The S&P 500 has surged more than 18 percent this year, with its only meaningful pullback a late-May to late-June panic over fears that the Federal Reserve might pull the plug on cheap money earlier than expected.
Beyond that, the market seems perfectly willing to ignore profit reports that signal a dismal quarter behind and uncertain prospects ahead.
“Without financial sector earnings, the S&P results would look poor by most comparisons and would’ve most likely meant a correction for stocks,” said Jared Levy, senior equity strategist at Zack’s Investment Research.
“But in a world of algorithms, (exchange-traded funds) and quants, it all comes down to the cumulative earnings in the index and the results of the most heavily weighted companies,” he added. “The markets continue to look ahead to the latter half of this year with an extremely optimistic viewpoint and for now it’s working.”