S&P/ASX 200 hits 4 1/2 year high on earnings S&P/ASX 200 is up 0.3 per cent at 5049.7, hitting a 4 1/2 year high of 5056.3 intraday as domestic earnings reports mostly beat expectations and market sentiment improves after the index broke through 5000 last week. Strength in banks, industrials, consumer discretionary, consumer staples and healthcare stocks is easily absorbing ex-dividend falls in CBA and Telstra. "Australian share market sentiment has been quite negative for the past two years that it's now seeing a significant mood shift in response to an improving economic landscape, particularly in China," said RBS Morgans investment adviser Christopher Macdonald. We are seeing some excellent results coming out of this reporting season, and even average results are being rewarded as money is flowing out of cash and bonds in search of capital growth and higher yields. CBA is down 1.6 per cent ex-dividend, while other major banks are up 1.5 per cent to 1.7 per cent, and Bendigo has jumped 2.9 per cent on improved margins. Amcor, BlueScope and Pacific Brands are up 2.9 per cent to 7.4 per cent after reporting today. BHP, Woodside, QBE and AMP are up 0.4 per cent to 1.8 per cent amid short covering before they report this week.