While skeptics remain, Q3 earnings season kicked off on Wednesday with almost all those announcing earnings surprising to the upside.
Alcoa, the firm which much earlier in the year pegged the global turnaround, swung to a profit in Q3. “We do clearly see growth, substantial growth … in China,” Alcoa CEO Klaus Kleinfeld told reporters. “The second half of the year is clearly better than the first half in many industries and many regions.” You may remember Kleinfeld’s “giant sucking sound” of demand predictions.
Google also reasserted our sentiment of several months now, “We are clearly seeing aspects of recovery, and what is notable is that we’re seeing aspects of recovery not just in the United States but in Europe… We never stopped hiring, but we told our team internally and we’ve said to many other people that we are increase our hiring rate and our investment rate in anticipation of a recovery.”
Our favorite perma-doomsters like Nouriel Roubini continue to beat the drum of “double dip recession”, but the Q3 earnings results will paint a much different picture.
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