A weaker dollar has boosted earnings for multinational U.S. companies like Levi Strauss, Netflix, Pepsi, and 3M, due to increased competitiveness in exports and higher foreign earnings value. The greenback’s 10% loss this year, driven by trade policy changes, is aiding companies with significant revenue from overseas sales.

PepsiCo, relying on international business for 40% of total net revenue, forecasts a smaller annual profit drop thanks to the weaker dollar. Coca-Cola expects annual earnings per share at the top end of its target, aided by a softer greenback. Every 1% depreciation in the dollar historically improves S&P 500 earnings per share growth by 0.6 percentage points.

While a weaker dollar is beneficial, investors remain cautious, looking for signs of real growth amidst consumer spending concerns. A forex tailwind doesn’t always assure investors, who prefer constant-currency beats. Netflix shares fell due to a revenue forecast raise driven by a weaker dollar rather than strong demand. Company earnings like 3M, BlackRock, Garmin, and Omnicom have noted positive currency impacts in their latest reports.

Read more at Yahoo Finance: Dollar’s dive offsets tariff sting for some US bellwethers