Corporate America Impresses

Companies have done an admirable job growing profits—considering several stiff headwinds that they’ve faced. Despite slowing global economic growth, weakness in capital investment and manufacturing, a strong U.S. dollar, and a huge drop in energy sector profits, S&P 500 companies impressively ground out betterthan-expected overall earnings growth of 1–2 percentage points during the fourth quarter of 2019. That earnings gain may cement Q3 2019 as the trough, which we think should end talk of another earnings
recession [FIGURE 1].

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