“Higher input costs, flagging European and emerging market demand, a higher dollar, and tougher y/y comparisons will likely serve as headwinds, in our view,” Stovall said. “Full-year EPS growth projections are back-end loaded, as Q4 EPS are seen rising 16%. However, until confidence in Q4 2012 results is more widespread, we think recent share price gains will remain vulnerable.”
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Max Chen contributed to this article.
Full disclosure: Tom Lydon’s clients own SPY.