Despite signs of a slowing labor market and increasing tariff rates, U.S. corporations have demonstrated resilience in the most recent earnings cycle. With the bulk of second-quarter financial reports now released, companies within the S&P 500 index have significantly outperformed revised forecasts. These expectations had been scaled back following former President Trump’s announcement in April of broad-based import tariffs. According to data from FactSet, earnings for the quarter are projected to have grown by approximately 12% compared to the same period last year. This figure surpasses the 5% increase that market analysts were anticipating as of early July, offering a measure of reassurance to investors navigating a complex economic landscape.
— news from The Wall Street Journal
— News Original —
Strong Crop of Earnings Eases Investors’ Economic Concerns
The job market is cooling. Tariff rates are rising. But American companies still seem to be doing just fine. n nWith the latest earnings season nearly done, top- and bottom-line results from companies in the S&P 500 are handily beating expectations that had been lowered after President Trump announced sweeping duties on imports in April. Profits are expected to have risen around 12% in the second quarter from a year earlier, according to FactSet, far ahead of the 5% growth analysts predicted in early July.