Posted on 09/06/2011 9:25:16 AM PDT by Signalman
NEW YORK (CNNMoney) -- Corporate America's strong earnings have been pushing stocks higher for more than two years now, but there are early signs that the momentum many companies have had in this miserable economy is beginning to fade away.
Seventy six companies in the S&P 500 have issued warnings that third-quarter earnings were going to be lower than previously expected, according to data compiled from Thomson Reuters. That's up modestly from the same period a year ago.
Meanwhile, stocks have fallen to levels where Wall Street is pricing in little-to-no earnings growth for the rest of the year. The target growth rate for S&P 500 earnings fell to 12% in the past week. That's down from 17% a year ago.
If earnings grow 12% this year, it would mark the slowest growth pace for earnings since the recession officially ended in 2009.
(Excerpt) Read more at money.cnn.com ...
Been wondering when that 3rd leg of the stool was finally going to collapse.
In the end, profits rule all in the stock market. If they go down the market will go down guaranteed.
Unavoidable, as the life blood consumer purchasing power is continuously drained from the country due to the inability to provide employment to 25+ million un/under employed. Look at what you buy, is not made here. We have to make what we import or the death spiral continues.
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