The second one is stocks backed by companies that can raise prices and earnings in excess of inflation.
And though strong oil prices and disappointing earnings news from technology companies brought the index down on Wednesday, other sectors held firm.
If you act as if the crisis will pass, you will be putting money into the market at a time when fear is keeping prices low and earnings are growing.
More money chasing fewer shares and the multiple of stock prices to both earnings and wages and salaries will increase and multiply.
Their regulated prices made earnings and dividends pretty predictable with basic math.
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They are on the radar of momentum investors, and for a good reason, high growth that has been driving their earnings and stock prices higher.
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We think the U.S. slowdown and global credit market disruptions will pressure earnings, equity prices, commodities and foreign growth more than is reflected in the current consensus.
ArcelorMittal released its second quarter earnings on Wednesday, where it reported an expected drop in revenues and EBITDA as low steel prices and weak demand weighed heavily on the earnings.
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Intel released its Q4 and full year 2011 earnings last week, and the significant growth in average selling prices was one of the prime factors behind the impressive earnings growth.
Companies will spend the money on acquisitions and capital projects that will boost economic growth, spike earnings, and give stock prices a lift.
But with the U.S. economy posting moderate, albeit not robust, economic growth, housing prices recovering and stock prices trading at levels generally deemed reasonable compared with earnings, any pullbacks in the market are expected to be short-lived.
Preferred shares have historically provided diversification benefits relative to bonds and common stocks, though their prices can be impacted by changes in interest rates and earnings.
The calm markets, combined with rising stock prices and better-than-expected earnings, are keeping investors optimistic.
At the same time, volatile commodity prices wreaked havoc on profit margins and earnings.
At some point the fear will dissipate and stock prices will reflect the earnings of the underlying companies.
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Based on a comparison of stock prices to per-share earnings and growth rates, he calculates, small caps now are trading at an 11% premium to large caps.
Earnings and oil prices are attached at the hip.
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Still, a former Fed official and a chief investment strategist note that investors better brace themselves for the second half of the year, when commodity prices and inflation begin to get out of hand and both consumers and earnings feel the pinch.
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Consumer spending is the main driver of corporate earnings, and corporate earnings are ultimately the main driver of stock prices.
In the fourth quarter, LCD prices continued to erode and this will impact earnings.
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Increased operating costs, lower average realized metal prices and increased depreciation charges negatively impacted adjusted earnings, the company said.
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The other was a strong U.S. dollar, which drove down oil prices and deprived the Soviets of hard currency earnings.
Bank clients often use derivatives to cheat on their accounting, manage earnings, goose stock prices and bonuses, and cheat on their taxes.
Better-than-forecasted earnings and rising stock prices are keeping many optimistic, while inflationary pressures and the uneven pace of the economic recovery remain a concern.
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The lack of harmony between growing earnings and declining share prices is most evident in the low valuations of leading firms notably, the two stars of the moment.
The maker of food products rainging from Oreo cookies to A1 steak sauce, announced a jump in sales and earnings thanks to increased prices and a weak dollar.
Value stocks had lowest prices relative to earnings, cash-flow and book value and the highest cash dividends.
Meanwhile, the cost of pension top-ups will eat into companies' earnings and thus depress share prices further.
Managers are motivated by share options and share prices are driven by changes in earnings per share.
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