Bloomberg Intelligence's 'Equity Market Minute' 10/14/2022

Gina Martin Adams discusses the nervousness in equity markets due to negative macroeconomic data and the potential relief earnings season might bring. She highlights the extreme volatility in stock price reactions to recent CPI reports, comparing it to the 2008-2009 period. Despite low investor sentiment, earnings could support stocks as expectations are low. Analyst forecasts for S&P 500 EPS growth have significantly dropped, with pure growth companies expected to see an 8.4% decline in earnings year over year.

What recent event caused significant nervousness in the equity markets?

• Stable interest rates

• Negative macroeconomic data

• Increased consumer spending

• Positive GDP growth

How did stocks react to the CPI report last month?

• They had one of the worst reactions

• They remained stable

• They had a positive reaction

• They showed no reaction

Why might earnings season provide support to stocks?

• Due to rising interest rates

• Because expectations are high

• Due to low expectations

• Because of increased consumer confidence

What was the expected EPS growth for the S&P 500 back in June?

• 10% rise

• 5% rise

• 2% rise

• No change

What is the forecasted earnings decline for pure growth companies in the S&P 500?

• 8.4% decline

• 2% decline

• 5.2% decline

• 10% decline