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Still Think First Quarter Earnings Were Strong? Then Look At This Chart
Yup: strong corporate profits. Strong like bull(shit).
from BofA:
Contribution to annualized nominal 1Q GDI growth: Real Gross Domestic Income plunged 2.6% in 1Q, nearly matching the decline in GDP. Looking at the components (only available in nominal terms), the biggest driver of the decline was a collapse in corporate profits, which offset a trend-like increase in wages and salaries. The decline in corporate profits is indicative of weaker aggregate demand and a drop in productivity.
All, conveniently predicted right here. But... but... 5% non-GAAP EPS growth!
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I'm going to suggest that the JHK commentary that ZH has been putting up on Monday's not be done today. His first sentence "F
or public consumption, the fatuous haircut-in-search-of-a-brain" sets his tone, and it's not constructive.
Bullish!
More Bullish!
-1 misspelled moar
Post the Santelli rage from a few minutes back. It was EPIC! I'll bet he resigns before the close
I hope Rick is getting paid well. Stopped watching CNBC a while ago. Couldn't take it any more.
Who knows whats pushing this market today?
Money from overseas flooding in because of the mess increasing there.
Cleanest shirt in feces cover laundry pile is current phenomena, but do not to be fooled by slow velocity of money, soon even clean shirt is soil by excrement.
What is push market every day for last 5 year? Monetization. If Central Bank are printing of more money, where is money first to go but is invest in stock market and paper product. But you are watch patient, day is soon come when is "new" money is flee paper market and is chase commodity and real goods. Brace you are self for day of reckoning as bankster money is move from soft asset to hard asset and money supply is dilution of new money. Paltry dollar of citizenry cannot is compete with Trillions from bankster class.
... but what is Boris know?!
Non-GAAP!
Fellas, GAAP has already got more holes than Swiss Cheese, so when someone tells you its 'non-GAAP', look out!
If you're not convinced, the government uses non-GAAP. That thought should keep you awake at night.
Go RICK
http://video.cnbc.com/gallery/?video=3000069878#eyJ2aWQiOiIzMDAwMjkyNDI1...
I'm going to suggest that the JHK commentary that ZH has been putting up on Monday's not be done today. His first sentence "For public consumption, the fatuous haircut-in-search-of-a-brain" sets his tone, and it's not constructive, nor does it add any value to the important topics covered by ZH.
Suggest ZH start fading out JHK, and using more Richard Heinberg instead.
The only thing we have to fear is growth.
If we really start growing then the Fed cuts the umbilical cord keeping us alive and we all die.
Once an economy or corporation(or country) is so weakened,,growth(overtrading)
usually causes immediate bankruptcy.
Be careful what you wish for.
Does that mean my IPHONE will work?
Does that mean BlackFriday Sales will still be there in 2014?
i'm confused. does this mean i should be buying stock?
How can you possibly be confused?
Uncle sam is doing it with your money for you.
ALOT of stock!
Yes, if you mean the kind of stock you stack in your basement.
but the guy on the radio said, "normalizing" P/E's are a buy signal even though we are at nominal ATH's!
I've heard that any stock with a PE below 200 is a super buy and when it hits 300 you should take out a loan to buy it all!
and you said Germany had no chance!
Obama executive initiative signed from golf course today: no retail stockholder is allowed to sell a stock with PE below 1,000.
In this new DOT social media anything under a PE 1,000 is reasonably prices.
We have to beat the PE's of the last DOT COM bubble.
Bottom line. Keep the indexes going higher. Everything else doesn't matter.
All about higher EPS!! Borrow @ 0%, buy your own stock and increase EPS. get higher bonusus based on EPS and continue to keep profits overseas.
I don't see how this could go wrong?
While at it, 5000SQFT mansion, new car, boat and Disney vacation, cruises. Good times are here again.
5000 sqft is not a mansion, it is a guest house.
I thought that is where they let the nannie and butler live.
The Federal Reserve has to make this bubble much bigger, while denying there is one.
Repeat of the last plan, only much larger.
Moar bad is good, up is down, left is right, black is white...............
I'm curious. If the markets are up on absolutely no news today will they sell off on a good retail sales print tomorrow? (good news is bad news because rates may rise sooner, and QE gets unwound sooner)
Or did someone leak the retail sales numbers early? The fx(risk) markets are dead other than the 50 pips in usd/jpy overnight. The corpse(equity markets) are having death spasms...
As the dollar goes to ZERO, earnings go to INFINITY. Bernanke's Law.
Throw some 'one time write downs' and a share repurchase in and viola, you have great EPS to tout.
While ZH reprints anything bearish or negative, regardless of its merit, ML economists should know better. Relative to Q4, Q1 profits were severely affected to the downside by the expiration of bonus depreciation provisions.
See the following explanation from the GDP accounts:
"Profits from current production (corporate profits with inventory valuation adjustment (IVA) and capital consumption adjustment (CCAdj)) decreased $198.3 billion in the first quarter, in contrast to an increase of $47.1 billion in the fourth. The IVA decreased $33.2 billion, compared with a decrease of $0.5 billion. The CCAdj decreased $195.3 billion, compared with a decrease of $1.5 billion. The IVA and CCAdj convert inventory withdrawals and depreciation of fixed assets reported on a tax-return, historical-cost basis to the current-cost economic measures used in the national income and product accounts. Taxes on corporate income increased $27.8 billion in the first quarter, compared with an increase of $13.3 billion in the fourth. Profits after tax with IVA and CCAdj decreased $226.0 billion, in contrast to an increase of $33.8 billion. The first-quarter changes in taxes on corporate income and in the CCAdj mainly reflect the expiration of bonus depreciation provisions."
Did you seriously just argue ZH is wrong because "the government says so?"
These are government numbers -- I was just providing the government's explanation of why the data, that it produced, showed what it did in this particular quarter. Just reporting numbers without any background or context is ridiculous -- too much of that on this (and other) sites --cherrypicking everything that fits your agenda (and twisting that which does not so that it does) hinders credibility when you actually have something valid to say.
That chart means as long as we keep getting raises everything will keep going up, right?
hahahaha does anyone seriously think fundamentals matter?