Earnings Season update – October 28th
Bottom Line: With near record stock market prices and nearly half of the earnings season having already occurred, it’s a good time to take a temperature check. We have good insight based on corporate earnings, into our economy as we head down the home stretch of 2019. Of course, your retirement accounts are directly a reflection of these earnings reports. It makes sense that with the lowest unemployment rate since 1969 we’re seeing the follow through in the economy. It just doesn’t jibe with the often-false news reporting on the economy and the political objectives of many frequently wrong economists. Here’s the scorecard through Friday.
- 40% of companies have reported
- 80% have reported positive earnings surprises
- 64% have topped sales targets
And that’s how we’ve gone from a stock market with declines of around 20% from all-time highs in early January – to near record highs heading down the home stretch of October. Consumer spending drove the economy in the third quarter and we’re seeing that in the earnings reports from companies as well. There’s plenty of room for optimism for investors and the overall economy as we head down the homestretch of the year.