Technology companies are the most obvious candidates in the Standard & Poor’s 500 Index to spend more of their cash on payouts and investments, according to Gina Martin Adams, a Wells Fargo & Co. strategist.
Wells Fargo & Co.’s Gina Martin Adams and Barclays Plc’s Barry Knapp cut their forecasts for the Standard & Poor’s 500 Index this year, citing economic uncertainty and a potential decline in earnings estimates.
The Standard & Poor’s 500 Index will fall 1.8 percent to 1,390 by the end of 2013 as global growth slows and policymakers struggle to reach a budget agreement, according to Wells Fargo & Co.’s Gina Martin Adams.
U.S. stocks fell a third day and the gauge for emerging-market shares dropped to a four-month low while the yen gained with Treasuries as data showed growth in the services industries in America and China slowed.
U.S. companies are beating analysts’ earnings projections by the smallest margin since 2008 and most forecasts have trailed estimates in what investors should consider “warning signals,” according to Wells Fargo & Co.