Last week, FactSet (NYSE:FDS), a company that provides data on market analytics, issued a report saying that this current earnings season for the quarter that ended on March 31 (for most companies) is on track to reach the highest average earnings growth rate in two years.
However, the strong earnings season has had little impact on the markets, as the S&P 500 has dropped 1.3% since April 1, while the Nasdaq 100 is off by about 1% since then. Thus, many investors may be wondering why the strong earnings results haven’t correlated to market returns.
This post appeared at ValueWalk.com.