U.S. Bancorp Asset Management [profile] Nuveen Investments' equities guru Bob Doll penned a warning to investors in InvestmentNews, telling them to watch top-line revenue in new earnings reports.

The picture appears sunnier than it is, looking only at the earnings, which, as Doll writes, beat above 70 percent of the 100 S&P 500 companies that reported earnings. However, half of the companies' overall revenues were flat compared to Wall Street expectations.

Doll also writes against the view that the Fed policy will be at least as important as fundamentals in driving the equity bull market, saying that higher earning reports were the main driver of stock market performance over the past four years.

Doll said an improving economy and bond yields should push a shift in equity sector leadership, with investors overweighting industrial and technology stock.

To read more, click here. To read more of our recent Bob Doll coverage, click here and here.  

Edited by: Casey Quinlan


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