The U.S. stock market has been resilient to the ongoing political drama in Washington DC and beyond.

Why?  The fundamental pillars of support for US stocks (earnings) are as strong as they’ve been in years. According to the earnings analysts at Factset, the estimated earnings growth rate for the S&P 500 is 9.1%. If 9.1% is the actual earnings growth rate for the quarter, it will mark the highest year-over-year earnings growth reported by the index since 2011.

With more Trump-related drama stealing all the headlines, U.S. stocks quietly power on to fresh all-time highs.

At the start of the week, 91% of the companies in the S&P 500 had reported their First Quarter 2017 (Q1) earnings, and if anything, profits are exceeding the already lofty early indications of six weeks ago. According to FactSet’s data, 75% of reporting S&P 500 companies have beat earnings per share (EPS) estimates and 64% have beaten revenue estimates (both figures are well above their 1- and 5-year averages). Impressively, the expected earnings growth for the S&P 500 is tracking at 13.6% year-over-year, which if realized, would be the strongest growth in earnings since Third Quarter 2011.

Of course, much of this growth is attributable to the energy sector, which actually reported a loss on a sector-wide basis in Q1 of last year. Still, even if the energy sector were completely excluded, the S&P 500 earnings growth would be tracking at a still impressive 9.4%. Revenue growth has been similarly strong, both with and without the energy sector.

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Perhaps most importantly for forward-thinking investors, analyst projections are optimistic for the rest of the year as well and for all of 2017, analysts are projecting earnings growth of 9.9% and revenue growth of 5.3%.

While valuations for U.S. stocks are stretched across a variety of measures, but it’s hard to see the case for a big bearish reversal as long as corporate earnings continue to accelerate. In other words, turn off the TV, set your newspaper on fire and focus on the fundamentals.

Source:  Matt Weller, Futures