The earnings apocalypse: delayed again. With north of 50 companies reporting so far, third quarter earnings (and fourth quarter guidance) have not turned into the apocalypse that was feared when FedEx slashed earnings expectations on Sept. 15. That announcement was the start of a one-month slide that took the S & P 500 to a two-year low on Oct. 12. Since then, however, many companies have reported, and while overall earnings are inching lower and guidance is cautious, they are not being slashed. In the last 24 hours, Netflix, United Airlines, JB Hunt, Procter & Gamble and Travelers have all reported earnings above expectations. United in particular is leading airlines higher Wednesday morning. Hardly the earnings apocalypse that was expected at the start of earnings season. How washed out do stocks need to get? Take a look at Prologis (PLD), a REIT that is one of the largest warehouse owners in the United States. This morning it reported third quarter Funds From Operations (the key metric for REITs) of $1.73 per share, six cents better than expected. Surprisingly, it did not raise full year guidance by six cents: full year guidance was narrowed to $5.12-$5.14 from $5.14-$5.18 previously. A beat, but slightly lower guidance? Ok, it's not a dramatic cut, but it is certainly cautious guidance. What is the stock doing? On a down morning, Prologis is trading flat to slightly lower. That is what a washout looks like. Prologis, you might recall, was a REIT darling: everyone wanted logistics companies, and Prologis controlled warehouses. It was a monster during Covid, rising almost 200% from its lows in early 2020. But REITs were an early victim of the panic that took hold of the market in April-May, when everyone was convinced the Fed was going to induce a massive recession and demand would plummet (sound familiar?). Prologis — along with the rest of the REIT sector — subsequently plummeted and is now one of the worst performers in the S & P, down 40% this year. As it was with the last quarter, Prologis and the REITs are starting to rally: it's up 6% in the last few days. Estimates (FFO) for 2022 are 25% higher than 2021, yet its down 40% from its high. Estimates for 2023 are 30% higher than 2022. That is a multiple compression of classic proportions.