{"id":1631,"date":"2023-10-16T21:11:50","date_gmt":"2023-10-16T21:11:50","guid":{"rendered":"https:\/\/connectwithfund.com\/markets\/dow-rises-300-points-but-big-losses-will-dash-earnings-season-cheer-morgan-stanley-warns\/"},"modified":"2023-10-16T21:11:51","modified_gmt":"2023-10-16T21:11:51","slug":"dow-rises-300-points-but-big-losses-will-dash-earnings-season-cheer-morgan-stanley-warns","status":"publish","type":"post","link":"https:\/\/connectwithfund.com\/?p=1631","title":{"rendered":"Dow Rises 300 Points\u2014But Big Losses Will Dash Earnings Season Cheer, Morgan Stanley Warns"},"content":{"rendered":"<div>\n<h2 class=\"topline-heading\">Topline<\/h2>\n<p>The stock market got off to a strong start to a crucial week Monday, though one notable pessimistic expert warns the final earnings season of 2023 will precede a period of pain for investors.<\/p>\n<h2>Key Facts<\/h2>\n<div class=\"key-facts\">\n<div class=\"key-facts-element\">\n<p>The Dow Jones Industrial Average rose 313 points, or 0.9%, while the S&amp;P 500 and tech-heavy Nasdaq gained 1.1% and 1.2%, respectively.<\/p>\n<\/p><\/div>\n<div class=\"key-facts-element\">\n<p>The rally sent the Dow to its highest level of October, marking the Dow\u2019s best daily performance since September 14.<\/p>\n<\/p><\/div>\n<div class=\"key-facts-element\">\n<p>Buoying the gains were a strong start to the string of third-quarter earnings reports beginning last week, led Monday by a top and bottom line beat by Charles Schwab (shares up 5% Monday) and building on similar Friday beats from fellow big banks Citigroup, JPMorgan Chase and Wells Fargo.<\/p>\n<\/p><\/div>\n<div class=\"key-facts-element\">\n<p>Overall, the earnings season\u2019s first week was a \u201cstrong start\u201d as reporting companies topped consensus profit estimates by an average of 9% and beat earnings and sales expectations above the historical rate, according to Monday research from Bank of America\u2019s Savita Subramanian and Ohsung Kwon.<\/p>\n<p><fbs-ad position=\"inread\" progressive=\"\" ad-id=\"article-0-inread\" aria-hidden=\"true\" role=\"presentation\"><\/fbs-ad>\n <\/div>\n<div class=\"key-facts-element\">\n<p>Morgan Stanley\u2019s top U.S. equity strategist, Michael Wilson, doesn\u2019t buy into the earnings bullishness, writing to clients Monday a broad decline of companies\u2019 upwardly adjusting earnings is a major cause of concern leading up to the meat of earnings season, predicting guidance accompanying these reports \u201cwill be key to see if the \u2018hockey stick\u2019 recovery\u201d into next year is still on track.<\/p>\n<\/p><\/div>\n<div class=\"key-facts-element\">\n<p>Wilson, who has long warned about the current market\u2019s health, maintained his 3,900 year-end price target for the S&amp;P, implying 11% downside.<\/p>\n<\/p><\/div>\n<\/div>\n<h2 class=\"subhead-embed color-accent bg-base font-accent font-size text-align\">What To Watch For<\/h2>\n<p>This week\u2019s most notable earnings reports include Goldman Sachs and Bank of America on Tuesday and Netflix and Tesla on Wednesday. Next week will be the busiest week this cycle, with 41% of the S&amp;P by market capitalization reporting earnings, according to Morgan Stanley; Microsoft, Alphabet, Amazon and Meta are among those reporting.<\/p>\n<h2 class=\"subhead-embed color-accent bg-base font-accent font-size text-align\">Tangent<\/h2>\n<p>Monday\u2019s top stock gainers included Lululemon, whose shares skyrocketed 10% after joining the stock joined the S&amp;P 500, Pfizer, which curiously turned a 3% premarket stock loss to a 4% rise after it revised its full-year sales forecast downward by 13% on Friday, and Snap, whose shares jumped 12% after the Verge reported internal user projections were higher than expected.<\/p>\n<h2 class=\"subhead-embed color-accent bg-base font-accent font-size text-align\">Key Background<\/h2>\n<p>Corporate earnings shrank by 5% last quarter compared to the same period in 2022, the worst quarter since 2020 and the third-straight quarter of declining earnings, according to FactSet. Despite this earnings slump, stocks have rallied considerably, with the S&amp;P up 14% year-to-date, thanks in large part to investor support for expanding valuations due to growth-focused developments like artificial intelligence and significant corporate cost cutting.<\/p>\n<h2 class=\"subhead-embed color-accent bg-base font-accent font-size text-align\"><\/h2>\n<\/div>\n<p>Read the full article <a href=\"https:\/\/www.forbes.com\/sites\/dereksaul\/2023\/10\/16\/dow-rises-300-points-but-big-losses-will-dash-earnings-season-cheer-morgan-stanley-warns\/\" target=\"_blank\" rel=\"noopener\">here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Topline The stock market got off to a strong start to a crucial week Monday, though one notable pessimistic expert warns the final earnings season of 2023 will precede a period of pain for investors. Key Facts The Dow Jones Industrial Average rose 313 points, or 0.9%, while the S&amp;P 500 and tech-heavy Nasdaq gained 1.1% and 1.2%, respectively. The rally sent the Dow to its highest level of October, marking the Dow\u2019s best daily performance since September 14. Buoying the gains were a strong start to the string of third-quarter earnings reports beginning last week, led Monday by a<\/p>\n","protected":false},"author":1,"featured_media":1632,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[39],"tags":[],"class_list":["post-1631","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-markets"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Dow Rises 300 Points\u2014But Big Losses Will Dash Earnings Season Cheer, Morgan Stanley Warns | ConnectWithFund<\/title>\n<meta name=\"description\" content=\"Topline The stock market got off to a strong start to a crucial week Monday, though one notable pessimistic expert warns the final earnings season of 2023\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, 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