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Earnings, growth and dividends continue to be the deciding factor in the stock market rally. That said, we continue to see what appears to be rotation, as technology stocks witness some profit taking. On the currency side, the dollar is lower, compounding the gains in commodities, gold, copper, silver and crude.
SPY Daily – Earnings Growth and Dividends
- Earnings Scorecard: As of today (with 60% of the companies in the S&P 500 reporting actual results for Q2 2017), 74% of S&P 500 companies have beat the mean EPS estimate and 74% of S&P 500 companies have beat the mean sales estimate.
- Earnings Growth: For Q2 2017, the blended earnings growth rate for the S&P 500 is 9.5%. Ten sectors are reporting earnings growth for the quarter, led by the Energy sector.
- Earnings Revisions: On June 30, the estimated earnings growth rate for Q2 2017 was 6.5%. Ten sectors have higher growth rates today (compared to June 30) due to upside earnings surprises, led by the Industrials and Financials sectors.
- Earnings Guidance: For Q3 2017, 28 S&P 500 companies have issued negative EPS guidance and 26 S&P 500 companies have issued positive EPS guidance.
- Valuation: The forward 12-month P/E ratio for the S&P 500 is 17.7. This P/E ratio is above the 5-year average (15.4) and above the 10-year average (14.0).
- Data – Courtesy Factset.com
For the time being, earnings growth appears to be enough to keep the markets trading “near” all time and 52 week highs.
Over the past week we’ve seen three distribution days on above average volume; monitor these bearish developments.
Our focus continues to be on NYSE TICK cumulative (TICKQ Nasdaq) and what institutions are actually doing. As long as this indicator stays bullish, we will do the same.
We will continue adding to winning positions and trim our losers as we trade to ever higher levels. Thankfully, we have far fewer of the latter.
TheClosingPrint we will be LIVESTREAMING at 9:20AM
Happy Tuesday, it’s my birthday! Futures are higher!
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