Wall Street's Optimism Soars as Earnings Forecast Rise and Tech Giants Dominate Earnings Calendar
Wall Street analysts have raised their profit forecasts for individual companies' quarterly results for the first time in two years, reflecting growing optimism about the economy. Estimates for third-quarter earnings per share rose by 0.4% from June 30 to Aug. 31, and fourth-quarter estimates increased by 0.6% over that period. The Federal Reserve's expectation of a "noticeable slowdown" rather than a recession, along with a positive August jobs report, has contributed to the increased optimism. Executives are also talking less about a recession, with the number of S&P 500 companies mentioning it on earnings calls declining for four straight quarters. However, some analysts remain cautious and have pushed out their recession expectations to next year.