Goldman says earnings might develop simply 3% this yr
The Apple brand is seen on the window at an Apple Retailer on January 7, 2019 in Beijing, China.
corporations comparable to Apple and Macy’s have heightened the concentrate on S&P 500 earnings development,” wrote David Kostin, chief fairness strategist for the agency.
“Earnings had been one of many clear vivid spots for U.S. equities all through a lot of 2018, however some traders are actually questioning whether or not earnings can proceed to develop in 2019,” he added.
Fourth-quarter earnings season is about to kick off. After it is all mentioned and executed, 2018 whole earnings development will are available in at a whopping 22 %, Goldman estimates, juiced by the tax minimize. However that is prior to now: Throughout this upcoming earnings season, firm outlooks may very well be cautious and mirror fears of slowing financial development this yr, the agency mentioned.
For now, Goldman’s “baseline” state of affairs is for earnings to extend for S&P 500 corporations by 6 % in 2019. However that determine assumes a tempo of financial development sooner than what Goldman’s personal economists consider will come to fruition.