Mon, Jul 8, 2013 3:20 PM EDT 1:05
Walt Disney Co. (DIS) shares never broke stride the day following the box office flop by big budget ?The Lone Ranger.? The stock was up 1.2% , half again as strong as the Dow Jones industrials. And that makes perfect sense. The stock market rose, ahead of the start of earnings season and on increasing confidence that the economy can support profit growth for U.S. companies. After a recent stronger-than-expected U.S. jobs report, investors are more convinced than ever that the Federal Reserve's bond-buying program will be scaled back as soon as September. If that happens, the stock market will lose fuel that helped power the Dow Jones Industrial Average to its new high. Investors hoping that U.S. companies will come to the rescue are likely to be disappointed, according to analysts who have been trimming their expectations in recent weeks.