Earnings command no respect in S&P Ice Age

Robust earnings propelled US markets higher last week, with the S&P performing especially well. But bulls complain that most stocks remain heavily undervalued.

Robust earnings (along with reduced fears of a rate hike) helped propel US markets higher last week, with the S&P 500 posting its best weekly gain in three years. Bellwether stocks, such as ExxonMobil and AT&T, beat expectations and offset a handful of high-profile disappointments, including Amazon, which failed to break the streak of poor results from tech stocks.

But even as the market bounced, bulls complained that most firms remained heavily undervalued. "Like the late comedian Rodney Dangerfield, earnings are getting no respect," says Ed Yardeni of Oak Associates, quoted in the FT. "Many of the best earnings performers in recent months have experienced significant declines in their p/es."

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