Stock Futures Are Little Changed as Wall Street Looks Ahead to the Start of Earnings Season

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Investors brace for reduced forward guidance this earnings season as companies grapple with rising interest rates and rapid inflationary pressures.

Those moves come as investors prepare for companies to start reporting their latest results. Market participants will watch for downside risk to earnings forecasts as companies grapple with rising interest rates and greater inflationary pressures, and as Wall Street debates the likelihood of a recession.

"In terms of S&P earnings, for instance, we think we're already moving towards an earnings recession," Marathon Asset Management's Bruce Richards said Monday on CNBC's"Closing Bell." "Companies are getting squeezed at all sides, they're getting squeezed on cost of goods and the wages and all things that go into input from our manufacturing goals or services. And on the other end, we think revenues are starting to flatten before turning down at a time when interest cost is going up...That's a lot of downgrades, a lot of potential defaults coming from the system as a result of higher charges.

 

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