New York, NY (PRWEB) November 17, 2012
In a recent Profit Confidential article, lead contributor and financial expert Michael Lombardi reports that in the third quarter of 2012, the Dow Jones Industrial Average rose 11.4% on the news of QE3 and hopes that corporate earnings growth would hold. But, he adds, this optimism was crushed when companies like IBM, Caterpillar, and United Technologies recently announced their third-quarter 2012 earnings projections for fourth-quarter 2012 and fiscal 2013. According to Lombardi, the recent corporate earnings growth of companies in the Dow Jones Industrial Average is falling at a staggering rate, and the trend of declining corporate earnings growth will only continue.
“It would be nice if those were the only companies that fell short on their earnings, but unfortunately many more companies are failing to meet their corporate earnings targets,” states Lombardi.
In the article “Don’t Look at This Chart if You Are Bullish on Stocks, the Economy,” Lombardi states that other Dow Jones Industrial Average firms recently shared negative news.
He reports that Exxon Mobil, the world’s largest oil company and a component of the Dow Jones Industrial Average, just reported quarterly corporate earnings that were seven percent lower than the same quarter last year, due to a decline in production. (Source: Reuters, November 1, 2012.)
Lombardi also notes that Pfizer reported a decline of 14% in third-quarter corporate earnings. He adds that the company’s total revenue fell 16%, with U.S. sales falling by 18% and international sales dropping by seven percent. (Source: Associated Press, November 1, 2012.)
Looking at the broader picture, the Profit Confidential expert states that the Dow Jones Industrial Average appears even weaker in the near term.
“…corporate earnings growth is crucial for any stock index to rise,” reasons Lombardi. “If earnings pull back, there is no real reason for key stock indices to increase.”
Lombardi concludes that the world’s most followed stock market index is technically and fundamentally weaker.
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.