QQQ - Weekly Indicators: Corporate Profits For Q2 Expected To Increase Sharply
2024-06-08 08:00:00 ET
Summary
- Long leading indicators show improvement in corporate profits, although the yield curve and real money supply remain negative.
- Short leading indicators and coincident indicators have been generally improving over the past few months.
- The manufacturing and construction sectors are being closely monitored for any signs of weakness, but at this point, a “soft landing” remains the most likely scenario for the 2024 economy.
Purpose
I look at the high frequency weekly indicators because while they can be very noisy, they provide a good nowcast of the economy, and will telegraph the maintenance or change in the economy well before monthly or quarterly data is available. They are also an excellent way to "mark your beliefs to market." In general, I go in order of long leading indicators, then short leading indicators, then coincident indicators.
A Note on Methodology
Data is presented in a "just the facts, ma'am" format with a minimum of commentary so that bias is minimized.
Where relevant, I include 12-month highs and lows in the data in parentheses to the right. All data taken from St. Louis FRED unless otherwise linked....
Weekly Indicators: Corporate Profits For Q2 Expected To Increase Sharply