Washington and Wall Street may be over 200 miles apart, but nonetheless, they seem to be on a collision course and the damage may already be unavoidable.
So says Larry Kudlow and Trend Macro Chief Investment Officer Don Luskin after parsing through a slew of earnings releases.
Take Google, which released earnings earlier in the week, as an example.
Although Google earnings came out a few hours earlier than expected due to a 'fat finger' accident – that's not the issue.
The problem is that Google -- long the leader in search advertising, with 75 percent market share, should be thriving as the recovery takes hold.
But it isn't thriving - it's struggling.
Of course you could argue that Google's miss is a single stock story – but Microsoft missed too.
So did Chipotle.
So did Danaher and Philip Morris - this list, in fact is rather long.
"I think we're getting near the exhaustion phase of the recovery in earnings," said Luskin on The Kudlow Report.
That's a problem not only because results will likely drag down the stock market – Luskin says the results are also a sign that the economy is starting to stall.