On the surface, the flood of better-than-expected second-quarter earnings reported in July might suggest that a rebound for U.S. business is in full swing. More than three-quarters of companies that had announced results by July 27 topped Wall Street profit predictions. Operating margins-a much watched measure of profitability-were running at an average of 11.6 percent, compared with a more typical 7 percent. Big corporations such as Honeywell, UPS, and FedEx are also forecasting more black ink in the months ahead.
展开▼
