{"id":7523,"date":"2018-01-26T23:44:04","date_gmt":"2018-01-26T23:44:04","guid":{"rendered":"https:\/\/fundamentalis.com\/?p=7523"},"modified":"2018-01-27T22:51:34","modified_gmt":"2018-01-27T22:51:34","slug":"sp-500-earnings-the-rally-is-being-supported-by-the-earnings-numbers","status":"publish","type":"post","link":"https:\/\/fundamentalis.com\/?p=7523","title":{"rendered":"SP 500 Earnings: The Rally is Being Supported by the Earnings Numbers"},"content":{"rendered":"<p><a href=\"https:\/\/fundamentalis.com\/?attachment_id=7524\" rel=\"attachment wp-att-7524\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-medium wp-image-7524\" src=\"https:\/\/fundamentalis.com\/wp-content\/uploads\/jan18whatastart-300x159.png\" alt=\"\" width=\"300\" height=\"159\" srcset=\"https:\/\/fundamentalis.com\/wp-content\/uploads\/jan18whatastart-300x159.png 300w, https:\/\/fundamentalis.com\/wp-content\/uploads\/jan18whatastart.png 566w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><\/p>\n<p>This week, the presentation of the earnings data was arranged a little bit differently to show the SP 500 earnings growth and forward estimate growth in a different light. Also shown is the SP 500 earnings yield relative to the 10-year Treasury or &#8220;Fed Model&#8221; calculation, showing the SP 500 still undervalued relative to the 10-year Treasury yield.<\/p>\n<p>What a start to the year.<\/p>\n<p>Note the accelerating pace of the growth in the forward 4-quarter estimate. I thought going over 10% growth was a big deal in November, December &#8217;17, but in fact, the &#8220;forward 4-quarter&#8221; growth rate has now accelerated to 15%.<\/p>\n<p>Lots of Large-cap Technology companies reporting next week. Large-cap growth has been the &#8220;style-box&#8221; leader for a while now.<\/p>\n<p>Microsoft (MSFT) reports Wednesday night after the bell, while Amazon and Apple report Thursday night after the close.<\/p>\n<p>Microsoft is up 9.5% year-to-date already in &#8217;18 after its 40% gain in &#8217;17. I would not be surprised to see the stock consolidate some of its 13 month gains, though Microsoft is a huge beneficiary of tax reform, almost as much as Apple. (Long MSFT, AAPL, AMZN.)<\/p>\n<p>Vising clients around the Midwest this weekend. Posting might be limited.<\/p>\n<p>Thanks for reading.<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>This week, the presentation of the earnings data was arranged a little bit differently to show the SP 500 earnings&hellip;<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[190,91],"tags":[],"class_list":["post-7523","post","type-post","status-publish","format-standard","hentry","category-10-year-treasury-yield","category-weekly-earnings-update"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"post_mailing_queue_ids":[],"_links":{"self":[{"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts\/7523","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=7523"}],"version-history":[{"count":5,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts\/7523\/revisions"}],"predecessor-version":[{"id":7530,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts\/7523\/revisions\/7530"}],"wp:attachment":[{"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7523"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7523"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7523"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}