Investors Watch US Companies’ Record Profit Margins as Costs Rise Further

Investors Watch US Companies’ Record Profit Margins as Costs Rise Further
Traders work on the floor of the New York Stock Exchange (NYSE) in New York City on Sept. 22, 2021. Brendan McDermid/Reuters
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NEW YORK—U.S. companies have retained strong profit margins through the pandemic because they have cut costs and passed along high prices to customers. The question is: How long can this go on?

With inflation still strong, the ability for companies to keep margins at record levels is being closely watched by some investors and strategists as third-quarter earnings reports from S&P 500 companies are set to arrive next month.