It's Discount Week! 🎁 Pick up new Marketplace gear at a discount when you donate today! Get My Gear!

Don’t look at corporate earnings for clues on how the economy is doing

Sabri Ben-Achour Apr 30, 2019
HTML EMBED:
COPY
Board members watch a video demonstration for the Surface Hub 2 during the Microsoft annual shareholders meeting in Bellevue, Washington, in 2018. Stephen Brashear/Getty Images

Don’t look at corporate earnings for clues on how the economy is doing

Sabri Ben-Achour Apr 30, 2019
Board members watch a video demonstration for the Surface Hub 2 during the Microsoft annual shareholders meeting in Bellevue, Washington, in 2018. Stephen Brashear/Getty Images
HTML EMBED:
COPY

As some economic indicators have become fairly predictable — with a historically low unemployment rate and inflation that’s also pretty low — some may be tempted to look at corporate earnings for clues on how the economy is doing. Major corporations like GM, Apple, Facebook, Alphabet and even McDonald’s issue quarterly earnings reports that offer a glimpse into how they are doing. And those reports have a lot of sway over markets. But it’s important to think that what’s good (or bad) for corporations may not be good for the economy overall.

There’s a lot happening in the world.  Through it all, Marketplace is here for you. 

You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible. 

Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.