Negative 1.2 percent in Q1 and negative 0.5 percent in Q2. A return to positive profit growth is expected for the third quarter, but that number may be in jeopardy. The big reason is technology. We're seeing analysts slashing estimates for the third quarter, now for technology, that's been going on for several weeks or so. It hasn't spread to the other sectors yet, but you have to be concerned that it could.
Many experts believe weak first and second quarter profits are already factored into stock prices.
But they say investors are still counting on a earnings recovery in the third quarter. I don't think they necessarily believe the third quarter is going to be big. But I think they do count on the fourth quarter being big, so that by the end of the year, the market ends up on a positive note. If there is a downside, it's the possibility of course, that earnings don't turn around at all this year. It will probably take until at least April before we get a better idea of profits for the second half of this year.