Thomson Director: Earnings Slowdown Isn't Necessarily Bad News

Michael Thompson expects 3.3% growth in first quarter earnings for the entire S&P 500. But the managing director of global research at Thomson Financial says that figure isn't necessarily bad news. He joined CNBC's Mark Haines and Erin Burnett on "Morning Call" to explain why.

Thompson pointed out that 3.3% profit growth looks worse by contrast, as investors have grown accustomed to 14 consecutive quarters of double-digit increases. But he noted that amid many market variables, "what we do know is that [the growth estimate] isn't static" -- and looking forward, it might even constitute a bottom in this "classic mid-cycle slowdown."

The managing director expects 6% or more earnings growth for the second quarter and a steady increase, "looking at 13%" for the first quarter of 2008.

Thompson also agreed with Haines' conjecture that there may be an "upside surprise" of some 3% to 5% extra, resulting in 6% to 8% profit growth.