Thursday, June 25, 2009

Corporate Profits Increased in Q1, Largest in 3 Yrs.

The BEA reported today that corporate profits (data here) increased in the first quarter of 2009 by $128 billion, the largest quarterly increase in more than three years, and the first quarterly increase in more than a year, following 4 consecutive quarterly decreases (see chart above).

12 Comments:

At 6/25/2009 3:04 PM, Anonymous Anonymous said...

June 22 (Bloomberg) -- Executives at U.S. companies are taking advantage of the biggest stock-market rally in 71 years to sell their shares at the fastest pace since credit markets started to seize up two years ago.

Insiders of Standard & Poor’s 500 Index companies were net sellers for 14 straight weeks as the gauge rose 36 percent, data compiled by InsiderScore.com show.

Sales by CEOs, directors and senior officers have accelerated to the highest level since June 2007, two months before credit markets froze, as the S&P 500 rebounded from its 12-year low in March. The increase is making investors more skittish because executives presumably have the best information about their companies’ prospects.

Bloomberg

 
At 6/25/2009 3:18 PM, Anonymous Ryan said...

Anon-get a clue - insiders always sell more than they buy - you've got to look at historic ratios

 
At 6/25/2009 3:24 PM, Blogger Al Bellenchia said...

So many want to denigrate this recovery that it must be real...

 
At 6/25/2009 4:06 PM, Anonymous Ryan said...

Al - it's all the dopes still on the sidelines in cash or short the market - they are getting hosed and will continue to!

 
At 6/25/2009 5:31 PM, Blogger Unknown said...

Anon,
If you were in their position you'd do the same thing. A lot of their compensation is in stock and they probably want to take that gain now before our fearless leader raises the taxes on capital gains. After having ridden out the winter most of my positions are up from when I got in and I'm tempted to sell 'em and wait for the next drop.

 
At 6/25/2009 5:39 PM, Blogger Hot Sam said...

This comment has been removed by the author.

 
At 6/25/2009 7:29 PM, Anonymous Αμάτι Nώνυμος said...

Economy doesn't implode until lot of people start juggling the numbers and cooking the books. After things melt down would you guess that government takes over the job of juggling and cooking?

Peter Lynch was famous for saying, "Shop for stocks." One does need to look more at main street and less at the numbers publicized by Wall Street and Capital Avenue. I live 4 miles from heavy train traffic and 16 miles from International Airport. I am hearing about half the frequency of transport vs. last year, perhaps less.

?
?

 
At 6/25/2009 8:58 PM, Anonymous Anonymous said...

Our company did well in February/March/early April, and I thought we were out of the woods. Then we took another dip in May and early June. Three of my suppliers announced branch closings in the last week, as they have eventually decided to stop the financial blood letting. I hate to say it, but I believe you're going to see another jump in unemployment. The first wave of layoffs were the end of last year and January. Most businesses held on as long as possible, and are now are making a substantial second round of cuts. That's how I see it on the ground.

 
At 6/25/2009 9:22 PM, Anonymous Ryan said...

Last Anon - that tells us nothing except details about your own firm - I know many companies that are hiring and expanding.

 
At 6/26/2009 6:52 AM, Blogger juandos said...

"I know many companies that are hiring and expanding"...

Not to Ryan, Obama & Congress will take care of that nagging little detail...

 
At 6/26/2009 3:38 PM, Blogger QT said...

1,

Looks like the U.S. has a new piñata.

 
At 6/26/2009 5:39 PM, Blogger juandos said...

"Looks like the U.S. has a new piñata"...

Yeah QT and a damned expensive piñata it is...

 

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