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
"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.