Three Booming Sectors.

It’s still early in Q3 earnings season but 71% of the reports so far have beaten expectations. Some industries are doing quite well. Alex Rosenberg of CNBC notes that we’re seeing 50% earnings growth in automobiles, airlines and construction materials.

“Those are the sectors not tied to commodities, and they also benefit from low rates. That’s the sweet spot right now,” commented Eddy Elfenbein, editor of the “Crossing Wall Street” blog.

And perhaps in the spirit of finding a phoenix amid the ashes, Elfenbein says that the fact that these companies are making it happen is actually good news.

“All in all, this bodes well for the economy, since these are the early cyclicals,” Elfenbein told CNBC in an email, adding: “Yes, six years after the recession ended, the early cyclicals are moving.”

The hope, of course, is that strength in these consumer-reliant sectors points to positive news ahead for the economy and stocks alike, as the “cycle” blooms.

Posted by on October 19th, 2015 at 11:08 am


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