US Profit Outlook Rarely This Sour, Morgan Stanley’s Wilson Says

The trade floor of the New York Stock Exchange (NYSE).Photographer: Michael Nagle/Bloomberg

Analysts are busy slashing earnings estimates in the US due to the risk of a severe economic slowdown, according to Morgan Stanley’s Michael Wilson.

The S&P 500’s earnings revisions breadth — or analyst estimates upgrades versus downgrades — is now at levels rarely witnessed, approaching downside extremes in the absence of a recession, the strategist said.