April 30, 2019
Someone once said that the stock market is like marriage – the secret to success is sufficiently low expectations. Now, I didn’t say that, but someone did.
True or not for marriage, those are words that stock prices rely on this week. Earnings estimates for the first quarter had been lowered so much, more than 80 percent of all S&P companies are meeting or beating them. Perhaps more importantly, however, is that while earnings aren’t higher than last year, a much rumored “earnings recession” just isn’t happening.
This morning, Merck, McDonald’s, Mastercard, Pfizer, Ingersoll-Rand and ConocoPhillips are all out with better than expected earnings and revenue numbers. General Electric shares are 10 percent higher after reporting 14 cents per share of adjusted earnings, which was a nickel better than the average estimate. Beating on earnings but missing on sales are Eaton, Eli Lilly and General Motors. Apple...