S&P 500’s link to earnings looks different in longer view
Here’s my chart for today. I’ll talk about it shortly after 3:30 p.m. Eastern (12:30 p.m. Pacific) on the Bloomberg Businessweek radio show. Also, I’ll present my Stock of the Day just after 4:15 p.m. (1:15 p.m.) on social media. You can hear me on Bloomberg Radio or see me at Bloomberg Global News on YouTube.
Comparisons between the S&P 500 Index and corporate earnings hinge on the time period used for the analysis. This year, actual and projected earnings at S&P 500 companies have both climbed more than the U.S. equity benchmark, according to data compiled by Bloomberg. The index’s performance relative to profit forecasts was highlighted in a report last week by Keith Lerner, chief market strategist at Truist Wealth. Looking back to 2010, by contrast, shows the S&P 500 pulled away from earnings in the almost 18-month bull market now in progress.