FedEx, in its most recent earnings report, noted that its business will contract going forward due to the recession in Europe, a slowdown in Asia, and very slow economic growth here in the U.S.
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New York, NY (PRWEB) July 08, 2012
According to Michael Lombardi, lead contributor to Profit Confidential, earnings growth is threatening to go negative for the first time since the third quarter of 2009, as more S&P 500 companies are coming in with earnings warnings than in the first quarter of this year.
In the new article “Earnings Growth at S&P 500: A Thing of the Past,” Lombardi cites specific cases to back up his thesis.
“FedEx Corporation is considered a barometer for the health of the world economy because of the volume of packages it delivers worldwide,” states Lombardi. “FedEx, in its most recent earnings report, noted that its business will contract going forward due to the recession in Europe, a slowdown in Asia, and very slow economic growth here in the U.S.”
Lombardi also cites The Procter & Gamble Company, which cut its earnings forecast for the same reason as FedEx.
“These S&P 500 companies are flashing red warning signals about the global economic slowdown,” says Lombardi.
“Bed Bath & Beyond Inc. admitted it had to use deep discounts in the U.S. to get consumers to spend in the first quarter,” reports Lombardi. “Its outlook for the remainder of the year has been cut dramatically, as the U.S. consumer continues to be very challenged financially, according to this S&P 500 company.”
Regardless of which industry is issuing the earnings report, Lombardi believes there is a slowdown right across the board, threatening to make earnings negative this current quarter in the S&P 500.
“These earnings reports being issued by public companies illustrate that the U.S. stock market and the S&P 500 companies have more downside to them,” says Lombardi.
Profit Confidential, which has been published for over a decade now, has been widely recognized as predicting five major economic events over the past 10 years. In 2002, Profit Confidential started advising its readers to buy gold-related investments when gold traded under $300 an ounce. In 2006, it “begged” its readers to get out of the housing market... before it plunged.
Profit Confidential was among the first (back in late 2006) to predict that the U.S. economy would be in a recession by late 2007. The daily e-letter correctly predicted the crash in the stock market of 2008 and early 2009. And Profit Confidential turned bullish on stocks in March of 2009 and rode the bear market rally from a Dow Jones Industrial Average of 6,440 on March 9, 2009, to 12,876 on May 2, 2011, a gain of 99%.
To see the full article and to learn more about Profit Confidential, visit http://www.profitconfidential.com.
Profit Confidential is Lombardi Publishing Corporation’s free daily investment e-letter. Written by financial gurus with over 100 years of combined investing experience, Profit Confidential analyzes and comments on the actions of the stock market, precious metals, interest rates, real estate, and the economy. Lombardi Publishing Corporation, founded in 1986, now with over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more on Lombardi, and to get the popular Profit Confidential e-letter sent to you daily, visit http://www.profitconfidential.com.
Michael Lombardi, MBA, the lead Profit Confidential editorial contributor, has just released his most recent update of Critical Warning Number Six, a breakthrough video with Lombardi’s current predictions for the U.S. economy, stock market, U.S. dollar, euro, interest rates and inflation. To see the video, visit http://www.profitconfidential.com/critical-warning-number-six.