MONEY & MARKETS • CORPORATE PROFITS
$40.4 billion. That’s how much US corporate profits grew last quarter, total. Sounds big until you look at the quarter before that one — when profits grew $246.9 billion. Six times more. The Bureau of Economic Analysis dropped this number yesterday morning, alongside a downward revision to Q1 GDP. Wall Street closed at all-time highs the same day. Think about that for a second. Stocks are pricing in a profit machine that just downshifted by 84% in a single quarter. You can have one of those two things. You can’t have both for long.
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The market is trading at a record on the same week corporate profit growth fell off a cliff — somebody is wrong, and history says it isn’t the BEA.
