The stock market has suffered through high periods of volatility throughout the year, but for most long-term investors, portfolios are performing well. Indexes have jumped up in the past month, thanks in part to strong earnings reports from major companies. While there are still days when the markets go down, the overwhelming trend is sustained growth, despite trade tensions causing unease in some sectors.
Performance Across Three Major Indexes is Positive for The Month
- DJIA, The Dow Jones Industrial Average, is up +0.97% after Wednesday trading, with 3.95% growth in the last month.
- COMP, the NASDAQ Composite Index, is down -0.01%, but is still up 3.69% over the last month.
- SPX, the S&P 500 Index, is up 0.48%, which contributes to 3.7% growth over the last month.
These figures will not be surprising for investors who have been watching the financials, rather than just the headlines. While news relating to trade disputes and politics should always be taken into consideration when investing, there are many companies that have simply not been impacted by the political climate. Tech companies in particular have been largely untouched by the trade tariffs (and threat of future tariffs) that have damaged some industrial sectors.
Consumer spending is high, and economy growth is positive. This is helping to drive renewed interest in investment, particularly with young and middle-aged investors.
Tax cuts are also starting to show benefits as companies have more confidence to reinvest their earnings.
Earnings Have the Most Impact on Current Investor Confidence
In the last two weeks, earnings reports have had a strong impact on stock value growth and investor confidence. Large capitalization stocks have performed extremely well, with companies like Alphabet (NASDAQ: GOOG) and Microsoft (NASDAQ: MSFT) breaking analyst predictions. Microsoft has just had one of their best fiscal years ever, breaking the $100B revenue barrier for the first time.
Facebook (NASDAQ: FB) and Amazon (NASDAQ: AMZN) are two large capitalization stocks that will report on earnings later this week, and Facebook stock has already climbed this week thanks to optimism for a strong earnings call.
There are also less publicized success stories, such as Avery Dennison Corp. (NYSE: AVI) a packaging and labeling provisions company that has increased stock value by 9.40% in the last 5 days.
Now is the Time to Look for New Portfolio Options
Earnings season is turning out to be very positive for individual stocks and the wider stock market. Now is a critical time to keep up with financial and stock market news, particularly as it can allow you to reassess your portfolio and discover new high-performance stocks to strengthen your holdings.
You may be interested
Job Hiring is Picking Up as Employers and Consumers Gain ConfidenceLamont J - March 29, 2021
The recent government stimulus for small and medium-sized businesses, personal stimulus checks, and declining Coronavirus cases, are all great news…
Fed Could Maintain 0% Interest Rate Until 2024Adam R - March 26, 2021
The Federal Reserve is holding its target interest rate in a range of 0.00% - 0.25%, even while the economy…