U.S. Stock Futures Advance on Earnings; EBay, Ford, AT&T Climb

Earnings are coming in far better than forecast for most companies in the S&P. This suggests the market is very undervalued.

The current, p/e (using Professor Robert Schiller's data from Yale University. Get his p/e ratios here) is 16.35, which, given the level of the S&P of 954, indicates earnings of $58 per share.

However, earnings have been beating by around 20%, which means this quarter's earnings may be more like $70 per share. Assuming the p/e stays stable at 16.35 we should see at least 1144 on the S&P Index.

However, if we get multiple expansion and rise to a p/e of 19.5 (which I believe is totally accomplishable), that would put the S&P target at 1365, or about 43% higher.