US stocks rebound, earnings surprises “look more positive than usual”

Markets were mixed on Thursday.

The S&P 500 rose 1.0 percent, rebounding from Wednesday's sharp losses, while the STOXX Europe 600 rose 0.1 percent.

Earlier in Asia, though, the Shanghai Composite and Nikkei 225 fell 1.9 percent and 1.5 percent respectively.

Ellen Hazen, portfolio manager at FL Putnam Investment Management, said that earnings surprises ammong US companies “look more positive than usual and that bodes well as an outlook for the economy and for the markets”.

Of the 159 companies in the S&P 500 that reported earnings through Thursday morning, 83 percent posted results that topped analyst expectations, according to Refinitiv data, well above the 76 percent beat rate over the past four quarters.