U.S. Companies' Profit Margin Growth Probably Will Continue To Shrink

Of the 481 S&P 500 companies that have reported thus far, about 58% have topped revenue estimates and approximately 68% have exceeded earnings projections, per data compiled by Bloomberg. Results have been mixed, along with guidance as corporations try to determine the ultimate impact of the aggressive Fed monetary policy tightening on the economy and profit margins. Rob Fleming discusses this, saying we believe U.S. companies' profit margin growth probably will continue to shrink, we think investors who actively choose stocks should look for companies that have maintained—and still expect—strong profit margins. For most of the past year, the stocks of companies with proven profitability have commanded a premium. As the economy continues to slow, we don't see that leadership fading soon. Tune in to find out more about the stock market today.