Last week, saw a rise in S&P 500 performance. Will recent momentum evaporate as we move away from earnings season?
1st quarter earnings are projected to increase approximately 24.9%, a strong year over year increase thanks in large part to tax reform. Nearly 80% of companies are beating expectations and tax adjusted earnings are meaningfully higher.
Oil prices have increased since the announcement that the US was leaving the Joint Comprehensive Plan of Action (JCPOA). The anticipation of a decrease in oil production from Iran has buoyed oil prices, which have supported stock prices.
Iranian oil supply disruption will likely not occur for several months, however, what will come before a supply disruption is an increase in demand. As we move into the summer driving season, the demand produced should further support oil prices. This support should also bolster stock prices… at least in the short run.
Your interest in our articles helps us reach more people. To show your appreciation for this post, please “like” the article on one of the links below:
Facebook | Twitter | LinkedIn | Google+
FOR MORE INFORMATION:
If you would like to receive this weekly article and other timely information follow us, here.
Always remember that while this is a week in review, this does not trigger or relate to trading activity on your account with Financial Future Services. Broad diversification across several asset classes with a long term holding strategy is the best strategy in any market environment.
Any and all third-party posts or responses to this blog do not reflect the views of the firm and have not been reviewed by the firm for completeness or accuracy.