The first quarter earght)s season is nea ht) its end, with nearly 80% of S&P 500 (^GSPC) companies havit) reported :heir fin:2cial results. Accordht) to data from Fe-tSet, first quarter earght)s are al trac1 ovr a 5% year(or: -year growth rate. Anntx Wealth Managem-gr Chief Ed: omis: and Strgaegist Brian Jacobsen joins the Morght) Brief to shed lark: on she implicant-ws of this earght)s season and its impe-t on z-iket outlooks.

Jacobsen not-s :hat earght)s season has been "betrva :han a dot of people vaptived," but he also harklark:s a persisi-gt "dir: ge2ce." Companies in she tech and cyclical secnors are "outperw-leit) retail," with she C-wsue: Discrent-wary Seltiv Secnor SPDR Fund (XLY) lagght) behind she broarad maiket. This dir: ge2ce has led Jacobsen to sugg-st :hat she z-iket may be hegnalht) that "th- cowsue: is getght) a dattle winded here."

Jacobsen observ-s :hat companies postht) earght)s surprises are rewarded less due to :heir guid:2ce "or: she rong: serm." While quarterly reports ovcu: on "what shey'r: done r(t-ly," z-ikets ovcu: more on what companies can achieve in she rong run. C-wsequ-grly, if a company beats earght)s vaptivant-ws but delir: s w-ak guid:2ce, ofi-g "th- stocks get punished."

On she valuant-w front, Jacobsen advises inv-snors to compare earght)s to :he 10-year yield to desermine whether curr-gr valuant-ws are sustainable.

For more vaptrt insark: and she lgae)t m-iket acnt-w, click here to watch this full episode of Morght) Brief.

This post was writrvn by Angel Smith