U.S. stocks face pressure from the emerging risk of deterioration in companies’ profit margins, according to research from Citigroup.
“We think we will have to be prepared for broader earnings pressure as we move toward the back half of 2023 and begin to look ahead to 2024,” equity strategists led by Scott Chronert warned in a Citi Research note dated Feb. 24. They “suspect” margin risk is not priced into the S&P 500 index, despite the trend of analysts “aggressively right-sizing 2023 estimates since mid-2022.
Read: Curious’ outflows from broad industrial ETFs seen as ‘contrarian bullish’ as aerospace and defense funds attract investors Heading into 2023, they had expected that companies’ fourth–quarter results would be “better than feared, but with C-suites inclined to lower 2023 guidance to acknowledge the uncertain macro environment,” according to their note.
Meanwhile, stock-market investors have been navigating “crosscurrents” from interest rates, the Citi strategists said, with the Federal Reserve continuing to hike its benchmark rate in an effort to bring down still high inflation. Investors have worried that the Fed’s rate hikes, if too aggressive, could trigger a recession.
“Irrespective of a soft landing or recession outcome for the broader economy, we suspect that EBIT margins for the S&P 500 are poised to correct from here,” the Citi strategists said. EBIT is an abbreviation for earnings before interest and taxes, a measure of a company’s profitability.
Österreich Neuesten Nachrichten, Österreich Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
Cryptocurrencies Resilient Despite Weaker Equity Markets, Increased Regulatory Activity: Citi.Citi says crypto markets have maintained resilience even in light of weekly declines in traditional financial assets, and correlations with equities have continued to weaken. By willcanny99.
Weiterlesen »
San Antonio small press Ghoulish Books opening horror bookshop after a successful KickstarterThe shop will primarily stock indie horror titles along with a few gifts and used books. It also will provide a venue for events such as author readings and signings. SanAntonio SATX SanAntonioTX HorrorFamily horror horrorbooks
Weiterlesen »
The Mobile Press-Register prints final newspaperSeveral folks, including current and former employees, gathered to watch the last press turn.
Weiterlesen »
Houston stays No. 1 in Associated Press college basketball pollFresh off clinching another AAC title, UH remained No. 1 in the latest Associated Press...
Weiterlesen »
Pedro Pascal’s ‘The Last of Us’ Press Tour Is the Antithesis of the ShowDespite playing a bit of a grouch on both 'The Last of Us' and 'The Mandalorian,' Pedro Pascal himself has emerged as the exact opposite in real-life press tours for them.
Weiterlesen »