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Bank of America, Citi Cut Corporate Profit Estimates, Raise Recession Concerns

  • Strategists at both firms reduce 2019 forecasts by $2 a share
  • Trade adds stress to companies already fighting a slowdown
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Tobias Levkovich, chief U.S. equity strategist at Citigroup, talks about recession risks.Source: Bloomberg)

Bank of America and Citigroup have lowered their U.S. corporate profit forecasts while pointing out the risk of a recession as trade tensions escalate.

Savita Subramanian, who heads the U.S. equity strategy team at BofA, cut her 2019 estimate for S&P 500 companies by $2 a share to $166, saying import tariffs are set to increase costs, hurting profits for American firms. Tobias Levkovich, chief U.S. equity strategist at Citi, trimmed his projection by the same amount, to $170 a share.