Earnings Estimates for the S&P 500 Continue to Decline

Lower earnings estimates are not good for an expensive stock market.

• As usual, most companies are beating their earnings estimates. However, the guidance has not been good enough to prevent a decline in estimates for 2025 (for the second quarter in a row). That’s not good for an expensive stock market.

• The battle lines are well drawn on the technical side of things from the small-cap Russell 2000 index.