U.S. Markets closed

Earnings forecasts are very negative but here's why it's not all bad

Patti Domm

Tax cuts last year boosted earnings growth by 7 to 8 percent, and the tax changes now act as a slight headwind, shaving 1 percent from profit growth, according to Credit Suisse strategists. According to the strategists, Apple and big oil names Exxon and Chevron are among seven very large companies, an unusually high number, seeing a 'reversal of fortunes' from very strong earnings growth in the third quarter to a profit decline in the first quarter. Tax law changes boosted corporate earnings in 2018, and now taxes could take away from profit growth in 2019.