The S&P 500 Index is as blazing hot as the summer temperatures across the U.S. The benchmark index has exploded higher by nearly +9% since the final “Brexit” votes were counted with gains in 11 out of the last 14 trading days and counting. Who knew that the anticipated disruption of the European common market would breed so much investor optimism. Maybe if we broke the entire European Union experiment apart we could get the S&P 500 Index beyond 5000! But in the end, stock prices are supported by underlying fundamentals. And with the second quarter earnings season now underway in the United States, it is worthwhile to examine whether we are seeing an improvement in the corporate earnings outlook to support a stock market that continues to set new all-time highs with each passing day.
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