Showing posts with the label Market News

Market News: Morgan Stanley Sees 4 Stocks With Big Upside Even at Market's Peak

By Mark Kolakowski 4-5 minutes - Source: Investopedia Many market watchers believe that stock valuations are stretched, given that the S&P 500 Index (SPX) has surged by about 340% from its bear market low in March 2009, and traded today just about 2% below its all-time high. Nonetheless, despite their generally bearish outlook on the market, Morgan Stanley recently found 4 stocks that still have the potential to rise by up to 35%, giving them overweight ratings as a result. These stocks are The Boeing Co. ( BA ), Deere & Co. ( DE ), Ford Motor Co. ( F ), and Emerson Electric Co. ( EMR ). Morgan Stanley is optimistic about these stocks despite an environment in which "slowing growth and margin pressures keep us cautious on equities and we see downside risk should labor markets weaken," as they write in a Sept. 9, 2019 report, "U.S. Equity Strategy: Industrials: Strategy Sector Views + Analyst Stock Picks."

News,I Market News I Why Safe Haven News,I Market News I Why Safe Haven Gold ETFs Are Soaring as Trump-Xi Trade Talks LoomGold ETFs Are Soaring as Trump-Xi Trade Talks Loom

By Matthew Johnston 4-5 minutes Gold ETFs , widely regarded as safe havens when equities are expected to fall, are soaring in tandem with the precious metal itself even as stocks reach record highs. The SPDR Gold Shares ETF ( GLD ), VanEck Vectors Gold Miners ETF ( GDX ), SPDR Gold Minishares Trust ( GLDM ), iShares Gold Trust ETF ( IAU ) and the GraniteShares Gold ETF ( BAR ) have all taken off over the past month as gold reaches highs not seen since 2013, according to Barron’s . One of the main drivers of the recent gold rush is the continuing uncertainty surrounding the U.S.–China  trade war and the potential economic fallout. All eyes will be on U.S. President Donald Trump and Chinese President Xi Jinping as the two leaders are expected to meet at some point during the  G-20 summit, which is set to kick off Friday in Japan. An unfruitful meeting could result in additional tariffs, adding further weight on global trade and equity

News | Market News | Boost Mobile Deal: Amazon Said Access to Spectrum Essential

By Deborah DSouza Updated May 31, 2019 4 minutes The latest news report about Inc. ( AMZN ) has left ordinary investors and industry experts equally puzzled. According to two unnamed sources speaking with Reuters , the e-commerce giant is interested in buying prepaid cellphone wireless service Boost Mobile from U.S. carriers T-Mobile US Inc. ( TMUS ) and Sprint Corp. ( S ). A source added that the main reasons Amazon is considering a deal is because it can then use the combined company's (T-Mobile and Sprint are seeking regulatory approval for a merger) wireless network for at least six years and buy any wireless spectrum divested. Boost is one of many mobile virtual network operators (MVNOs) reliant on Sprint, meaning it is a carrier that doesn't own any network infrastructure or spectrum licenses and resells minutes it buys wholesale from mobile network operators (MNOs). It has 7 million to 8 million custome

What the Bears Are Getting Wrong About the Bull Rally

By Mark Kolakowski Updated Apr 25, 2019 3-4 minutes As the bull market and the U.S. economic expansion age, the bears are increasingly worried. Taking issue with the pessimists is Tobias Levkovich, chief U.S. equity strategist at Citigroup. “ Business cycles don’t die of old age; they are murdered by the Fed or some exogenous shock," he observed in a recent note to clients, as quoted by Barron's . Levkovich refutes four major claims by the bears, as summarized in the table below. 4 Things the Bears Are Wrong About Source: Tobias Levkovich of Citigroup, as reported by Barron's Significance for Investors As noted above, Levkovich takes issue with the belief that the odds of a recession rise as an economic expansion lengthens. Legendary investment manager Bill Miller's recent letter to clients offers his own reasons why the bull market should be far from over. He also refutes the notion that expansions d

Market News | Uber finally releases filing to go public

Sara Salinas, Lauren Feiner 3-4 minutes Uber CEO Dara Khosrowshahi at Sun Valley. Drew Angerer / Getty Images Uber released its long-awaited IPO prospectus . The company will list on the New York Stock Exchange under the symbol “UBER.” The company has self-reported unaudited financials for several quarters — one of the few tech giants expected to debut this year to do so. That means the public S-1 serves less as the typical first look into financials and acts more as a contextualized official record. Uber reported 2018 revenue of $11.27 billion. The company posted net income of $997 million in 2018, but an adjusted EBITDA loss of $1.85 billion. Uber reported a metric it called “Monthly Active Platform Consumers” or “MAPC,” which reflects “the number of unique consumers who completed a Ridesharing or New Mobility ride or received an Uber Eats meal on our platform at least once in a given month, averaged over each month in t

Market News | 8 Stocks to Own in 2Q as the Market Enters Rough Waters

By Mark Kolakowski Updated Apr 11, 2019 4 minutes Stocks are up sharply from their December 2018 lows, and many investors wonder if the best opportunities for gains in equities are now behind us. Meanwhile, David Kostin, the chief U.S. equity strategist at Goldman Sachs, has applied multiple screens to produce a basket of 30 stocks with strong prospects in 2Q 2019, including these eight: Amgen Inc. ( AMGN ), Facebook Inc. ( FB ), PayPal Holdings Inc. ( PYPL ), Foot Locker Inc. ( FL ), AT&T Inc. ( T ), Texas Instruments Inc. ( TXN ), VeriSign Inc. ( VRSN ) and The Western Union Co. ( WU ). 8 Stocks to Buy as Market Waters Get Choppy (YTD Gains Through April 2, 2019) Facebook, 34% VeriSign, 26% PayPal, 24% Foot Locker, 22% Texas Instruments, 21% AT&T, 14% Western Union, 13% Amgen, 0% Median S&P 500 stock, 17% Source: Goldman Sachs, "Where to Invest Now: Strategies for 2Q," April 2019 Signi

Market News | Yield Curve and Margin Debt Send Conflicting Signals

By John Jagerson Updated Mar 27, 2019 6-7 minutes Major Moves The U.S. Treasury yield curve has had an interesting month as it has slowly inverted from the belly of the curve outward toward the long end of the curve. The three-year Treasury yield – which is currently the lowest point on the yield curve – first inverted by dropping below the one-month Treasury yield on March 7. The 10-year Treasury yield (TNX) took a few weeks longer but finally dropped below the one-month Treasury yield on Friday, March 22. Both the 20-year Treasury yield and the 30-year Treasury yield are still above the one-month Treasury yield, but at the rate we're going, we could see the entire long end of the yield curve inverted within the next month or two. So why is an  inverted yield curve  important for the stock market? Why should stock traders care what bond traders are doing to the yield curve? In the past, inverted yield curves have been a forerunner f

Market News | 3 Key Brexit Votes This Week

By Daniel Liberto Updated Mar 11, 2019 5-7 minutes Brexit is likely to be at the forefront of investors minds this week. In the next four days, British politicians will have their say on how and potentially when the U.K. leaves the European Union (EU). By Friday, investors will find out whether Brexit will happen with or without an agreement in place by the March 29 exit date. There is also the possibility that the negotiation process gets stalled for a couple more months, potentially paving the way for another referendum. The outcome of a series of votes promises to determine the fate of the world’s fifth largest economy, as well as the rest of the world and the global stock market. Here’s a breakdown of how this crunch week could pan out: Vote 1: May’s Brexit Deal On Tuesday, Theresa May will have another shot at getting her Brexit deal accepted by the House of Commons. The Prime Minister was humiliated in January when her Wit

Market News | How to Profit Off a U.S.-China Stock Rebound

By Shoshanna Delventhal Updated Feb 28, 2019 4-5 minutes Stock investors searching for how to profit off of a possible trade deal with China should look at three stocks that remain sharply low over the past year despite their recent rebounds. Stocks that are exceptionally well positioned to lead a rally in the U.S. equity market following a positive trade accord include vehicle stocks Brunswick Corp. ( BC ), Harley-Davidson ( HOG ), and Polaris Industries ( PII ). For these stocks, investors are at the moment “only modestly factoring in a favorable China trade resolution," which means that they have huge upside, according Wells Fargo’s Timothy Condor, per Barron’s . 3 China Plays (YTD stock performance; % decline from 52-week high) Brunswick Corp.; 13%, -24.5% Harley-Davidson Inc.; 8.7%; -20.8% Polaris Industries Inc.; 13.9%; -22.3% (Source: Investopedia) Trump Announces 'Substantial Progress' in Trade Talk

Market News | 6 High Margin Stocks To Lead As S&P 500 Sales Slow

By Mark Kolakowski Updated Feb 28, 2019 4-5 minutes Against a background of decelerating GDP growth in the U.S. and across the globe, Goldman Sachs recommends stocks with high, stable profit margins and low operating leverage . They add that stocks with fast sales growth, until recently one of their favored investment themes, now are overpriced relative to the market. By contrast, stocks with low operating leverage are trading at a valuation discount. "In the current macro environment, we recommend investors own stocks with low operating leverage and sell companies with high operating leverage," Goldman says in their latest U.S. Weekly Kickstart report. "Stocks with low operating leverage also have attractive fundamentals relative to stocks with high operating leverage," they add. Among the 50 stocks in Goldman's low operating leverage basket are these six: Twenty-First Century Fox Inc. ( FOXA ), CBS Corp. (

Market News | Global Shares Climb After Trump Delays Tariffs

By Daniel Liberto Updated Feb 25, 2019 3-4 minutes Global stock markets rose on Monday after President Donald Trump announced that the world’s two biggest economies are making progress on trade discussions. President Trump previously pledged to hike tariffs from 10% to 25% on $200 billion worth of Chinese imports if an agreement wasn’t reached by Mar. 1. On Sunday, he tweeted that “productive” talks had led him to shelve those plans, adding that good progress had been made on a number of important issues, including intellectual property theft, technology transfers, agriculture, services and currency. “I will be delaying the U.S. increase in tariffs now scheduled for March 1,” he said. “Assuming both sides make additional progress, we will be planning a Summit for President Xi and myself, at Mar-a-Lago, to conclude an agreement. A very good weekend for U.S. & China!” Global Shares RIse Investors cheered the news that a trade wa

7 Stocks That Can Lead as Corporate Margins Plunge

By Mark Kolakowski Updated Feb 15, 2019 4-5 minutes Corporate profit margins are under increasing pressure, as inflation and tariffs push up costs. In particular, an exceptionally tight labor market is causing wages to rise at an accelerating rate. "Stocks with the lowest labor cost exposure should outperform as wages continue to rise," Goldman Sachs says in their recent U.S. Macroscope report, noting that a " dovish Fed encourages strongest wage growth in a decade." Among the 50 stocks in the low labor cost basket assembled by Goldman are these seven: Under Armour Inc. ( UAA ), Hanesbrands Inc. ( HBI ), ONEOK Inc. ( OKE ), Colgate-Palmolive Co. ( CL ), IPG Photonics Corp. ( IPGP ), Amphenol Corp. ( APH ), and Unum Group ( UNM ). This is the first of two articles that Investopedia will devote to Goldman's report. 7 Proven Leaders (Labor Costs as % of Revenue) Under Armour: 3% Hanesbrands: 5% ONEOK

How Banks' $21 Billion Tax Bonanza Is Fueling the Stock Rebound

By Shoshanna Delventhal Updated Feb 13, 2019 4-5 minutes U.S. banks, including the Big Six, reaped a windfall from the Trump tax cuts far greater than expected. A whopping $21 billion in tax savings, nearly double the IRS’s annual budget and greater than NASA’s request for 2019, has helped boost America’s largest financial institutions’ profits and stock prices, lifting the KBW Bank Index 14.4% YTD, compared to the S&P 500's 9.5% increase over the same period. Thanks to the Republican tax overhaul, banks on average saw their effective tax rates fall below 19% in 2018, compared to the approximate 28% they paid in 2016. Four of the six largest U.S. banks paid less than expected in taxes last year. Bank of America Corp. ( BAC ) actually paid 18.6% in taxes, less than the 20% it expected. Meanwhile, Goldman Sachs Group ( GS ) paid just 16.2%, versus the 24% it expected, while Citigroup ( C ) paid 22.8%, versus the 25% expected, and Morgan