Sales growth lagged behind profits as companies in the Standard & Poors’ 500 Index beat analysts’ estimates this week, a signal that economic recovery may be slow.
Source: Bloomberg.com
Date: 7/25/2009
Keys: Economy, finance, investing, business cycle
Link: http://www.bloomberg.com/apps/news?pid=20601087&sid=a8SqhtHkyfL4
Questions for discussion:
- Explain what the article says about the relationship between sales revenues and profits.
- Why is this good news and bad news at the same time?
- Which businesses do you think will lead the economy back to better employment levels? Explain your answer.
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