Best Earnings Season in Years Validates Stock Bulls’ Case
A trader works on the floor of the New York Stock Exchange (NYSE) in New York.
Photographer: Michael Nagle/BloombergHealthy US corporate profit growth in the latest quarter and expectations the trend will continue are strong supports for investors betting the rally in stocks will keep rolling.
Earnings growth for the third quarter was on track to reach 13.6% year over year as of Nov. 4, near the top of its two-year range, Deutsche Bank AG strategists led by Binky Chadha and Parag Thatte wrote in a note. On a quarter-over-quarter basis, adjusted for seasonality, growth was set for a 6.5% jump, among the highest rates in the last 15 years, they added. And the momentum is carrying over into the fourth quarter.