When all you read is gloom, turn here for a much different perspective.

Wednesday, October 7, 2009

Q3 Earnings Season Underscores Rebound

While skeptics remain, Q3 earnings season kicked off on Wednesday with almost all those announcing earnings surprising to the upside.

Alcoa, the firm which much earlier in the year pegged the global turnaround, swung to a profit in Q3. "We do clearly see growth, substantial growth ... in China," Alcoa CEO Klaus Kleinfeld told reporters. "The second half of the year is clearly better than the first half in many industries and many regions." You may remember Kleinfeld's "giant sucking sound" of demand predictions.

Google also reasserted our sentiment of several months now, "We are clearly seeing aspects of recovery, and what is notable is that we’re seeing aspects of recovery not just in the United States but in Europe... We never stopped hiring, but we told our team internally and we’ve said to many other people that we are increase our hiring rate and our investment rate in anticipation of a recovery."

Our favorite perma-doomsters like Nouriel Roubini continue to beat the drum of "double dip recession", but the Q3 earnings results will paint a much different picture.


  1. GNE,

    Shouldn't we be concerned about the impact of commercial real estate's collapse on the econonmy if the FED is concerned about its impact (see yesterday's article in the WSJ)?

  2. GNE,

    Any problems with a rebound in commercial real estate would be ground for concern. I just don't see it. Do you?

    Additionally folks continue to forget that the commercial real estate market is a fraction of the residential market. A return to health in the residential space is more important for overall economic health. Earlier this week we had another significant jump in refi apps and new home applications which is continued good news for the residential housing market recovery.


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  4. GNE - Cheers on October 14th!

    DOW reaches 10,000- and earnings reports are great! I'm waiting for the end of October to see how Q3 will all pan out, but hopeful so far.

    Best wishes,

  5. Rofgile,

    Indeed a great milestone. Earnings no doubt will continue to be strong for some time to come. Stimulus dollars are just now making it into projects.



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