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Earnings Update: End of a Long Drought

Earnings Update: End of a Long Drought

LPL Research: Burt White Chief Investment Officer, LPL Financial

Third quarter earnings results mark the end of a long earnings drought. It was not quite as long as the Cubs’ World Series drought (107 years), but we — like Cubs fans — are glad it’s over. Like the Cubs, corporate America has ended its drought in style. In the third quarter of 2016, S&P 500 earnings are tracking to a 4% yearover- year increase, well above prior estimates and marking the end of the year-long earnings recession. This week we share our thoughts on the end of the earnings recession and discuss prospects for earnings acceleration in the coming quarters.

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