expanding economy

It’s Okay

May 6, 2014

Earnings season is past its peak, and things generally look good. We didn’t have blow out good news, nor did we have any big negatives. All in all, the trend of the last few years—slow and steady earnings growth with a sprinkle of exogenous worries—remains intact. In short, things are okay.

Let’s let the data speak (All of the data below comes from Standard & Poor’s). As of Friday’s market close, 375 (i.e., 75%) of the 500 S&P 500 constituent companies had reported results. Two-thirds (i.e., 250) of the reporting companies beat analysts’ estimates, 87 missed and 38 hit their number exactly. This is pretty consistent with recent history. (more…)