Gloomy on 2023 earnings prospects Analysts — who cover individual stocks and sectors — have been reducing 2023 earnings estimates at a fairly rapid pace. At the beginning of October, next year's earnings were expected to rise by 7.8%. Today, they are at 4.8%. Strategists, on the other hand, who look at the stock market from a top-down, "macro" perspective , have a much dimmer perspective.
At the start of this month, it ranged from a low of 3,650 at Societe Generale to a high of 4,500 at Deutsche Bank. The average of 17 macro strategists surveyed by Bloomberg at the start of the month was a little over 4,000. Here's the problem: that's where we are now. The S & P is at 4,000, so on aggregate Wall Street strategists are expecting no price gains in 2023, along with lower earnings.