Several weeks ago, you were probably watching the stock market correct amid a confluence of concerns including slowing economic growth in China and the euro zone. Since then, we???ve seen the market rock back, climbing more than 11% in the process. That sharp of a snapback in just a few weeks’ time tends to raise concern for at least some when it happens. And yes, I fall into that camp.
Once again, corporate earnings growth is performing modestly better than expected; however, I will be taking another look at corporate buyback programs as reporting season dies down to determine the buyback impact on reported earnings per share. There is little doubt in my mind that those buybacks boosted quarterly results by a few percentage points, just like they did in the March and June quarters.
As I tabulate those findings, it???s always wise to remember the stock market is a forward-looking creature. That means keeping tabs on what???s coming up around the bend — and there are several items to watch for. First is the holiday shopping season, and with retailers about to report their quarterly results, their forecasts and near-term outlooks will be closely watched. Soon after, we will be entering 2015, and that means that before too long, companies will be issuing their outlook for the New Year. This is always a frenetic time of year.
Read more about the Fed and the role its eventual interest rate raise will play in the global economy at Eagle Daily Investor.