The preliminary estimate for corporate profits in the second quarter were released this morning and showed a rebound from the abysmal first quarter profits. Looking at after-tax profits with inventory and capital consumption adjustments, corporate profits 8.4% quarter-over-quarter AR which is the largest gain in three years. However, on a year-over-year basis, corporate profits remain 9% lower. Before-tax corporate profits with inventory and capital consumption adjustments rose by 8% quarter-over-quarter AR and are just slightly negative on a year-over-year basis. The highly watched profit margin measure rebounded from 8.1% in the first quarter to 8.6% in the second quarter. Gross cash flow margin also increased from 15.3% to 15.9%.