Traders work on the floor of the New York Stock Exchange (NYSE) on November 04, 2019 in New York City.
Spencer Platt | Getty Images
This week’s kick-off of the fourth quarter earning season comes with low expectations for profit growth but high expectations for stock prices.
Earnings are expected to decline by 0.6% for the S&P 500, according to Refinitiv. At the same time, major market indices are at new highs.
The two phenomena seem disjointed, and a recipe for a sell-off of some size. But strategists say stocks could continue higher, any pullback should be shallow, and companies are probably going to handily beat those reduced forecasts.
“We expect to see a 2% beat in 4Q earnings. Estimates…