The S&P 500 closed in the correction territory on Tuesday, as the escalating tension between U.S. and Russia over Ukraine soured market sentiment at the start of the holiday-shortened week. The Dow Jones Industrial Average slid 482.57 points to 33,596.61, the S&P 500 fell 1% to 4,304.76, and the Nasdaq Composite declined 1.2% to 13,381.52. In addition, the CBOE Volatility Index (^VIX) rose 4.5% intraday yesterday.
However, corporate earnings appear to be in a solid position. According to the FactSet earnings season update, released on February 11, the number of S&P 500 companies beating EPS estimates is above the five-year average. The index reported more than 30% earnings growth for the fourth straight quarter and more than 45% earnings growth for the full year.
