What’s the Matter With Profits?

(1) Record Chinese exports despite global slowdown. (2) OECD economies bottoming? (3) US labor market remains strong. (4) Annual revisions don’t change big picture on GDP, but profits are weaker than before. (5) Compensation revised higher. (6) S&P 500 aggregate earnings don’t get revised and are in record-high territory. (7) So why the downward revision in NIPA profits if S&P 1500 earnings remains strong? (8) Sub-chapter S corporations have a big impact on profits-related comparisons. (9) Profits’ share of National Income down, while compensation’s share is up. (10) S&P 500 profit margin and comparable NIPA measure diverging in recent years. (11) Fruit cocktail vs orange juice. (12) Warning label.