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‘Eventually It Just Snaps’: Strain Worsens on U.S. Profit View

  • UBS, Citi strategists downgrade 2019, 2020 earnings estimates
  • Wall Street estimates for small-cap EPS growth in 2019 decline

Be it the trade war, slowing overseas growth or a less obvious catalyst, something is driving down U.S. earnings estimates. Smaller companies whose fate is bound closer to the economy are feeling it worse.

The declines are small but come week after week in data with a claim on being the most important plank in an equity bull case that is under assault everywhere else. Amid President Donald Trump’s tariff tweets and plummeting bond yields, profit estimates have for the most part resisted rolling over.