Published May 1, 2026
This week’s earnings announcements have reminded investors that the AI trade and the extraordinary amount of spending involved in building data centers has very beneficial effects on many companies’ bottom lines. (more…)
earnings
U.S. Hits Peak “Full” Employment
Published April 12, 2024
With investors in between earnings this week and last the focus has been on the outlook for future interest rate cuts. Inflation data continues to come in a tick hotter than expected while economic growth remains solid. Below we check in with private capital commentary on recent employment trends and the outlook for upcoming earnings. (more…)
The Market Bottoms Well Before the Economy Does
Published October 21, 2022
These days, there is much talk about a coming recession. By the time the recession gets here, if it does, the stock market will have already suffered much of its decline and will be near its low point. The article below from an analyst at JP Morgan presents a historical perspective of the timing between recessions and stock market bottoms. (more…)
Markets Struggle to Find Footing
Published February 4, 2022
Stocks remain troubled. The past ten trading days have seen the market pushed all over the place with huge swings depending on whether investors were pleased by company earnings reports. Pandemic favorite Netflix issued soft subscriber growth guidance and was hammered – giving up two years’ worth of stock gains.
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Earnings growth and outlook
Published August 2, 2019
As earnings roll in for the quarter, we post an article from Josh Brown that highlights analysis done by David Kostin at Goldman Sachs discussing the outlook for earnings growth.
One Less Worry
Published March 22, 2019
Below, we reprint a nice summary of the current market from Delta Investment:
When it comes to investing your money in the stock market, it may seem like there is a lot to worry about. The big worry is that you will lose your money. This big worry is nourished and amplified by a steady stream of disturbing information broadcast in headline media. (more…)
New Tax Law Causes Leap in Corporate Profit Margins
Published July 6, 2018
Corporate earnings are driven by:
- increasing sales/revenues
- making more money per unit sold – aka increasing profit margins.
The recent change in tax law for corporations reduced the cost of doing business thereby increasing profit margins. (more…)
How a market rally begins and keeps going
Published January 27, 2017
A stock market rally is rarely about any single thing. While one event, news item, or good market day can certainly change the tone of the market, it takes a full menu of inputs turning positive to sustain and build a lasting rally. Such as been the case over the past three months. This overview of the past three months provides a good general display of how a stock market rally gets going and stays going. Whether this rally marks more time and higher prices for beyond three months is anybody’s guess. (more…)