'The numbers need to come down,' bears say ahead of the next round of earnings reports

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The market tends to move ahead of analyst earnings cuts, but without confirmation any selloff is likely to lose momentum.

Earnings season does not start until April 14, when the big banks begin reporting, but already the bears are saying expectations are too high. One of the issues that drives bears crazy is the refusal of analysts to slash earnings estimates for 2023.

2% from last year, with virtually all of the gains expected in the fourth quarter. These estimates from analysts are known as "bottoms-up" estimates, because the estimates come from an analysis of individual companies. The other type of earnings estimates come from strategists who employ "top-down" analysis that looks not at individual companies but at an analysis of the macro economy.

 

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New job creation has slowed to less than estimated. That is good news. The data usually trails Fed actions so we need to see what trend the next two months show us. I suspect that we are already in a recession. Recessions ordinarily last about 18 months.

Please get rid of scatterbrained Cramer This network is getting too hard to watch with him on it.

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