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So far, only a handful of companies in the S&P 500 have reported earnings for Q4 2018. However, signs are already emerging of the economic slowdown we have been warning about since late September.

With approximately 10% of companies reporting, corporate earnings growth rose 16%. As a reminder, we are focused on the “rate of change” here at Hedgeye. And 16% signifies a definite slowdown from the previous quarter’s 26% growth.

“A lot of the companies with bad reports haven’t even hit the tape yet,” Hedgeye CEO Keith McCullough explains in the clip above from The Macro Show.

“The companies that have had good quarters have pre-announced. The banks were going to have good earnings…but they’re reporting pro-cyclical earnings with peak-cycle interest rates, peak-cycle earnings and peak-cycle confidence. I think earnings season is going to be a major negative as we go throughout.”

Watch the full clip above for more.

McCullough: Earnings Season Will Be 'Major Negative' - early look