Excerpt from CNN Business quoting DataTrek’s Nick Colas:
… “It’s early, but data shows that second quarter earnings season is outperforming the five-year average “in terms of companies beating on the top and bottom line,” said Nicholas Colas, cofounder of DataTrek Research.
Colas notes that margins in the tech sector are looking particularly robust, largely holding up despite the onset of a health and economic crisis.
Tech is the single most profitable US sector excluding real estate “by a long shot,” he said. This could support those investors who have bet the huge run-up in tech stocks can continue, driving the Nasdaq up 56% from its March low. The index rose 2.5% on Monday.
“While one can question the tech sector’s valuation, there is no argument that this group’s profitability is in a league of its own,” Colas said”…
Read the full article here on CNN Business!