Markets rise, earnings forecasts fall

Markets were mostly higher on Monday.

The S&P 500 rose 1.0 percent, the STOXX Europe 600 rose 1.1 percent and the Shanghai Composite rose 0.9 percent.

“After some short-term knee-jerk reactions last week, the market is having that moment of clarity rally—earnings are marching forward, the economy is strengthening, [and] global economic conditions are gaining steam,” said Karyn Cavanaugh, senior market strategist at Voya Financial.

Other analysts are not so sure.

Ryan Vlastelica at MarketWatch said that despite strong earnings growth in the second quarter, analysts have lowered S&P 500 earnings forecasts for 2018 by 0.2 percent since the end of June.