Earnings

Over on their Twitter Feed ,the folks at Bespoke Investment Group note that "since the close Tuesday, 85% of 41 S&P 500 companies have topped EPS forecasts and 66% have beat revenues". Folks, if you want to know why the stock market has been running then all you have to do is look at earnings because these have been pretty darn good so far this quarter. Positive earnings usually means that analysts take up their forward earnings estimates. That in turn makes the forward multiple on stocks look better at current prices.

This will likely not last forever but right now, especially on the earnings front, the news out of corporate America is pretty good. Also think about this. Retail and energy have been the dregs of the litter so far this year. If they start to rebound and if the rest of the corporate world stays on the same glide path then earnings could end up being much better than most are expecting even into next year. That's also without figuring any type of tax reform into the mix. That, however, is probably next years business.

Anyway, enjoy the earnings now. Also remember it's summertime and the "livin is easy"!

*Long ETFs related to the S&P 500 in both clients and personal accounts.  Currently short SPY and ETFs related to the S&P 500 in a personal account related to an options strategy not employed in client accounts.  We reserve the right to change these investments without notice on this blog or via any other form of verbal, written or electronic communication.