Companies may finally see more reason to invest back into their businesses, thanks in part to their hope for less regulation.
The first quarterly earnings reports since the election point not only to another quarter of growth but also general optimism in business plans to spend on equipment and hiring. That aspect of business is known as "capital expenditure," and its lackluster growth since the financial crisis of 2008 has contributed to the sluggish economic recovery.
Now it looks as if capital spending may finally be set to pick up. The economy is improving, and businesses could get a boost from new policies under the Trumpadministration.
"I see a tone change in how the CEOs are speaking about earnings," said JJ Kinahan, chief strategist at TD Ameritrade. "They, by and large, are talking about growth rather than about being able to meet targets."