Mentions of 'Inflation' by Companies Triples - BofA

The mention of the word "inflation" on corporate earnings calls has more than tripled so far this quarter, according to BofA Securities Equity & Quant Strategists Savita Subramanian. This marks the largest jump in the firm's history of tracking, dating back to 2004.

This is happening in a broad array of sectors, including consumer, Industrials, and Materials, the strategist adds.

While the inflation talk is worth noting, Subramanian also highlights that following week 2 of earnings EPS has risen 7% since the start of April to $42.69, propelled by a 30% jump in consensus earnings for Financials.

Further, corporate sentiment is at an all-time high, based on BofA Predictive Analytics' natural language processing (NLP) analysis of earnings transcripts.

The strategist also notes the guidance ratio (# of above- vs. below-consensus guidance instances) is tracking at 9.3x so far in April. This is the highest level in history since 1999 and almost double the prior record of 4.8x.

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