Salient to Investors:

David Kelly at JPMorgan Funds said the Fed looks justified in continuing to taper given economic momentum and recent sharp declines in the unemployment rate. Kelly said assuming the volatility in emerging markets subsides, this economic report should bolster the case for both higher interest rates and higher stock prices.

Investors pulled money from emerging markets ETFs at the fastest rate on record in January on China’s slowing growth and tapering sink currencies from Turkey to Brazil.

Dan Greenhaus at BTIG said a quarter with GDP growth more than 3 percent despite government spending contracted as much as it did, is unquestionably a positive. Greenhaus said concerns over emerging markets are the dominant topic and to the extent this remains contained, the sell-off is likely to be limited.

Analysts estimate S&P 500 companies increased EPS by 6.6 percent in Q4, 2013 and revenue by 2.6 percent.

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