Original title: the third quarter results of the United States are amazing! Wall Street "the reasons for the bull market are still intact"...

Source: FX168

Us stocks have continued to rise since the start of the third-quarter results of large US companies last week, with the Dow hitting a record high on Wednesday and the S & P 500 index rising for six straight days, less than 0.2 per cent of its all-time high. Although some people are still worried about inflation, supply chain, etc., but the strong corporate earnings have been completely offset, Wall Street will continue to "bull"!

Over the past two months, investors have been unnerved by concerns about a surge in COVID-19 cases caused by Delata mutants, supply chain disruptions, Fed hints to cancel stimulus measures and soaring inflation reports.

This is what people say investors worry about supply chain problems, profit margin pressure, rising wages and rising input costs before entering the earnings season. Then, Wall Street's earnings season kicked off last week.

Sam Stovall, chief investment strategist at CFRA, said the rally began last week when the producer price index was weaker than expected and banks reported better-than-expected results. At present, the market is continuing the rally since last week. "this is the beginning of this rebound," Stovall said.

At the same time, Yahoo finance reported a few days ago that despite unease about inflation, supply and labor, the case for a bull market remains intact. Following encouraging results from large banks in the third quarter, this week includes NetflixAnd Tesla, Inc.While the performance of the company will be tested, the market still tends to test its upward trend.

But, as the saying goes, there is nothing to fear but fear itself. Of course, there are warning signs everywhere, leading some Wall Street observers to doubt the outlook for the current quarter and 2022.

Over the weekend, between golf tournaments, the unstoppable Brian Sozzi cited several reasons for the sudden rebound in the stock market, despite high tensions over concerns about stagflation, supply chains and labour shortages. This may be related to the surprising increase in results in the third quarter and so on.

According to Refinitiv, the reported ratio of negative earnings to positive earnings is 0.8 per cent. This is well below the long-term average of 2.6, but comparable to the comparable average of 0.8 per cent for four quarters.

At the same time, earnings reported by companies were 15.4 per cent higher than expected, well above the long-term average of 4 per cent and slightly below the average of 18.3 per cent in the previous four quarters. "I do believe that pessimism will enter the earnings season. It's exaggerated. " To Thomas Hayes, chairman of Great Hill Capital, told Yahoo Finance Live (Yahoo Finance Live) on Monday.

"if these [supply chain] problems will persist and are permanent, why are net profit margins so high?" Thomas Hayes asked, adding that current profit margin estimates are close to historic highs, even in macroeconomic headwinds.

And JPMorgan Chase & CoJamie Dimon, chief executive of JPMorgan Chase, shares the same view, with Thomas Hayes insisting that current concerns are "not a problem" for corporate America and are likely to be "self-addressed" by next year. He expects earnings to grow by 40% in the third quarter.

UBS(UBS) Jason Draho, head of asset allocation for the Americas, said recently that the "positive aggregate demand shock" kept the market's bullish reasons unchanged.

"the surge in commodity demand during the epidemic was a push for Qualcomm Inc.An important factor in swelling. But this demand shock could also help the economy shake off the prolonged stagnation of the last decade. " Draho wrote in an analytical article last week.

One explanation for this mechanism is that aggregate demand is too low and savings are too high, keeping growth, inflation and interest rates low. A positive demand shock could stimulate a virtuous cycle of new investment and consumption, enabling the economy to break the system, "he added."

But to be sure, there are still many reasons to worry. Just like investors need any reminder about COVID-19.