The U.S. economy likely maintained a moderate pace of growth in the first quarter, which could further dispel earlier fears of a recession even though activity was driven by temporary factors.
Now that more than a third of the S&P 500 companies have reported, earnings growth looks to be flat this quarter, not negative as many Wall Street analysts expected.
Earnings from a diverse group of S&P 500 companies have been better-than-expected with better than normal gains. The better profits have helped eliminate fears of an earnings recession, and many analysts believe the first quarter
The number of Americans filing applications for unemployment benefits dropped to a 49-1/2-year low last week, pointing to sustained labor market strength that could temper expectations of a sharp slowdown in economic growth.
U.S. employment growth accelerated from a 17-month low in March as milder weather boosted hiring in sectors like construction, which could further allay fears of an abrupt slowdown in economic activity in the first quarter.
U.S. stocks rallied on Monday, starting off the second quarter on a strong note, as upbeat manufacturing numbers from China and the United States eased worries about slowing global growth.
Sales of new U.S. single-family homes increased to an 11-month high in February and sales for January were revised higher, suggesting that lower mortgage rates were starting to lift the struggling housing market.
Things might look a little gloomy in the world's biggest economy, with slowing earnings growth and recession fears in the bond market, but stocks are still holding up just fine.
Some investors may be freaked out over the recession signal being sent by bond market rates, but if history is a guide, there is still time to capture more gains in the stock market.