Kass: Putting Earnings Into Perspective

The negative outcome is that one man's bread -- namely, that of the corporation -- will not fill the belly of the consumer, who has lost confidence and millions of jobs. This, many predict, will derail recovery and lead to a sustained period of disappointing economic growth, as the consumer represents nearly 70% of the economy.

This tug of war between the continued spate of corporate cost-cutting and the flailing jobs market likely holds the keys to the kingdom, the economy and the stock market.

It is also why the employment picture should be investors' focal point and will remain the single most important determinant in shaping the recovery in the domestic economy.

My current view is that there are still elevated risks of economic and corporate profit disappointments based on the unusual nature of the buildup in credit/debt that preceded the downturn, which has been clearly manifested in the carnage in the financial sector and in numerous other service industries.

Doug Kass writes daily for RealMoney Silver, a premium bundle service from TheStreet.com. For a free trial to RealMoney Silver and exclusive access to Mr. Kass's daily trading diary, please click here.

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Know what you own: Some of the most active stocks in Monday's midday trading include Bank of America (BAC Quote), Direxion Daily Financial Bear 3X Shares (FAZ Quote), SPDRs (SPY Quote), Citigroup (C Quote), Direxion Daily Financial Bull 3X Shares (FAS Quote), Financial Select Sector SPDRs (XLF Quote) and Ford (F Quote).