Companies are just beginning to get more confident in their profit outlooks, although the stock market has a lot to sort through before it is likely to stage any substantial rally. 

Still, the signs of optimism represent a positive shift. Over the past year, analysts’ average forecast for 2023 earnings from

S&P 500

companies has dropped by just over 10%, according to FactSet. That is partly because Wall Street sees a multitude of challenges, and partly because companies across the board have lowered their forecasts for profits.


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