Profits: Expect a Third-Quarter Slowdown

S&P sees profits downshifting in the third quarter but anticipates a reversal in Q4 and solid earnings growth in 2008

Corporate America's profit engine will shift into a lower gear in the third quarter—and the weak housing sector is partly to blame. Third-quarter 2007 operating earnings for the Standard & Poor's 500-stock index are expected to post the lowest increase in more than five years, according to figures released Sept. 26 by S&P. (S&P, like BusinessWeek, is a unit of The McGraw-Hill Companies (MHP).)

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