Earnings Alarm Bells Ringing for Market Showing Signs of Fatigue
- Worsening guidance signals caution among business leaders
- Dire margin forecasts portended past decade’s four stock routs
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An alarming number of companies have warned that profits won’t meet expectations when they report in a month.
The group, including PP Industries Inc. and Sherwin-Williams Co., are primarily materials producers that have struggled amid supply-chain disruptions. While just a small part of the S&P 500, their earnings have historically been the most correlated to the index’s of all sectors, a study by Bank of America Corp. found.