Gleno34, That hit was taken mostly by Financial Sector that is why they are down but here is some thing which will surprise you.
Profit Gain Signals Companies Surviving Storm: John M. Berry
June 4 (Bloomberg) -- Profits of U.S. corporations, after falling in the second half of 2007, are on the rise again, a signal that companies are adjusting to the slow-growth economy. Profits from current production rose in the first quarter to $1.57 trillion, a tiny 0.3 percent increase from the previous three months, according to the Bureau of Economic Analysis. That's hardly a big gain, though under the circumstances not a bad showing at all. Furthermore, there are other positive indications of corporate health in the profit figures. All point to an economy much better equipped than in the past to handle shocks to the system, whether from a spike in oil prices or a meltdown in credit markets. With the added benefit of a business-tax cut included in the fiscal-stimulus package, after-tax corporate profits from current production hit a record $1.157 trillion. Net dividends also were running at a record annual rate of $846 billion, and net cash flow was close to a record at $1.340 trillion. The remarkable thing was that these results were achieved in the context of anemic economic growth. Since turmoil hit U.S. financial markets last August and growth stumbled, most companies have held down costs by keeping payrolls lean and inventories close to desired levels.
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