Wall Street Bear Warns of Troubling Signs for Corporate Earnings

Michael Wilson, the top U.S. equity strategist at Morgan Stanley, has expressed concerns about the ability of major U.S. companies to sustain their profit margins in 2024, which could hinder stock market growth. Analysts have already lowered their expectations for earnings growth for the current quarter, and Wilson predicts a more modest EPS expansion of 7% next year, compared to the Wall Street consensus of 11.8%. The ability of companies to boost sales growth and profit margins may depend on wholesale prices, and Wilson will be closely watching the PPI Index report for further insights.