CORPORATE EARNING BONANZA: "America's biggest companies are reporting some of the strongest earnings growth since the recession, boosted by lowered tax rates and a robust U.S. economy that is fueling demand across industries," Thomas Gryta writes in The Wall Street Journal. "Profits at S&P 500 companies jumped an estimated 23.5 percent in the three months through June, according to data from Thomson Reuters, more than 2 1/2 times revenue growth in the same period."
The Republican-backed tax cuts that passed in December were a big reason for the earnings boost, the Journal reports. The legislation reduced corporate taxes to 21 percent, down from 35 percent. Still, the Journal reports, "any lasting tax-related benefits will depend on how companies use the savings" — that is, whether they use it for investments that could spur longer-term growth. More here.
Aug. 2018.
No comments:
Post a Comment