I'm Less Skeptical After These Results

On Monday we set the stage before the busiest week of earnings season that has seen more than 100 S&P 500 companies report quarterly results so far. It seems appropriate to end the week with some observations around the quarterly earnings season so far.

My regular readers know that my outlook is that the market is fairly valued or slightly overvalued at current levels, especially in some of the high-beta areas like small-cap stocks. But you have to be impressed by the overall results so far this quarter. Earnings are running to just under 10% year-over-year gains so far, which is significantly higher than expected. Earnings have increased nicely, even as revenues have grown 3-4% this quarter, which is right in line with the pre-quarterly consensus. Companies continue to find ways to raise earnings through operational efficiencies and stock buybacks, despite tepid demand....504 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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