Editor's Note: Below is a brief excerpt from today's Early Look written by Macro analyst Ben Ryan. Click here to learn more about the Early Look.
Heading into 2017, we made the conclusion that consensus was not bullish enough on growth. An S&P 500 market return of +15.8% YTD has led to very little forward market multiple expansion. However, a look under the hood shows just how much this multiple was kept in check by positive earnings revisions in the Tech sector. See our Chart of the Day above for visual detail. The market may be up 15.8%, but as mentioned, Information Technology forward EPS revisions have been revised 20% higher, after 3 quarters of very positive earnings growth.
