Is the earnings party over? Lots of negative comments this morning about earnings season not being as strong as expected. Seems to be worries about earnings pressure on different industries from a variety of sources:?
1) Budget cuts affecting health care, defense, infrastructure
2) Poor loan growth hurting banks
3) Higher commodity costs hurting retailers, food processors and others.
While there is some early evidence this might be the case — Alcoa did have somewhat weaker revenues and is certainly being affected by costs, and loan growth is not much in evidence from Bank of America nor JPMorgan , most traders insist it is still a bit early to be drawing conclusions. Seventy percent of the S&P 500 reports in the next two weeks, so we will know soon enough.