The stock market rout over the Summer and the beginning of the year led to a broad decline in animal spirits of the consumer. It’s starting to be readily apparent in the earnings commentary on 1st quarter conference calls as business seems to have mysteriously improved with the rise in the share price in March. It seems the market really is the leading indicator of both the economy and the Fed.
U.S. corporate profits are set to decline for the third straight quarter, the longest and broadest slide in earnings since the financial crisis, weighed down by the energy slump and slowing growth around the world.
Source: U.S. Corporate Profits on Pace for Third Straight Decline – WSJ