Analysts see S&P 500 firms posting mid-single-digit gains for the first quarter, ending a run of 18 straight quarters of double-digit growth. Alec Young, equity strategist with Standard & Poor's, projects 5% average quarterly growth. He sees 7% for the full year, down from 14.9% in 2006.
Zacks Investment Research, which tracks median growth, estimates a 7.2% quarterly profit gain for the S&P 500 — well below the fourth quarter's 12.5% increase.
The actual results probably will be higher because upside surprises typically far outweigh misses. Just don't expect the final gain to top 10%.
This is more evidence the economy is slowing.
