Larry Kudlow loves to say "profits are the mother's milk of stock prices."
So what do you take from this when the tit has run dry?
Profits from current production (corporate profits with inventory valuation and capital consumption adjustments) decreased $43.8 billion in the first quarter, in contrast to an increase of $45.4 billion in the fourth. Current-production cash flow (net cash flow with inventory valuation adjustment) -- the internal funds available to corporations for investment -- increased $110.9 billion in the first quarter, in contrast to a decrease of $89.8 billion in the fourth.That is not good. Domestic profits decreased materially and so did international profits by US business....MORE
Thursday, May 30, 2013
GDP Release: Corporate Profits DOWN in Q1
From The Market Ticker:
