#wallstreetearningsrevisionsturnbearish
📉 Wall Street Earnings Revisions Turn Bearish—Will Crypto Feel the Pressure?
Bloomberg reported on September 23 that Citigroup’s US earnings revision index turned negative: more analysts cut profit estimates than raised them for the first time in 23 weeks. That ended the longest positive revision run since September 2021.
Consumer staples, discretionary businesses, materials and financials were key sources of weakness, according to BNP Paribas Wealth Management’s Stephan Kemper. He linked the pressure to higher living and energy costs.
My take: The next test is persistence. Several weeks of cuts across more industries would strengthen the warning. Stable company guidance and improving margins would weaken the bearish case.
For crypto, I’d watch whether earnings anxiety develops alongside higher Treasury yields, a stronger dollar and weaker Bitcoin fund flows. That combination could signal investors reducing exposure across risky assets. Firm spot demand could soften the impact.
Lower estimates can also make future earnings beats easier. The useful question is whether companies maintain sales and cash flow as expectations reset. Companies can still grow profits while analysts trim expectations.
Are these forecast cuts a temporary reset, or the start of a broader shift in risk appetite?
#WallStreetEarningsRevisionsTurnBearish #bitcoin #Macro
📉 Wall Street Earnings Revisions Turn Bearish—Will Crypto Feel the Pressure?
Bloomberg reported on September 23 that Citigroup’s US earnings revision index turned negative: more analysts cut profit estimates than raised them for the first time in 23 weeks. That ended the longest positive revision run since September 2021.
Consumer staples, discretionary businesses, materials and financials were key sources of weakness, according to BNP Paribas Wealth Management’s Stephan Kemper. He linked the pressure to higher living and energy costs.
My take: The next test is persistence. Several weeks of cuts across more industries would strengthen the warning. Stable company guidance and improving margins would weaken the bearish case.
For crypto, I’d watch whether earnings anxiety develops alongside higher Treasury yields, a stronger dollar and weaker Bitcoin fund flows. That combination could signal investors reducing exposure across risky assets. Firm spot demand could soften the impact.
Lower estimates can also make future earnings beats easier. The useful question is whether companies maintain sales and cash flow as expectations reset. Companies can still grow profits while analysts trim expectations.
Are these forecast cuts a temporary reset, or the start of a broader shift in risk appetite?
#WallStreetEarningsRevisionsTurnBearish #bitcoin #Macro
