"Have profits peaked at American businesses?"

From The Economist, October 9

The forces which fuelled a decades-long rise in corporate earnings are petering out—or going into reverse

Fedex nearly failed to get its wheels off the ground. Months after it first began delivering packages overnight in 1973, the first oil shock buffeted the global economy and the young logistics firm looked destined to fail. As the Organisation of the Petroleum Exporting Countries once again sent shock waves through the already wobbly world economy with an announcement on October 5th of a sharp cut in output, fuel prices are just one of the firm’s worries. Weak package volumes and persistently high costs caused FedEx to withdraw next year’s profit guidance in September, knocking more than a fifth, or $11bn, off its market value.

FedEx has long been regarded as a bellwether for the broader economy. In a sign that this reputation is well-earned, corporate titans everywhere are now warning of profit hits as Wall Street gears up for America’s earnings season, which begins this week. No industry has been spared. On October 6th Shell, a British oil supermajor, said it expected margins in its refining and chemicals businesses to plummet. The next day Samsung, a South Korean electronics giant, cautioned that its operating profits will decline for the first time in three years. Icons of America Inc have made similar noises. Ford has blamed its expected profit squeeze on, among other things, shortages of parts for its cars. Nike is struggling to clear its bursting inventory of unsold sportswear. Even America’s tech behemoths, which are freezing hiring as advertisers tighten digital-marketing budgets and inflation-weary consumers put off buying a new smartphone, are no longer looking invulnerable.

All told, forecasts for third-quarter profits for the s&p 500 index of big American firms have so far been revised down by 6.8% since June.... 

...More worrying for ceos, other important engines of corporate profits—rock-bottom interest rates, low taxes and stagnant wages—may be going into reverse...

....MUCH MORE

In addition to FedEx see also Advanced Micro Devices last week and Ford and General Motors today.

For the broader market, first comes p/e multiple contraction followed by revenues
held up only by inflation and should we enter a recession, declining earnings.
—Climateer Investing, April 28, 2022