5% from its mid-June peak, but remains lofty in our view at $113. We continue to believe that first-half 2011 estimates are achievable, but the second half is a concern. Thus, we will be closely watching guidance during earnings season.

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