The early recovery of the profits of heavy cost-cutting. Away by cutting costs, companies can generate profits business much less than it was before the recession began at the end of 2007. Then, the bottom of the smaller companies recently got a boost from government stimulus spending and heavy interest rates are low standard. Investors will be looking for signs that companies can continue to do better even after the government canceled support in emergency situations and companies do more than just replacing depletion. 

"In response to a big question on many people's minds is: Well, what is the work next?" Said Stud Schweitzer, global markets strategist at JP Morgan, especially in New York.


The companies expect to provide and are often much more important than the gains that the report because investors are paying for the shares for a share of company profits in the future. In the last week, rose Standard & Poor's 500 Index to a 18-month high amid expectations that companies are becoming stronger.

Estimated earnings growth rate in the first quarter of the companies that make up the S & P 500 Index from 37 percent, according to analysts polled by Thomson Reuters. Investors get a taste of the first profits from the first quarter of the year when major companies such as Alcoa Inc., Intel Corp. and JP Morgan Chase & Co. report results this week.

"How can we make money?" Said Mike Shear, managing partner in a limited liability company direct access partners in New York. "If we continue to improve productivity and this is not something wrong with it, but I think that what we are looking for is us to provide more things? Do we sell more stuff? A greater number of people at work?"

Even if the news is encouraging, and investors can still see a decrease in stocks, at least in the beginning. Turn the stock market in decline, as did profits in the last two quarters. Once in most of the profits came as well as expected, emerged as some investors shares and run far enough.

In the October index Standard & Poor's 500 Index 5.6 percent after third-quarter profit exceeded the year is out. In January when they lost the results of the last three months of 2009 rolled in, and Standard & Poor's 500 Index 8.1 percent. Market resumed its climb once, and released most of the profits.

There are reasons for optimism that the coming months will show a significant increase in revenue and higher profits. The best sign is that the government reported the economy and employment in March at the fastest rate of growth in three years.

Retailers have been doing better than expected. The government said last month that retail sales rose in February, despite expectations of analysts because of bad weather in large parts of the country to keep shoppers away. Last week, retailers reported sales in stores open at least a year rose more than expected in March.

Consumer spending is the largest program of the economy, in order to improve he will not spill over to a huge range of businesses.

He warned Tim Spies, Chief Advisor of the exercise of personal wealth in the Eisner Law Firm in New York, that consumers still will not be able to spend a bit more because it is difficult to borrow money, and that unemployment remains stubbornly high at 9.7 percent.

The Spies pace of the recovery of profits it all comes to jobs, because without gains in employment, consumers will not spend, and this means that companies will find it difficult to continue to improve the line of the bottom - the most important thing that investors in securities care.

"It's all about how quickly and we put a big dent meaningful in the unemployment rate," said Spies. "Where is going to come from revenue growth when you know the American consumer has had a glass ceiling and placed on top of them?"