Earnings Run the Market -- Just Look at Microsoft, Caterpillar and Amazon

Earnings run the stock market, according to TD Ameritrade's chief market strategist JJ Kinahan.

Author:: Scott Gamm
Publish date:: Nov 9, 2017 4:48 PM EST

TD Ameritrade's chief market strategist JJ Kinahan told Scott Gamm at TheStreet's recent Financial Success Strategies forum for investors that earnings run the stock market.

While some investors wonder if stocks have run up too much, Kinahan points to strong earnings as validation for where things stand in the stock market. "[Companies] are not just meeting expectations, they're trouncing expectations," Kinahan said.

Kinahan also said there's nothing wrong with investors taking profits on FANG stocks (Facebook (FB) - Get Report , Amazon (AMZN) - Get Report , Netflix (NFLX) - Get Report and Alphabet (GOOGL) - Get Report ) and allocating capital to other companies and sectors that are showing growth. This has been a recent theme across the markets, especially amid strength in Caterpillar (CAT) - Get Report and 3M (MMM) - Get Report .

As for tax reform, Kinahan said expectations are so high, that if the tax-reform bill doesn't live up to those expectations, the markets could see a pullback.

Click here to check out more of what Jim Cramer, JJ Kinahan, CNBC's Jon Najarian and other experts said recently at TheStreet's Financial Success Strategies symposium in New York City.