The Difficult Part Is Still Ahead: Analysts Just Sharply Scaled-Back Forecasts For Tech And Financial Results For Q4 2012, Debt Ceiling Fight Will Add Fuel To The Fire, And Many Wall Street Experts Expect The Bond Bubble To Burst Very Soon
January 4th, 2013
Tech, bank forecasts slashed in run-up to earnings
Sharply scaled-back forecasts for tech and financial results have flattened the outlook for the fourth-quarter earnings season, the next likely catalyst for stocks after a policy-clogged few months.
Analysts have cut their forecasts by a little more than 10% for tech and financials over the three-month period that ended in December, according to Howard Silverblatt, senior index analyst at S&P Dow Jones Indices.
The only larger reduction by analysts was in the materials sector, with estimates off by 14.4% from early October. Tech and financial companies, however, are more heavily weighted on the S&P 500 Index (SNC:SPX) than resource stocks.
Tech warnings pile up