CEO gloom rivals financial crisis as tariffs hit S&P 500 stocks
finance.yahoo.com

... Not since the financial crisis has Corporate America been so downbeat about the state of the economy in earnings calls, an ominous sign for investors trying to figure out how much more pain Donald Trump's trade war will inflict on the stock market.

The ratio of positive to negative comments on macroeconomic conditions during this reporting season has dropped well below its average and is on track for the worst proportion since 2009, according to a Bank of America Corp. (BAC) analysis of the first conference calls.

Earnings season is usually a boon for equities, but with the S&P 500 (^GSPC) down nearly 15% from February's all-time high as investors brace for the fallout of Trump's attempts to rewrite the rules of global trade, the stakes could hardly be higher this time around. That's especially true for firms with profits more closely tied to vagaries of the economy, like carmakers and transports.

Some executives are struggling to gauge the impact of the White House's rapidly shifting policies on their businesses. That's further pressuring US stocks that threatened to sink back toward a bear market in recent days on the heightened risk of a recession and a resurgence in inflation from Trump's levies. ...