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'Sell in May and go away': 8 things that matter more

Kiplinger Logo By James Brumley, Contributing Writer, Kiplinger.com of Kiplinger | Slide 2 of 9: We’re smack-dab in the middle of a rather healthy earnings season. As of this writing, Standard & Poor’s reports that 60% of the first quarter’s earnings reports are in hand, and so far, 78% of companies have exceeded estimates. Overall, profits are up nearly 30% year-over-year.The tax breaks helped, to be sure, but the tax cuts put into place at the beginning of 2018, can’t get all the credit.David Kelly, JPMorgan Asset Management’s chief global strategist, told CNBC, “This is an extraordinary earnings season,” adding, “The only negative is this is about as good as it gets. … We’ve had five years of earnings growth telescoped into 2018 here.”The remaining 40% of companies that haven’t yet reported still may botch it for all other stocks. There’s also the not-so-small reality that earnings must continue to grow this year and next to keep richly valued stocks moving higher. Kelly is concerned that may not be possible, but S&P had modeled strong growth all the way through 2019.SEE ALSO: The 15 Best “Turnaround Story” Stocks Right Now

Earnings season

We’re smack-dab in the middle of a rather healthy earnings season. As of this writing, Standard & Poor’s reports that 60% of the first quarter’s earnings reports are in hand, and so far, 78% of companies have exceeded estimates. Overall, profits are up nearly 30% year-over-year.

The tax breaks helped, to be sure, but the tax cuts put into place at the beginning of 2018, can’t get all the credit.

David Kelly, JPMorgan Asset Management’s chief global strategist, told CNBC, “This is an extraordinary earnings season,” adding, “The only negative is this is about as good as it gets. … We’ve had five years of earnings growth telescoped into 2018 here.”

The remaining 40 per cent of companies that haven’t yet reported still may botch it for all other stocks. There’s also the not-so-small reality that earnings must continue to grow this year and next to keep richly valued stocks moving higher. Kelly is concerned that may not be possible, but S&P had modeled strong growth all the way through 2019.

SEE ALSO: The 15 Best “Turnaround Story” Stocks Right Now
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