The theme song for week has to be the O’Jays’ “For the Love Of Money.” Earnings season is in full swing and the outlook is golden.
Stocks were buoyed this week as a variety of blue chip and benchmark names have simply crushed earnings expectations and estimates. Thanks to a growing economy and lower corporate tax rates, analysts now expect earnings to be top notch for this period, which is certainly being confirmed this week.
As for that growing economy, data was supportive. While it was a slow week for various economic metrics, what was reported did come in as positive – with measures of inflation, consumer credit and jobs growth all coming in positive.
Perhaps the only thing that dented complete exuberance was the continued deterioration when it came to global trade. The burgeoning trade war continued with several key international players – the U.S., Canada, China and Saudi Arabia – continuing their various spats and ratcheting up various tariffs. However, even this couldn’t stop the continued earnings train this week. Stocks ended the week higher.
Check out our previous edition here where investors focussed on the fact that key indices in the U.S logged gains for four straight months.