Upbeat Earnings Season Helps Stock Market

Corporate finance is getting a boost today as companies report better than expected earnings. This earnings season is turning out to be much more upbeat that the last season, which included performances from Quarter 1 of 2009. Apparently, things went a little better in Quarter 2. Breaking News 24/7 reports on some of the earnings that are helping Wall Street along :

Toy maker Hasbro Inc., oilfield services company Halliburton Co. and auto parts and building products maker Johnson Controls Inc. all reported earnings that beat expectations.

Markets already were relieved that second-quarter results from many major American companies have turned out better than expected . Reports this week from American Express, Boeing, and Caterpillar, among others, will likely to provide more clues about any rebound in the world’s largest economy.

There are hopes that the end of the recession may be in sight . Major banks have been reporting better than expected earnings as well as other companies outside the financial sector. Between increasingly positive news about earnings, and news that banks are showing signs of better solvency, it appears that the recession may be drawing to a close. (It’s also a hopeful sign that CIT managed to avoid bankruptcy .) That means better cash flow for a number of companies that have been hurting.

An increase in economic activity in general is a good sign in the corporate world. While earnings are still not what they could be, the fact remains that they are better than expected, and that is providing a degree of optimism. The recession isn’t going to end immediately, but the case for economic contraction to be done with by the end of the year is strengthening . Of course, the end of the recession does not mean that the economic recovery is complete; that will take even more time. But at least the beginning of economic recovery is in sight.

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