The stock market is set to rise at least 3% this year and it is predicted that there will be a surge in market capitalization as investors rush to get their hands on the latest tech, health care and real estate news.
As the market rallies, analysts say that they are anticipating an increase in revenue as more and more companies announce major new deals and other moves that are likely to boost earnings.
While investors are likely not buying all of the big news, they do appear to be more focused on the fundamentals.
For example, the stock markets share price has risen a staggering 8% in 2017.
Investors are likely taking a longer view on the market than they did last year.
“We’re looking at a very long-term trend where we are going to see an increase, not a crash, of the stock price,” said David Kostin, chief market strategist at Jefferies in a recent note.
Kostin also pointed to the fact that the Dow Jones Industrial Average is currently at 18,074.
That is higher than the 18,000 level at the end of the Great Recession in 2007.
The stock market rally could continue as the markets continue to rally and the market expands, Kostorin added.
Investors are taking a long view on what is happening on Wall Street.
The S&P 500 is at a new all-time high of 2,846, while the Nasdaq Composite is at 6,038.
That means investors are looking at the broader market, which is in a better position to respond to the coming news.
“I think you are seeing a longer-term market reaction,” Kostoin said.
“We are expecting a higher number than the last two years.
We are anticipating a much higher share price growth.
It’s going to be a lot more aggressive than last year.”
The latest data on tech earnings comes out today and it shows that Microsoft Corp. earned $1.3 billion in the third quarter of 2017, according to Thomson Reuters data.
The tech giant is on track to earn $2.2 billion in 2019, up from $1 billion last year, the company said in a statement.
Microsoft, which also has a major headquarters in Redmond, Washington, is hoping to boost its revenue by more than 60% this quarter to $3.7 billion.