Analyst Adam Parker, the founder of Trivariate Research, is reversing course on his earlier bearish outlook on U.S. corporate earnings, saying that fears around tariffs and inflation may have been overblown.
What Happened: On Monday, Parker admitted to being a little “too harsh” while slashing his corporate earnings estimates for the year, way back in April. In an interview with CNBC’s Closing Bell, Parker says that his initial reaction was to lower his “estimates by a lot,” with the notion that “this tariff stuff’s going to be bad.”
“But I took a look over the last couple [of] days and said, maybe I was too harsh,” he says, pointing to the resilience shown by the largest U.S. companies, noting that the top 50 names account for half of the market’s gross profits, and tend to hold up well in the face of inflationary pressures.
“The big 50 companies were kind of immune,” he says. “The financials are in good shape.”
Parker also pushed back on concerns that multinationals would suffer due to a stronger dollar or rising input costs. Oil and broad commodity indexes haven’t surged …