Most of the time, the U.S. stock market looks to 3 factors to support its upward trend – let’s grade each of the factors: CONSUMER SPENDING: I grade this factor a C (neutral). THE FED AND ITS POLICIES: I grade this factor an A+ (extremely favorable) because the FED cannot do much more than it is doing to support the stock market and asset prices. BUSINESS PROFITABILITY: I grade this factor a B+ (favorable). Many of the biggest companies in the U.S. reported their first quarter profits last week. Surprisingly, many beat their forecasted profits. The scoreboard with two-thirds of the S&P 500 companies reporting their earnings: 70% have beat their earnings estimates. And, the S&P 500 will likely report record earnings for this quarter. If this trend holds for the next two weeks, we will raise this grade. NOTE: the above grades remain unchanged from last week.
The Weekly Commentary
Observations of the current state of the stock and bond markets
