Earnings Season Progressing Nicely

Last week, we looked at how S&P500 companies were doing earnings wise via Birinyi Associates. The numbers were a touch soft (see Earnings Season Getting Underway).

This week teaches us a lesson in the dangers of extrapolation:  With 34% of S&P 500 companies reporting, the earnings picture looks much better (versus last week’s charts 11%).

The beats and misses are much more in line with the recent SPX earnings history, which has been the bulwark of the Bull’s case.   
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Spx_eps_beats

Charts courtesy of Birinyi Associates
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Mike Thomson of Thompson Financial has been the prime proponent of "Its all about earnings;" He has been clearly right so far.

The one dark cloud has been guidance: Its a but softer than it has been recently:

Spx_guidance
Charts courtesy of Birinyi Associates

This may change further as reports come in; However, 34% is a much more signficant sample than 11%, and strongly implies earning will be consistent with previous quarters.

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