Profits are forecast up 24%, yet the Nasdaq sits 6% below its high
Analysts expect S&P 500 companies to report a strong third quarter. Stocks have slipped anyway, and the 10-year Treasury yield, near 5%, is part of the reason.
Here is the puzzle. According to Yardeni Research, the consensus forecast for S&P 500 operating earnings per share in the third quarter is growth of 24.1% from a year earlier. That is a big number. And yet, on the close of Friday, Oct 23, the Nasdaq Composite stood at 25,955.34, about 6.0% below its Oct 6 high, according to market data published by Pulsafi. The S&P 500 closed at 7,623.68, about 2.5% below the same Oct 6 peak.
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