Goldman is out with the latest edition of their quarterly corporate “Beige Book,†in which David Kostin and his disciples comb through earnings transcripts in search of clues as to what management teams think is important.
The idea is to discern common themes and then extract management’s take on those themes on a company-by-company basis.
Unsurprisingly, companies are concerned with growth, regulation, and labor inflation.
You’ll recall we took a look at wage pressure and how it affects corporate bottom lines earlier this week when we highlighted a separate note from Goldman in “What Does An Overheating Labor Market Mean For Stocks? I’m Glad You Asked.â€
Here are the bullet points from Goldman’s executive summary:
- Economic growth:Â The recognition of improving sentiment and growth expectations was ubiquitous in 1Q earnings calls, but not all managers have seen it manifesting in higher demand.
- Regulation:Â Managers hoped for widespread deregulation and improved regulatory clarity, but uncertainty remains high.
- Labor inflation:Â The US economy is at full employment and wage growth is accelerating.
And here are some excerpts from the accompanying color.
Via Goldman
