Corporate Earnings

Corporate earnings continue to be a lynchpin for this market.  Here's what the folks over at Chart of the Day have to say about them.  {Green highlights to the author's text are mine.}

"With first-quarter earnings largely in the books (over 79% of S&P 500 corporations have reported), today's chart provides some long-term perspective on the current earnings environment by focusing on 12-month, as reported S&P 500 earnings. Today's chart illustrates how earnings declined over 92% from its Q3 2007 peak to Q1 2009 low which brought inflation-adjusted earnings to near Great Depression lows. Since its Q1 2009 low, S&P 500 earnings have surged to all-time record highs. To further illustrate the significance of the current corporate earnings recovery, consider that the run-up in real earnings from Great Depression lows to credit bubble peak took over 74 years. The run-up from financial crisis lows to today has been similar in magnitude (actually slightly more) but was accomplished in a mere five years."

*Long ETFs related to the S&P 500 in client and personal accounts at the time of this publication.  Please note that these disclosures can change at anytime.