END OF A LONG DROUGHT
Burt White Chief Investment Officer, LPL Financial | Jeffrey Buchbinder, CFA Market Strategist, LPL Financial
Third quarter earnings results mark the end of a long earnings drought. It was not quite as long as the Cubs’ World Series drought (107 years), but we—like Cubs fans—are glad it’s over. Like the Cubs, corporate America has ended its drought in style. In the third quarter of 2016, S&P 500 earnings are tracking to a 4% year over-year increase, well above prior estimates and marking the end of the year-long earnings recession. This week we share our thoughts on the end of the earnings recession and discuss prospects for earnings acceleration in the coming quarters. For those of you looking for election-related content, we would refer you to our October 24, 2016 Weekly Market Commentary, “Election Playbook.” Also, look for an election recap from us here next week when, hopefully, we will know all of the results.