The Wall Street Journal's industry-by-industry quarterly earnings page (available here) shows that, with more than 3,700 companies reporting, net income growth on a year-over-year basis was up 12% in the second quarter, compared to 19% year-over-year growth in the first quarter (with more than 4,100 companies considered).

    However, the growth in the first quarter was much broader than in the second, when energy and financials ruled the roost. Energy companies have recorded 50% growth in net income, while financials grew by 19%. Exclude those two groups, and net income is down 1.1%, in part due to significant dropoffs in basic materials (down 12%), consumer goods (off 11%), health care (37% lower) and technology ( down 4%), and a 13% decline in telecommunications.

    It didn't look this way in the first quarter. While it is true that energy and financials rocked there too (up 44% and 13%, respectively), when taking those out, net income for the remaining companies rose 17%.

    This pattern doesn't hold with the companies in the S&P 500. All of S&P's 10 main sectors are showing income growth on a year-over-year basis in the second quarter, according to Thomson First Call; health care and technology are the laggards, with 9% growth.

    "When you look at the S&P 500, bottom line, it's not bad, and across the entire spectrum it's an up quarter," said Vinny Catalano, president of Blue Marble Research. "But when you get into the mid- and small-cap issues, as these data show, you really had a collapse...second-tier issues have deteriorated." (emphasis added).

Wow, remove energy and banking, and company income are down in the second quarter. If that's doesn't show where the money is...

And Nouriel Roubini is spanking some bulls real hard :).