Profits for energy, aerospace and defense companies are soaring, but it's a parasitic boom that we'll pay for later, @jonathanjlevin says (via @opinion)
Profits came in ahead of expectations for $META and $TSLA, but it was the outlook that set the tone. These stocks are trading on their forward products: Muse for META, Optimus and Terafab for TSLA. More in today’s Market Memo (10/22/2026):
Profits matter this year: unlike last year when non-profitable Russell 2000 stocks outperformed profitable ones (+20% vs. +10%), it’s reversed this year with profitable stocks outperforming non-profitable ones by ~500 bps
RTY count: 1949
Profitable: 1122 (57%)
Nonprofitable: 782 (40%)
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Source: Bloomberg, as of 9/11/2026. Profitable companies have trailing 12-month earnings per share greater than $0. Indexes are unmanaged, do not incur management fees, costs and expenses and cannot be invested in directly. Past performance is no guarantee of future results.
Profits rose and lending expanded at US banks in the second quarter even as unrealized losses ticked higher, according to the Federal Deposit Insurance Corp
Profits of China's major industrial enterprises rose over 18% in the first four months from a year earlier, data from the National Bureau of Statistics showed today. Their revenue grew 5.2% to CNY44.89 trillion (USD6.6 trillion).