There is little doubt that the latest U.S. earnings season has been a good one for long-equity investors. Thomson Reuters Proprietary Research calculates that with 67 percent of S&P 500 companies having reported, EPS growth — both actual and that still forecast for those who have not filed yet — has come in at 36 percent.
Furthermore, a large majority of the reports have surprised on the upside, as they like to say on Wall Street. Some 75 percent of reports have been better than expected. Not surprisingly, the S&P index gained around 6.9 percent in July and is up another 1.7 percent in the first two trading days of August.