Earnings estimates have been coming down for the first and second quarters more quickly than normal, and not all of the weakness is due to the drop in estimates from energy companies.
As for earnings, I too have been concerned about the drop, but not so much that I am pushing the panic button. And neither are other market watchers.
Sam Stovall, U.S. equity strategist for S&P Capital IQ, noted over the weekend that full year GDP growth will likely be closer to 3 percent, rather than 2 percent, thanks to the improving economy. As a result, the current anemic 1.1 percent increase in earnings estimates for 2015 "will likely see a gradual uptick in estimates, similar to projected daily temperature highs for the East Coast in the weeks ahead."
One issue continues to concern me: the strength of the dollar. When the dollar is stronger, it does put pressure on earnings of companies with significant operations overseas. And when some companies experience a modest slowdown, the stronger dollar becomes an all-encompassing excuse.