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U.S. corporate earnings set to be worst in two years

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U.S. corporations are set to report the slowest earnings gain since the recession ended as companies from Ford Motor Co. (F) to McDonald’s Corp. (MCD) struggled with rising oil and commodity prices and a slowdown in consumer confidence that may continue to hamper spending this year.

Earnings per share for all Standard & Poor’s 500 Index companies rose 13 percent in the second quarter, according to analysts’ estimates compiled by Bloomberg. Profits gained 18 percent in the first quarter after jumping 37 percent in 2010.

“We aren’t going to see the dramatic increase we’ve seen in some quarters,” said John Carey, who helps manage $260 billion for Pioneer Investment Management Inc. in Boston. “Consumer spending got hammered a bit because of higher oil prices and we have also seen a drop in consumer confidence, which maybe hurt numbers.”

Full Story: Corporate earnings poised for smallest gain in two years in U.S.