Goldman Sachs: Weak profits to doom bull market

This translation has been automatically generated and has not been verified for accuracy.Analysts at Goldman Sachs predict the longest-ever bull market for stocks will soon end, citing expectations of weaker company profits this year.

The analysts lowered their 2020 earnings forecast for S&P 500 companies Wednesday for the second time in less than two weeks. They now expect profits will be down 5% from 2019. The analysts believe the sharp slide in oil prices and interest rates will hinder profit growth for energy companies and banks. The price of U.S. benchmark oil is down 45% so far this year, while the yield on the 10-year Treasury has dropped to around 0.8% per cent from 1.9% at the start of 2020.Goldman notes that companies in other sectors are also likely to report weaker profits this year.

The analysts’ forecast calls for the S&P 500 to be at 2,450 points by midyear, which would mark a 28% decline from the peak in February. At 11:30 a.m. EST Wednesday, the index was down 3.8% to 2,771 amid volatile trading on Wall Street. The current bull market began in March 2009.

Source: News Formal (newsformal.com)

Canada Latest News, Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

White scores 20, commits 9 TOs, Bulls beat Cavaliers 108-103 - TSN.caCoby White scored 20 points to help offset a career-high nine turnovers in his first NBA start, and the Chicago Bulls beat the Cleveland Cavaliers 108-103 on Tuesday night. JesseJsalisbury hell of a pic
Source: TSN_Sports - 🏆 80. / 51 Read more »

Investors look to history as U.S. stocks slammed by virus uncertainty, oil plungeInvestors look to history as U.S. stocks slammed by virus uncertainty, oil plunge GlobeInvestor
Source: globeandmail - 🏆 5. / 92 Read more »

Plugged In: Non-profit Plug ‘n Drive is an electrifying forceFrom drivingdotca - On this week's Pluggedin podcast episode, mcauto talks to energy entrepreneur PlugN_Drive about bringing EVs to the masses. Hit the link below to listen on Google, Apple, Spotify and Stitcher podcasts.
Source: nationalpost - 🏆 10. / 80 Read more »

‘Many people have long waited for this day’: Names of 298 victims read aloud at murder trial over doomed MH17Prosecutors say the suspects helped supply the Russian missile system that downed the plane. Russian authorities have consistently denied any involvement
Source: nationalpost - 🏆 10. / 80 Read more »

Wall Street circuit breakers trip as markets, crude, plungeU.S. companies buffeted by supply chain chaos and a growing awareness of the scope of a viral outbreak are facing new threats to begin the week. FEARMONGERS 12
Source: CTVNews - 🏆 1. / 99 Read more »