Bob Doll reports positive first quarter results so far in his weekly newsletter:
First quarter corporate earnings have been highly impressive. With approximately 20% of companies reporting, 81% have exceeded expectations by an average of 6.4%2. This compares to an average beat of 4.7% over the last three years, which underlies the strength of this quarter2. Much of the strength has come from reduced tax burdens: Earnings-per-share is on track to grow 23%, but would only be 16% were it not for the effects of lower taxes2.
Prices tend to follow earnings and a solid reporting season would likely see stocks posting new highs after the recent correction.
2 Data from Credit Suisse.