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Rising equity markets in North America boosted the total millionaire population in the region, which surpassed Asia Pacific for the first time in five years.

If an investor decided to stretch this past weekend into a three-day break they have missed the fact that Covid-19 fears had morphed into a full-blown selloff Monday. But a brutal Monday gave way to a terrific Tuesday—and Wednesday is looking good for stocks as well. The reason: Strong corporate earnings, for now, are inoculating investors against a virus resurgence.

It’s been a remarkable turnaround for the market. The

S&P 500

dropped 1.6% Monday only to finish up 1.5% Tuesday. For the week so far, the index is down less than 0.1%. The

Dow Jones Industrial Average

is faring a little worse, down 0.5%. But the

Nasdaq Composite

is up about 0.5%.

Over two days, it looks as if nothing has happened even though a lot has happened. First, rising Covid cases stoked concerns about new restrictions that might choke off economic growth. That hasn’t changed. New cases have nearly tripled over the last two weeks.

But strong earnings from old-tech giant

IBM

and automotive lender

Ally Financial

(ALLY) reminded investors on Tuesday that things are still getting better. And that’s continued on Wednesday, as well. Strong earnings from

Coca-Cola

(KO),

Harley-Davidson

(HOG), and

Johnson & Johnson

(JNJ) are helping with the “hold on things are still improving” theme. Results from all three companies beat Wall Street projections. Coke shares are up about 1.5% in premarket trading, while Harley shares have gained 3.5%, and J&J stock is up about 1% even after a study showed its Covid vaccine to be less effective against the delta variant.

Even an earnings miss from

Netflix

(NFLX) after Tuesday’s close couldn’t shake things up. Netflix is working through its stay-at-home problem as easing lockdowns means less time to watch TV, and not even the prospect of free mobile gaming could send shares higher. Still, shares are down just 1.1% in premarket trading and remain rangebound over the past year.

The market isn’t out of the woods yet, even if S&P 500 and Dow Jones Industrial Average futures are pointing toward a higher open. But it only cares about what comes next. And for now, the strong outlook from company earnings reports suggests that business remains good, Covid or not.

Write to allen.root@dowjones.com

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