The Globe and Mail reports in its Friday edition that inflation has backed off from its highs, the economic outlook has picked up and U.S. stocks have rallied toward fresh records, bringing Canadian stocks with them. The Globe's David Berman writes that at least one thing stands in the way of a truly upbeat backdrop for investors: strong corporate earnings. Analysts are growing increasingly downbeat in the near term. The consensus now sees companies within the S&P 500 reporting fourth-quarter earnings growth of 1.8 per cent, year-over-year, according to Hugo Ste-Marie, an analyst at Bank of Nova Scotia. The change from the third quarter looks even worse, after a series of downward revisions from managers over the past few months: Earnings are expected to decline 7.9 per cent from the previous quarter, with few bright spots in the landscape. "While poor corporate guidance is to blame, the magnitude of the adjustments suggest macro conditions also played a role," Mr. Ste-Marie said in a note this week. Technology is the only sector within the blue-chip index expected to report rising profits, as Microsoft, Nvidia, Amazon, Meta, Alphabet and Apple power ahead. Other sectors may be held back amid high interest rates.