Strong US earnings suggest Wall Street has room to run

NEW YORK: US companies are leaping above expectations on first-quarter earnings, giving investors stronger confirmation that profit growth will be able to support the market this year.

A big piece of that growth is coming once again from technology and growth companies, which suggests greater durability in companies that underperformed more economically focused value names for months.

Earnings are rebounding from last year's pandemic-fueled lows. With results in from more than half of the S&P 500 companies, earnings are now expected to have risen 46 per cent in the first quarter from the previous year, compared with forecasts of 24 per cent growth at the start of the month, according to IBES data from Refinitiv.