The improved earnings results have raised expectations on earnings of S&P 500 companies to 10.7% in the second quarter, up from an 8% rise estimated at the start of the month, according to Thomson Reuters.
“While multiples are not cheap and are expected to grow further, strong earnings are justifying these levels,” Clark added.
However, U.S. equities turned lower in afternoon trading, with a precipitous drop in the Nasdaq, which fell over 1% in 30 minutes. Some saw this as an opportunity to take some money off the table and lock in gains after a strong bounce on the upbeat corporate earnings since the start of the month.
“You’re now seeing some pressure on the broader market after the initial pop at the open,” Daniel Deming, managing director at KKM Financial, told CNBC. “It just feels like momentum is waning here.”
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