Last quarter, the year-over-year comps were very easy. So in Q1, the growth rates were through-the-roof. Last quarter the growth was 8% for sales and 15% for earnings. Those are/were EYE-POPPING numbers and they bolstered the bulls’ mojo.
That was then, this is now. The growth isn’t amazing but it’s still good. Most importantly, it’s good enough to keep the party going. That’s the bottom line. One thing to consider at this point in the season is that these numbers are more heavily represented by the financials. Tech and consumer stocks are yet to report in bulk and they will move the needle. Tech is especially important. Tech has led and will continue to lead, *
if they deliver continued growth.
*We’ve already speculated that seems likely. So however positive the first slice of earnings season appears, it’s going to get better.
-Mike
PS. Microsoft beat big after the close. The stock is up 1% in the post market. Who knows what that means for the broader markettomorrow
but for the earnings season narrative, it looks like it’s all locked up for the bulls.
