U.S.: Those Profit Forecasts May Be Too Rosy

Rising labor costs, Asian woes, and slower growth will hit earnings

If you are one of the millions of stock market investors in the U.S., the Commerce Dept. has some sobering news for you: In the fourth quarter of last year and in this year's first quarter, the economy grew at an average annual rate of 4.2%, and profits fell in both quarters. If earnings declined in an economy that strong, what is going to happen to profits in coming quarters as the economy slows?

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