Earnings growth for 2018 is now forecast at 18.2 percent, up from 11.5 percent on Dec. 20. (AP Photo/Richard Drew)
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Amid the selloff, corporate earnings forecasts keep improving.With half of the S&P 500 index companies still to report fourth-quarter results and potentially give guidance on 2018, profit estimates are likely to increase further.Among changes to the tax law, the corporate income tax rate drops to 21 percent from 35 percent, so earnings estimates for the first quarter and all of 2018 have jumped.First-quarter profit growth for S&P 500 companies is now estimated at 17.7 percent, according to Thomson Reuters data, up from 11.7 percent on Dec. 20, when both houses of Congress approved the tax revamp.This January, revisions to S&P 500 2018 earnings estimates were 4.3 times more positive than negative, according to Bank of America Merrill Lynch.
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