While the U.S. economy suffers, the companies in Latin America and china enjoy good health.
A short time after second quarter results, profits of companies in the Standard & Poor’s 500 are the highest in four years, according to analysts who predict that the second half will be even more solid.
However, there is little evidence that the positive results will resuscitate the U.S. economy and help millions of unemployed Americans back into the labor market. And this is troublesome for stocks for dummies traders, who want a market rally to be supported by job growth.
About 75% of companies have reported their figures so far, as better than expected by analysts .Many of them, from Caterpillar Inc. To Abbott Laboratories, raised their earnings outlook for the second half.
Corporate profits, one of the few strengths in the weak U.S. recovery, appear to be weathering the storm. Still, in many cases, earnings came from international operations, particularly in emerging markets that do not have debt problems and other uncertainties which have plagued the U.S. economy and Europe.
“We’re not creating jobs,” admitted the chief financial officer of Air Products & Chemicals Inc., during a conference call with analysts Friday.
The company, which sells argon, oxygen and other industrial gases to retail, manufacturing and construction, provides capital investment divided equally between the Americas and Asia this year, but the growth this year is in Asia.
Companies as diverse as industrial conglomerate United Technologies Corp., toy maker Hasbro Inc. And fast-food giant McDonald’s said the strength of its operations outside the U.S.