Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Johnny Canuck who wrote (36125)	2/10/2002 5:34:50 PM
From: Johnny Canuck	Read Replies (1) \| Respond to of 68423

1. CORPORATE PROFITS SINK IN FOURTH QUARTER Over half of the firms in the S&P 500 have already reported fourth-quarter earnings, and so far, U.S. corporate profits are down more than 20% from a year ago. That just about matches the decline we saw in 3Q01, making the latter half of 2001 significantly tougher than the first half. Earnings fell 6% in 1Q00 and 19% in 2Q00. Looking ahead, profits in 1Q02 are expected to drop 8% compared with year-ago levels, marking the fifth-straight quarter of declines. That could be the last decline, however, as analysts expect to see corporate earnings grow once again in the second quarter. TODD’S TAKE: Corporate profits could grow in 2Q02, but that will hide the fact that some industries still have a long way to go before things turn around. For example, we expect a big, ugly shakeup in the airline industry this year. In addition, we don’t expect the automotive industry to turn the corner very quickly, and those telecom equipment firms that rely heavily capital spending, such as JDS Uniphase (JDSU, $7, unch.) and the like, are going to continue to hurt. Finally, those industries that have relied on strong consumer spending -- from housing to electronics to clothing -- remain largely in the dark about whether consumers can keep it up. Unemployment and growing consumer debt could finally catch up with some of these companies. Okay. So that’s the negative scenario. On the positive side, we think the worst of the recession is probably behind us, and recent economic data seems to point to a flat economy later this year (not a recessionary one). Still, we want to make clear that the road ahead will not be a smooth one. Picking stocks in this environment can be tough. We believe we have the top picks in our portfolios (AVAILABLE ONLY TO PAID BULL MARKET REPORT DAILY SUBSCRIBERS) to help you through this volatile period, and we will continue to bring you detailed guidance to shape your investment decisions.