What is Corporate America trying to tell us? In spite of a strangely positive reception from the markets, the first-quarter earnings season was bad both in absolute terms and relative to expectations. The latest running total from Thomson Reuters suggests that S&P 500 companies’ profits are on course to fall 17.4 per cent compared with a year ago. As the quarter began, analysts had convinced themselves that profits would rise by more than 5 per cent.

This is mostly down to the horrors for financials’ earnings. But the energy sector has enjoyed bumper profits, thanks to similarly exceptional circumstances. Strip both sectors out and earnings growth for what remains has been an anaemic 2.8 per cent. More companies have disappointed analysts than usual.