The stock market is getting harder and harder to please, strategists told CNBC on Wednesday as global stocks fell on profit taking and failed to lift after more better-than-expected corporate earnings results.
"What we are seeing is that it's getting increasingly more difficult to surprise the market and to satiate the market. We've had a good rally and if you look at this quarter, take the U.S. for example, some 80 percent of companies have had an upside surprise to their earnings," Simon Grose-Hodge, director and investment strategist at LGT Bank in Liechtenstein said.
"Nearly beating the estimates isn't enough anymore. Markets want to see more than that. They want to see a really big gain over the estimates and more importantly, it's got to come from the revenue side not the cost-cutting side because that's the period that's going to be sustainable," he added.
Companies' results are beating expectations because of cost-cutting and one-off measures, but their sales are down and that doesn't bode well for their longer-term prospects, Grose-Hodge told CNBC.
"What we really need to see is better profit margins, better sales numbers, which means that the US consumer is coming back," he said.