With earnings season now in full swing, it's starting to seem that worries over diminished profits were exaggerated. So far, more than 77% of reporting companies have beaten estimates, and all six Dow Jones Industrial Average
Bank of America
While earnings beats from Coca-Cola and Goldman Sachs helped push the Dow into positive territory yesterday, that optimism has not carried over today, as the Dow is down 0.2% at open. Fed Chairman Ben Bernanke appears to have spooked investors once again, acknowledging slowing growth in the economy but showing reluctance to take immediate action through another round of quantitative easing. Investors can expect some more Fed tea leaves at 2 p.m. EDT today when the central bank releases its Beige Book, the regular economic report from each of its 12 districts. Bernanke will also deliver more remarks to the House Financial Services Committee at 10 a.m. EDT today.
Two more Dow earnings reports are due out after close: financial American Express
Analysts believe American Express, being a luxury brand, could take a hit in the second quarter as its customers cut back on spending due to the stock-market slump. High-end retailers, another indicator for AmEx, saw sales slowing in April and May. The market consensus is EPS of $1.09 for the credit card company, up from $1.07 a year ago.
There was one piece of good economic news to come out this morning. Housing starts in June jumped to an adjusted rate of 760,000, up 6.9% from May's total of 711,000 and 23.6% above June 2011 starts. That beat estimates by 17,000, though new building permits came in below estimates.
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Fool contributor Jeremy Bowman holds no positions in the companies in this article. The Motley Fool owns shares of Coca-Cola, International Business Machines, and Bank of America. The Fool has created a bear call spread position in American Express. Motley Fool newsletter services have recommended buying shares of Coca-Cola and Goldman Sachs Group. Motley Fool newsletter services have recommended creating a synthetic long position in International Business Machines. Motley Fool newsletter services have recommended creating a write covered strangle position in American Express. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.