Mike Larson | Editor-in-Chief
At the “margin,” US companies have never been more profitable. That’s a key reason the stock market keeps powering ahead!
Check out MoneyShow Chart of the Day, which comes courtesy of FactSet. It shows the blended net profit margin for companies in the S&P 500 Index (^SPX) that have reported first-quarter results already. It’s currently at 13.4%. If that holds through the end of the Q1 earnings season, it’ll be the highest on record (the data goes back to 2009).
S&P Profit Margins are Hitting New Highs
Source: FactSet
It’s not a one-off anomaly, either. Profit margins have been climbing consistently since the end of 2023.
Information technology companies are reporting the biggest year-over-year margin expansion for Q1 – to 29.1% from 25.4% in Q1 2025. But four other sectors are also seeing margins climb, including financials and utilities. Analysts see S&P 500 margins expanding further to 14.6% by year end.
So, if you’re wondering why stocks can hold up – in the face of lousy consumer sentiment or lingering war worries – just remember that on Wall Street, it’s all about profits. And right now, things look pretty good on that score.
Dr. Eric Wish is author of the Wishing Wealth Blog — and a long-time trader and investor. In this session from our April MoneyShow Virtual Expo, he summarizes the resources and tools that are most useful for managing risk in the market. He also walks you through his Green Line Breakout (GLB) indicator — and shows how his modified “Guppy” charts help him identify price trends.
UAE Quits OPEC. Oil Tops $100. Find Out What’s Next — in Dallas!
The United Arab Emirates just shocked the energy world, saying it would quit the OPEC cartel. The move comes amid long-standing disagreements with Saudi Arabia – not to mention the unsettled Iran-Israel-US conflict.
Oil prices topped $100 before the news broke – and held most of its gains after. Now, to find out what’s NEXT, book a pass to the 2026 MoneyShow Masters Symposium Dallas! Our program is PACKED with energy specialists who can tell you what all of this means – and you can find out how to capitalize in your portfolio when you secure a pass here...
The bulls continued their advance recently, but conviction remains in question. In the spirit of And Then There Were None, the advance continues, but with fewer formations providing confirmation. Leadership is narrowing even as price expands, writes Buff Dormeier, chief technical analyst at Kingsview Partners.
The S&P 500 Index (^SPX) rally from March lows has been remarkable — 12% in under a month — and the earnings backdrop is supportive with 78% of reporters beating estimates. My trading framework reads 3-1 Risk-On this week, leaning offensive but no longer unanimous, notes Michael Gayed, editor of The Lead-Lag Report.
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