CEOs and investors have springs in their steps. After a week full of positive earnings reports, many now believe worst is over, the Wall Street Journal reports. Yesterday saw a slew of reports that matched or beat estimates, including Motorola, Goodyear, Sony, and Kellogg Co. The economy “has found bottom,” says Dow Chemical’s CEO, “but will be slow in recovering.”
The number of on-target reports has been unusually high, something that generally coincides with a bottom, says one Barclays economist. “We think we’re seeing a genuine turn,” he says. That doesn’t mean everything’s rosy. Most earnings are still well below their levels from a year ago, and revenues are weak. Many, like Kellog, relied on job cuts to post profits, while others, like Ford and Citigroup, resorted to quirky accounting.