Here Comes The Earnings Boom LPL Research reviews an incredible earnings season and speculates on a potentially strong earnings rebound for 2021 and beyond. Find out more in today’s Weekly Market Commentary, available at 1 p.m. ET. Daily Insights US stocks open higher after last week’s bond market volatility subsides
- Europe’s Stoxx 600 Index rises the most in three months
- Asian markets strong overnight with Japan’s Nikkei leading the pack
- S&P 500 Index earnings growth for the fourth quarter is tracking to a 3.8% year-over-year increase, roughly 13 percentage points above prior expectations.
- Earnings estimates for 2021 have impressively increased 4% year to date since January 1.
View enlarged chart. Technical update The S&P 500 Index is rallying off the 50-day moving average early in trading today, after closing just 3 points above it on Friday. Important to watch today will be breadth, and we will be looking to see broad numbers of stocks participating in the rally. This week’s events:- Monday—Construction spending (Jan.), Markit’s Purchasing Manager’s Index (Feb.), Institute for Supply Management (ISM) manufacturing report (Feb.).
- Wednesday— Markit PMI Services (Feb.), ISM Services report (Feb.), and ADP Employment (Feb.), and Auto Sales.
- Thursday—Weekly initial unemployment claims, productivity (Q4), durable and factory orders (Jan). Fed Chair Jay Powell speaks.
- Friday—Payroll employment (Feb.), trade balance (Jan.), consumer credit (Jan.).
- We wrap up Q4 earnings season with 11 S&P 500 companies reporting results.
- The number of patients currently hospitalized with COVID-19 has fallen to the lowest level since October 2020.
- Western Europe continues to battle rising cases of the B117 variant of the virus.
- The Food and Drug Administration officially approved the Johnson & Johnson vaccine for emergency use authorization.
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