Start of Earnings Season – better than expected
According to Marco Lettieri, NBF Analyst, of the 2½% of S&P 500 companies that have reported earnings:
+ EPS up 23%, positive surprise of 8.9%
+ Sales growth up 6.3%, positive surprise of 4.7%
+ 85% of reported companies showing stronger than expected EPS, such as: Google, JP Morgan, Citigroup, Alcoa, and Mattel
+ Canada’s Corus Entertainment Q3 profits rose 39% – annual dividend increased by 12 cents to $0.87
Next week: big reporting week, 109 of 500 companies reporting!
+ Volkswagen posted a record 4.1 million deliveries in the first half of 2011. YTD sales rose16% in China, VW’s largest market, to 1.1 million autos.
+ Asia’s appetite for pizza has increased their demand for cheese, causing wholesale cheddar cheese prices to jump 49% YTD. US exports to South Korea have tripled, and China’s have more than doubled.
+ US industrial production increased 0.2% in June, less than analyst’s expectations of 0.3%.