But I Thought It Doesn't Matter?

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But I Thought It Doesn't Matter?

If you ask the "analysts" on Wall Street, they'll tell you that the macro picture doesn't matter -- it's all about earnings.

Well, based on following comments from and about several companies that just reported their quarterly results, it sounds like the economy is a lot more important than those "experts" have given it credit for [italics mine].

Texas Instruments:

"Texas Instruments' Profit Forecast Misses Some Estimates" (Bloomberg)

"Production at some computing and consumer manufacturers appears lukewarm even though we're heading into the back-to- school and holiday seasons," Chief Executive Officer Rich Templeton said in the statement.

...

[Chief Financial Officer Kevin March said] “no one can ignore the glaring headlines. We’ve gotten lackluster outlooks from our customers in the computer and consumer segments.”

HCA Holding:

"HCA’s Declining Surgery Rates May Show Slowdown in U.S. Hospital Industry" (Bloomberg)

HCA Holdings Inc.’s report of a drop in expensive surgeries may signal a broad slowdown for hospitals because of rising unemployment and tepid consumer spending.

Patients at HCA, the biggest U.S. hospital chain, sought less-expensive procedures during the quarter, according to the company. Per-patient income from Medicare, the government plan for the elderly, also fell.

UPS:

"UPS Warns About Curbs on Global Economy" (Financial Times)

Dithering over the debt ceiling in the US, concerns about sovereign debt in the European Union and slowing growth in Asia are restraining the global economy, according to top executives at United Parcel Service, the package delivery company.

...

[Chief executive Scott] Davis singled out the political gridlock over debt issues in Washington and continuing high unemployment as creating a weak US economy that was slowing demand for domestic services and also imports from places such as China.

AK Steel, United States Steel, and Nucor:

"Steel Makers Say Slow Economy Will Hit 3Q Results" (Associated Press)

Three of the nation's steel makers expect weakness in the U.S. and global economy will affect their third-quarter performances.

AK Steel Holding Corp. on Tuesday joined United States Steel Corp. and Nucor Corp. in predicting weaker results in the July-to-September quarter. Individual companies cited factors ranging from softer demand, higher costs and lower steel prices to rising supplies that could pressure prices and margins.

UBS:

"UBS Issues Profit Warning on Weaker Economy" (DealBook)

UBS warned on Tuesday that it would probably miss an earnings target set two years ago, after its profit fell by half in the second quarter and the economy weakened.

...

“Banks’ returns have declined over all in the last 12 months, reflecting deleveraging and the actions being taken in advance of increased capital requirements,” [chief executive Oswald J. Grübel] said in the statement.

“We are responding to this changed environment and the weakening economic outlook by adapting our business and increasing efficiency,” he said.

Illinois Tool Works:

"Illinois Tool Works 2Q Net Income Disappoints" (Associated Press)

GLENVIEW, Ill. — Industrial materials-maker Illinois Tool Works Inc. said its second-quarter net income and sales came in below expectations as demand was weaker than expected.

Illinois Tool Works makes everything from heavy equipment to adhesive and flooring materials. Its sales are closely tied to broader economic growth. CEO David Speer said the company expects "similar moderating demand levels in the second half of 2011."