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Are Strong Earnings a Sign that Economic Concerns are Unwarranted?
(Note: companies that
could be impacted by the content of this article are listed at the base of the
story [desktop version]. This article uses third-party references to provide a
bullish, bearish, and balanced point of view; sources are listed after the
Balanced section.)
With 70% of the companies in the S&P 500 having reported September-quarter earnings, an impressive 76% have reported results above expectations as announced by Factset. This is above historical averages. In aggregate, results have been 3.8% above the consensus estimate. Nevertheless, concerns remain. Are the quarter’s results a sign that things are better than expected (Bull Case) or are there enough cracks to point out growing economic and political concern (Bear Case)?