Companies Punished for Investing in Future Business

Reuters reported today,

Strong earnings push S&P through key level
NEW YORK, April 26 (Reuters) – A fresh batch of corporate results pushed U.S. stocks to their best levels since June 2008 on Tuesday, renewing optimism that profit growth will remain resilient enough to keep equities on the rise.
. . .
According to Thomson Reuters data, 35 percent of S&P 500 companies have reported earnings through Tuesday, with 76 percent exceeding analysts’ expectations.

Investors reward companies that dumped workers to improve productivity, but punish those that actually invest in future business:

Amazon profits fall on data investment
Amazon, the world’s largest online retailer, reported a 33 per cent fall in net income for the first quarter as new investments in data storage and distribution eclipsed a rise in sales.
The company had told investors to expect a drop in earnings, but the fall in net income to $201m from $299m was steeper then anticipated – and Amazon warned of a further drop this quarter.

Perhaps it is time to develop a more nuanced view. See,
Field Says Great Depression Time of Advancement
April 21 (Bloomberg) — Alexander Field, professor of economics at the University of Santa Clara, discusses his recent book A Great Leap Forward, in which he posits that the Great Depression set the stage for the post-World War II boom and today’s economy. Field speaks with Bloomberg’s Michael McKee and Sara Eisen on “Bloomberg On the Economy.”