Expected Earnings Pullback Sets Up Big Test for Bull Market

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As earnings season kicks off in earnest this week, the expected slide in profits will come up against an accommodative Federal Reserve that has fueled a sharp bounceback in stocks this year

The stock market’s strongest run in more than two decades will be tested beginning this week, as a looming pullback in corporate profit growth sets up major indexes for a fresh bout of volatility.

Dozens of companies have slashed their profit forecasts for the first quarter. Walgreens Boots Alliance Inc. last week became the latest big company to cut its full-year profit forecast as a result of challenging market conditions, joining corporate powers such as Apple Inc., FedEx Corp. and 3M Co.

 

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