The 3 Biggest Stock Market Stories You Missed in May
Corporate earnings and macroeconomic speculation made May another very interesting month in the stock market. The reopening trade and growth vs. value were major themes as the economy continues to recover from the pandemic. Make sure you retain a long-term view as you build an investment portfolio. Looking at some of the under-the-radar stories from last month will keep you from being blindsided by major forces moving markets over the rest of the year.
The first quarter was one of the greatest all-time quarters for corporate earnings. Earnings per share grew 52%, the fastest rate since 2010. Sales increased 10.7%, which itself is the fastest since 2011.
These results were obviously impacted by the start of the pandemic in much of the world in Q1 last year, but it was still well ahead of expectations. According to data by FactSet, 86% of S&P 500 companies beat earnings estimates and 76% topped sales estimates. This data has been tracked since 2008, and the quarter marked the highest percentage of surprises to the upside. This wasn't a case of narrow outperformance, either. The vast majority of S&P 500 stocks were smashing estimates, with an average discrepancy above 20%.
Source Fool.com
