Friday, September 28, 2007

Profit Growth in U.S. May Hit 5-Year Low on Housing (Update1)

Sept. 28 (Bloomberg) -- Profit in the U.S. may grow at the slowest rate in more than five years this quarter as the housing slump hurts results at companies from IndyMac Bancorp Inc. to Target Corp.
Earnings of Standard & Poor's 500 Index members may rise an average of 2.7 percent from a year earlier, breaking a 20- quarter streak of gains exceeding 10 percent, according to data compiled by Bloomberg.
Since Aug. 20, at least 52 financial and consumer discretionary companies in the Standard & Poor's 500 Index have issued third-quarter forecasts that met or fell short of analysts' estimates, compared with 10 that said earnings would be higher than forecast.

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