No Surprises At Procter & Gamble

Having said this, cost cuts also played a role, just like they have across the board for many companies. What has Mr. Market so excited, as always, is the full-year guidance in which the company indicated sales would be better than previously anticipated. Organic sales should be up 2% to 4%, aided by price increases that will offset a 1% volume decline. Net sales should be up 6%, increasing EPS to $4.02 to $4.12. The shares were up 4% on the news.

Let's See How The Other Chips Fall
The generally upbeat forecasts by companies like Caterpillar and Procter & Gamble confirm that the worst may be over. But that's not saying that the good times are here, either. It's saying that folks are still buying razor blades and laundry detergent. Consumer confidence is still low, and unemployment continues to keep everyone fearful. The fact that a company like Target (NYSE: TGT) or Johnson & Johnson (NYSE: JNJ) can report favorable numbers is more a testament to the specific business, and not to the overall economy. (For more, see A Guide To Consumer Staples.)

With the holiday season coming up, we will get to really see how consumers are feeling about the upcoming year and the future.

Bottom Line
Overall, it's a big positive for the economy to have businesses as entrenched as P&G come out with a favorable outlook. It shows that folks are at least spending something. Also, economies recover in steps, and you have to start with the basic goods first.

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