An economic slowdown that triggered a tsunami of unsold inventory at various companies may have proved lethal for corporate America’s third-quarter earnings and, soon, forward guidance.
At least, that’s what the strategy team at Morgan Stanley warned in a new note out on Monday.
“Our U.S. Equity Strategy team sees inventory as a key risk to earnings — oversupply and lagging demand are likely to weigh on margins,” the note stated. “The problem with inventory is twofold — supply chain…
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