Global Growth Fears Override Earnings

"Signs of weakness in China's economy undercut global growth prospects and were negative for stocks. China's July industrial production rose +4.5% y/y, weaker than expectations of +5.0% y/y."

"We're sitting at high levels of valuation partly driven by earnings... now earnings season is largely over."

"We don't see the market ‌really paying too much attention to the earnings beat. And it's all because of prospects of higher inflation, weaker economic activity and a Fed that may be forced to stay on hold for a long, long time."

"Earnings season hasn’t offered much comfort. Walmart’s surprise earnings miss — its first since 2022 — knocked the stock down about 4.5%, raising fears that consumer spending may be losing steam."

"The market is too optimistic about Vistra’s long-term upside from energy demand growth."

""The fundamental re-rating lower is taking precedence over the good news on the regulatory side.""

""The stock market is poised to disappoint investors over the coming months and into next year because S&P 500 earnings growth estimates are too optimistic.""

"Bannister and Stifel expect S&P 500 aggregate earnings per share to come in at $209, little-changed from where analysts expect them to be in 2023, that is compared with Wall Street’s consensus for $226."

""It's as if investors are positioned for more Nvidia type stories (a growth boom) instead of hearing ones where companies are being challenged by stubborn inflation, higher financing costs and slowing sales growth.""

"De-globalization is a big secular risk, which drove most of the margin improvement over the past 20 years."