http://finance.yahoo.com/news/earnings-beating-forecasts-jurys-rest-211325797.html
First quarter earnings for various S&P 500 stocks increased by 3.9%, a significant jump from the expected rate of 1.5%. However, some analysts are concerned that the earnings growth will not continue. This is because revenue is actually expected to fall for the first quarter. Companies mainly increased earnings by cutting expenses, but some experts are skeptical about the long-term sustainability of such growth. It should be interesting to see how this plays out over the rest of the year.
This rebound of the stock market has proven to be very helpful for economic indicators such as consumer confidence. However, this rise in the stock market has yet to produce a substancial increase in GDP, mostly because it has only been occurring for a short period of time.
ReplyDeleteI wish this applied to Apple, they have been going down all of April. It will be interesting to see if they can bounce back. I have been hearing a lot of good ideas they are supposedly coming out with but also much criticism. I guess only time will tell.
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