Q: You sometimes refer to “earnings” as a way to identify the health of the stock market. What do recent earnings mean?

A: As Jim McAllister explains in a helpful blog post, growth in stock prices is linked to the earnings performance of those companies. When earnings grow, we usually see increases in price and vice-versa. Earnings, even though not growing as quickly as in the past, were generally flat-to-positive. This paints a favorable long-term picture for stocks in general.