As the first big group of second-quarter earnings reports came out last week, the rosy glow they exuded brightened up the stock market. The Dow-Jones industrial average rose to a new bull-market record of 343.48 at week's end.

Of more than 250 companies that reported for the second quarter, three out of five reported bigger profits than a year ago. Earnings were often up, because of the expiration of the excess-profits tax, even where sales were down. For example, General Electric's half-year profits were up 24% from a year ago to $1.08 a share, despite a 7% sales slump.

Douglas Aircraft...

Want the full story?

Subscribe Now


Get TIME the way you want it

  • One Week Digital Pass — $4.99
  • Monthly Pay-As-You-Go DIGITAL ACCESS$2.99
  • One Year ALL ACCESSJust $30!   Best Deal!
    Print Magazine + Digital Edition + Subscriber-only Content on

Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!