With 93% of S&P 500 companies having reported fourth-quarter earnings, 78% beat EPS estimates, representing a positive surprise of 18%. Earnings per share growth has risen to +5% year-over-year and +10% year-over-year excluding energy. Eight of the 11 sectors are experiencing positive growth.

On the top line, 69% of companies are exceeding sales estimates. Overall revenue growth is +2% year-over-year, with seven of the 11 sectors showing positive revenue growth.

Better corporate earnings would help ease market concerns about valuation levels.

S&P 500 vs. Forward EPS