How the trade war could take an even bigger chunk out of corporate earnings

  • 📰 CNBC
  • ⏱ Reading Time:
  • 45 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 21%
  • Publisher: 72%

Malaysia News News

Malaysia Malaysia Latest News,Malaysia Malaysia Headlines

Analysts are changing their earnings expectations with the ebb and flow of the trade war.

Earnings estimates could come down if the trade war escalates further.S&P earnings could go negative.The realization that the trade war may expand from tariff wars to encompass currency wars is causing some consternation among analysts and strategists who are increasingly confused and uncertain on how to determine 2019 and 2020 earnings estimates.

Of course, analysts have long been concerned with the impact of tariffs on earnings. Nick Raich, who covers corporate earnings at the Earnings Scout, notes that estimates have ebbed and flowed with tariff headlines: "In May, when the trade war escalated, earnings estimates dropped, and then in June when the psychology got better they improved," he told me. "They started weakening again last week when Trump tweeted about more tariff wars.

But that is what Wall Street is facing. Mike O'Rourke, Chief Market Strategist for Jones Trading, noted that even Apple was giving analysts a tough time. "Apple had positive guidance," he said, "but it's hard to have confidence because they are so exposed to China. There's just not a lot of visibility, and I don't have the expectation that there will be a lot more visibility.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in MY
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Biff the whole system ! No more problems

Malaysia Malaysia Latest News, Malaysia Malaysia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Uber and Lyft earnings battle could be replacing the price warRide-hailing market rookies Uber Technologies Inc. and Lyft Inc. will slug it out this week with earnings, but the most prominent topic could be a war...
Source: MarketWatch - 🏆 3. / 97 Read more »

Asian stocks turn lower on lingering trade war fears, yuan slipsShares in Asia fell for an eighth straight session on Wednesday on lingering wor... Or could it be the terror being waged in HK by the PRC 🤔
Source: Reuters - 🏆 2. / 97 Read more »