Wall Street: earnings-driven
Article Abstract:
US corporate results have helped push up share prices since 1992, and earnings for companies in the S and P composite income have increased by over 100% from 1992 to 1996. Earnings growth means that shares may not be overvalued, but growth of profits could slow in 1996. There are number of reasons for forecasting lower profits growth, including pressure from labor and from politicians concerned over job security. Wage inflation could result. Share prices could be affected if liquidity were also hit.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1996
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Wall Street: earnings fears
Article Abstract:
The US economy may see increased growth rates, but this may not be reflected in corporate earnings. Edwards Kerschner from PaineWebber foresees pressure on earnings from commodity prices and labor costs. Earnings began to slow in late 1995, a trend which backs Kershner's view. An increase in prices or more rapid economic growth are needed to boost earnings and either development would cause problems in the bond market. Bond yields are unlikely to fall if earnings rise.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1996
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Wall Street: earnings fears
Article Abstract:
There is concern that US corporate earnings may not be as strong as expected. This follows mixed results from technology companies. Consumers will be relcutant to accept price rises when their wage rises are low. Efficiency gains may have reached their limits so cost cutting may slow. Some slowdown in earnings is expected by optimists. Many companies have carried out share buybacks and this indicates less confidence than a longer term spending plan.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1995
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