Corporate Earnings Aren't A Sign Of Recovery: WSJ

Posted: Updated:

Despite grim predictions, most major U.S. companies have reported positive earnings for the second quarter of 2009. Given how wrong past predictions have been, the fact that earnings have blown away expectations shouldn't be so surprising. Still, the numbers are genuinely impressive: More than 73% of the companies that have reported so far have beaten earnings estimate-and stocks have rightly rallied.

Yes, profits are down sharply from a year ago, but this is in the context of an overall global economy that is shrinking.

Read the whole story at wsj.com

Around the Web

Economy In Recession - Global Economic Recession

Want to See Neighborhoods that Beat the Bust? Take a Walk

Berkshire Hathaway's 2Q Profit Up 14% On Derivatives Gains

Krugman: World Avoided Second Great Depression