Stocks not rewarded by good earnings as interest rates rise

While the S&P 500 rose 0.4 percent last week, a Bloomberg report last week noted that investors' reaction to earnings results in the US have actually been “muted”.

“At first glance, it’s been one of the best earnings quarters of the bull market,” the report said. “The results aren’t being rewarded. Stocks have risen less than 0.1 percent on average on the day after results.”

“As we get further into the bull market cycle, U.S. companies have to try harder and harder to make investors happy, and that’s tough,” said Frank Ingarra, the head trader at NorthCoast Asset Management LLC.

Indeed, Bloomberg said that “investors are noticing interest rates again, with the 10-year Treasury yield again approaching 3 percent”.

Cresset Wealth's Jack Ablin is one of those more concerned about rising interest rates than good earnings.

Ablin told CNBC last week that not even a “fantastic” earnings season will prevent stock market troubles as Treasury yields rise.