NEW YORK (Reuters) - The U.S. corporate profit outlook is deteriorating rapidly, with S&P 500 earnings for the second quarter now seen falling at a double-digit pace from a year earlier, according to Thomson Reuters Proprietary Research released on Tuesday.
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Second quarter profits are expected to fall at a rate of 10.2 percent, compared with the Monday estimate for a drop of 9.6 percent. At the end of May, analysts expected a 7.3 percent drop.

A worsening outlook for consumer discretionary and financials was behind the bleaker earnings view.

Soaring gasoline prices and a limping economy have hampered the outlook for consumer discretionary companies such as General Motors (NYSE:GM - News) and electronics retailer Circuit City an Stores (NYSE:CC - News). Among the most recent of major victims reporting impact from soaring crude oil, United Parcel Service Inc(NYSE:UPS - News), the world's largest package-delivery company cut its second-quarter profit outlook citing high fuel costs and a slack U.S. economy.

At the same time, the credit crisis brought on by subprime mortgage failures has left the banking sector searching for new ways to create revenues now that several of their most profitable businesses have been all but shutdown.

The financial sector was hit by heavy selling most recently as Goldman Sachs & Co strategists told investors it had changed its previously positive view to "underweight" for U.S. financial, while also giving a negative outlook for consumer shares, saying weakening consumer demand and deterioration in the credit markets will weigh on profitability.
http://www.forbes.com/finance/2008/06/23/crude-biderman-margin-pf-etf-in_tt_0623trimtabs_inl.html

This isn't a BUSH thing. DEMS don't want to drill & we are stuck paying these outrageous prices for oil.

It's ridiculous to blame everything on Bush. That's irresponsible thinking if you aren't looking at the whole political landscape.

If Bush would not have been such an idiot, some of this could have been headed off at the pass. As for the oil, the oil companies are making record profits right now, so what does that say for the economic effect on them? We are the ones who are suffering from this whole scenerio of baby shrubs creation. He made dam sure his folks are doing well, did he not?

so madman, since you seem to think that Bush has no answers to the questions, what are the answers that you must know. The gasoline price problem? Bush tried to get more domestic drilling and production. Dems stopped that 6 years ago. More nuclear power generation to lessen our fossil fuel pollution. Dems stopped that 5 years ago. Bush gave tax cuts to the ppl who pay wages. (which is, by the way, an economiclly proven theroy) Dems want to raise taxes, Which is a proven method of decreasing the buying power of common ppl. Employment has been at historical highs during the bush term. Dems want to pay ppl to sit on their butts. The dems want a new increased tax on oil companies...just who in the heck do you thinkj will pay it? The consumers, that's who; you and me. Duhhhhh I suggest that they put a %500 tax on all union made goods, esp cars and trucks. That will generate more revenue, and decrease fuel consumption and lessen our dependence on foreign oil. A minor side effect will be that there will be no food deliveries to cities and metropolitan areas, but, oh well. And, then there will be a reason for the dem election year move to pay ppl to sit on their butts and contribute nothing to society. After all, that would equalize society and remove the dems constant desire for class warfare.

hmmmm...just heardon PBS news last night that the largest speculator on the oil market is the California Public Employees retirement fund. Liberal Californians driving up the price of oil to try to make the repubs look bad. And when it crashes, they will blame the repubs. Moralless b*astards

You crack me up willy

Thanks madman..Care to defend the dems proposals...oops I forgot, you are voting republican this year, I saw your post

sortabusy talking with someof my friends on here I will have to get back with you another time .......but honestly I think Bush/republicanshave been a train wreck and what has gonedown hsgonedown with 6 years of republican domination of politics and the media so there is only one philosophy that can be blamed or held accountable. spin it any way you wish but we all know what the reality is.

reality is a figment of our own chosen perspective. Reality to one is a figment of another's imagination.