Flashing Red Warning: Q1 Earnings Growth Plunges To Lowest Since 2012

Tyler Durden's picture


While the so-called "experts" were adamant in repeating that one must ignore all Q1 economic data (because of harsh weather you know), one thing the same "experts" pounded the table on was the earnings growth in 2014 which confirmed that the Fed was correct in tapering and that the corporate sector was well on its way to achieving "escape velocity" and a stable recovery. And then this happened...


Oh, and this too.

h/t @Not_Jim_Cramer

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Mon, 04/14/2014 - 09:59 | 4656588 Calculus99
Calculus99's picture

Love the way these crappy phrases like 'green shoots' and 'escape velocity' come and go. Haven't heard 'escape velocity' now for a few weeks.

The MSM look like they need a new one.

Mon, 04/14/2014 - 10:03 | 4656599 the not so migh...
the not so mighty maximiza's picture

Glorious rebirth from the never closing womb

Mon, 04/14/2014 - 10:11 | 4656623 max2205
max2205's picture

Gushing sarcasm

Mon, 04/14/2014 - 10:13 | 4656632 pods
pods's picture

Festering pustule.


Mon, 04/14/2014 - 10:59 | 4656833 I am more equal...
I am more equal than others's picture




This economy needs a triple shot of Viagra to keep it up. 

Mon, 04/14/2014 - 12:23 | 4657223 Cattender
Cattender's picture

i like Horny Goat Weed myself..

Mon, 04/14/2014 - 12:41 | 4657289 dontgoforit
dontgoforit's picture

Baby boomers have quit spending - retirement's gonna be a bitch, broke.

Mon, 04/14/2014 - 10:16 | 4656641 Iam_Silverman
Iam_Silverman's picture

It is a very mattering thing.

Mon, 04/14/2014 - 10:13 | 4656631 Chuck Knoblauch
Chuck Knoblauch's picture

change the channel

Mon, 04/14/2014 - 10:56 | 4656814 tradingdaze
tradingdaze's picture

Raucus Piffle.

Mon, 04/14/2014 - 10:00 | 4656591 Max Damage
Max Damage's picture


Mon, 04/14/2014 - 10:02 | 4656595 Winston Churchill
Winston Churchill's picture


Mon, 04/14/2014 - 10:21 | 4656655 franzpick
franzpick's picture

Let's just see NON-CRAP earnings.

Mon, 04/14/2014 - 10:08 | 4656612 Hal n back
Hal n back's picture

Max--its ez to forget NON GAAP reporting and how recurring those non recurring expenses are. GOOG had somehitng like 4 billion of non recurring expenses the last 6 qtrs. When does non recurring becoem recurring?

Its also ez to forget mark to fantasy accounting by the banks.Who the heck knows what real earnings are now anyway?


Same as who really knows what the real cost of Obamacare is going to be although we know taxes are implemented and they pretty much have delayed implementation.


Next President gets to deal wth that.




Mon, 04/14/2014 - 10:11 | 4656622 Keyser
Keyser's picture

What, like the last 5 persidents have dealt with it? Nothing will change until confidence is lost in the monetary system. 

Mon, 04/14/2014 - 10:21 | 4656656 Lewshine
Lewshine's picture

I'm watching level two flows - Its hilarious! This market is trying to sell off BUT the invisible hand keeps banging a surge on every sell volume move. The extreme desperation is palpable.

Mon, 04/14/2014 - 11:14 | 4656892 Max Damage
Max Damage's picture

Yes they forget that the market is not the economy. The economy is fucked, and the market will at some point get fucked

Mon, 04/14/2014 - 11:18 | 4656912 SheepDog-One
SheepDog-One's picture

No one to sell to except another comter, and they probably can't build those fast enough.

Mon, 04/14/2014 - 13:40 | 4657488 LooseLee
LooseLee's picture

The PINKO COMMIE Fascist BASTARDS are doing all they can to deceive the masses. When the masses 'wake up' there will be HELL to pay (not that I have much faith in the masses awakening)...STARVE the BEAST!

Mon, 04/14/2014 - 10:04 | 4656600 BlindMonkey
BlindMonkey's picture

Job slashing and productivity improvements must have completely stalled out.  Not many more options to massage better numbers out of the existing workforce.  I expect the buybacks to stop since a lot of that was the company buying stock as the execs cashed out.  

Mon, 04/14/2014 - 10:12 | 4656624 Winston Churchill
Winston Churchill's picture

Markets fading.

Looks like its SLR sell the ramp from now on.

Mon, 04/14/2014 - 10:26 | 4656671 BlindMonkey
BlindMonkey's picture

I need it to hold on for just a little longer until my RSU vest for the year....Come on all you motherfuckers, BTFD!!

Mon, 04/14/2014 - 10:28 | 4656679 franzpick
franzpick's picture

During the last 2 years, adhering to the old adage "Never sell a quiet market after a rise" kept you in right to the Jan top.

We no longer have a quiet market after a rise.

Mon, 04/14/2014 - 10:06 | 4656602 HRamos_3
HRamos_3's picture

Up up & away! Bullish!

Mon, 04/14/2014 - 10:06 | 4656604 Loucleve
Loucleve's picture

It is amazing, I know, but it seems CNBC has actually, finally figured out that there is an alternative media out there.

Unbelievably, they are ACKNOWLEDGING - on TV - that earnings expectations have been FALLING/revised down every quarter.

And then they go back to the "well, now corps should beat" meme.

Its a start, I guess.

Mon, 04/14/2014 - 10:06 | 4656605 Dr. Engali
Dr. Engali's picture

Then you get this crap from Morgan Stanley:



Morgan Stanley: Why earning will be better than you think



Mon, 04/14/2014 - 10:11 | 4656606 TaperProof
TaperProof's picture

Imagine if markets traded on fundamentals and reality where this graph matters.    Smooth sailing until electons, then its plunge time.

Mon, 04/14/2014 - 10:12 | 4656626 Quinvarius
Quinvarius's picture

Unless the bankers have had enough Socialism and decide to bury Obama and his friends to kiss up to the next administration. 

Mon, 04/14/2014 - 10:14 | 4656634 the not so migh...
the not so mighty maximiza's picture

yeah they need a new fall guy, Barry is wearing thin

Mon, 04/14/2014 - 12:17 | 4657198 rosiescenario
rosiescenario's picture

I imagine a fundamentally valued market at 50% of its current MOMO valued level....but then, I am an optimist.

Mon, 04/14/2014 - 10:11 | 4656617 LawsofPhysics
LawsofPhysics's picture

More "growth" horeshit?  Growth in what, real products of real value?


Growth in financial "products" of mass destruction?  No thanks.

Mon, 04/14/2014 - 10:29 | 4656625 TaperProof
TaperProof's picture

Growth in manipulation to pump up the phony stocks market because its all thats left.

Mon, 04/14/2014 - 10:10 | 4656619 Hal n back
Hal n back's picture

When Family Dollar Stores closes 370 locations you know the consumer is just buying bare necessities--and if they buy a car they default on their subprime loan  but have a new car to drive for a few months


Mon, 04/14/2014 - 10:14 | 4656636 intric8
intric8's picture

QE infinity, WAHOOOOO!!!!!!!!! Seriously, at some point there has to be a reversal in the markets response to seemingly unlimited bond buying, in that, the market will note the lack of response, ie, futility of that practice and decide to discipline itself. Theres a general consciousness about moral hazard; even though no clear line is drawn, everyone will sense when weve gone to far and that will be that. We are close. When our deficit reaches 19 trillionish, there will be a most uncomfortable and unsettling buzz about the populace, and coupled with a plethora of other disconcerting developments, it could be the trigger for massive unrest - exactly the kind that our authorities and federal govt are planning for

Mon, 04/14/2014 - 10:14 | 4656637 Smegley Wanxalot
Smegley Wanxalot's picture

The unexpected snowfall in winter is going to be the end of us all!

Mon, 04/14/2014 - 10:14 | 4656638 Iam Yue2
Iam Yue2's picture

Hats off to Hatzius.

Mon, 04/14/2014 - 10:22 | 4656657 youngman
youngman's picture

You need to turn to Bob Pissonme for positivie news.....hes a happy guy..

Mon, 04/14/2014 - 10:24 | 4656661 Its_the_economy...
Mon, 04/14/2014 - 10:28 | 4656682 saveUSsavers
saveUSsavers's picture

Joe LaFornicatya has the numbers !

Mon, 04/14/2014 - 10:38 | 4656729 franzpick
franzpick's picture

When companies like HPQ factor $5 Bil of receivables in order to brag of $9 Bil of free cash flow, hiding it in the footnotes, and the street buys it, earnings and accounting trouble are just a click away.

Mon, 04/14/2014 - 10:46 | 4656760 BullyBearish
BullyBearish's picture

Early in the week, they start by sucking in a few more shorts after a gap up open, then pound the market up through Tuesday.  Then reality sets in and down she goes.  Textbook "stairstepping" down.  As controlled as it can be.

Mon, 04/14/2014 - 10:57 | 4656824 HRamos_3
HRamos_3's picture

Wrong as always. Nothing new to see here, move along.

Mon, 04/14/2014 - 11:05 | 4656861 what's that smell
what's that smell's picture

red flashing warning....BTFD! another momo higher-all-day rally with a 3:30 ramp.


no worries; machines doing their thing.


trading with machines is fun..

Mon, 04/14/2014 - 11:15 | 4656895 SheepDog-One
SheepDog-One's picture

Retail sales up, but profits down? So the margins are getting strangulation tight again.

Mon, 04/14/2014 - 12:21 | 4657219 rosiescenario
rosiescenario's picture

With the ability to do almost instant price comparisons on the internet, the lowest price gets the biz.


I thought that the internet would bring massive margin compression.....as usual I was a few years early, but better late than never.



Mon, 04/14/2014 - 11:22 | 4656942 papaswamp
papaswamp's picture

It will be interesting to see the Q2 predictions. Many expect a March to April snap back and then drop again. Q2 may be the real disappointment.

Mon, 04/14/2014 - 11:38 | 4656951 Itchy and Scratchy
Itchy and Scratchy's picture

Earnings smearnings! Cash flow is over-rated!

Mon, 04/14/2014 - 11:46 | 4657031 Spungo
Spungo's picture

GAAP That Ass, starring Katja Kassin

Mon, 04/14/2014 - 11:50 | 4657047 Comte d'herblay
Comte d'herblay's picture

The FED isn't 'tapering'.  It SAYS it's tapering, it publishes figures that try to convince you of that, but the real story is that they have never tapered and are quietly with no fanfare, (in other words lying thru their Monte Cristo stained dentures) supporting the 12 primary dealers' executives, and managers. 

If you buy the FED's inscrutable iterations each month, then you really at this time of the year be searching feverishly for the Easter Bunny or checking out that tomb in Iran that supposedly was the crypt for Jesus. 

Mon, 04/14/2014 - 11:53 | 4657060 q99x2
q99x2's picture

The globalists do not need US growth. The West which is Canada, the US, Mexico and Western Europe are all one financial system. The US can pay Ukraine's bills and money printing can be re-imbursed by taxes on the French. Inflation can be buried in derivatives sold to China and the US military takes its orders from the UN--so does Obama.

The NWO has taken over all nations equally. 

Plain to see. If you have money (millionaires, billionaires) they'll be coming for it soon.

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