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
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)
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(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.

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