Corporate Earnings Have Been Great, and Markets Just Don't Care
- Stock reactions are puny even as guidance is best since 2011
- Earnings beats are small after analysts left estimates alone
Global Markets Rely on Supply to Drive Record Highs
This article is for subscribers only.
By several measures, U.S. investors are being treated to one of the best sets of corporate results since the financial crisis. You wouldn’t know it from the stock market.
It’s the first quarter in eight that S&P 500 Index profits will rise fast enough to pronounce an end to the earnings recession. Not only is income up more than 4 percent, so are sales, rising at the second-fastest clip since 2012. Earnings forecasts are in particularly good shape, with the tally of companies raising them outnumbering those that cut by the most since 2011 at this time of the year.