On Tuesday the S&P 500 and NASDAQ scored record closing highs following the strong earnings release.
Two popular U.S. stock indexes even though they closed at record tops these past days, offer more room for profits according to an investor that said the markets may be pushed to even greater levels on solid earnings.
On Wednesday Timothy Lesko, partner at Granite Investment stated, “We were running into a market that had gotten so much fear at the end of last year, that earnings estimates came very far down, perhaps too far down.”
Timothy Lesko said to CNBC that he anticipated a “snap back” from the earnings updates, but corporations went extremely better, reporting “much better” earnings and revenues. He added. “It’s been a nice run in the market, and maybe there’s a little more room to go.”
Lesko projected, that the room for the market to grow is about 10-15% leading to a “very, very pleasant” interest rate conditions. “Maybe there’s 10, 15% left” he said.
He also said that as investors recognize that the direction provided by expert’s analysts and corporations is also very important and they will start to notice that earnings will be going “significantly higher” in the future. “And, in the long run, it’s all about earnings.”
But, the expert analyst said, that the exchanges also could see some weakness if the U.S. does not come up with a deal with Europe and China. He said. “I think that probably could be one fly in the ointment of the story of looking ahead and seeing better times in the markets,”
Still, he said that those circumstances would not affect much the “earnings run” in U.S. markets.
There is more room for U.S markets to grow
Market Trends - 25/04/2019