Amid the stock market's obsession over inflation and interest rates, investors may be asking themselves, “What about profits?” After all, the market is supposed to reflect corporate profit expectations, not just economic statistics.
Of course, those expectations are tied to inflation and interest rates. And that’s why the major stock market measures have been providing stomach-churning moves.
Investors shouldn’t expect much for the third quarter earnings season kicking off in the week ahead. Expectations have fallen quite a bit in recent weeks — so much so that the aggregate reported earnings should be better than forecast. That’s not to say profits are strong.
