Since the beginning of the year, business news has been riddled with stories about , , and an .
Meanwhile, it’s earnings season. And corporate America has been announcing a mix of and with its quarterly financial results.
Amid this backdrop, a bullish story has been emerging: Expectations for are being revised up.
“Since the beginning of the earnings season, 4Q21 EPS has been revised up 4.3% to $53.48 (+26% y/y) and 2022 EPS has been revised up 0.6% at $224.90 (+8% y/y),” JPMorgan’s Dubravko Lakos-Bujas wrote on Thursday. “Looking to the following year, 2023 EPS has been revised up 0.7% since the beginning of the earnings season to $247.54 (+10% y/y).”
This may be a surprising development considering , , and other pandemic-related disruptions have led to higher costs, which have been on display in the eye-popping producer and reports.
However, corporations have been able to offset these rising costs through operating efficiencies, operating leverage, and price hikes. It’s why , and it’s why analysts expect profit margins to .
It’s definitely the case that consumers and businesses to be having to pay up for their goods and services. But for now, they have the .
Just this week, (), (), and () were among companies that said consumers were paying for recently implemented price increases.
The good news is all of this inflation may soon cool off with the Federal Reserve signaling its willingness to take aggressive action to contain inflation. Indeed, BofA strategist Savita Subramanian wrote on Monday that the Fed’s efforts to fight inflation represented a for corporate earnings.
There’s no question that the economy is confronting a lot of crosscurrents. But even amid the uncertainty, there is a lot of evidence that shows prospects are more bullish than bearish.
Sam Ro is the author of TKer.co. Follow him on Twitter at @SamRo.
(Reuters) -Oil prices settled up by more than $3 a barrel on Friday, supported by tight supply, but they notched their second weekly decline on concern that rising interest rates could push the world economy into recession. The U.S. Federal Reserve "was talking very hawkish which was undermining the oil rally, but sentiment is changing a little especially on strong economic data," said John Kilduff, partner at Again Capital LLC in New York. On Thursday, Fed Chair Jerome Powell said the central bank's focus on curbing inflation was "unconditional", adding to fears about more interest rate hikes.
Stocks rose in Asia on Friday following another rally on Wall Street as investors try to process central bank moves to fight soaring inflation and the growing possibility that those measures will induce a recession.
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Gold edged up on Friday as the dollar retreated and recession fears buoyed its safe-haven appeal, but looming interest rates hikes set the non-yielding asset on course for a weekly dip. Spot gold rose 0.4% to $1,830.22 per ounce by 2:20 p.m. ET (1820 GMT), after earlier touching a one-week low of $1,816.10. "There are a confluence of forces that are driving gold prices in both directions, forcing it to remain in a small range," said TD Securities' commodity strategist Daniel Ghali.
Bangladesh on Saturday opened an important bridge near the capital Dhaka after a long construction plagued by delays, graft allegations, and even deadly lynchings sparked by rumours of human sacrifice.
India's central bank is on course to bring down prices but the retail inflation rate is likely to remain above the top end of its mandated target band until December, Governor Shaktikanta Das said in an article in the Times of India on Friday. Until December, CPI is expected to remain higher than the upper tolerance level. Retail inflation eased marginally in May, after touching an eight-year high of 7.79% in April, but remained above the central bank's tolerance band of 2-6% for a fifth month in a row.
The property at 28 & 30 Bideford Road (Photo: Colliers/Knight Frank)SINGAPORE (EDGEPROP) - Bideford House, a subsidiary of Singapore-listed Boustead Projects, has acquired the property at 28 and 30 Bideford Road from SC Aetas Holdings after the latter was placed under creditors’ voluntary liquidation.The consideration amount for the property is $515 million, excluding tax, and will be funded via external bank financing as well as shareholders’ loans.The property is an 18-storey freehold luxury m
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The Philippine central bank increased its key interest rate for a second straight meeting and raised its inflation forecast, continuing a gradual pace of normalization while it faces a slumping currency.
The shopping mall comprises over 150 retail brands and services, and more than 70 retail brands are new tenants. (Picture: Keppel Land)SINGAPORE (EDGEPROP) - Keppel Land has officially unveiled a refreshed line-up of retail and lifestyle options at its East Coast shopping mall, i12 Katong. This follows a two-year asset enhancement programme that started in early 2020.See also: Core Collective opens in i12 Katong, launches Singapore’s first medical co-working space Core ClinicThe property develop
SINGAPORE (EDGEPROP) - In the week of June 3 to 11, upcoming development Fyve Derbyshire clocked a psf price high through the sale of a two-bedroom apartment.The 657 sq ft unit is located on the 17th floor, and was sold by the developer Roxy-Pacific Holdings on June 8 for $1.77 million, setting a new psf price record for the development at $2,691. This surpasses the previous psf record price, when a similar two-bedroom unit of the same size on the 18th floor was sold last month for $1.76 million