Corporate Earnings Slowdown

09/20/12 05:41PM EDT

Hedgeye CEO Keith McCullough appeared on CNBC's Fast Money this evening to discuss the market and the pressure on corporate earnings.

Keith reiterated that the corporate earnings slowdown is a big issue; it's the one thing that Ben Bernanke can't take care of no matter what policies he implements. Norfolk Southern (NSC) was down 9% today, so you can clearly see that earnings are at risk. Growth is slowing on a global level and affecting corporations as factors like slowing exports and rising inflation take hold.

Also discussed was energy and oil. Demand is down and supply is up in the US. But the real question is: how will Bernanke's policy of further easing affect energy prices in the long run?

As QE3 continues, commodity prices will continue to drive higher. Eventually, the cycle will turn and prices will come down, especially when the US dollar stops heading lower (keep in mind the USD has been falling for 6 consecutive weeks now).

© 2024 Hedgeye Risk Management, LLC. The information contained herein is the property of Hedgeye, which reserves all rights thereto. Redistribution of any part of this information is prohibited without the express written consent of Hedgeye. Hedgeye is not responsible for any errors in or omissions to this information, or for any consequences that may result from the use of this information.