With all the negative stories and indicators on the economy in the recent months, Wall Street has not significantly cut their outlook for this year.
The consensus GDP forecast for 2011 at the beginning of the year was 2.6% the 2Q11 forecast was 2.7%. Currently the consensus is 2.5% for the year and 2.3% in the second quarter.
The average S&P 500 2011 EPS estimate has risen 4.2% since the beginning of the year to $96 per share. The year end index target has risen 1.8% to 1,399 (which is a 10% gain from the current level).
The prevalent Wall Street view is that the economy and the market are not is as bad shape as it seems and the 2H outlook is positive.