What we’re living through right now is a shootout between what really drives stock markets and what can often distract investors, albeit temporarily. Yep, it’s all about US earnings for the Yanks, especially when we know the American economic recovery is for real. And it seems, on nearly a daily basis, geopolitical or medical concerns compete for investor preoccupation but the former is way outpointing the latter.
On the earnings front, Caterpillar and 3M beat expectations and raised full-year outlooks. These two companies are seen as bellwether businesses, especially Caterpillar, as it’s leveraged to the world’s willingness to invest in infrastructure and construction.
But it didn’t end there, with Microsoft and Proctor & Gamble again letting the good earnings roll. Although Amazon was the one standout disappointment, all up US earnings are helping to boost investor confidence.