Earnings Coming in Strong

We said yesterday that the pace of earnings doesn’t pick up until today, and so far so good. Of the ten companies that have reported earnings this morning, nine have exceeded EPS forecasts and one reported results that were inline with expectations. No misses! While the revenue beat rate this morning hasn’t been nearly as strong (60%), it hasn’t been bad either. Those positive results coupled with a big rally in Asia overnight has US futures looking higher and the S&P 500 on pace for a new YTD high with all-time highs not too far away.

Here’s a snippet from today’s report:

Equities in China had a good session with the Shanghai Composite rising over 2%, and on a closing basis, this was the highest close since March 2018.  Interestingly enough, though, there have been five days since the start of April where the Shanghai Composite traded higher on an intraday basis, so it’s not quite a breakout from its recent consolidation phase.