Talk about 5G is everywhere right now, from the trade war with China to the ban on Huawei. Here's what 5G is and why it matters.Technologyread more
Officials remained firmly committed to a "patient" policy stance at their meeting earlier this month.The Fedread more
A slew of retail earnings the past two weeks makes it clear that while Americans continue to shop, they aren't ringing registers at department stores.Retailread more
A federal judge in New York City on Wednesday said Deutsche Bank and Capitol One can turn over financial documents related to President Donald Trump and his businesses in...Politicsread more
Shares of L Brands, the owner of Victoria's Secret and Bath & Body Works, rose nearly 11% in aftermarket trading Wednesday after the company reported it beat revenue and...Retailread more
Stocks that would benefit from a federal infrastructure spending program fell after President Trump ended a meeting on infrastructure spending with Democratic leaders.Market Insiderread more
Despite the president's claim that "you can't investigate and legislate simultaneously," certain must-pass pieces of legislation, including a debt ceiling hike, will...Politicsread more
CNEX, backed by Microsoft and Dell, filed new allegations in a Texas suit accusing China's Huawei and an executive of trade secrets theft.Technologyread more
Amazon shareholders demanded the company to take action on a number of different issues during its annual shareholder meeting on Wednesday.Technologyread more
Moody's said it's downgrading the outlook for Equifax from stable to negative, citing ongoing fallout from the company's 2018 data breach.Technologyread more
Controversial lawyer Michael Avenatti was indicted on charges of trying to extort athletic shoe giant Nike out of tens of millions of dollars by threatening to go public with...Politicsread more
The suddenly dour forecast for corporate profits in 2015 is accompanying fears that a recession will be close behind.
In fact, the two have gone pretty much hand in hand over the years, which is why a looming earnings pullback in corporate America has sparked concern on Wall Street. Since the end of World War II in 1945, each of the 10 economic recessions has been accompanied by a decline in earnings growth.
Only three times during that period did negative earnings not see a recession follow, according to Sam Stovall, chief equity strategist at S&P Capital IQ.
"While not an official profit recession, as no contraction in EPS growth is currently projected, the full-year growth estimate is getting uncomfortably close to that threshold," Stovall said in a note to clients this week. "And like the recognizable pair of Astaire and Rodgers, downward EPS growth trends and economic recessions also go hand-in-hand."
Whether this is, in fact, a profit recession is in the eye of the beholder and will be determined more fully once first-quarter earnings start rolling in. The early projections are not good.
Projections, though, are just that—estimates, which, historically speaking, generally undershoot actual growth by a substantial margin.
S&P Capital IQ expects the first quarter to show a loss of 2.92 percent for the S&P 500. Current expectations for the second quarter see a loss of 1.84 percent.