Another crack may be emerging in the U.S. stock market.
“We don’t want to make too much of this (yet), but Wall Street analysts actually cut their Q3 2021 earnings estimates for the S&P 500 last week,” DataTrek co-founder Nicholas Colas wrote in a note Monday. “This, along with slowing economic growth, will make for further volatility.”
Last week’s slightly revised earnings expectations for the third quarter were due to adjustments made by analysts in the industrials and materials sectors, according to the note. Considering current valuations of the S&P 500, DataTrek said U.S. stocks need the “tailwind of rising earnings expectations” as well as companies beating estimates.
“It’s a good idea to lighten up on equity exposure,” Colas said in the note. “The near term is shaping up to be choppy.”
The S&P 500
was up about 0.1% Monday…