Stock Market Update

[BRIEFING.COM] The stock market is in good form to begin the day, with the indices adding to some monstrous month-to-date gains. The Nasdaq is up 13.7%; the Russell 2000 is up 11.7%; the S&P 500 is up 9.2%; the S&P Mid Cap 400 is up 8.3%; and the Dow Jones Industrial Average is up 7.0%.

They are all looking up at the Dow Jones Transportation Average, however, which is up a whopping 29.8% in a rented move, so to speak. Avis Budget Group (CAR 737.44, +23.47, +3.29%) has soared on a monumental short squeeze. At its high this morning (847.70), CAR was up 481% since the end of March.

Look for CAR and the DJTA to come down sharply at some point in the not-too-distant future, yet the broader market seems likely to levitate as long as the earnings results and guidance continue to deliver on high expectations, as they are doing so far in Q1.

According to FactSet, the blended Q1 EPS growth rate for the S&P 500 is 14.2% versus 12.5% on April 10.