Profits rising at big U.S. firms

Second quarter earnings season continues this week but at a slower pace.

We’ll hear from one Dow member – Disney – on Tuesday afternoon. And 43 companies in the S&P 500 will report results

More than 80% of the companies in the S&P 500 have reported their April-through-June results.

The numbers are coming in well ahead of expectations, boosting investor confidence and helping to drive the stock market higher:

Profits at S&P 500 companies jumped an estimated 24.2% in the three months through June, according to data from Thomson Reuters, more than 2 1/2 times revenue growth in the same period.

Some companies are pushing through price increases due to healthy consumer and business pending as well as concerns about future tariffs, according to The Wall Street Journal.

Corporate profits have received a boost from the cut in the U.S. corporate tax rate to 21% from 35%, the direct impact of which will fade after four quarters under the new law.

The U.S. economy grew at its fastest annual rate in nearly four years this spring, with growth rising 4.1% in the second quarter on a seasonally and inflation-adjusted basis. That was up from a revised rate of 2.2% in the first quarter.

Still, investors remain wary of rising interest rates, trade tension and increasing costs for labor and supplies

Revenue for all S&P 500 companies rose 9.2% from a year ago, according to data from Thomson Reuters, which reflects actual results reported by 406 businesses plus estimates for the remaining members of the index.