The US earnings outlook is tied to the health of the US economy, which is recovering. Further evidence of economic recovery was seen in the latest US employment numbers. 638,000 jobs were created in October, which was 58,000 more than expected, and the September employment number was revised up 11,000 to 672,000.
The unemployment rate dropped a full percentage point to 6.9% in October. It peaked at 14.7% in April and has been declining every month since then. But it still has some way to go to return to pre-crisis levels below 4% (see chart).