Showing posts with the label Investopedia News.

Why Chip Stocks Face More Carnage In 2019

By Shoshanna Delventhal Updated Jan 9, 2019 3-4 minutes U.S. chip stocks, still down sharply off their highs following a rebound over the past two weeks, are poised to suffer through another series of down drafts in 2019, according to a Morgan Stanley report, per Business Insider . The investment firm highlighted at risk semiconductor names, including memory companies Micron Technology Inc. ( MU ) and Western Digital Corp. ( WDC ); analog companies Texas Instruments Inc. ( TXN ) and NXP Semiconductors NV ( NXPI ); and MCU companies Cypress Semiconductor Corp. ( CY ) and Microchip Technology ( MCHP ). 6 Vulnerable Chip Stocks  ·     Micron Technology ·     Western Digital Corp. ·     Texas Instruments ·     NXP Semiconductors ·     Cypress Semiconductor Corp. ·     Microchip Technology Sharp Contraction in Revenues for 2019 Morgan Stanley’s Joseph Moore expects semiconductor companies, which make chips for

8 Stocks To Lead As Market Risk Escalates

By Mark Kolakowski Updated Jan 8, 2019 4-5 minutes Given mounting economic and stock market uncertainties in 2019, Goldman Sachs is advising investors to look for stocks that offer a margin of safety . "The low starting valuation of the S&P 500 suggests a positive skew to the distribution of our forecast S&P 500 returns in 2019," says Goldman's latest U.S. Weekly Kickstart report, which finds that the forward P/E ratio for the index has fallen towards historical averages during the past year, as detailed in a prior Investopedia article. Here are eight stocks in Goldman's "margin of safety" basket, in addition to the eight presented in our first article: Colgate-Palmolive Co. ( CL ), Kroger Co. ( KR ), Sysco Corp. ( SYY ), PPG Industries Inc. ( PPG ), Illinois Tool Works Inc. ( ITW ), AvalonBay Communities Inc. ( AVB ), Citrix Systems Inc. ( CTXS ), and Tyson Foods Inc. ( TSN ). The table below offers

10 Risks That Could Shake the Markets in 2019

By Mark Kolakowski Updated Dec 21, 2018 With stock prices already under severe pressure and declining globally, one or more growing risks could intensify the downdraft. Among these are falling profit margins , interest rate hikes, high corporate debt, an illiquid corporate bond market, and rising interest rate volatility , per a report by London-based multinational banking giant HSBC, as summarized by Business Insider . In particular, "a significant miss to earnings estimates [would] derail the equity bull market ," the report says. Below are the top 10 risks for the world economy and world securities markets, as seen by HSBC. 10 Market Risks Significance for Investors "Corporate profit margins [in the U.S.] are at an all-time high and consensus expects them to move up further. But rising costs, including wage growth, trade tariffs and financing costs could bring them down next year," HSBC warns. They add, "Faster than expect

6 Large Cap Stocks Poised for Big Short-Term Gains Mark Kolakowski Investors who have suffered major losses this year, such as during the October sell-off, may be engaged in tax loss selling , also called tax loss harvesting, through the rest of 2018. "In a year characterized by volatility and reversals, the next catalyst may be tax loss harvesting," according to Savita Subramanian, head of U.S. equity and quantitative strategy at Bank of America Merrill Lynch, in a recent note to clients as quoted by CNBC . Research by BAML stretching back to 1986 indicates that certain beaten-down stocks ripe for tax loss harvesting enjoyed an average gain of 5.1% during the three months after the Oct. 31 deadline, better than the 3.7% average gain for the S&P 500 Index (SPX) as a whole. These 6  large-cap stocks are what Subramanian calls tax loss candidates, or TLCs, that are likely to rebound based on BAML's analysis: AT&T Inc. ( T ), BlackRock Inc. ( BLK ), 3M Co.

Investopedia News: Bullish Big Investors Double Down After Sell-Offs

Image Mark Kolakowski While the October stock market sell-off caused great anxiety among individual investors, many of the world's largest fund managers used it as an opportunity to go bargain hunting, according to the latest release of the monthly Global Fund Manager Survey conducted by Bank of America Merrill Lynch (BofAML). The consensus among survey participants, based on a weighted average of their responses, is that the S&P 500 Index (SPX)  will peak at a value of 3,056, or 12.3% above the Nov. 13 close. Also, they believe that the yield on the 10-Year U.S. Treasury Note , which closed at 3.14%, must hit 3.70% before there is a clear signal to rotate from stocks to bonds. Highlights of the report are summarized in the table below. Fund Managers Are Bullish Short Term Heavy buyers during October stock market sell-off Cash levels fell from 5.1% to 4.7% Forecast roughly 12% upside in

Futures Higher on Trade Deal Optimism; Jobs Data in Focus I Investopedia News

Image Reuters U.S. stock index futures pointed to a fourth day of gains for Wall Street on Friday, fueled by hopes that the United States and China were starting to work toward a resolution of their bitter trade war that has weighed on expectations of global growth, and ahead of the closely watched monthly jobs report. The S&P 500 futures and the Dow Jones Industrial Average futures pointed to a near 1 percent rise for the indexes at open, but gains in Nasdaq futures were limited by losses in shares of Apple Inc. Apple fell 5.6 percent in premarket trading, after the world's most valuable technology company warned that sales for the crucial holiday quarter would likely miss expectations, blaming weakness in emerging markets and foreign exchange costs. But markets got a lift from the latest development on the trade front, as President Donald Trump and his Chinese counterpart Xi Jinping ex

12 Bargain Stocks That Are Ready to Rise I Investopedia News Mark Kolakowski One upside from the recent stock market selloff is that it may have created some opportunities for bargain hunting investors. However, an apparently cheap valuation is no guarantee that a stock is bound to rise, absent other positive forces that might propel its price upward. Analysts at Jefferies Financial Group have identified 12 stocks that are inexpensive "relative to their respective sectors," while also being possible beneficiaries of "identifiable catalysts between now and year-end," per Barron's . These stocks come from a broad range of industries, such as retail, biotech, banking, investment management, travel services, semiconductors and manufacturing. They are Gap Inc. ( GPS ), Foot Locker Inc. ( FL ), Michael Kors Holdings Ltd. ( KORS ), Kennametal Inc. ( KMT ), Timken Co. ( TKR ), Broadcom Inc. ( AVGO ), Casey’s General Stores Inc. ( CASY ), HCA Healthcare

Why Stocks Will Rebound to Record, Then Fall 50%: Guggenheim I Investopedia News

Image Shoshanna Delventhal Investors seeking to cash in on the last inning of the bull market have another year or so left as U.S. stocks are set to gain another 15% to 20%, and then plunge to 2007 highs, according to one market strategist. Markets Typically Gain Until After Fed's Last Rate Increase In a interview with CNBC on Friday, Scott Minerd, global chief investment officer and chairman of investments at $265 billion Guggenheim, argued that there's still a large window of time to make profits before a dangerous hurricane hits in 2020. His forecast implies a near 9% gain for the S&P 500 from recent highs to 3,190, marking a 21% return from Monday close. "Stocks are cheap," stated Minerd. "Markets tend to continue to rise until after the Fed's last rate increase." The Federal Reserve is expected to lift rates one final time before the end of