Earnings In Pictures

Chart of The Day has a pretty good graphic that shows the rebound in earnings we've seen since last spring.  They note that,

"With fourth-quarter earnings largely in the books (over 79% of S&P 500 companies have reported for Q4 2009), today's chart provides some long-term perspective to the current earnings environment by focusing on 12-month, as reported S&P 500 earnings. {Friday's} chart illustrates how earnings declined over 92% from its Q3 2007 peak to Q1 2009 low -- the largest decline on record (the data goes back to 1936). Since its Q1 2009 low, S&P 500 earnings have surged (up over 600%) and currently come in at a level that has only been exceeded during the latter years of the dot-com and credit bubbles."

This earnings recovery is the prime support underpinning last year's remarkable rally in stocks.  It's what I think will ultimately move stock prices higher by year end even though I think we may spend a few months going nowhere.

Link: Chart of the Day-Earnings.