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And rather than help investors look beyond earnings to more telling measures of corporate performance, analysts have acted as if earnings were the only indicator worth attending to.
The concerns among business leaders extend well beyond earnings — a Federal Reserve regional survey released Tuesday showed new signs of weakness in the domestic manufacturing sector, even as global growth slows.
Beyond earnings growth, Segarra looks for acceleration of that growth.
Beyond earnings, the market pushed up prices for mining and energy companies as the price of oil, natural gas, metals and other materials rose.
Beyond earnings, traders sent shares in Viacom sharply higher on news that the company reached a new deal with Dish Network for the satellite TV provider to continue to carry Viacom channels.
Beyond earnings, investors welcomed news that printer maker Lexmark International agreed to be bought by a group that includes Apex Technology and PAG Asia Capital for about $2.51 billion.
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In stocks, Bed Bath & Beyond said quarterly earnings improved 29% from last year, and it upped guidance for the year, while Micron Technology posted a narrower loss, as demand for its chips picked up.
Investors in general need to look beyond quarterly earnings.
Beyond 12% earnings per share compound annual growth rate, there is upside optionality from capital deployment and M&A.
The worry is that regulators and owners both seem to be making it harder for bosses to look beyond quarterly earnings.
So with the stock market in a position it has not seen for a decade, think of influences that go beyond corporate earnings, whose growth appears to be slowing, and whether the Federal Reserve is finished raising interest rates for this cycle.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com