Market Extra: This troubling trend may wreak havoc on the stock market, analysts warn

Corporate earnings over the past two weeks gave investors an injection of much-needed good cheer, with most of the roughly 20% of S&P 500 companies to report thus far bearing expectations. Yet these positive numbers may mask some troubling signs, analysts say.

Some three-quarters of the 140 companies that have reported third-quarter earnings beat Wall Street’s estimates for net profit. While that strength is encouraging, corporations have been less stellar when it comes to hitting revenue targets, according to Bespoke Investment Group.

“So far this season, just 58% of companies have beaten revenue estimates, which would be the weakest reading seen in six quarters.

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