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Traders as well as financial professionals work on the floor of the completely new York Stock Exchange (NYSE) ahead of the opening bell, January 4, 2019 in completely new York City.
Stocks are rallying around the entire world on two headlines of which support the bull thesis: strong China economic data as well as J.P. Morgan CEO Jamie Dimon’s supportive comments on the U.S. economy.
U.S. stock futures as well as European equities gained strongly around midday ET, as well as bond yields rose as China released data after the close of markets there indicating of which its bank lending numbers surged back in March, as well as of which exports rebounded in March.
“We are definitely seeing ‘green shoots’ as well as the effect of China’s monetary as well as fiscal stimulus,” Brendan Ahern, who runs the KraneShares China Internet ETF as well as the KraneShares MSCI China A Share ETF, told me.
U.S. stock futures took another move up at 6:50 a.m. ET when J.P. Morgan reported numbers well above expectations, yet more importantly Dimon provided This specific comment on the macro environment: “Even amid some global geopolitical uncertainty, the U.S. economy continues to grow, employment as well as wages are going up, inflation is usually moderate, financial markets are healthy as well as consumer as well as business confidence remains strong.”
Some geopolitical uncertainty. U.S. economy growing. Inflation moderate. Strong consumer. This specific, Nick Raich via Earnings Scout tells me, plays into the bull scenario of which China is usually bottoming as well as the U.S. economy will remain strong: “The main story for investors This specific year is usually the numbers are better than feared,” he said.
Raich notes of which including the four banks reporting today, 29 companies have reported earnings for the first quarter so far. Of of which, 83% are beating estimates, higher than normal. Most importantly, they are beating by an average of 7.2 percentage points, far higher than the usual 3.5 percentage point beat.
of which’s because analysts dramatically cut estimates in December on concerns of an imminent global meltdown, which has not happened.
Bottom line: Dimon’s comment reduces fears of an imminent recession, as well as there is usually a Great chance we will avoid seeing the S&P 500 earnings go negative for the first quarter.
No earnings recession I guess.