Buckle Up: Profits Are Falling, the Fed is Cornered, and the Uptrend Has Been Broken.

Monday, September 21, 2015
By Paul Martin

by Phoenix Capital Research
ZeroHedge.com
09/21/2015

The stock market is rapidly running out of props.

First off, corporate sales and profits are rolling over. As Charlie Bilello recently noted, we’ve had two straight quarters of Year over Years drops in corporate revenues.

Moreover, corporate profits are also falling at a pace usually associated with recessions:

Profit growth for the S&P 500 companies is at its weakest point since 2009. That’s because, in fact, there isn’t any profit growth.

S&P 500 earnings for the first half of the year are expected to show a 0.7% contraction compared to a year ago, according to numbers from FactSet research. Growth in the first quarter was a meager 1.1%, but the second quarter is more than offsetting that, expected to contract at a 2.2% rate, FactSet estimates. The last time the S&P 500 saw a year-over-year decline for the first half of a year was 2009, when earnings positively cratered at the depths of the global recession, down 30.9%.

Source: Wall Street Journal

With the fundamentals no longer supporting a stock rally, this leaves the Fed and momentum as the sole providers of support for stocks.

The Rest…HERE

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