Goldman sees zero earnings growth for US companies this year because of coronavirus

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Goldman Sachs revised its earnings estimate for the year to $165 per share, representing 0% growth in 2020.

Goldman Sachs revised its earnings estimate for the year for U.S. companies to $165 per share, representing 0% growth in 2020."Our reduced profit forecasts reflect the severe decline in Chinese economic activity in 1Q, lower end-demand for US exporters, disruption to the supply chain for many US firms, a slowdown in US economic activity, and elevated business uncertainty," the firm's chief U.S. equity strategist David Kostin said in a note to clients.

The Wall Street firm revised its earnings estimate for the year to $165 per share from $174 per share, representing 0% growth in 2020. Consensus forecasts still expect earnings to climb 7% this year. U.S. equities have been in a tailspin this week on fears that the deadly virus will dent global economic growth. The rapid spreading of the virus across multiple continents forced the Dow Jones Industrial Average to drop more than 7% since Monday. The S&P 500 lost about 6.6% and the Nasdaq fell nearly 2% in the same period.

 

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Business in medical supplies and vaccine are expected to have positive growth.

RomanWenzl But it sees 6% GDP growth for China y/y. GS is all over the place.

Goldman Sachs, who went bankrupt 20x during the financial crisis, already predicts zero earnings. For the ENTIRE YEAR. notcredible

They meant negative, but were afraid to say it out loud

You just knew that virtually recession proof statement was going to come back and bite them hard.

Trump eased everyone’s mind. Pence is in charge. Heading to Dow 30k.

ReformedBroker that’s bad right?

I’d be shocked if the market isn’t up on this fantastic news

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