U.S. profits could bounce in 2014 if economy gains steam

By using Caroline Valetkevitch NEW YORK (Reuters) – A much better U.S. financial system might raise 2014 income and raise company spending, giving some relief to buyers concerned about bloated stock costs. Sooner economic growth must translate into better sales growth for the Standard & Terrible's 500 index, and that has investors looking at the approaching fourth-quarter cash studies to see if chief executives sound extra optimistic – and in the event that they plan on spending the big pile of money they’re hoarding. For the S&P 500, fourth-quarter profit growth is predicted to have increased 7.7 % from a 12 months in the past, whereas earnings is expected to have risen just zero.four percent, Thomson Reuters knowledge showed. Analysts at Mizuho Securities noted this week that rising GDP is an efficient predictor of profit increase.