What Companies’ Earnings Are Telling Us About Where the Market is Headed

From Profit Confidential
January 24, 2013 - 11:11am

Most large-cap companies are not reporting great earnings, and this makes sense. You can’t have runaway earnings in an economy with very slow growth. But corporations are increasing their dividends and improving their balance sheets. If it matters to individuals, large-cap corporations are looking great and any pick-up in business will go right to the bottom line. Canadian National Railway Company (NYSE/CNI), a company with an excellent track record of making money on the stock market, just reported solid earnings that met consensus. The company announced an increase in its quarterly dividend by 15%, representing the 17th time it has done so since 1995. Of course, the stock market is taking all the earnings news with a grain of salt. No one company is blowing the doors off Wall Street estimates. According to the numbers I’m reading, corporations are once again being highly conservati...


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