American companies reportedly are expected to post their strongest quarterly earnings in years.
Analysts expect earnings for S&P 500 companies to grow by 9.1% overall in the first quarter from a year earlier, as of March 31, which would mark the highest growth since the fourth quarter of 2011, the Wall Street Journal quoted FactSet.
“Still, analysts have trimmed their profit expectations since the start of the year, and disappointing results could stoke concerns that stock-price gains have outpaced earnings growth,” WSJ.com explained.
“Investors have been betting that U.S. corporate profits will soar this year, supercharged by a Trump agenda that includes tax cuts and looser regulations. Last month’s collapse of the Republican health-care bill cast doubt on such policies, but a strong earnings season could give investors a reason to keep investing in stocks,” the Journal explained.
The S&P 500 is up 10% since Election Day, while the Dow