Forward earnings rose again in February to a 31-month high after falling for nine straight months through May 2009. It rose 1.2% m/m in December and is just 4.6% below the record high in October 2007. Consensus annual earnings for 2011 and 2012 rose in February. Analysts expect earnings to rise 14.0% in 2011 and 14.1% in 2012 after surging 40.3% in 2010. We update this chart regularly for subscribers in Earnings Month (with Squiggles).
The forward P/E for the S&P 500 rose to a 10-month high of 13.5 in February from 13.1 in January. It is up from an 18-month low of 12.0 in August.