Bloomberg Intelligence's 'Equity Market Minute' 2/20/2019

Gina Martin Adams from Bloomberg Intelligence discusses the declining expectations for profit growth, attributing it to margin declines driven by excessive company spending. She highlights that gross and net profit margins remain stable, but operating margins are deteriorating. The analysis shows that most sectors in the S&P 500 have stable margin forecasts, with some isolated pricing power issues in consumer staples, materials, and industrials. To stabilize margins and earnings, companies need to rationalize spending.

What sectors are mentioned as having a modest pricing power issue?

What is suggested as necessary to stabilize the margin outlook?