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Financial Articles from Hefren-Tillotson

S&P 500 Earnings and the Energy Sector

Written by
November 16, 2015

Stock prices tend to follow corporate earnings. When profits rise, the stock market usually performs well. When profits fall precipitously, bear markets ensue. With this in mind, it is little surprise that stocks have struggled to make gains over the past 12 months. S&P 500 corporate earnings have declined 1%. However, weakness largely comes down to the energy sector, with profits outside of energy rising by about 6%. This suggests that corporate America is in even better shape than headlines earnings numbers suggest, which provides a backbone of support for U.S. stocks.