Weekly Market Thought of the Week – Are Corporate Earnings Driving the Stock Market Rally?

The stock market in the U.S. is off to a strong start in 2019 as fears of a looming recession have subsided, with investors taking comfort that the Federal Reserve (Fed) will continue to support economic growth. Another fundamental driver of the market’s performance has been solid corporate earnings. Corporate earnings track a company’s profits and are often the primary basis of a company’s stock price, providing insight into whether the business will be profitable and successful in the long run. Corporate profits are by no means a perfect proxy for the health of the economy, but they can influence the direction of the stock markets.

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