U.S. stocks notched new 52-week highs again on Monday, thanks to corporate America showing better-than-expected profits. But that optimism belies deep worries among company executives about the strength of the economic recovery.
Tool maker Black & Decker Corp. said earnings this quarter will be roughly twice its earlier forecast, while Dutch consumer-goods conglomerate Royal Philips Electronics NV also reported an unexpected profit. The Dow Jones Industrial Average rose 20.86 points to 9885.80, its highest since Oct. 6, 2008. The S&P added 4.7 points to 1076.19.
Freight tonnage at YRC was down 35.3% from a year earlier in the second quarter. Mr. Zollars says he hasn't seen his clients, who range from retailers to heavy industry, doing much restocking to prepare for increased business.
In coming weeks, the details of earnings reports -- including items such as capital expenditures, as well as revenues for companies that sell capital goods -- will demonstrate the extent to which executives are turning their relative optimism and cash into actual investment.
