US Profit Growth Is Negative For All But The Largest Companies

Yesterday when looking at the rolling forecast of Q3 earnings season, we noticed something remarkable: according to Bank of America, while overall Q3 earnings growth was expected to be a modest 4%, this would be entirely due to a 19% increase in Mag 7 earnings (down from 37% in Q2 and down from 55% a year ago). The rest of the S&P500 - some 493 companies - are expected to post another quarter of flat earnings!

This stunning lack of earnings growth for all but the largest US companies is visualized in the next chart: