With second-quarter 2022 earnings reports already making news, the season, as it’s called, is getting fully under way. And while we’ve seen some good reports and some bad ones, none of them individually has moved the market one way or another. That’s about to change.
As the big corporate names that draw headlines report, investors are going to start reacting to bottom-line trends, and the market’s going to move one way or another.
As inflation is going to focus analysts and investors on corporate profit margins. How a company’s margins get impacted by input costs (materials, labor, capital), as well as their ability or inability to pass along costs to consumers, will be right up there this season with bottom-line earnings news.
This article first appeared in Money Morning.