High Bar for Q3 Earnings? The Investment Committee Debates 10/12/26

The committee sees Q3 numbers as likely in-line, but views guidance, AI CapEx durability, and debt-financed AI buildout as the real swing factors for the market.

• Earnings setup debated: Jenny Harrington sees Q3 numbers as largely baked in, but worries guidance won't support the market's 15-30% earnings-growth expectations for 2027.
• CapEx scrutiny ahead: Jim Lebenthal expects hyperscaler CapEx plans confirmed intact despite political blowback on data centers; Steve Weiss flags narrow breadth with over 50% of S&P names down 20%+ from highs.

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