earnings expectations: I am worried about it, according to Market Watch. Analysts are projecting a year-over-year decline in S&P 500 earnings of 3% in the second quarter, followed by a 0.8% decline in the third, but expect growth to rebound to 6% in the fourth quarter, according to Fact Set. Are earnings expectations for the fourth quarter too high he said. Read more Earnings Watch Expect drama in second-quarter numbers as trade fears weigh The S&P 500 index SPX, -0.34% the Dow Jones Industrial Average DJIA, -0.09% and the Nasdaq Composite Index COMP, -0.43% all closed at record highs last week, but with a year-end target for the S&P of 2,850, Levkovich argued that stocks will stage a tactical retreat during the final months of 2019. Investors will be laser-focused on management commentary to learn how a steady-but-slowing U.S. economy and persistent trade tensions will affect earnings growth in the third and fourth quarters, but Levkovich is not optimistic that they will provide investors much clarity. We may see stocks trade a little bit higher this earnings season, because expectations have come down meaningfully, he said, while predicting that the overall trend will be lower from now to the end of the year.
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