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Stock Strategist

So Far, Earnings Don't Show Signs of Slowdown

Either the economic indicators are red herrings or corporate earnings are unsustainably high.

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After some mixed results last week, corporate earnings came roaring back this week, as almost all companies beat analyst expectations and raised estimates for the remainder of the year.

Strength was broad based with industrial, pharma, and tech firms all reporting solid results. It wasn't too surprising that emerging markets were a key source of growth. But the fact that North America and even Europe performed well was an unexpected development--especially when considering the growing talk of middling economic indicators and a sputtering economy during the second quarter.

Jeremy Glaser has a position in the following securities mentioned above: MSFT. Find out about Morningstar’s editorial policies.