S&P Rally Reaches Escape Speed Even as Earnings Slide
- Gains of 30% almost always stand up after bear markets
- Fed buying stocks is considered a long shot but mulled by some
Photographer: Michael Nagle/Bloomberg
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In their latest feat of levitation, U.S. stocks are about to pull off their biggest earnings-season rally in six years.
Impressive -- or ridiculous, depending on your view -- considering it happened as American companies were reporting a 16% profit drop that was the worst since the financial crisis. Since firms started disclosing results, the S&P 500 has jumped 6%, the most at this point of the cycle since 2014, and the second-most since 2009. It climbed 3.5% this week, extending a gain from March to 30% and pushing Amazon.com Inc. and Netflix Inc. to records.