Abstract
Anilowski, Feng and Skinner (Journal of Accounting and Economics, 2006, this issue) examine the
relationship between aggregate earnings guidance, aggregate earnings news and market returns. They
provide evidence that changes in aggregate proportions of downward or upward earnings guidance
are associated with aggregate earnings news and weakly associated with market returns. However,
the study is unable to establish causality or the precise nature of the relationship between aggregate
earnings guidance and market returns. To better understand the relationship, this paper analyzes the
relation between aggregate earnings, stock market returns and the macroeconomy. The paper
concludes with suggestions for future research.