Ed Yardeni writes:
Business sales of goods rose to a new record high of $15.3 trillion (saar) in the US during December. They are up 3.6% y/y. That’s all good news and supports our view that the y/y growth rates in both S&P 500 revenues and earnings should rebound from 1.1% and 1.4%, respectively, during Q3-2012 to 5%-7% this year. (So far, the Q4-2012 company reports suggest that revenues are up around 3.7% and earnings are up 6.3% compared to a year ago.) The resilience of the US economy late last year, as the dreaded fiscal cliff seemed imminent, was impressive.
Gee, I wonder why.