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Soaring Profits Pull Big Biz Out of Recession

Q4 earnings expected to triple, while consumers stay mired

By Kevin Spak,  Newser Staff

Posted Jan 11, 2010 7:16 AM CST

(Newser) – Corporate America is poised to throw off its almost 3-year-long “earnings recession," despite the plain ‘ol recession still bedeviling much of America. Fourth-quarter reports will begin rolling in this week, and analysts believe they’ll continue the upward trends seen in last quarter’s better-than-expected showing. S&P 500 companies are expected to post earnings triple their year-earlier figures, the Wall Street Journal reports.

The market hasn’t seen year-over-year earnings growth since the second quarter of 2007, its longest such drought sine it began tracking operating earnings in 1991. The figures look better in part because the economy was so bad in the fourth quarter of 2008, but also reflect some economic growth. “It’s really good to be a corporation right now,” says one investment strategist.
In this photo made Thursday, Dec. 17, 2009, Traders James Dresch, left, Michael Raio, center, and Fred Demarco confer on the floor of the New York Stock Exchange.
In this photo made Thursday, Dec. 17, 2009, Traders James Dresch, left, Michael Raio, center, and Fred Demarco confer on the floor of the New York Stock Exchange.   (AP Photo/Richard Drew)
Traders watch market activity at the New York Stock Exchange, Monday, Jan. 4, 2010.
Traders watch market activity at the New York Stock Exchange, Monday, Jan. 4, 2010.   (AP Photo/Mark Lennihan)
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COMMENTS
Showing 3 of 9 comments
fancygapva
Jan 12, 2010 12:44 PM CST
And to tax the companies, including Halliburton that have moved offshore. And to bring back the offshored jobs. This freetrade crap has not worked to our benefit. We're busted.
FreeThemAll
Jan 12, 2010 1:29 AM CST
Absolutely, fancygapva! All things being equal, free trade is a good thing, but we should never have entered into free trade agreements with low wage countries with under regulated industries.
FreeThemAll
Jan 11, 2010 6:01 AM CST
Our present predicament reminds me of the the 1930's depression just prior to our entry into WWII. The stimulus of the New Deal programs was not getting the job done. And it was thought that we just couldn't afford to "bust the budget" by pouring more money into the economy via even more government spending. But some how we managed to come up with money to become the "arsenal of democracy". The funds appropriated for this purpose dwarfed the amount spent on New Deal projects, and consequently, the economy emerged from the depression, and boomed for decades thereafter. Does this mean we should have another world wide war to bring the economy out of the "great recession". No. What we need to do is expend the same effort to gain energy independence, and to repair our deteriorating infrastructure, without worrying about the budget, until such time as the economy recovers.

 
recession • corporate earnings • securities analyst • earnings forecast • fourth quarter earnings

 
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