US STOCKS VIEW: BoA/Merrill Lynch equity analysts have lowered their 2012 S&P 500 EPS forecast from $104.50 to $103.50 (y-o-y growth rate at 6.0% vs LT trend growth rate of 6%-7%).

US STOCKS VIEW: BoA/Merrill Lynch equity analysts have lowered

their 2012 S&P 500 EPS forecast from $104.50 to $103.50

(y-o-y growth rate at 6.0% vs LT trend growth rate of 6%-7%).

"This mostly reflects the pressure on corporate profits from the

collapse in natural gas prices, the stronger dollar and the

ongoing headwinds facing the Financials," they say. BoA/ML's 2013

S&P 500 EPS forecast is now $110.50 (+7% y-o-y) which

compares to "the current bottom-up consensus of $119 (+12% y-o-y)

which we think may be too optimistic," the analysts say. BoA/ML

expects the US to face "headwinds from a combination of

government spending cuts and higher taxes, anemic employment and

income growth and the ongoing slowdown in China." On the plus

side, a "tepid recovery" in the eurozone and "modest growth" in

the US should "continued profit gains for the S&P 500," the

analysts say.