Goldman Sachs: American companies will have zero profit growth this year

By Paul R. La Monica, CNN Business

Updated 10:20 AM ET, Thu February 27, 2020

New York (CNN Business)This was supposed to be the year that the bottom line of Corporate America rebounded after lackluster profit reports for most of 2019. But the coronavirus outbreak is threatening to end the earnings recovery before it even begins.

Goldman Sachs warned in a report Thursday that it now thinks US companies “will generate no earnings growth in 2020.” The bank said this forecast is based on “the likelihood that the impact of the virus becomes widespread.”

Microsoft (MSFT), Priceline owner Booking Holdings (BKNG) and Budwesier brewer Anheuser-Busch InBev (BUD) were the latest blue chip firms to say that disruption due to the coronavirus will hurt their results. Apple (AAPL) did so last week.

Stocks around the world have plunged this week and several key global market indexes are now in a correction, a 10% drop from recent highs. Gold has soared and long-term US bond yields have fallen to record lows in a classic flight to safety.



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