By coinnews 
00:00 Speaker A
It’s time now for our chart of the day. Let’s send it on over to Catalyst co-host and Morning Brief co-host, Madison Mills for a look at earnings expectations.
00:08 Madison Mills
Yeah, right. So, so far, so good when it comes to first quarter earnings results. We’re about three quarters of the way through this earning cycle. It’s not the results so far that are the issue. The guidance is the issue. Take a look at this chart behind me from Torsten Sløk. This looks at the S&P 500’s earnings forecast after liberation day for both the second quarter of the year and the third quarter of this year. And as you can see, in both of those cases, a huge drop off after, after that so-called liberation day here. You can see those forecasts coming down and that is the key problem for this earning cycle. It’s that guidance. Still, corporate guidance here at 10-year lows, the weakened outlook suggesting that earnings did peak in the fourth quarter of last year, 2024. And results have doubled from a year ago, but are still down a tick from the fourth quarter as well. As we were just speaking about with Marvin Low, energy, materials and staples are on track for profit declines. That is not what you would see heading into a recession, but that’s what the guidance here, as you can see moving to the downside could be indicating. Also, of note, companies that do cut guidance historically trend down in the quarters to come.