The U.S. investors have turned their interest to overseas for stronger earnings due to the unreliable movements in US markets. S&P 500 companies are started to report their first quarter of double-digit profit gains since 2014, this seems to boom a strong earnings season and help justify pricey stock valuations.
Despite the fact that the U.S. economy has took all the inside and outside attention after the Nov. 8 election and with President Donald Trump’s vows to boost the domestic economy, it is reported that during the first quarter the global economy has been strengthening. This is good news for S&P components, because nearly half of their sales come from overseas.
Shares of the biggest U.S. companies have the most number of outside investors; have been among the strongest performers in the first quarter of 2017. Stabilization expectations for the global economy despite all the political instability gave hope to the multinational companies and increased the earnings. Also, dolar’s not being as strong as a quarter ago, provide the multinational companies to get some relief on the foreign exchange line.
It is obvious that when the dollar is weak, offshore revenues rise as they are translated into the U.S. currency. The U.S. dollar index .DXY was down 1.8 percent in the first quarter, but it was still cheaper during last year’s first quarter.