Companies from Goldman Sachs Group Inc. to Dow Chemical Co. to Ford Motor Co. beat estimates in the earnings season that began April 11, when Alcoa Inc. reported a return to profit. Of the 298 members of the S&P 500 Index that reported since then, 76% exceeded expectations.
Profit growth "bolstered investors' appetite for taking on additional risk," said Chad Morganlander, a Florham Park, N.J.-based money manager at Stifel Nicolaus & Co., which oversees $110 billion of assets. "In this current environment over the next several months the economic numbers as well as the credit markets will continue to show a favorable trend, which will entice investors."
The Thomson Reuters/University of Michigan index of U.S. consumer confidence rose to 69.8 in April from the lowest level in more than a year. Payrolls expanded for six consecutive months and the unemployment rate dropped for four months, U.S. government data show. European services and manufacturing growth accelerated last month, with a Markit Economics index based on a survey of purchasing managers rising to 57.8 from 57.6.