The market has focused on disappointing earnings or disappointing guidance about future earnings of just a handful of companies. When there's any hint that we're at the peak of earnings growth, the market gets pummeled.
It just so happened that we had a number of big-name, negative reports come in to start things off, and it just went from there. Turns out that wasn't indicative of where things are. Earnings are very strong.
There are a lot of good things going on for equities ... corporations are full of cash right now.
People are feeling better about the economy and job prospects. Things are really looking pretty good.
I don't think Main Street cares. But it would improve the mood on Wall Street. Little things like this matter in improving sentiment.
There are a lot of bargains out there in large-cap growth stocks.
This, in my mind, increases the chances of another rate hike in March. They have not declared the war on inflation to be over. Inflation is the key indicator to watch right now.
The consensus is looking for 13 percent earnings growth in Q4, which is a pretty high hurdle. Earnings have been coming in better than expected for a long time. This time, if earnings don't come in better than expected, the market may take a hit.
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