The corporate economy is booming

Economic statistics have been terrible of late. And this is not because we've had disappointing job growth, tepid home sales, or slipping consumer confidence. What's really terrible is that the gloomy macro data distracted investors from the powerful momentum propelling corporate profits.

Weighing those inputs is a daily challenge. Sure it's nice that General Electric (GE -1.91%) nipped its earnings estimates on the strength of a 14% revenue surge in its industrial businesses. But how long can that go on with Spanish bond yields around 6%?

And sure, Honeywell (HON -0.69%) and Microsoft (MSFT -0.80%) are up after even stronger reports, but what about the recent uptick in jobless claims?

There's been a lot of discussion of late about when record corporate profit margins might revert to their long-term average far below current levels, and my guess would be not for a good long while.

The corporate economy is booming