The chart below outlines the quarterly year-over-year percentage change in corporate profits after taxes versus the Dow Jones Industrial Average from 1948 to 2019.
The chart below is the same data from 2011 to 2019 directly from the St. Louis Federal Reserve website.
See also: Consumer Sentiment 1897-2019
Posted in Corp profits trend, Earnings Trend
Review
On March 6, 2017, we said the following:
“What stands out about the current move upward is the fact that the decline went into negative territory. While the decline wasn’t as low as we’d like, at or below the 1970 level, we have to accept that there are few times this indication went negative without a very strong recovery to the upside. For now, we’re hedging our commentary by watching for the 2013 level before going on to the 1964 peak. However, we suspect that the recovery in S&P earnings could test the 1976 peak.”
The chart below updates the Year-over-Year percentage change in the S&P 500 earnings.
At the time of the posting last year, the charting of the change was slightly above 0% and well below the 2013 level. We’ve highlighted in the red line the reported S&P earnings since 2016 to the most recent reporting. The orange horizontal line traces out the peak of 1964.
Posted in Earnings, Earnings Trend, S&P 500