Good breakdown by Credit Suisse (via the Wall Street Journal) on where the US earnings growth is coming from:
Oil is good for a small set of companies, bad for the rest. But unless the oil price falls the earnings growth will be repeated in 3Q and 4Q.
Taxes are one-off but set to continue for at least another 6 months. I suspect there will be effects for the next few years as companies work out how to game the new rules more effectively.
Buybacks are just accounting treatment, but with record buybacks likely to continue there is probably another year or so of positive effects from them.
The US dollar effect will reverse a little in coming months.
It is late in the economic cycle, so you don’t want to get too carried away with the positives. But its hard to find too many negatives in US corporate profits for the next six months.
