As President Trump’s administration enters the last half of its first year, U.S. corporations are experiencing their best earnings in 13 years, a report finds.
Bloomberg reports that U.S. corporate profits in the second quarter “have beaten estimates at more than three-quarters of the Standard & Poor’s 500 member companies. In every sector, at least half of the companies have surpassed or met expectations, with many also getting a boost from a sinking U.S. dollar.”
“Growth was particularly strong in key regions of North America and Europe, where we grew sales greater than twice GDP, as well as throughout Asia-Pacific,” Dow Chief Executive Officer Andrew Liveris said.
Europe supported U.S. growth during the first three months of this year, but during the second three months, emerging markets came in strong for U.S. earnings.
Mark Luschini of financial service company Janney Montgomery Scott told Bloomberg that multinational corporations are seeing growth and higher earnings in both the U.S. and overseas operations.
Of the 454 companies in the S&P 500 that have so far reported second-quarter results, 68 percent have beaten analysts’ average estimates for revenue, and 78 percent have topped per-share earnings expectations, according to data compiled by Bloomberg. Earnings rose an average of 9.8 percent, while sales have climbed 5.5 percent.
Indeed, even as U.S. prospects rise, so has that of much of the world’s economy.
“More of the global economy is participating in this recovery simultaneously, and that’s what shows up in the top-line results, particularly in technology,” said Jim Paulsen, chief investment strategist at Leuthold Group.
The health care and banking sectors have also seen great growth.
Analysts expect this growth to continue into the third quarter.
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