Perception is a Deception
U.S. Futures Advance After Caterpillar Profit Beats Estimates by 50 Cents
July 21 (Bloomberg) -- U.S. stock futures rose, indicating the Standard & Poor’s 500 Index will rally above yesterday’s eight-month high, as Caterpillar Inc.’s profit that was three times analysts’ estimates spurred bets the recession is ending.
No where in the article does it mention the following:
Revenue slid 41 percent to $7.98 billion.
Caterpiller's sales are down by almost half and you are supposed to believe that somehow conditions are positive?
Maybe that is why half the architects are unemployed? At the end of the day, it is sales that drive an economy......and if business ain't selling, there is no economy.
Let's look at DuPont:
Net sales fell 22 percent to $6.86 billion.
DuPont has eliminated 4,500 jobs since late last year as part of its efforts slash costs to cope with the slowdown in demand from the auto, construction and industrial markets.
DuPont posted a 61 percent drop in quarterly profit.
Less sales, Less profit, Less jobs, Less taxes to government.....you think that is a positive?
Before we go, let's go back and look at Catepillar's profits that analysts are cheering:
Caterpillar 2nd-quarter profit tumbles 66 pct as recession continues to dampen equipment sales.
Again, Less Sales, Less jobs, Less Profits, Less taxes to government.....and Wall Street is cheering?
How many people are going to lose their income when California cuts $15 Billion in spending?
At this rate, it will not be long before so few have jobs that we are all cut and politicians need everything we have to stay in their jobs.