REUTERS: NEW YORK (Reuters) - U.S. quarterly earnings so far tell a tale of two economies: those that do big business overseas like IBM are doing well, while companies more dependent on the American consumer like Harley-Davidson Inc are hurting.
There was broad-based weakness in earnings on Thursday from companies exposed primarily to the U.S. economy, as the sharp slowdown crimped demand for goods and services from the iconic Harley motorcycles to Marriott hotel rooms.
Harley-Davidson said it would report full-year earnings well below its forecast, while hotel operator Marriott International Inc said the slowing U.S. economy was taking a toll on travel spending.
"Things that are domestic and exposed to consumer discretionary spending -- absolutely they're having a bad time. This is a recession, and I would say its not time to buy these stocks yet," said David Bianco, chief U.S. equity strategist at UBS in New York.
But investors were encouraged by a strong showing from some of the large multinational companies that benefit from the weak dollar, either through the conversion of overseas profits into greenbacks or because they are more competitive against foreign rivals. US Earnings Tell Tale of Two Economies >>> Analysis by Kristina Cooke | April 17, 2008
The Dawning of a New Dark Age (Paperback - UK)
The Dawning of a New Dark Age (Hardback - UK)
