Accordingly, equity analysts are calling for S&P 500 profits to advance 5 percent more in the third quarter and by a similar amount in the fourth quarter of this year, before rising an additional 13 percent in 2004; and profits at small firms are expected to continue outpacing those at large firms.
As you know, banks are an important source of external funding for businesses. Although a small number of individual banks have been weakened by the downturn, I do not see a need to worry about banks’ overall health.