Different markets sending different signals. That's the gist of BofA Merrill Lynch rates guru David Woo's latest report – titled "The impossible trinity: A tale of three cities" – which begins like this (emphasis added):
By Talley Leger:In this article, we provide some healthy reminders about the impact of slowing global growth on U.S. profits, payrolls and stock market dynamics. As we illustrate on the following pages, slowing global growth, weighed down by a flat-lining European economy, points to a continued deceleration in S&P 500 earnings growth. In turn, weakening corporate profit trends portend slower payroll growth ahead, which is an environment typically characterized by falling share prices.