Slashed dividends shrinking U.S. corporate earnings hurt stock investors have no confidence.

The economic downturn, U.S. companies turned more pessimistic on the outlook, and shrinking profits in the face of enormous pressure from shareholders had to take surgery, cut its dividend payout this year's first quarter level of U.S. stock market since 1991, a record number of entrepreneurs .a new high, with outstanding performance to many profitable companies do not want to add fat dividends. .<P> (Http://finance.) American Economic Association, the National Enterprise (NABE) survey the latest quarter, American business views of the country's economy became more pessimistic, optimistic compared to most of the time last year, is quite obvious .changes. .As experienced slow sales growth and further tightening of credit, resulting in U.S. manufacturing, telecommunications, finance, retail and other sectors of the industry turned pessimistic about the U.S. economic outlook, the industry have expressed their profit margins and demand were reported during the first quarter of this year's decline. .</ P> <P> analysis for the NABE survey data of U.S. Contractors Association chief economist Simon Johnson said that in the 109 respondents who indicated that profit margins are shrinking profit margins for more than that is an increase, .This is the first time in five years. .According to Brown Brothers Harriman strategists group, as of last Friday, so far, from the unpublished report quarterly earnings and forecast earnings figures estimate the market, standard and poor first-quarter earnings will be reduced by 13.2%, as .the third consecutive quarter of profitability were declining. .</ P> <P> to withstand the impact of shrinking profits, U.S. companies have cut the payout level, so the majority of investors victimized the American Century Equity Income Fund Trader Tony said: "The time when tough times, business executives .long are not very willing to increase spending, dividends are also included. "</ P> <P> Citigroup announced in January this year slashed the payout level, a reduction of 41%, shocked financial markets, just in the past .two weeks, Washington Mutual also announced quarter dividend of 15 cents per share, from the original, cut to 1 cent, Wachovia to reduce the payout 41%, Midland Leasing (CIT Group) reduction amounted to 60%. .</ P> <P> cuts as companies scale and relationships with financial institutions to cut interest rate cut by the market is often greater concern, however, to reduce non-financial companies issued a dividend is not lost to financial firms, according to Standard & Poor's .statistics, in the first quarter, 6.2% of non-financial companies cut dividends, with interest rates of financial enterprises to reduce the proportion was 3.4%. .</ P> <P> S & P also noted that companies with interest in the first quarter of this year was quite unsatisfactory, the overall U.S. stock market listed companies issued dividends increase the number of entrepreneurs, 19% higher than same period last year, while reducing the number of homes with interest- ., then hit a new high since 1991. .</ P> <P> stock options market is the prospect of leading indicators of income distribution, which, according to the current market view, the outlook is likewise tend to be pessimistic. .Based on historical experience, the S & P Index constituent stocks five hundred companies with an average interest rate of 6% a year increase, but the equity derivatives strategy at Deutsche Bank Research Team Leader Hauck said: "The options market is currently estimated that the next two years corporate dividends .near-zero growth, the growth rate after only about 2%. "</ P>.