According to the Globe and Mail, the profits of the companies that make up the S&P 500 are rising at a record pace.
It’s the final week of peak earnings and profit reports for the S&P 500 and the results are on pace for a record-setting fourteenth consecutive quarter of double-digit gains, according to Thomson Financial.
By the end of the week about three-quarters of the companies in the index will have reported fourth-quarter results, while 80 per cent of the companies comprising the Dow Jones industrial index will have posted results.
The previous record of 13 consecutive quarters of double-digit growth ended in the fourth quarter of 1995.
So far during the reporting season, blended earnings for the S&P 500 are up 10.4 per cent, a figure which combines the actual earnings reported with the profit estimates of the companies yet to report. The growth rate is higher than the 9.9 per cent growth expected at the end of the previous week, but below the 12.8 per cent estimated projected at the beginning of the quarter, according to Thomson First Call.