S&;P 500 Index Hits Four Month High as 72 Percent of Companies Who Have Reported Earnings Have Beat Estimates
August 09, 2012 08:20 ET
S&P 500 Index Hits Four Month High as 72 Percent of Companies Who Have Reported Earnings Have Beat Estimates
Five Star Equities Provides Stock Research on Caterpillar and Deere & Company
NEW YORK, NY--(Marketwire - Aug 9, 2012) - A string of better-than-estimated earnings and increased speculation that will take stimulus measures if needed to boost economies have sent the S&P 500 Index to a high not seen since April. The S&P 500 Index reached 1407.14 on Tuesday, and has rallied approximately 11 percent for the year. Five Star Equities examines the outlook for companies in the S&P 500 Index and provides equity research on Caterpillar Inc. (
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Data collected from Bloomberg have shown that of the S&P 500 companies who have reported second-quarter earnings 72 percent of them have topped estimates. Comments made last week from European Central Bank President Mario Draghi helped eased concerns regarding the regions debt crisis. Draghi commented that the central bank could start buying government bonds of indebted countries if need be.
"The fear of things collapsing is going away," said Tom Wirth, senior investment officer for Chemung Canal Trust Co. "The recession, which everyone was concerned about a month ago, is not going to happen. There's a perception that the ECB is willing to buy bonds if needed."
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Caterpillar reported second-quarter 2012 profit per share of $2.54, an all-time quarterly record, and a 67 percent increase from second-quarter 2011 profit per share of $1.52. Sales and revenues were $17.374 billion, also an all-time record, and a 22-percent increase from second-quarter 2011 sales and revenues of $14.230 billion.
Net income attributable to Deere & Company was a record $1.056 billion, or $2.61 per share, for the second quarter ended April 30, compared with $904.3 million, or $2.12 per share, for the same period last year. Worldwide net sales and revenues increased 12 percent, to $10.009 billion, for the second quarter.
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