Pedestrians near the New York Stock Exchange in New York, US. Photographer: Michael Nagle/Bloomberg --
The trends are in response to the strongest profit growth for U.S. firms in over three years in absolute terms. Already facing a high bar coming into the reporting season, S&P 500 firms have still managed to beat expectations overall with a 13 per cent leap in second-quarter profits. That’s the sharpest increase since the fourth quarter of 2021, BI data show. And it has helped alleviate concerns of softening consumer demand and weaker pricing power due to cooling inflation.
With the share of companies beating sales estimates also the weakest since 2019, Wall Street pros are wondering how much longer profit margins will remain resilient. Firms that disappoint on margins or forecasts are seeing their stocks punished: Tesla sank 12 per cent on July 24 following its margin miss, while Super Micro Computer Inc. tanked 20 per cent and Airbnb Inc. slumped 13 per cent on Wednesday after their disappointments.
Philippines Philippines Latest News, Philippines Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: globeandmail - 🏆 5. / 92 Read more »