Weekly Market Comment – April 29th 2019
Last week saw a large number of companies report first quarter results. Corporate profits held up well, surprising investors and helping the broad indices to reach new highs. The S&P 500 has now climbed about 25% from its recent low on December 24, 2018.
Of the 250 companies in the S&P 500 that reported earnings 75% have topped earnings estimates. The earnings estimate downgrades that we have seen since last Autumn helped lower the bar and it now appears these estimate cuts may have been too severe. FactSet forecasts that first quarter earnings will shrink 2.3% from last year, ahead of the 3.9% contraction forecast just a few weeks ago.
– Niall Dineen
Investment Team Leader