Weakening Profit Growth Could Squeeze Margins

As encouraging strong first quarter profit figures come in, investors should keep in mind that earnings of global companies in the S&P don’t necessarily reflect trends in the American economy, according to a recent Wall Street Journal article. The article points out that, on a global basis, year-over-year first quarter results look strong, but underscores the fact that the domestic picture is “more challenging, with revenue climbing slowly and rising labor costs threatening to bite into the bottom line.” Economists are now estimating that GDP grew by a modest 1.2% in the first quarter of this year. A vicious cycle […]