Equities continue their recovery
S&P 500 companies optimistic on 2018 earnings
10-year Treasuray yield flat for the week
- Bond market dominates capital market action
Domestic equities continued their recovery from the late January correction with the S&P 500, NASDAQ, and Dow turning positive for the week on Friday. The NASDAQ is up over 6% once again for the year; both the S&P 500 and the Dow are up 2%+.
90% of S&P 500 companies have reported and earnings are running abnormally higher than consensus estimates. More importantly, company guidance on earnings for 2018 is very optimistic. Per this week’s Barron’s (p. 15) – “between Dec. 31 and Feb. 15, 127 companies in the S$P 500 issued higher-than-expected guidance for 2018, according to FactSet. That compares with an average of 49 upbeat forecasts over the same period in the past 10 years.