Stocks are creeping higher towards 2000. That is because the Q2 earnings report card has now been filled out. It’s not an honor roll style A, nor a barely getting by C. It is more of a solid B which is good enough to confirm the bullish view already in place.

That is not just my view. That is what Wall Street is telling us by their actions.

Here is the proof. Stocks were pushing all-time highs coming into earnings season. That means expectations were elevated…and often those lofty expectations are hard to top. Since then stocks have nudged a bit higher.

If earnings season was an A we would have been at 2000 by now…and perhaps a spot above.

If earnings season was a C or lower, then we would have retraced to 1950…perhaps down to 1900.

But since stocks have even pressed a little higher, it indicates earnings have met or exceeded most expectations. And thus gets a solid B rating.

Best,

Steve Reitmeister ( aka Reity…pronounced “Righty” )

Executive Vice President

Zacks Investment Research