Salient to Investors:

The ratio of companies saying profits will trail estimates versus those saying they will exceed them is at 4.3, levels of February 2009 and October 2001.

William Frels at Mairs & Power says the economy is weaker than most people realized.

The S&P 500 P/E is 14.6 versus an average of 16.4 over the last five decades.

Christopher Harvey at Weeden says further equity gains are more reliant upon earnings growth and not a re-pricing of valuations – EPS growth is flattening.

FedEx, viewed as an economic barometer, trimmed its forecast for 2012 US economic growth to 2.1 percent from 2.2 percent.

William Stone at PNC Wealth Mgmt says the bar is low enough to not imperil the bull market in terms of earnings.

69 percent of the 35 S&P 500 companies reporting so far have beat analysts’ estimates – profits exceeded forecasts by an average 7.6 percent, more than double the rate for Q2.

Paul Hogan at Fenimore Asset Mgmt says the slowing economy showing up at a lot of companies.

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