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Stocks, Cryptos Tumble To Close Out Catastrophic First-Half

Stocks, Cryptos Tumble To Close Out Catastrophic First-Half It was supposed to be a 7% ramp into month-end on billions in pension fund residual buying. Instead, it ended up being more or less the opposite, with crypto-led liquidations dragging futures and global markets lower, and extending Wednesday losses after central bankers issued warnings on inflation and fueled concern that aggressive policy will end with a hard-landing recession, which increasingly more now see as being 2022 business, an outcome that now appears assured especially after yesterday's disastrous guidance cut from RH, the second in three weeks! Recession fears and inflation woes may be prolonged by today's PCE deflator report. The consumer price gauge favored by the Fed may have picked up to 6.4% last month from 6.3%. Personal income growth probably edged up but Bloomberg Economics highlights an anticipated decline in real personal spending as a major worry. Meanwhile, China’s economy showed further signs of improvement in June with a strong pickup in services and construction, even if the latest Chinese PMI print came slightly below expectations. Also overnight, Russia said it withdrew troops from Ukraine’s Snake Island in the Black Sea after Ukraine said its forces drove Russian troops from the area. In any case, with zero demand from pensions so far (even though the continued selling in stocks and buying in bonds will only make the imabalnce bigger), overnight Nasdaq 100 contracts dropped 1.8% while S&P 500 futures declined 1.3%, and cryptos crumbled, with bitcoin dragged back below $19000 and Ether on the verge of sliding below $1000. The tech-heavy gauge managed to end Wednesday’s trading slightly higher, while the S&P 500 fell for a third straight day. In Europe, the Stoxx Europe 600 Index slid 1.9%. Treasuries gained, the dollar was steady and gold declined and crude oil futures edged lower again. Which brings us to the last trading day of a quarter for the history books: the S&P 500 is set for its biggest 1H decline since 1970 and the Nasdaq 100 since 2002, the height of the dot.com bust. The Stoxx 600 is set for the worst 1H since 2008, the height of the GFC.  Traders have ramped up bets that the global economy will buckle under central bank tightening campaigns -- and that policy makers will eventually backpedal. The bond market shifted to price in a half-point rate cut in the Federal Reserve’s benchmark rate at some point in 2023. On Wednesday, during the annual ECB annual forum, Fed Chair Jerome Powell and his counterparts in Europe and the UK warned inflation is going to be longer lasting. A view that central banks need to act fast on rates because they misjudged inflation has roiled markets this year, with global stocks about to close out their worst quarter since the three months ended March 2020. “Markets are worried about growth as central bankers continue to emphasize that bringing down inflation is their overriding objective, and that it may take time to bring inflation down,” said Esty Dwek, chief investment officer at Flowbank SA. “We still haven’t seen total capitulation in markets, so further downside is possible.” Meanwhile, the cost of insuring European junk bonds against default crossed 600 basis points for the first time in two years on Thursday. And speaking of Europe, stocks are also down over 2% in early trading, with all sectors in the red. DAX and CAC underperform at the margin with autos, consumer discretionary and banking sectors the weakest within the Stoxx 600.  Here are some of the biggest European movers today: Uniper shares slump as much as 23% after the German utility withdrew its outlook and said it was discussing a possible bailout from the German government following Russia’s move to curb natural gas deliveries. SAP sinks as much as 6.5% after Exane BNP Paribas downgraded stock to neutral from outperform, saying it sees risks on demand side in the near term as software spending decisions come under increased scrutiny. Sanofi shares decline as much as 4.5% after the French drugmaker said the FDA placed late-stage clinical trials of tolebrutinib on partial hold in US because of concerns about liver injuries. European semiconductor stocks fell, following peers in the US and Asia lower amid growing concerns that the industry might face a downturn soon as chip stockpiles build. ASML drops as much as 3.4%, Infineon -4.1%, STMicro -3.1% Norsk Hydro shares slide as much as 6% amid metals decline and as DNB cuts the stock to sell from hold, citing concerns about rising aluminum supply. Stainless steel stocks in Europe fall, with Morgan Stanley saying the settlement on the latest ferrochrome benchmark missed its expectations. Outokumpu shares down as much as 6.6%, Aperam -7.2%, Acerinox -4% Saab shares jump as much as 8.4%, after getting an order worth SEK7.3b from the Swedish Defence Materiel Administration for GlobalEye Airborne Early Warning and Control aircraft. Orsted shares rise as much as 2.5%, before paring some of the gains. HSBC raises to buy from hold, saying any further downside for the wind farm operator looks limited. Bunzl shares rise as much as 2.6% after the specialist distribution company said it now expects very good revenue growth in 2022. Grifols shares rise as much as 7.8% after slumping on Wednesday, as the company says that the board isn’t analyzing any capital increase “for the time being.” Earlier in the session, Asian stocks fell for a second day as tech-heavy indexes in Taiwan and South Korea continued to get pummeled amid concerns over the potential for aggressive monetary tightening in the US to rein in inflation.  The MSCI Asia Pacific Index declined as much as 1.2%, dragged down by technology shares including TSMC, Alibaba and Tencent. Taiwan slid more than 2%, while gauges in Japan, South Korea, Australia dropped more than 1%.  Stocks in mainland China rose more than 1% after the economy showed further signs of improvement in June with a strong pickup in services and construction as Covid outbreaks and restrictions were gradually eased. Traders are also watching Chinese President Xi Jinping’s trip to Hong Kong, his first time outside of the mainland since 2020.  Asian stocks are struggling to recover from a May low as the threat of higher US rates outweighs China’s emergence from strict Covid lockdowns and its pledge of stimulus measures. While mainland Chinese stocks led gains globally this month, the rest of the markets in the region -- especially those heavy with technology stocks and exporters -- saw hefty outflows of foreign funds.  “Investors continue to assess recession and also inflation risks,” Marcella Chow, JPMorgan Asset Management’s global market strategist, said in an interview with Bloomberg TV. “This tightening path has actually increased the chance of a slower economic growth going forward and probably has brought forward the recession risks.” Asian stocks are set to post a more than 12% loss this quarter, the worst since the one ended March 2020 during the pandemic-induced global market rout. Japanese stocks declined after the release of China’s data on manufacturing and non-manufacturing PMIs that showed slower than expected improvements.  The Topix Index fell 1.2% to 1,870.82 as of market close Tokyo time, while the Nikkei declined 1.5% to 26,393.04. Sony Group contributed the most to the Topix Index decline, falling 3.4%. Out of 2,170 shares in the index, 531 rose and 1,574 fell, while 65 were unchanged. “Although China is recovering from a lockdown, business sentiment in the manufacturing industry is deteriorating around the world,” said Tomo Kinoshita, global market strategist at Invesco Asset Management China’s Economy Shows Signs of Improvement as Covid Eases. Indian stock indexes posted their biggest quarterly loss since March 2020 as the global equity market stays rattled by high inflation and a weakening outlook for economic growth.  The S&P BSE Sensex ended little changed at 53,018.94 in Mumbai on Thursday, while the NSE Nifty 50 Index dropped 0.1%. The gauges shed more than 9% each in the June quarter, their biggest drop since the outbreak of pandemic shook the global markets in March 2020. The main indexes have fallen for all but one month this year as surging cost pressures forced India’s central bank to raise rates twice and tighten liquidity conditions. The selloff is also partly driven by record foreign outflows of more than $28b this year.  Despite the turmoil in global markets, Indian stocks have underperformed most Asian peers, partly helped by inflows from local institutions, which made net purchases of more than $30b of local stocks. “Investors worry that the latest show of central bank determination to tame inflation will slow economies rapidly,” HDFC Securities analyst Deepak Jasani wrote in a note.  Fourteen of the 19 sector sub-gauges compiled by BSE Ltd. fell Thursday, with metal stocks leading the plunge. The expiry of monthly derivative contracts also weighed on markets. For the June quarter, metal stocks were the worst performers, dropping 31% while information technology gauge fell 22%. Automakers led the three advancing sectors with 11.3% gain. Australian stocks also tumbled, with the S&P/ASX 200 index falling 2% to close at 6,568.10, weighed down by losses in mining, utilities and energy stocks.  In New Zealand, the S&P/NZX 50 index fell 0.8% to 10,868.70 In rates, treasuries advanced, led by the belly of the curve. German bonds surged, led by the short-end and outperforming Treasuries. US yields richer by as much as 5.4bp across front-end and belly of the curve which outperforms, steepening 2s10s, 5s30s by 2bp and 2.8bp; wider bull-steepening move in progress for German curve with yields richer by up to 13.5bp across front-end with 2s10s wider by 3.5bp on the day. US 10-year yields around 3.055%, richer by 3.5bp. Money markets aggressively trimmed ECB tightening bets on relief that French June inflation didn’t come in above the median estimate. Bonds also benefitted from haven buying as stocks slide. Month-end extension flows may continue to support long-end of the Treasuries curve. bunds outperform by 7bp in the sector. IG issuance slate empty so far; Celanese Corp. pushed back plans to issue in euros and dollars, most likely to next week, after deals struggled earlier this week. Focal points of US session include PCE deflator and MNI Chicago PMI.  In FX, the Bloomberg Dollar Spot Index was steady as the greenback traded mixed against its Group-of-10 peers. The yen advanced and Antipodean currencies were steady against the greenback. French inflation quickened to the fastest since the euro was introduced. Steeper increases in energy and food costs drove consumer-price growth to 6.5% in June from 5.8% in May . Sweden’s krona swung to a loss. It briefly advanced earlier after the Riksbank raised its policy rate by 50bps, as expected, signaled faster rate hikes and a quicker trimming of the balance sheet. The pound rose, snapping three days of losses against the dollar. UK household incomes are on their longest downward trend on record, as the nation’s cost of living crisis saps the spending power of British households. Separate figures showed that the current-account deficit widened sharply to £51.7 billion ($63 billion) in the first quarter. The yen rose and the Japan’s bonds inched up. The BOJ kept the amount and frequencies of planned bond purchases unchanged in the July-September period. The Australian dollar reversed a loss after data showed China’s official manufacturing purchasing managers index rose above 50 for the first time since February in a sign of improvement in the world’s second largest economy. Bitcoin is on track for its worst quarter in more than a decade, as more hawkish central banks and a string of high-profile crypto blowups hammer sentiment. The 58% drawdown in the biggest cryptocurrency is the largest since the third quarter of 2011, when Bitcoin was still in its infancy, data compiled by Bloomberg show. In commodities, WTI trades a narrow range, holding below $110. Brent trades either side of $116. Most base metals trade in the red; LME zinc falls 3.1%, underperforming peers. Spot gold falls roughly $3 to trade near $1,814/oz. Bitcoin slumps over 6% before finding support near $19,000. Looking to the day ahead now, data releases include German retail sales for May and unemployment for June, French CPI for June, the Euro Area unemployment rate for May, Canadian GDP for April, whilst the US has personal income and personal spending for May, the weekly initial jobless claims, and the MNI Chicago PMI for June. Market Snapshot S&P 500 futures down 1.2% to 3,775.75 STOXX Europe 600 down 1.8% to 406.18 MXAP down 1.0% to 158.01 MXAPJ down 1.1% to 524.78 Nikkei down 1.5% to 26,393.04 Topix down 1.2% to 1,870.82 Hang Seng Index down 0.6% to 21,859.79 Shanghai Composite up 1.1% to 3,398.62 Sensex up 0.2% to 53,136.59 Australia S&P/ASX 200 down 2.0% to 6,568.06 Kospi down 1.9% to 2,332.64 Gold spot down 0.2% to $1,814.91 US Dollar Index little changed at 105.04 German 10Y yield little changed at 1.42% Euro little changed at $1.0443 Brent Futures down 0.4% to $115.85/bbl Top Overnight News from Bloomberg The surge in the dollar has set Asian currencies on course for their worst quarter since the 1997 financial crisis and created a dilemma for central bankers French Finance Minister Bruno Le Maire said the EU can deliver the global minimum corporate tax with or without the support of Hungary, circumventing Budapest’s veto earlier this month just as the bloc was on the brink of a agreement German unemployment unexpectedly rose, snapping 15 straight months of decline as refugees from the war in Ukraine were included in those searching for work The SNB bought foreign exchange worth 5.7 billion francs ($5.96 billion) in the first quarter of 2022 as the franc sharply appreciated against the euro and briefly touched parity in March The ECB plans to ask the region’s lenders to factor in the economic hit of a potential cut off of Russian gas when considering payouts to shareholders European stocks were poised for their biggest drop in any half-year period since 2008, as investors focused on the prospects for economic slowdown and stubbornly high inflation in the region New Zealand will enter a recession next year that could be deeper than expected, Bank of New Zealand economists said after a survey showed business sentiment continues to slump A more detailed look at global markets courtesy of Newsquawk Asia-Pac stocks were varied at month-end amid a slew of data releases including mixed Chinese PMIs. ASX 200 was dragged lower by weakness in energy, miners and the top-weighted financials sector. Nikkei 225 declined after disappointing Industrial Production data and with Tokyo raising its virus infection level. Hang Seng and Shanghai Comp. were somewhat mixed with Hong Kong indecisive and the mainland underpinned after the latest Chinese PMI data in which Manufacturing PMI printed below estimates but Non-Manufacturing PMI firmly surpassed forecasts and along with Composite PMI, all returned to expansion territory. Top Asian News NATO Secretary General Stoltenberg said China's growing assertiveness has consequences for the security of allies, while he added China is not our adversary, but we must be clear-eyed about the serious challenges it presents. US blacklisted 5 Chinese firms for allegedly helping Russia in which Connec Electronic, King Pai Technology, Sinno Electronics, Winnine Electronic and World Jetta Logistics were added to the entity list which restricts access to US technology, according to WSJ. Japan's government cut its assessment of industrial production and noted that production is weakening, while it stated that Japan's motor vehicle production declined 8% M/M and that industrial production likely saw the largest impact of Shanghai's COVID-19 lockdown in May, according to Reuters. Tokyo metropolitan government will reportedly increase COVID infections level to the second-highest, according to FNN. It’s been a downbeat session for global equities thus far as sentiment deteriorates further. European bourses are lower across the board, with losses extending during early European hours. European sectors are all in the red but portray a clear defensive bias. Stateside, US equity futures have succumbed to the glum mood, with the NQ narrowly underperforming. Top European News Riksbank hiked its Rate by 50bps to 0.75% as expected, and said the rate will be raised further and it will be close to 2% at the start of 2023. Bank said the balance sheet its to shrink faster than previously flagged, and suggested that policy rate will increase faster if needed. Click here for details. Riksbank's Ingves said inflation over forecast probably not enough for Riksbank to hold extra policy meeting in summer. Ingves added that if the situation requires a 75bps hike, then Riksbank will carry out a 75bps hike. Orsted Gains as HSBC Upgrades With Shares Seen ‘Good Value’ Aston Martin Extends Losses as Carmaker Reportedly Seeking Funds Climate Litigants Look Beyond Big Oil for Their Day in Court Ukraine Latest: Putin Warns NATO on Moving Military to Nordics FX DXY extends on gains above 105.00, but could see more upside on safe haven demand and residual rebalancing flows over fixes - EUR/USD inches towards 1.0400 to the downside. Yen regroups as yields drop and risk sentiment deteriorates to compound corrective price action. Franc unwinds some of its recent outperformance and Loonie lose traction from oil ahead of Canadian GDP. Swedish Crown unable to take advantage of hawkish Riksbank hike in face of risk aversion - Eur/Sek stuck in a rut close to 10.7000. Pound finds some underlying bids into 1.2100 and Kiwi at 0.6200, while Aussie holds above 0.6850 with encouragement from China’s services PMI that also propped the Yuan. Fixed Income Bonds on bull run into month, quarter and half year end - Bunds top 148.00 at best, Gilts approach 113.50 and 10 year T-note just a tick away from 118-00. Debt in demand on safe haven grounds rather than duration as curves steepen on less hawkish/more dovish market pricing. Italian supply comfortably covered to keep BTP futures propped ahead of US PCE data and yet another speech from ECB President Lagarde. Commodities WTI and Brent front-month futures are resilient to the broader risk downturn, and firmer Dollar as OPEC+ member members gear up for what is expected to be a smooth meeting. Spot gold is uneventful but dipped under yesterday's low, with potential support at the 15th June low at USD 1,806.59/oz. Base metals are softer across the board amid the broader risk profile. Dalian and Singapore iron ore futures were on track for quarterly losses. Ship with 7,000 tonnes of grain leaves Ukraine port, according to pro-Russia officials cited by AFP. US Event Calendar 08:30: June Initial Jobless Claims, est. 229,000, prior 229,000 08:30: June Continuing Claims, est. 1.32m, prior 1.32m 08:30: May Personal Income, est. 0.5%, prior 0.4% 08:30: May Personal Spending, est. 0.4%, prior 0.9% 08:30: May Real Personal Spending, est. -0.3%, prior 0.7% 08:30: May PCE Deflator MoM, est. 0.7%, prior 0.2% 08:30: May PCE Deflator YoY, est. 6.4%, prior 6.3% 08:30: May PCE Core Deflator YoY, est. 4.8%, prior 4.9% 08:30: May PCE Core Deflator MoM, est. 0.4%, prior 0.3% 09:45: June MNI Chicago PMI, est. 58.0, prior 60.3 DB's Jim Reid concludes the overnight wrap We’ve just released the results of our monthly EMR survey that we conducted at the start of the week. It makes for some interesting reading, and we’re now at the point where 90% of respondents are expecting a US recession by end-2023, which is up from just 35% in our December survey. That echoes our own economists’ view that we’re going to get a recession in H2 2023, and just shows how sentiment has shifted since the start of the year as central banks have begun hiking rates. When it comes to people’s views on where markets are headed next, most are expecting many of the themes from H1 to continue, with a 72% majority thinking that the S&P 500 is more likely to fall to 3,300 rather than rally to 4,500 from current levels, whilst 60% think that Treasury yields will hit 5% first rather than 1%. Click here to see the full results. When it comes to negative sentiment we’ll have to see what today brings us as we round out the first half of the year, but if everything remains unchanged today we’re currently set to end H1 with the S&P 500 off to its worst H1 since 1970 in total return terms. And there’s been little respite from bonds either, with US Treasuries now down by -9.79% since the start of the year, so it’s been bad news for traditional 60/40 type portfolios. Ultimately, a large reason for that has been investors’ fears that ongoing rate hikes to deal with inflation will end up leading to a recession, and yesterday saw a continuation of that theme, with Fed Chair Powell, ECB President Lagarde and BoE Governor Bailey all reiterating their intentions in a panel at the ECB’s Forum to return inflation back to target. In terms of that panel, there weren’t any major headlines on policy we weren’t already aware of, although there was a collective acknowledgement of the risk that inflation could become entrenched over time and the need to deal with that. Fed Chair Powell described the US economy as in “strong shape”, but one that ultimately requires much tighter financial conditions to bring inflation back to target. Year-end fed funds expectations remained steady in response, down just -0.7bps to 3.45%. However, further out the curve the simmering slower growth narrative continued to grip markets and sent 10yr Treasury yields -8.2bps lower to 3.09%, and the 2s10s another -1.1bps flatter to 4.7bps. In line with a tighter Fed policy path and slower growth, 10yr breakevens drove the move in nominal yields, falling -8.2bps to 2.39%, their lowest levels since January, having entirely erased the gains seen after Russia’s invasion of Ukraine, when it peaked above 3% at one point in April. Along with 2s10s flattening, the Fed’s preferred measure of the near-term risk of recession, the forward spread (the 18m3m – 3m), similarly flattened by -5.7bps, hitting its lowest level in nearly four months at 154bps. And thismorning there’s only been a partial reversal of these trends, with 10yr Treasury yields (+1.3bps) edging back up to 3.10% as we go to press. Over in equities, the S&P 500 bounced around but finished off of its intraday lows with just a -0.07% decline, again with the macro view likely skewed by quarter-end rebalancing of portfolios. The NASDAQ was similarly little changed on the day, falling a mere -0.03%. In terms of the ECB, President Lagarde said on that same panel that she didn’t think “we are going back to that environment of low inflation” that was present before the pandemic. But when it came to the actual data yesterday there was a pretty divergent picture. On the one hand, Spain’s CPI for June surprised significantly on the upside, with the annual inflation rising to +10.0% (vs. +8.7% expected) on the EU’s harmonised measure. But on the other, the report from Germany then surprised some way beneath expectations, coming in at +8.2% on the EU-harmonised measure (vs. +8.8% expected). So mixed messages ahead of the flash CPI print for the entire Euro Area tomorrow. As in the US, there was a significant rally in European sovereign bonds, with yields on 10yr bunds (-10.7bps), OATs (-10.7bps) and BTPs (-16.0bps) all moving lower on the day. Equities also lost significant ground amidst the risk-off tone, and the STOXX 600 shed -0.67% as it caught up with the US losses from the previous session. That risk-off tone was witnessed in credit as well, where iTraxx Crossover widened +21.5bps to a post-pandemic high. At the same time, there were further concerns in Europe on the energy side, with natural gas futures up by +8.06% to a three-month high of €139 per megawatt-hour, which follows a reduction in capacity yesterday at Norway’s Martin Linge field because of a compressor failure. Whilst monetary policy has been the main focus for markets lately, we did get some headlines on the fiscal side yesterday too, with a report from Bloomberg that Senate Democrats were working on an economic package that had smaller tax increases in order to reach a deal with moderate Democratic senator Joe Manchin. For reference, the Democrats only have a majority in the split 50-50 senate thanks to Vice President Harris’ tie-breaking vote, so they need every Democrat Senator on board in order to pass legislation. According to the report, the plan would be worth around $1 trillion, with half allocated to new spending, and the other half cutting the deficit by $500bn over the next decade. Overnight in Asia we’ve seen a mixed market performance overnight. Most indices are trading lower, including the Nikkei (-1.45%) and the Kospi (-0.81%), but Chinese equities have put in a stronger performance after an improvement in China’s PMIs in June, and the CSI 300 (+1.62%) and the Shanghai Comp (+1.31%) have both risen. That came as manufacturing activity expanded for the first time in four months, with the PMI up to 50.2 in June (vs. 50.5 expected) from 49.6 in May. At the same time, the non-manufacturing climbed to 54.7 points in June, up from 47.8 in May, which also marked the first time it’d been above the 50 mark since February. Nevertheless, that positivity among Chinese equities are proving the exception, with equity futures in the US and Europe pointing lower, with those on the S&P 500 (-0.28%) looking forward to a 4th consecutive daily decline as concerns about a recession persist. When it came to other data yesterday, the third estimate of US GDP for Q1 saw growth revised down to an annualised contraction of -1.6% (vs. -1.5% second estimate). Separately, the Euro Area’s M3 money supply grew by +5.6% year-on-year in May (vs. +5.8% expected), which is the slowest pace since February 2020. To the day ahead now, data releases include German retail sales for May and unemployment for June, French CPI for June, the Euro Area unemployment rate for May, Canadian GDP for April, whilst the US has personal income and personal spending for May, the weekly initial jobless claims, and the MNI Chicago PMI for June. Tyler Durden Thu, 06/30/2022 - 07:58.....»»

Category: blogSource: zerohedge32 min. ago Related News

Dow Jones futures drop 340 points after tough Fed talk drives fresh concerns about a recession

Fed Chair Jerome Powell said interest rate hikes are "highly likely to involve some pain," adding to investors' jitters about slower economic growth. Investors are increasingly worried about the US economy.Justin Sullivan/Getty Images US stock futures fell sharply Thursday, with the Dow dropping 340 points, as traders worried about a recession. Fed Chair Jerome Powell and other central bankers on Wednesday reiterated their commitment to taming inflation, even at the expense of growth. Longer-dated bond yields fell, in a sign investors expect central banks to have to cut interest rates in the future. US stock futures tumbled Thursday after Federal Reserve Chair Jerome Powell's tough talk on inflation sparked fresh concerns among investors about a recession.Dow Jones futures fell as much as 380 points and were down 1.11%, or 343 points, as of 6.00 a.m. ET. S&P 500 futures were 1.43% lower, and Nasdaq 100 futures were down 1.80%.European stocks dropped as economic fears also mounted on the continent, with the pan-continental Stoxx 600 down 1.82% in morning trading. Frankfurt's DAX lost 2.37%, while London's FTSE 100 was 1.80% lower.In Asia overnight, Tokyo's Nikkei 225 fell 1.54%. But China's CSI 300 bucked the trend and rose 1.44% on signs that the outlook is improving for the world's second-biggest economy.Strong words on inflation from the world's most important central bankers on Wednesday triggered the latest sell-off in stocks.Speaking at a European Central Bank conference in Portugal, Powell said the US economy remains strong. But he said there's "no guarantee" that it will avoid a sharp slowdown as the Fed hikes interest rates, underlining the central bank is prioritizing its efforts to tame inflation."The process is highly likely to involve some pain, but the worse pain would be in failing to address this high inflation and allowing it to become persistent," Powell said.ECB President Christine Lagarde and Bank of England Governor Andrew Bailey echoed Powell's commitment to controlling price rises, warning that red-hot inflation could become entrenched if they don't act decisively.Investors should prepare for more challenging months ahead, according to Mark Haefele, chief investment officer at UBS Wealth Management."There are a lot of potential outcomes for markets, but the only near certainty is that the path to the end of the year will be a volatile one," he told clients in a note.The yield on the key 10-year US Treasury note, which moves inversely to the price, fell almost 4 basis points Thursday to 3.057%. Analysts said the fall is a sign investors expect the Fed will be compelled to cut interest rates in the future as growth slows.The May reading on the core US personal consumption expenditure deflator is scheduled for release at 8.30 a.m. ET. Data on personal spending and income are also due."The release of the latest PCE index, a preferred Fed gauge of inflation, will provide further clues on consumers' willingness or otherwise to spend," said Richard Hunter, head of markets at trading platform Interactive Investor.Recent data has suggested this "vital cog of the US economy may be withdrawing in the face of higher energy and food prices," he added.Elsewhere, oil prices were little changed after falling Wednesday thanks to worries about growth and demand. WTI crude was roughly flat in choppy action at $109.44 a barrel, while Brent crude was trading at $112.32.The dollar index was up slightly at 105.17. Meanwhile, bitcoin traded below $20,000 as the dramatic crypto sell-off showed no signs of easing, and was last changing hands down 5% at $19,159.Read more: UBS and Credit Suisse are telling investors the bond market is stabilizing. Here's why this could bring a 10% rally in stocks — and 12 names that could capture the surge.Read the original article on Business Insider.....»»

Category: topSource: businessinsider1 hr. 16 min. ago Related News

Walgreens beats Street views but sees sharp profit decline

Walgreens Boots Alliance Inc. reported fiscal third-quarter net income totaling $289 million, or 33 cents per share, down from $1.197 billion, or $1.38 per share, last year. Adjusted EPS of 96 cents beat the FactSet consensus for 92 cents. Sales of $32.60 billion were down from $34.03 billion last year and ahead of the FactSet consensus for $32.06 billion. U.S. comparable retail sales were up 2.4%, excluding tobacco. Walgreens administered 4.7 million Covid vaccines and 3.9 million tests during the quarter. The Walgreens Health segment of the business, which includes VillageMD, a primary healthcare company, saw a 65% pro forma sales increase year-over-year. Walgreens announced this week that, after a strategic review, it will keep the Boots business. Walgreens continues to forecast full-year adjusted EPS growth in the low-single digits. The FactSet consensus is for EPS of $5.04, implying an increase of 2.6%. Walgreens stock fell 1.6% in Thursday premarket trading and is down 21.6% for the year to date. The S&P 500 index is down nearly 20% for 2022 so far.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news......»»

Category: topSource: marketwatch1 hr. 32 min. ago Related News

US Stock Futures Down Ahead Of Jobless Claims Data

Pre-open movers U.S. stock futures traded lower in early pre-market trade after the Dow Jones gained over 80 points in the previous session. Investors are awaiting earnings results from Walgreens Boots Alliance, Inc. (NASDAQ: WBA), Micron Technology, Inc. (NASDAQ: MU) and Constellation Brands, Inc. (NYSE: STZ). Data on initial jobless claims for the latest week will be released at 8:30 a.m. ET. Jobless claims are expected to come in at 226,000 for the June 25 week compared to 229,000 in the previous week. Data on personal income and outlays for May will be released at 8:30 a.m. ET, while the Chicago PMI for June is scheduled for release at 9:45 a.m. ET. Check out this: RH, Walgreens And 3 Stocks To Watch Heading Into Thursday Futures for the Dow Jones Industrial Average dipped 366 points to 30,633.00 while the Standard & Poor’s 500 index futures fell 58 points to 3,763.25. Futures for the Nasdaq index fell 226.25 points to 11,464.75. Oil prices traded slightly higher as Brent crude futures rose 0.4% to trade at $112.84 per barrel, while US WTI crude futures rose 0.3% to trade at $110.07 a barrel. The Energy Information Administration’s weekly report on natural gas stocks in underground storage ...Full story available on Benzinga.com.....»»

Category: earningsSource: benzinga3 hr. 3 min. ago Related News

Have Earnings Estimates Come Down Enough?

Part of the uncertainty in the market at present is related to how earnings estimates should evolve in an aggressive Fed tightening cycle. The market has a sense of what should happen to earnings estimates, but it isn't seeing much of that just yet... Note: The following is an excerpt from this week’s Earnings Trends report. You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>>Here are the key points: For 2022 Q2, total S&P 500 earnings are expected to increase +2.5% from the same period last year on +10.8% higher revenues and net margin compression of 103 basis points. Excluding the hefty contribution from the Energy sector, total Q2 earnings for the rest of the S&P 500 index are expected to be down -4.8% on +8.6% higher revenues. Q2 Earnings estimates for the index as a whole are only modestly down since the start of the quarter, but they are down significantly on an ex-Energy basis. Part of the uncertainty in the market at present is related to how earnings estimates should evolve in an aggressive Fed tightening cycle. The market has a sense of what should happen to earnings estimates, but it isn’t seeing much of that just yet.The natural order of things is that rising interest rates take the edge off of aggregate demand, causing the economy to start cooling off. Businesses start experiencing this changed ground reality in their normal operations, which shows up in their quarterly numbers and management’s guidance.We have started seeing some of that already. For example, recent quarterly results and guidance from the likes of Nike NKE, Bed Bath & Beyond BBBY, and Lennar LEN could be indicative of many more such reports as the June-quarter reporting cycle really gets going in a couple of weeks. That said, not every early reporting company is missing estimates or guiding lower, as we saw in the results from Oracle ORCL, FedEx FDX and General Mills GIS.To get a sense of the revisions trend, it is instructive to look past the index level aggregate picture and drill a little deeper. The reason we need to do that is the unprecedented positive revisions to the Energy sector as a result of spiking oil and other energy commodity prices. The resulting Energy sector gains have been camouflaging weakening earnings trends in other sectors.This becomes clear if we look at how full-year 2022 earnings estimates for the S&P 500 index have evolved since the start of the year. The chart below shows how we reached the current aggregate earnings total of $2,005.2 billion for the index since January 1st.Image Source: Zacks Investment ResearchThe only way the above positive revisions trend makes sense is if we zero in on the revisions trend for the Energy sector, which you can see in the chart below.Image Source: Zacks Investment ResearchThe chart below shows us the aggregate revisions trend for the S&P 500 index on an ex-Energy basis.Image Source: Zacks Investment ResearchThe reality is that 2022 earnings estimates for half of the 16 Zacks sectors have come down since the start of the year, with the biggest declines for the Consumer Discretionary, Retail and Aerospace sectors.Aggregate Energy sector earnings estimates for the year have increased by +73.4% since the start of the year. Other sectors enjoying significant positive revisions since the start of the year include Basic Materials, Autos, Consumer Staples and Construction.In the aggregate, S&P 500 earnings estimates for the year outside of the Energy sector have been cut -9.8% since the start of the year.It is reasonable to expect estimates to come down further as the economy slows down in response to aggressive tightening. But it is inaccurate to claim that estimates have not come down. They have, as we show above.The Overall Earnings PictureBeyond Q2, the growth picture is expected to modestly improve, as you can see in the chart below that provides a big-picture view of earnings on a quarterly basis.Image Source: Zacks Investment ResearchThe chart below shows the overall earnings picture on an annual basis, with the growth momentum expected to continue.Image Source: Zacks Investment ResearchAs strong as the full-year 2022 earnings growth picture is expected to be, it’s worth remembering that a big part of it is due to the unprecedented Energy sector momentum. Excluding the Energy sector, full-year 2022 earnings growth for the remainder of the index drops to only +3.8%.There is a rising degree of uncertainty about the outlook, reflecting a lack of macroeconomic visibility in a backdrop of Fed monetary policy tightening. The evolving earnings revisions trend will reflect this macro backdrop. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock and 4 Runners Up >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NIKE, Inc. (NKE): Free Stock Analysis Report General Mills, Inc. (GIS): Free Stock Analysis Report Oracle Corporation (ORCL): Free Stock Analysis Report FedEx Corporation (FDX): Free Stock Analysis Report Bed Bath & Beyond Inc. (BBBY): Free Stock Analysis Report Lennar Corporation (LEN): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacks10 hr. 48 min. ago Related News

Have Earnings Estimates Come Down Enough?

Part of the uncertainty in the market at present is related to how earnings estimates should evolve in an aggressive Fed tightening cycle. The market has a sense of what should happen to earnings estimates, but it isn't seeing much of that just yet... Note: The following is an excerpt from this week’s Earnings Trends report. You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>>Here are the key points: For 2022 Q2, total S&P 500 earnings are expected to increase +2.5% from the same period last year on +10.8% higher revenues and net margin compression of 103 basis points. Excluding the hefty contribution from the Energy sector, total Q2 earnings for the rest of the S&P 500 index are expected to be down -4.8% on +8.6% higher revenues. Q2 Earnings estimates for the index as a whole are only modestly down since the start of the quarter, but they are down significantly on an ex-Energy basis. Part of the uncertainty in the market at present is related to how earnings estimates should evolve in an aggressive Fed tightening cycle. The market has a sense of what should happen to earnings estimates, but it isn’t seeing much of that just yet.The natural order of things is that rising interest rates take the edge off of aggregate demand, causing the economy to start cooling off. Businesses start experiencing this changed ground reality in their normal operations, which shows up in their quarterly numbers and management’s guidance.We have started seeing some of that already. For example, recent quarterly results and guidance from the likes of Nike NKE, Bed Bath & Beyond BBBY, and Lennar LEN could be indicative of many more such reports as the June-quarter reporting cycle really gets going in a couple of weeks. That said, not every early reporting company is missing estimates or guiding lower, as we saw in the results from Oracle ORCL, FedEx FDX and General Mills GIS.To get a sense of the revisions trend, it is instructive to look past the index level aggregate picture and drill a little deeper. The reason we need to do that is the unprecedented positive revisions to the Energy sector as a result of spiking oil and other energy commodity prices. The resulting Energy sector gains have been camouflaging weakening earnings trends in other sectors.This becomes clear if we look at how full-year 2022 earnings estimates for the S&P 500 index have evolved since the start of the year. The chart below shows how we reached the current aggregate earnings total of $2,005.2 billion for the index since January 1st.Image Source: Zacks Investment ResearchThe only way the above positive revisions trend makes sense is if we zero in on the revisions trend for the Energy sector, which you can see in the chart below.Image Source: Zacks Investment ResearchThe chart below shows us the aggregate revisions trend for the S&P 500 index on an ex-Energy basis.Image Source: Zacks Investment ResearchThe reality is that 2022 earnings estimates for half of the 16 Zacks sectors have come down since the start of the year, with the biggest declines for the Consumer Discretionary, Retail and Aerospace sectors.Aggregate Energy sector earnings estimates for the year have increased by +73.4% since the start of the year. Other sectors enjoying significant positive revisions since the start of the year include Basic Materials, Autos, Consumer Staples and Construction.In the aggregate, S&P 500 earnings estimates for the year outside of the Energy sector have been cut -9.8% since the start of the year.It is reasonable to expect estimates to come down further as the economy slows down in response to aggressive tightening. But it is inaccurate to claim that estimates have not come down. They have, as we show above.The Overall Earnings PictureBeyond Q2, the growth picture is expected to modestly improve, as you can see in the chart below that provides a big-picture view of earnings on a quarterly basis.Image Source: Zacks Investment ResearchThe chart below shows the overall earnings picture on an annual basis, with the growth momentum expected to continue.Image Source: Zacks Investment ResearchAs strong as the full-year 2022 earnings growth picture is expected to be, it’s worth remembering that a big part of it is due to the unprecedented Energy sector momentum. Excluding the Energy sector, full-year 2022 earnings growth for the remainder of the index drops to only +3.8%.There is a rising degree of uncertainty about the outlook, reflecting a lack of macroeconomic visibility in a backdrop of Fed monetary policy tightening. The evolving earnings revisions trend will reflect this macro backdrop. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock and 4 Runners Up >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NIKE, Inc. (NKE): Free Stock Analysis Report General Mills, Inc. (GIS): Free Stock Analysis Report Oracle Corporation (ORCL): Free Stock Analysis Report FedEx Corporation (FDX): Free Stock Analysis Report Bed Bath & Beyond Inc. (BBBY): Free Stock Analysis Report Lennar Corporation (LEN): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacks10 hr. 48 min. ago Related News

Pilgrim"s Pride (PPC) Gains As Market Dips: What You Should Know

Pilgrim's Pride (PPC) closed the most recent trading day at $31.74, moving +1.15% from the previous trading session. In the latest trading session, Pilgrim's Pride (PPC) closed at $31.74, marking a +1.15% move from the previous day. This change outpaced the S&P 500's 0.07% loss on the day. Meanwhile, the Dow gained 0.27%, and the Nasdaq, a tech-heavy index, added 0.02%.Coming into today, shares of the poultry producer had lost 5.82% in the past month. In that same time, the Consumer Staples sector lost 3.17%, while the S&P 500 lost 7.99%.Wall Street will be looking for positivity from Pilgrim's Pride as it approaches its next earnings report date. In that report, analysts expect Pilgrim's Pride to post earnings of $1.17 per share. This would mark year-over-year growth of 85.71%.Any recent changes to analyst estimates for Pilgrim's Pride should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 14.29% higher. Pilgrim's Pride is holding a Zacks Rank of #2 (Buy) right now.In terms of valuation, Pilgrim's Pride is currently trading at a Forward P/E ratio of 8.44. This represents a discount compared to its industry's average Forward P/E of 9.37.Meanwhile, PPC's PEG ratio is currently 0.57. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Food - Meat Products was holding an average PEG ratio of 1.25 at yesterday's closing price.The Food - Meat Products industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 31, putting it in the top 13% of all 250+ industries.The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock and 4 Runners Up >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Pilgrim's Pride Corporation (PPC): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacks13 hr. 16 min. ago Related News

Sherwin-Williams (SHW) Gains As Market Dips: What You Should Know

In the latest trading session, Sherwin-Williams (SHW) closed at $225.41, marking a +0.94% move from the previous day. Sherwin-Williams (SHW) closed the most recent trading day at $225.41, moving +0.94% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.07%. Meanwhile, the Dow gained 0.27%, and the Nasdaq, a tech-heavy index, added 0.02%.Prior to today's trading, shares of the paint and coatings maker had lost 16.69% over the past month. This has lagged the Construction sector's loss of 13.51% and the S&P 500's loss of 7.99% in that time.Sherwin-Williams will be looking to display strength as it nears its next earnings release, which is expected to be July 27, 2022. In that report, analysts expect Sherwin-Williams to post earnings of $2.78 per share. This would mark year-over-year growth of 4.91%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6 billion, up 11.46% from the year-ago period.For the full year, our Zacks Consensus Estimates are projecting earnings of $9.48 per share and revenue of $21.88 billion, which would represent changes of +16.32% and +9.68%, respectively, from the prior year.It is also important to note the recent changes to analyst estimates for Sherwin-Williams. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Sherwin-Williams is currently sporting a Zacks Rank of #3 (Hold).In terms of valuation, Sherwin-Williams is currently trading at a Forward P/E ratio of 23.56. This represents a premium compared to its industry's average Forward P/E of 21.09.Meanwhile, SHW's PEG ratio is currently 1.79. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Paints and Related Products was holding an average PEG ratio of 2.7 at yesterday's closing price.The Paints and Related Products industry is part of the Construction sector. This group has a Zacks Industry Rank of 104, putting it in the top 42% of all 250+ industries.The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock and 4 Runners Up >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The SherwinWilliams Company (SHW): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacks13 hr. 16 min. ago Related News

WestRock (WRK) Dips More Than Broader Markets: What You Should Know

In the latest trading session, WestRock (WRK) closed at $40.21, marking a -0.27% move from the previous day. WestRock (WRK) closed at $40.21 in the latest trading session, marking a -0.27% move from the prior day. This move lagged the S&P 500's daily loss of 0.07%. Meanwhile, the Dow gained 0.27%, and the Nasdaq, a tech-heavy index, added 0.02%.Prior to today's trading, shares of the paper and packaging company had lost 16.85% over the past month. This has lagged the Basic Materials sector's loss of 15.74% and the S&P 500's loss of 7.99% in that time.WestRock will be looking to display strength as it nears its next earnings release, which is expected to be August 4, 2022. In that report, analysts expect WestRock to post earnings of $1.49 per share. This would mark year-over-year growth of 49%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.51 billion, up 14.41% from the year-ago period.Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.11 per share and revenue of $21.4 billion. These totals would mark changes of +50.74% and +14.17%, respectively, from last year.Investors might also notice recent changes to analyst estimates for WestRock. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. WestRock is currently sporting a Zacks Rank of #3 (Hold).Digging into valuation, WestRock currently has a Forward P/E ratio of 7.89. This valuation marks a discount compared to its industry's average Forward P/E of 8.18.Meanwhile, WRK's PEG ratio is currently 0.36. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Paper and Related Products was holding an average PEG ratio of 0.36 at yesterday's closing price.The Paper and Related Products industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 45, which puts it in the top 18% of all 250+ industries.The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.To follow WRK in the coming trading sessions, be sure to utilize Zacks.com. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock and 4 Runners Up >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report WestRock Company (WRK): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacks13 hr. 16 min. ago Related News

BBQ Holdings (BBQ) Dips More Than Broader Markets: What You Should Know

BBQ Holdings (BBQ) closed the most recent trading day at $10.74, moving -1.56% from the previous trading session. BBQ Holdings (BBQ) closed at $10.74 in the latest trading session, marking a -1.56% move from the prior day. This change lagged the S&P 500's 0.07% loss on the day. Meanwhile, the Dow gained 0.27%, and the Nasdaq, a tech-heavy index, added 0.02%.Heading into today, shares of the barbeque restaurant operator had lost 13.69% over the past month, lagging the Retail-Wholesale sector's loss of 4.41% and the S&P 500's loss of 7.99% in that time.Investors will be hoping for strength from BBQ Holdings as it approaches its next earnings release. The company is expected to report EPS of $0.35, down 27.08% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $79.31 million, up 74.23% from the prior-year quarter.Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.19 per share and revenue of $301.78 million. These totals would mark changes of +67.61% and +46.06%, respectively, from last year.Investors should also note any recent changes to analyst estimates for BBQ Holdings. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. BBQ Holdings is holding a Zacks Rank of #2 (Buy) right now.In terms of valuation, BBQ Holdings is currently trading at a Forward P/E ratio of 9.17. This valuation marks a discount compared to its industry's average Forward P/E of 17.93.It is also worth noting that BBQ currently has a PEG ratio of 0.65. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Retail - Restaurants stocks are, on average, holding a PEG ratio of 1.72 based on yesterday's closing prices.The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 195, which puts it in the bottom 23% of all 250+ industries.The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.You can find more information on all of these metrics, and much more, on Zacks.com. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock and 4 Runners Up >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BBQ Holdings, Inc. (BBQ): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacks13 hr. 16 min. ago Related News

US stocks trade mixed as bond yields sink and Fed chief Powell prioritizes inflation fight

"The bigger mistake to make ... would be to fail to restore price stability," Fed Chairman Jerome Powell said Wednesday. Federal Reserve Chair Jerome Powell spoke at the National Association for Business Economics on Monday.Anadolu Agency/Getty Images The Dow Jones Industrial Average rose during a mixed session for US stocks Wednesday. Federal Reserve Chairman Jerome Powell put the risk of high inflation above the risk of slowing economic growth. "The bigger mistake to make ... would be to fail to restore price stability," he said at a forum for central bankers. The Dow Jones Industrial Average rose during a mixed session for US stocks Wednesday as bond yields tumbled and Federal Reserve Chairman Jerome Powell put the risk of high inflation above the risk of slowing economic growth.Speaking at a European Central Bank forum held in Portugal, Powell reiterated his hawkish stance on fighting inflation and acknowledged that one way to achieve that goal is to slow growth while keeping it positive. "Is there a risk that would go too far? Certainly, there's a risk," he added. "I wouldn't agree that it's the biggest risk to the economy. The bigger mistake to make ... would be to fail to restore price stability."Here's where US indexes stood as the market closed at 4 p.m. on Wednesday:  S&P 500: 3,818.78, down 0.07% Dow Jones Industrial Average: 31,029.31, up 0.27% (82.32 points)Nasdaq Composite: 11,177.89, down 0.03% Powell's speech came amid mounting concerns about the economy. The Commerce Department revised its reading on first-quarter GDP lower to show a 1.6% contraction, down from an initial print for a 1.5% drop.Top economist Mohamed El-Erian warned investors are right to be worried about a US recession as consumer and business confidence falls, while the risk of the Federal Reserve making a policy mistake also rises.Morgan Stanley Wealth Management's investment chief predicted the S&P 500 will plunge another 10% before bottoming out, saying the Fed's accelerated rate hikes have doubled the odds of a recession.Meanwhile, the Fed won't worry about stocks falling until panic floods the markets, as it's focused on controlling inflation, Guggenheim's Scott Minerd said. Elsewhere in the market, famed short seller Jim Chanos is raising more than $200 million for a fund that will bet against US-listed real estate investment trusts that operate data centers. CoinFlex said that the high-profile investor running a negative balance with the crypto exchange is Roger Ver, a long-time bitcoin evangelist also known  as "bitcoin Jesus." Oil prices reversed lower, with West Texas Intermediate crude down 2% to $109.51 per barrel and Brent crude, the international benchmark, up 2.2% to $115.37. Gold also gave up earlier gains, dipping 0.1% to $1,819.40 per ounce. The 10-year yield sank 11 basis points to 3.097%. Bitcoin briefly edged back below $20,000 but recovered and was down 0.85% to $20,091.Read the original article on Business Insider.....»»

Category: topSource: businessinsider14 hr. 32 min. ago Related News

Top Analyst Reports for Meta Platforms, Eli Lilly & Home Depot

Today's Research Daily features new research reports on 16 major stocks, including Meta Platforms, Inc. (META), Eli Lilly and Company (LLY), and The Home Depot, Inc. (HD). Wednesday, June 29, 2022 The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Meta Platforms, Inc. (META), Eli Lilly and Company (LLY), and The Home Depot, Inc. (HD). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today. You can see all of today’s research reports here >>>Meta Platforms shares have held up better relative to the Zacsk Internet Services industry over the past year (down -53.8% vs. -64.0% for the industry), but it has lagged the broader market in a major way (down -53.8% vs. -11.6% for the S&P 500 index). In addition to market wide sentiment shift about the Tech sector in general in the current rising interest rate environment, Meta is suffering from Apple’s iOS changes as well as engagement-related headwinds. Apple’s iOS changes have made ad targeting difficult, which, in turn, has increased the cost of driving outcomes. Measuring these outcomes has also become difficult. Meta expects these factors to hurt advertising revenue growth in throughout 2022. Meta’s second-quarter guidance reflects macroeconomic and forex concerns.Cost inflation and supply chain disruptions are expected to impact advertiser budgets. However, Meta is benefiting from steady user growth across all regions, particularly Asia Pacific. Increased engagement for its products like Instagram, WhatsApp, Messenger and Facebook has been a major growth driver.(You can read the full research report on Meta Platforms here >>>)Eli Lilly shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+40.4% vs. +19.8%), reflecting the the company's solid portfolio of core drugs in diabetes, autoimmune diseases and cancer. The Zacks analyst believes that Lilly’s revenue growth is being driven by higher demand for drugs like Trulicity, Taltz, and others. It is regularly adding promising new pipeline assets through business development deals.It has an exciting pipeline of potential new medicines including tirzepatide for type II diabetes and donanemab for early Alzheimer's disease. Both candidates have multibillion dollar sales potential. However, generic competition for several drugs, rising pricing pressure in the United States mainly on key drug, Trulicity, and price cuts in some international markets like China, Japan and Europe are some top-line headwinds.(You can read the full research report on Eli Lilly here >>>)Home Depot shares have declined -13.4% over the past year against Zacks Building Products - Retail industry’s decline of -11.2% and the S&P 500 index's -11.6% decline. The company reported soft gross margin in the fiscal first quarter driven by higher cost of goods sold. Supply chain headwinds also marred results to some extent. Nevertheless, Home Depot boasts a robust surprise trend, which continued in first-quarter fiscal 2022. Results gained from strong demand for home-improvement projects, robust housing market trends and ongoing investments.The company also benefited from continued strength in both Pro and DIY categories as well as digital momentum. Its interconnected retail strategy and underlying technology infrastructure have helped consistently boost web traffic for the past few quarters, aiding digital sales.(You can read the full research report on Hemo Depot here >>>)Other noteworthy reports we are featuring today include Merck & Co., Inc. (MRK), The Boeing Company (BA), and Vale S.A. (VALE). Sheraz Mian Director of Research Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>Today's Must ReadUser Growth, Instagram Strength Aids Meta Platforms (META)Lilly (LLY) Boosts Pipeline with Collaboration DealsFocus on Pro Customers to Aid Home Depot's (HD) Top LineFeatured ReportsKeytruda to Remain Merck's (MRK) Key op Line Driver in 2022With continued label expansion into new indications & early-stage settings, Keytruda is expected to remain a key top-line driver, per the Zacks analyst.Military Business Aids Boeing (BA), Supply Chain Issue WoesPer the Zacks analyst, Boeing boasts $2.6 trillion market opportunity for defense and space, which would bolster its growth. Ye, COVID induced supply chain shortages might hurt the stock's results.Permian Basin Focus, Cost Management Aid Occidental (OXY)Per the Zacks analyst Occidental's acquisition of Anadarko expanded its operation in resource rich Permian Basin and efficient cost management will drive its performance over the long run.Senior Housing Recovery & Acquisitions Aids Welltower (WELL)Per the Zacks Analyst, Welltower (WELL) is set to gain from the senior housing recovery and strategic acquisitions. However, earnings dilution in the near term from asset dispositions is a woe.Buyouts, Higher Fees & Commissions Aid Arthur J. Gallagher (AJG) Per the Zacks analyst, a number of acquisitions have helped Arthur J. Gallagher to enhance its capabilities and drive growth. Also, improving fees and commissions should drive organic revenue growth. AMN Healthcare (AMN) Continues to Gain From Healthcare MSPThe Zacks analyst is upbeat about AMN Healthcare's unique MSP program resulting in a large network of improved patient care and improved efficiency despite its operation in a stiff competitive space.FactSet (FDS) Rides on Client Retention Amid CompetitionThe Zacks analyst is impressed with growth in FactSet's annual subscription value, driven by client additions. However, stiff competition will put FactSet under pricing pressure and hurt its top line.New UpgradesRising Iron Prices & Solid Demand to Drive Vale (VALE)Per the Zacks analyst, rising iron ore prices and demand, lower debt levels and focus on improving productivity and lowering costs will drive growth for Vale.New Features & Security Focus Drives Twitter's (TWTR) GrowthTwitter adds new features and ramps up its security efforts to lower abuse, which per the Zacks analyst is boosting user growth.Solid Housing, Repair & Remodeling Activity Aid Mohawk (MHK)Per the Zacks analyst, Mohawk's business benefits from strong housing demand and repair and remodelling activities. Also, acquisition strategy and strong international presence bode well.New DowngradesPetroChina (PTR) Hurt by Limited International PresenceThe Zacks analyst is worried about PetroChina's limited progress in expanding its exposure to international regions and reduce dependence on mature domestic areas.nOngoing Supply Chain Troubles to Hurt Western Digital (WDC)Per the Zacks analyst, pandemic induced global supply chain troubles and component shortages is a major concern for Western Digital. Stiff competition and a high debt load are other concerns.B&G Foods' (BGS) Margins Troubled by Input Cost InflationPer the Zacks analyst, B&G Foods has been grappling with input cost inflation. In 2022, management expects to keep seeing cost inflation for inputs, like ingredients, packaging and transportation. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock and 4 Runners Up >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Boeing Company (BA): Free Stock Analysis Report Merck & Co., Inc. (MRK): Free Stock Analysis Report Eli Lilly and Company (LLY): Free Stock Analysis Report VALE S.A. (VALE): Free Stock Analysis Report The Home Depot, Inc. (HD): Free Stock Analysis Report Meta Platforms, Inc. (META): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacks15 hr. 48 min. ago Related News

Americans Become More Pessimistic About The Future Of The Country

Americans Become More Pessimistic About The Future Of The Country Authored by Tom Ozimek via The Epoch Times (emphasis ours), The share of American adults who say they’re optimistic about the future of the country has dropped to a new tracking low, according to a poll by Morning Consult, which comes on the heels of a closely-watched consumer confidence gauge that fell to its lowest level on record. Consumers shop for meat at a grocery store in Annapolis, Md., on May 16, 2022. (Jim Watson/AFP) The Morning Consult survey, carried out on a representative sample of 2,210 U.S. adults between June 16–20, shows that 45 percent of respondents said they were “very optimistic” or “somewhat optimistic” about the future of the United States. This is a record low as far as this particular data series is concerned, which goes back to October 2020. By comparison, a series high was reached in March 2021, when 65 percent of U.S. adults expressed optimism about the future of the country. Consumer Confidence Plummets While the Morning Consult’s data series goes back only two years, a separate measure of U.S. consumer confidence from the University of Michigan, which goes back to the mid-1970s, has plunged to a record low. The Michigan consumer sentiment index fell from a reading of 58.4 in May to just 50.0 in June, an all-time low, with soaring inflation a key factor behind the surge in pessimism. “While consumers still appear relatively optimistic about the stability of their incomes, their perceptions of the economy are much more strongly influenced by concerns over inflation,” according to University of Michigan economist Joanne Hsu, director of the consumer confidence survey. All components of the University of Michigan sentiment index declined in June, but the sharpest drop was in the year-ahead outlook for the U.S. economy, which fell 24 percent between May and June, according to Hsu. Inflation Expectations Ease a Little One bright spot in the University of Michigan survey was that longer-term inflation expectations among U.S. consumers eased slightly to 3.1 percent over the next five to ten years, down from an earlier preliminary reading of 3.3 percent. Hsu told Bloomberg that the downward revision in longer-run inflation expectations was driven by a jump in the share of respondents who said they expect “extremely low inflation in the years ahead,” with around half of those expressing “bleak views about the risks of recession or unemployment.” Growing concern about the prospect of a recession as the Fed tightens monetary conditions could be a factor in the easing of the University of Michigan inflation expectations, as price pressures tend to ease during economic contractions. A number of Wall Street analysts recently raised their forecasts for the odds of a U.S. recession, with Goldman Sachs predicting a 30 percent chance of the U.S. economy contracting over the next year, up from 15 percent in an earlier projection. ‘Quite Eye-Catching’ Still, U.S. inflation expectations as reflected in the 10-year breakeven inflation rate per the St. Louis Federal Reserve data jumped on Friday to 2.56 percent following a three-day downtrend that touched a multi-month low of 2.50 percent. Policymakers fret over future inflation expectations—not just actual price growth—as they are a barometer of potential pressure building in the wage-price spiral. A de-anchoring of inflation expectations could fuel stronger demand for wages, driving a feedback loop that sees inflation pushing higher. The dreaded wage-price dynamic was at play during the economic upheaval of the 1970s, which led then-Fed chief Paul Volcker to raise interest rates sharply, taming inflation but also sparking a recession. Current Fed Chair Jerome Powell recently noted the University of Michigan’s preliminary inflation expectations reading—which he called “quite eye-catching”—as one of the factors that drove policymakers to hike rates by 75 basis points on June 15, the biggest jump since 1994. ‘Unimaginable Fed Pivot’ While an early signal, the slight easing of inflation expectations takes some pressure off the Fed to keep hiking rates aggressively, some analysts say. Last week’s rally in stocks and other risk assets could reflect a shift in investors’ view of the Fed’s future path in light of inflation expectations. “The market is telling us it is salivating at the prospect of a currently unimaginable Fed pivot,” analyst Sven Henrich wrote in a series of tweets, referring to a potential reversal of the Fed’s current monetary tightening cycle. “Perversely, we may enter a period where bad news is good news as ever slowing growth will raise recession expectations and cause yields to drop (bullish stocks),” he added. Henrich argued that any type of rollover in inflation data over the summer would “be massively positive” for equities, though the risk of a full-blown recession remains with the risk for new lows in stock markets remaining “extremely high.” Tyler Durden Wed, 06/29/2022 - 17:00.....»»

Category: blogSource: zerohedge15 hr. 48 min. ago Related News

The Best Marketing Strategies For eCommerce Businesses

Every day, new internet users buy products online. From America to Europe to Asia, eCommerce is here to stay. Therefore, it’s no surprise that global eCommerce sales are expected to hit $5.5 trillion in 2022, according to Statista. But while you have more potential customers, more competitors are also trying to take their share of […] Every day, new internet users buy products online. From America to Europe to Asia, eCommerce is here to stay. Therefore, it’s no surprise that global eCommerce sales are expected to hit $5.5 trillion in 2022, according to Statista. But while you have more potential customers, more competitors are also trying to take their share of the eCommerce pie. So, don’t expect internet users to land on your website and launch a buying spree without your effort. That’s why marketing is vital to any successful eCommerce business’s operations. if (typeof jQuery == 'undefined') { document.write(''); } .first{clear:both;margin-left:0}.one-third{width:31.034482758621%;float:left;margin-left:3.448275862069%}.two-thirds{width:65.51724137931%;float:left}form.ebook-styles .af-element input{border:0;border-radius:0;padding:8px}form.ebook-styles .af-element{width:220px;float:left}form.ebook-styles .af-element.buttonContainer{width:115px;float:left;margin-left: 6px;}form.ebook-styles .af-element.buttonContainer input.submit{width:115px;padding:10px 6px 8px;text-transform:uppercase;border-radius:0;border:0;font-size:15px}form.ebook-styles .af-body.af-standards input.submit{width:115px}form.ebook-styles .af-element.privacyPolicy{width:100%;font-size:12px;margin:10px auto 0}form.ebook-styles .af-element.privacyPolicy p{font-size:11px;margin-bottom:0}form.ebook-styles .af-body input.text{height:40px;padding:2px 10px !important} form.ebook-styles .error, form.ebook-styles #error { color:#d00; } form.ebook-styles .formfields h1, form.ebook-styles .formfields #mg-logo, form.ebook-styles .formfields #mg-footer { display: none; } form.ebook-styles .formfields { font-size: 12px; } form.ebook-styles .formfields p { margin: 4px 0; } Get The Full Henry Singleton Series in PDF Get the entire 4-part series on Henry Singleton in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues (function($) {window.fnames = new Array(); window.ftypes = new Array();fnames[0]='EMAIL';ftypes[0]='email';}(jQuery));var $mcj = jQuery.noConflict(true); Q1 2022 hedge fund letters, conferences and more Now, there’s no single strategy that works for every eCommerce business. So how do you know the best for your business? This guide will show you the most effective marketing strategies and how to identify the best for your needs. How Do You Know What Strategy Is Best For Your eCommerce Business? As I mentioned earlier, every eCommerce business’s marketing strategy is unique according to various factors. Nevertheless, here are three critical considerations to help you discover the best marketing strategy for your eCommerce business. Your ideal buyer While billions of users are online, only a few profiles of people qualify as your ideal customer. Therefore, defining your ideal buyers will determine most of your marketing and even business decisions. You can define your ideal buyer by creating a buyer persona, which will include details such as: Name Gender Age Income Favorite marketing channels Location Pain points Ambitions Hobbies These pieces of information will determine elements of your marketing campaigns, such as marketing channels, brand voice, targeting criteria, and more. Here’s an eCommerce buyer persona example from Drip: Your marketing goals Although your overall goal is to acquire more customers and revenue, there are many stages of that journey. Your marketing campaigns at various buyer journey stages will have different goals. Common marketing goals for eCommerce businesses include: Brand awareness Lead acquisition Customer acquisition Customer retention Once you have a goal for your marketing campaign, it will inform your marketing messages, channels, and tasks. You must also define the metrics to measure your goal during the goal-setting process. Without setting a goal for your marketing campaigns, you can easily fall into a scattergun approach. As a result, there’ll be no way to measure the success or failure of your campaigns. Your marketing budget First, your overall budget will determine the channels you’ll focus on. With a big budget, you can have more space to experiment. However, a small budget will restrict you to only a tried-and-tested strategy. Whatever your budget, it’s vital to optimize it to obtain the best result possible. Considering these factors, you can create a unique eCommerce marketing strategy to meet your business needs. The Best eCommerce Marketing Strategies Below, we’ll consider six proven strategies to help you reach more customers. Of course, you can combine some of these strategies to achieve your marketing goals. Let’s go into the details. Ecommerce SEO Before a customer is ready to buy your product, they’ve done a lot of research. So to give your business the best chance of converting prospects, you must connect with them during the research stage. ECommerce SEO is the process of optimizing your web pages to rank high for essential business keywords. Here are tasks to execute to improve your eCommerce SEO: Content Marketing: no page can rank on search engines without some content on it. Hence, valuable content is one of the most vital criteria for ranking high for a keyword. Today, SEO has gone beyond just stuffing a page with keywords. Search engines consider search intent and ensure your content provides the information a searcher is looking for. Therefore, creating pieces of content that solve your visitors’ problems is vital. Technical SEO: includes tasks you execute in your website’s backend to ensure search engines can quickly discover your website. For example, you can submit your sitemap to index your pages and make them crawlable. Another aim of technical SEO is to improve the website experience for visitors. For instance, you can increase the speed of your website for a boost in rankings and usability. Another similar focus is making your website mobile-friendly to complement both of the points mentioned above. On-Page SEO: these are SEO tasks you do on your web page. They include tasks such as adding your target keyword to the page URL, title, subheadings, and other aspects of your page. Header tags are essential, they help break down content to help search engines better understand your content. Off-Page SEO: while you can improve SEO for your eCommerce website through many actions on your website, you can also take steps outside your website. One of the most prominent off-page SEO tactics is link building. When other websites relevant to your niche link to your page, they help build the authority of that page. Another critical factor is that the website linking to you already has a lot of high-quality backlinks to your pages will boost your chances of higher ranks. By engaging in eCommerce SEO campaigns, you can acquire more leads and customers through search engines. Pay Per Click Advertising Improving organic search and social media performance can take a lot of time that you don’t have. However, with pay-per-click (PPC) advertising, you can reach your audience now. For PPC advertising on Google, you must take the necessary steps to improve your chances of success. They include: Conduct keyword research: what keywords are your potential buyers putting in the search box? You can find the best keywords to reach your prospects through keyword research on Google Keyword planner and other research tools. Adjust bidding according to your goals: Are your ads showing up for your preferred keywords? Is the competition too high? Is a click worth much higher than you’re currently bidding? You can also achieve better success with your bidding if you increase your ad quality score through high-relevant ads and better click-through rates. Build relevant landing pages: your ad copy must align with your landing page copy to improve your chances of conversions. Some landing page builders allow you to take it further through dynamic text replacement. This will feature searchers’ keywords on your landing page. Use Google shopping ads: These ads are usually created for transactional keywords. These ads will display your products and their prices on the search results page. You can also add shipping information and ratings. Use retargeting ads: if someone has visited some pages on your website, you can send them ads related to those pages. For instance, you can target a shopper who has visited a product page with ads for that product. This will make them more receptive to your ads. After executing these tactics, you can improve performance through A/B testing. Frankly, there’s no single ad that works for every business. So, you have to test various ad campaign elements to improve performance. Email Marketing According to statistics from Litmus, email marketing can deliver an ROI of $45 for every dollar spent by eCommerce businesses. So, unsurprisingly, this is one of the best marketing channels to improve performance. That is because email marketing for eCommerce has many advantages compared to other marketing channels. First, your marketing messages will land in your subscribers’ inboxes. This is more exposure than other channels. Second, sending different messages according to the subscriber’s interests is easy. In other words, personalization can make a lot of difference in your marketing campaigns. Naturally, the best email marketing software you can use today will allow you to personalize your emails based on many criteria such as: Name Birthdays Gender Location Purchase history Emails opened Website pages visited As a result of sending relevant emails to subscribers, you’ll increase your open and click-through rates. And since you’re directing them to a relevant web page, there’s a higher chance of converting such visitors. Beyond personalization, email marketing automation is another effective strategy. Email marketing automation involves sending a series of messages to your subscribers based on a schedule or when some conditions are met. Some examples of automated email sequences are: Welcome emails Lead nurturing emails Promotional emails Abandoned cart emails Up-sell and cross-sell emails Onboarding emails Re-engagement emails To create these emails, you’ll find the necessary tools in your email marketing software. Better still, some software packages will provide automation templates you can use to create your campaigns. Here’s an example  of a sequence built with While creating your sequences, you can add triggers or conditions to add or remove subscribers from your email automation. For your eCommerce business, email marketing is a must rather than an afterthought. Social Media While social media is a platform to connect with friends, users also follow businesses and check out information and product offers. Here, eCommerce brands can provide value to their audience through content that can solve their problems. Of course, your business needs to focus on social media platforms where you can reach your ideal customers. Some ways eCommerce businesses can use social media include: Posting product tips Displaying product use cases Providing industry information Making product announcements Featuring user-generated content (UGC) Featuring influencer content Selling products Customer care In many industries, you’ll find experts and celebrities who have gained a big following due to years of excellent performance in their industries. As a result, these influencers have audiences who trust their product recommendations. Naturally, eCommerce businesses have taken advantage of this phenomenon to promote their products. However, while launching an influencer marketing campaign, you need to find the right influencers. The right social media management tool can help you find the right influencers. Then, it can help you track the effectiveness of your influencer campaigns. Fortunately, you’ll find many examples of brands using influencer marketing on Instagram. Over the years, social selling has become a popular strategy for eCommerce businesses. For instance, Statista found that about half of American social media users aged 14 to 34 made purchases through this channel in 2021. In fact, some social media platforms now allow you to sell your products on their platforms. For example, Instagram allows you to add shopping tags to products on your Instagram posts. A user can click on this tag to buy this product or shop more products without leaving the Instagram app. This allows you to eliminate the barrier of taking users out of Instagram. Pinterest also allows influencers and brands to create shoppable pins. This will let users shop products on Pinterest or click a link to visit the eCommerce website. On social media, there are many opportunities to promote and sell your products. Affiliate marketing Since you can’t reach all your prospects through your efforts alone, you can partner with publishers who will promote your products on blog posts, emails, social media, and videos. In return, publishers will take a share of the sales they refer. This will help you increase your reach faster. After all, according to Backlinko, “40% of U.S. merchants cited affiliate programs as their top customer acquisition channel”. First, you have to find a suitable affiliate marketing platform. This will help you organize details such as your affiliates, commissions, and other pieces of information. Moreover, your publishers can see the number of clicks, affiliates, paid affiliates, commissions, and more. Some affiliate marketing platforms such as PartnerStack, Everflow, and Impact.com provide tools to run your affiliate marketing campaigns. On the other hand, you can use affiliate marketplaces such as ShareASale and Commission Junction. Beyond this, you need to create an affiliate marketing page on your website. On this page, you’ll explain your affiliate terms to publishers. Publishers should also have a link to register. After a publisher has registered as an affiliate, you should send emails to them providing tips on how they can promote your products more effectively. Optimizing Website UI/UX Your website is the first impression a shopper will have about your business. If your website design is poor, shoppers will see your business as sloppy. And sloppy businesses don’t make great products, right? So, a shopper can leave before they get to see your wonderful products if your website UI/UX is poor. However, there are a few steps to ensure this never happens. First, you need a simple site structure. This means shoppers should be able to get to any page in no more than 4 clicks. More so, you can install a search bar to help visitors find products easily. You can also use a chatbot and live chat to answer any vital questions prospects may have during shopping. Another way to optimize your eCommerce website UI/UX is to make your website scannable and use obvious CTAs. Today, a large percentage of your buyers will be on mobile devices. Having a mobile responsive website ensures all the essential elements on your page will be visible to mobile users. Adding the geolocation feature helps provide shipping information and addresses of your nearest physical stores. Implementing these tactics will help provide a seamless experience to shoppers during the buyer’s journey. Conclusion As more people shop online, your eCommerce business should prepare for more challenging competition. Effective marketing is one of the best ways to give your business the right exposure. Even if you have an excellent product, nobody will buy it if they’ve never heard of it. But with the right marketing strategies, you’ll attract more shoppers to your online store and sell more products to them. Employ the strategies explained in this guide to boost your marketing results. Article by Diana Ford, Due About the Author Diana Ford utilizes over seven years of experience in marketing. She covers some industry-specific topics such as money management and business finance. Updated on Jun 29, 2022, 3:40 pm (function() { var sc = document.createElement("script"); sc.type = "text/javascript"; sc.async = true;sc.src = "//mixi.media/data/js/95481.js"; sc.charset = "utf-8";var s = document.getElementsByTagName("script")[0]; s.parentNode.insertBefore(sc, s); }()); window._F20 = window._F20 || []; _F20.push({container: 'F20WidgetContainer', placement: '', count: 3}); _F20.push({finish: true});.....»»

Category: blogSource: valuewalk17 hr. 4 min. ago Related News

Market-Beating Dividend ETFs of 1H

Year to date, the Dow Jones, the S&P 500 and Nasdaq are all deep in correction territory. Only a few high-dividend ETFs are in the positive zone. The year 2022 as a whole could easily be attributed to the Russia-Ukraine war, red-hot inflation and rising-rate worries. No wonder, such worries caused an upheaval in the market this year. In Q1, Wall Street witnessed its worst performance in two years. Q2 also did not offer any respite to investors.Year to date, the Dow, the S&P 500 and Nasdaq are all deep in correction territory (down at least 10% from the previous record high), with the Nasdaq getting a massive battering as the tech-heavy index is in the red (down at least 20% from the previous high).Heightened rising rate worries amid super-hawkish cues from the Fed and the resultant recessionary fears have bummed out Wall Street this year. Overall, the S&P 500 is down 18.2% in 2022. The Nasdaq Composite is off 26%, the Dow Jones has lost about 13.5% while the Russell 2000 has skidded 21% year to date.The benchmark treasury yield hovered in the range of as high as 1.63% to 3.49% this year on faster Fed rate hikes. To contain the red-hot inflation, central banks are tightening policies. The Fed had enacted three rate hikes so far this year and pushed through a total hike worth of 150 basis points.Against this backdrop, dividend ETFs acted as a great safety. Be it a bull or a bear market, investors mostly love dividend-paying stocks. After all, who doesn’t like a steady stream of current income along with capital appreciation?Even if the stock or the fund falls, higher current income would go a long way in protecting investors’ total returns. After all, high-dividend ETFs provide investors with avenues to make up for capital losses, if that happens at all.Below we highlight a few top-performing dividend ETFs of this year that yielded handsomely too.ETFs in FocusiShares Core High Dividend ETF (HDV) – Up 1.9%; Yields 3.10% annuallyThe underlying Morningstar Dividend Yield Focus Index offers exposure to high quality U.S. domiciled companies that have had strong financial health and an ability to sustain above average dividend payouts.Pacer Global Cash Cows Dividend ETF GCOW – Up 1.7%; Yields 4.59% annuallyThe underlying Pacer Global Cash Cows Dividend Index uses an objective, rules-based methodology to provide exposure to global companies with high dividend yields backed by a high free cash flow yield.WisdomTree US High Dividend Fund DHS – Up 1.6%; Yields 3.35% annuallyThe underlying WisdomTree U.S. High Dividend Index is a fundamentally weighted index that measures the performance of companies with high dividend yields selected from the WisdomTree Dividend Index.First Trust Morningstar Dividend Leaders Index Fund FDL – Up 1.5%; Yields 4.37% annuallyThe underlying Morningstar Dividend Leaders Index consists of stocks listed on one of the three major exchanges, NYSE, NYSE Amex or Nasdaq, that have shown dividend consistency and dividend sustainability.Invesco High Yield Equity Dividend Achievers ETF PEY – Up 0.8%; Yields 4.02% annuallyThe underlying NASDAQ US Dividend Achievers 50 Index is comprised of 50 stocks selected principally on the basis of dividend yield and consistent growth in dividends.Invesco S&P Ultra Dividend Revenue ETF RDIV – Up 0.5%; Yields 3.35% annuallyThe underlying S&P 900 Dividend Revenue-Weighted Index is constructed using a rules-based methodology that starts with the S&P 900 Index, subject to a maximum 5% per company weighting. Want key ETF info delivered straight to your inbox? Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.Get it free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Invesco High Yield Equity Dividend Achievers ETF (PEY): ETF Research Reports First Trust Morningstar Dividend Leaders ETF (FDL): ETF Research Reports WisdomTree U.S. High Dividend ETF (DHS): ETF Research Reports Invesco S&P Ultra Dividend Revenue ETF (RDIV): ETF Research Reports Pacer Global Cash Cows Dividend ETF (GCOW): ETF Research Reports To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacks17 hr. 32 min. ago Related News

What Will It Take To End Rampant Home-Price Inflation?

What Will It Take To End Rampant Home-Price Inflation? Authored by Ryan McMaken via The Mises Institute, Real wages are falling, inflation is at a 40-year high, and the Atlanta Fed predicts we'll find GDP growth at zero for the second quarter. Meanwhile, both the yield curve and money-supply growth point to recession. But when it comes to the latest data on home prices, there's still no sign of any deflation or even moderation. For example, the latest Case-Shiller home price data shows home prices surged above 20 percent year-over-year in April, marking yet another month of historic highs in home price growth. It's now abundantly clear that a decade of easy money, followed by two-years of covid-induced helicopter money, has pushed home price growth to levels that dwarf even the pre-2008 housing bubble. This continues to make housing less affordable for potential first-time home buyers and for renters. Unfortunately, the options for "doing something" are limited, and probably require a recession.  But in the meantime, those who are already lucky enough to be property owners continue to see some big gains. According to the latest Case-Shiller home price report, released Tuesday: The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, covering all nine U.S. census divisions, reported a 20.4% annual gain in April, down from 20.6% in the previous month. The 10-City Composite annual increase came in at 19.7%, up from 19.5% in the previous month. The 20-City Composite posted a 21.2% year-over-year gain, up from 21.1% in the previous month. Tampa, Miami, and Phoenix reported the highest year-over-year gains among the 20 cities in April. Tampa led the way with a 35.8% year-over-year price increase, followed by Miami with a 33.3% increase, and Phoenix with a 31.3% increase. Nine of the 20 cities reported higher price increases in the year ending April 2022 versus the year ending March 2022... In April, all 20 cities reported increases before and after seasonal adjustments. According to the index, year-over-year changes have exceeded 18 percent for each month since June 2021, a rate well in excess of the growth rates experienced during the housing bubble leading up to the financial crisis of 2008. This growth is also reflected in month-over-month growth which has not fallen below 1 percent in 21 months. In other words, as of April, there was still no sign at all that price inflation and declining real wages was doing much to dampen demand for home purchases.  The reader may remember that price inflation began to surge well above the Fed's target 2% rate as early as April 2021. Price inflation hit 40-year highs of more than 8% during early 2022. Moreover, April of this year was the thirteenth month in a row during which price inflation was outpacing growth in average earnings.  Housing Is Less Affordable, But There Are Plenty of Buyers People are getting poorer in real terms, so it's not surprising that April data also shows historic imbalances between disposable income and home prices. As of April this year, the Census Bureau's estimate for the average sales price of new houses sold reached 10.3 times the size of disposable personal income per capita. The average home sale price has been more than nine times disposable income for the past six months of available data. In recent decades, home prices have only been this unaffordable in periods leading up to recessions and financial crises—i.e., 1980, 1991, and 2007. April's home-price-to-income ratio is higher than in any other period in more than 45 years.  One reason we have yet to see any sign of declining home prices in April data is that employment data—a lagging economic indicator—still showed a relatively strong job market in April. Although total non-farm employment remains below 2019 pre-covid levels, job growth has been strong enough to combine with monetary inflation and fuel big growth in prices. Moreover, as of April, mortgage rates had not yet climbed out of very-low-rate territory. The average 30-year fixed rate did not even reach 5 percent until mid April. This, combined with continued job growth, helped to keep demand high.(As of mid-June, however, the average 30-yar fixed rate is now 5.8 percent, a 13-year high.)  So what will it take before we begin to see any real reductions in home prices?  Unfortunately, the only real way out is probably a recession. This is thanks to a mixture of the regime's fiscal and monetary policies. After so many months of reckless monetary inflation fueling out-of-control demand, all that newly-created money continues to chase relatively stagnant supply. Supply has been hobbled by lockdown-induced logistical bottlenecks, US sanctions on Russia, and rising energy prices due to the regime's war on fossil fuels. Thus, consumers can't benefit from the sort of supply-driven disinflationary forces that helped keep price inflation at manageable levels during many periods in the past. Now, we're just left with surging demand fueled by new money, but without the market freedom necessary to provide breathing room through growth in supply.  Will the Fed Tighten Enough? Fed Chairman Jerome Powell denied at this month's FOMC meeting that the Fed is trying to bring about a recession to rein in price growth. But whether or not that is the intent, even the Fed's very mild tightening has already accelerated the US economy's slide toward recession—or at least toward job losses. For instance, there is growing evidence of sporadic mass layoff events. JP Morgan announced last week "that it was laying off hundreds of employees due to rising mortgage rates amid a troubling housing market plagued by inflation." Redfin last week announced layoffs for 470 workers. Hiring freezes and mass layoffs are a growing area of concern in Silicon Valley.  If the US is indeed headed toward job losses and recession, the danger now is of the Fed not backing off monetary inflation long enough and hard enough to actually allow the economy to clean out the malinvestments and bubbles created by the monetary inflation of the past decade. The danger of too-weak tightening has been evident before. For example, the Fed moderately reined in monetary inflation during from 1972 to 1974. But these measures proved to be too little to really end the inflationary boom. Thus, much malinvestment and price inflation piled up until more tightening had to be done during the early 1980s to finally bring inflation under control.  So the question now is this: will the Fed pull its foot off the easy-money accelerator only long enough to get a few flat months in price inflation and then return to the same old inflationary stimulus policies? That could win a brief reprieve for first-time home buyers and renters in terms of housing prices. But more than a brief reprieve is greatly needed. Of course, what the Fed should do is completely sell off its portfolio and stop manipulating interest rates altogether. But failing that, it needs to at least allow interest rates to rise enough—and shrink its portfolio enough—to allow for some real modicum of "normalization" in the financial sector.  In any case, real deflation - both monetary inflation and price inflation - is necessary, and that can only be accomplished if the Fed can resist the temptation to keep doing what it's been doing since 2008 with "non-traditional monetary policy" including quantitative easing, financial repression, and bubble creation.  Tyler Durden Wed, 06/29/2022 - 15:27.....»»

Category: blogSource: zerohedge17 hr. 32 min. ago Related News

Don’t Chase These Bear Market Rallies

In his Daily Market Notes report to investors, while commenting on bear market rallies, Louis Navellier wrote: Fragile Market The fragile nature of the current market was on display yesterday. After being well in the green on the open, stocks corrected strongly yesterday as the day wore on, apparently by the same concerns about inflation […] In his Daily Market Notes report to investors, while commenting on bear market rallies, Louis Navellier wrote: Fragile Market The fragile nature of the current market was on display yesterday. After being well in the green on the open, stocks corrected strongly yesterday as the day wore on, apparently by the same concerns about inflation and recession risk from central bank tightening which brought on the current bear market that began in earnest in April. The S&P saw its 14th +2% drop for the year. if (typeof jQuery == 'undefined') { document.write(''); } .first{clear:both;margin-left:0}.one-third{width:31.034482758621%;float:left;margin-left:3.448275862069%}.two-thirds{width:65.51724137931%;float:left}form.ebook-styles .af-element input{border:0;border-radius:0;padding:8px}form.ebook-styles .af-element{width:220px;float:left}form.ebook-styles .af-element.buttonContainer{width:115px;float:left;margin-left: 6px;}form.ebook-styles .af-element.buttonContainer input.submit{width:115px;padding:10px 6px 8px;text-transform:uppercase;border-radius:0;border:0;font-size:15px}form.ebook-styles .af-body.af-standards input.submit{width:115px}form.ebook-styles .af-element.privacyPolicy{width:100%;font-size:12px;margin:10px auto 0}form.ebook-styles .af-element.privacyPolicy p{font-size:11px;margin-bottom:0}form.ebook-styles .af-body input.text{height:40px;padding:2px 10px !important} form.ebook-styles .error, form.ebook-styles #error { color:#d00; } form.ebook-styles .formfields h1, form.ebook-styles .formfields #mg-logo, form.ebook-styles .formfields #mg-footer { display: none; } form.ebook-styles .formfields { font-size: 12px; } form.ebook-styles .formfields p { margin: 4px 0; } Get The Full Series in PDF Get the entire 10-part series on Charlie Munger in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues. (function($) {window.fnames = new Array(); window.ftypes = new Array();fnames[0]='EMAIL';ftypes[0]='email';}(jQuery));var $mcj = jQuery.noConflict(true); Q1 2022 hedge fund letters, conferences and more Unless things change dramatically in the next two days, both the Dow and S&P will post their worst quarterly performance since 2020, the NASDAQ since 2008. Why aren't people ready to buy the dip yet?  Earnings - they still haven't been cut enough to reflect the slowdown so many "experts" are forecasting. Surging Energy Surprisingly, they are actually higher. At the beginning of the year, the S&P was forecast to have +8% earnings growth in 2022.  Today it is +10%. The explanation is apparently the surging energy names with Exxon (NYSE:XOM) now forecast for over 100% earnings growth in 2022, Occidental (NYSE:OXY) 300%. But energy is only about 5% of the index. Don't Chase These Bear Market Rallies The fear is that in a normal recession earnings drop 20%. That is the source of these bear market rallies: If current earnings estimates largely hold up, the market is oversold and a sustained rally is in the cards. If recession-caliber earnings cuts are coming, there's another big leg down in valuations coming. While picking the right stocks will outperform as always, with so much money now tied up in passive index strategies and ETFs, if the market falls into a full recession sentiment, you'll be able to build positions in better stocks at lower prices. This makes the upcoming earnings season more important than ever. By the time it's over, stock indexes will have likely moved several percentage points in either direction. Better to be cautious and chase the rally than all-in and be wrong. Keep collecting partial positions in quality names on pullbacks and offloading weak earners on rallies in the next couple weeks, but keep plenty of powder dry and be ready to pounce if the earnings relief rally comes. Coffee Beans America’s love of wines from Southern Europe, with France and Italy, especially coming to mind, is a one-sided affair. The U.S. imported almost 6 million hectoliters from France and Italy between August 1, 2020 and July 31, 2021 - worth more than $3.5 billion.  Meanwhile, Europe's four largest wine exporters imported less than 50,000 hectoliters of wine from the U.S. Source: Statista. See the full story here. Updated on Jun 29, 2022, 1:23 pm (function() { var sc = document.createElement("script"); sc.type = "text/javascript"; sc.async = true;sc.src = "//mixi.media/data/js/95481.js"; sc.charset = "utf-8";var s = document.getElementsByTagName("script")[0]; s.parentNode.insertBefore(sc, s); }()); window._F20 = window._F20 || []; _F20.push({container: 'F20WidgetContainer', placement: '', count: 3}); _F20.push({finish: true});.....»»

Category: blogSource: valuewalk18 hr. 4 min. ago Related News

Don"t Lose Confidence, Scoop Up These 4 Retail Stocks Instead

Consumer confidence sinks for the second straight month in June. But these retailers - Boot Barn Holdings (BOOT), Ulta Beauty (ULTA), Dollar Tree (DLTR) and Kroger (KR) - could still be a great addition to your portfolio. U.S. consumer confidence — a key determinant of the economy’s health — stumbled to a 16-month low in June, as soaring inflation and concerns about the economy’s health dampened the Americans’ spirit. Economists cautioned that a back-to-back drop in consumer sentiment spells trouble for the market and overall spending activity. Per the Conference Board, the Consumer Confidence Index fell to 98.7 in June from May’s downwardly revised reading of 103.2.Lynn Franco, senior director of economic indicators at the Conference Board, said, “Purchasing intentions for cars, homes, and major appliances held relatively steady—but intentions have cooled since the start of the year and this trend is likely to continue as the Fed aggressively raises interest rates to tame inflation. Meanwhile, vacation plans softened further as rising prices took their toll.”Industry experts see more pain ahead as consumers grapple with soaring commodity and record gasoline prices as well as rising interest rates. We note that the consumer price index rose 1% month on month in May, following an increase of 0.3% in April. On a year-over-year basis, the metric rose 8.6% — the fastest pace since December 1981. This jump was a result of higher gasoline and food grain prices, primarily due to the conflict between Russia and Ukraine.Addressing shooting commodity prices is a top priority for the Federal Reserve, and it is treading the path of a rate hike to tame the same. In a bold move to counter inflation, the Fed recently announced a 75-basis point hike in the benchmark interest rate that will take the level to a range of 1.5% to 1.75%. This was the biggest rate increase since 1994.While challenges persist, retailers are still pinning hopes on the back-to-school season. Per Mastercard SpendingPulse, U.S. retail sales, excluding automotive, are projected to increase 7.5% year over year during the period that runs from Jul 14 to Sep 5. With e-commerce still one of the preferred modes for shopping, Mastercard SpendingPulse foresees online sales to rise by 4.3%. Notably, in-store shopping is anticipated to increase 8.2%.Steve Sadove, senior advisor for Mastercard and former CEO and chairman of Saks Incorporated, said, “While Mastercard SpendingPulse anticipates growth across sectors, retailers will need to find innovative ways to entice shoppers as discretionary spending potentially stretches thin as a result of increasing prices.”Companies have been undertaking a more consumer-centric approach — emphasizing membership programs, upgrading store technology, shopping via mobile apps and last-mile delivery solutions. Expedited delivery services like doorstep delivery, curbside pickup or buy online and pick up at store, as well as contactless payment solutions, will continue to play a crucial role in maximizing the share of customers’ wallet.That said, here we have highlighted four stocks from the Retail-Wholesale sector that have a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Past Year Price Performance Image Source: Zacks Investment Research4 Prominent PicksYou may invest in Boot Barn Holdings, Inc. BOOT. This lifestyle retailer of western and work-related footwear, apparel and accessories has been successfully navigating through the challenging environment, courtesy of merchandising strategies, omni-channel capabilities and better expense management as well as marketing. This, combined with the expansion of the store base, has helped Boot Barn Holdings gain market share and strengthen its position in the industry.The company has an estimated long-term earnings growth rate of 20%. The Zacks Consensus Estimate for Boot Barn Holdings’ current financial year sales and EPS suggests growth of 17% and 4.4%, respectively, from the year-ago period.Investors can count on Ulta Beauty, Inc. ULTA. The company has been strengthening its omni-channel business and exploring the potential of both physical and digital facets. It has been implementing various tools to enhance guests' experience, like offering a virtual try-on tool and in-store education, and reimagining fixtures, among others. Ulta Beauty focuses on offering customers a curated and exclusive range of beauty products through innovation.Impressively, this beauty retailer and the premier beauty destination for cosmetics, fragrance, skincare products, hair care products and salon services has a trailing four-quarter earnings surprise of 49.8%, on average. We note that the company has an estimated long-term earnings growth rate of 10.7%. The Zacks Consensus Estimate for Ulta Beauty’s current financial year sales suggests growth of 10.3% from the year-ago period.Another stock worth considering is Dollar Tree, Inc. DLTR. This Chesapeake, VA-based company’s strategic initiatives, including the expansion of $3 and $5 Plus assortment in Dollar Tree stores, as well as Combo Stores and H2 Renovations at Family Dollar, provide tremendous opportunities to drive sales and traffic.Impressively, Dollar Tree has a trailing four-quarter earnings surprise of 13.1%, on average. This operator of discount variety stores has an estimated long-term earnings growth rate of 15.5%. The Zacks Consensus Estimate for Dollar Tree’s current financial year sales and EPS suggests growth of 6.7% and 40.5%, respectively, from the year-ago period.The Kroger Co. KR, which operates in the thin-margin grocery industry, is another potential pick. The company has been undertaking efforts to strengthen its position not only with respect to products but also in terms of the way consumers shop. It has been making investments to enhance product freshness and quality as well as expand digital capabilities. Kroger has been augmenting Our Brands portfolio by launching new products.Kroger has a trailing four-quarter earnings surprise of 20.3%, on average. The company has an estimated long-term earnings growth rate of 11.3%. The Zacks Consensus Estimate for Kroger’s current financial year sales and EPS suggests growth of 6.7% and 6.3%, respectively, from the year-ago period. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock and 4 Runners Up >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dollar Tree, Inc. (DLTR): Free Stock Analysis Report The Kroger Co. (KR): Free Stock Analysis Report Ulta Beauty Inc. (ULTA): Free Stock Analysis Report Boot Barn Holdings, Inc. (BOOT): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacks19 hr. 16 min. ago Related News

Should Investors Be Considering Dividend-Paying Stocks?

Companies often increase dividends in down markets to keep investors interested in the shares. With inflation hugging 40-year highs, the possibility of a recession looming in the not-too-distant future and constantly shrinking portfolio values, many of us are losing our appetite to spend.Whether it is the Conference Board or the University of Michigan, consumer surveys are telling the same story: Americans are incrementally cautious about the near future, about job prospects, their income growth and the business environment.According to the university, “consumers across income, age, education, geographic region, political affiliation, stockholding and homeownership status all posted large declines” (in sentiment). Food and gas inflation in particular appear to be “eroding living standards.”According to the Conference Board, “Purchasing intentions for cars, homes and major appliances held relatively steady—but intentions have cooled since the start of the year and this trend is likely to continue as the Fed aggressively raises interest rates to tame inflation. Meanwhile, vacation plans softened further as rising prices took their toll.”The board finds that consumer sentiment about the present situation has changed marginally (the present situation index went from 147.4 in May to 147.1 in June). But it is their expectation about the future (i.e. the next six months) that has changed dramatically: the expectations index continued its downward trajectory from 73.7 to 66.4 from May to June. This is the lowest level since the 63.7 recorded in March 2013.Rising inflation in essentials and rising interest rates to combat it will keep the pressure on sentiments, for sure.But while all of us are entering this uncertainty together, we will not all be exiting it in the same way. Some will be cutting all spending and hoarding cash. Some will be investing in essentials and commodities since they tend to hold relatively steady in bear markets. And some will look for bargains in the stock market.Stocks have outdone most other asset classes in recent history and at the cheap valuations to which many of them have sunk, they are certainly worth building strategies around.Today, I’m focusing on investors looking for income generating stocks. These are stocks that pay a dividend. The main reason a company pays a dividend is it generates more earnings that it can invest back into the business. This is usually because it is a mature player, but can also be because it operates in an industry where further growth in the near future is limited for some reason. It supports its stock price and investor interest by paying dividends. During a bear market, or a recession, dividend-paying companies are therefore incentivized to pay more dividend.A few things need to be kept in mind, however, when investing in these stocks.First, ascertain that the company’s growth outlook is sound, even if it is likely to be impacted by the current uncertainties. This can be done by choosing stocks in the top 50% of Zacks-classified industries. Our research shows that the top 50% outperforms the bottom 50% by a factor of 2 to 1. This will point you toward the industries that appear to be battling the uncertainties better than others.Second, revenue growth is the real indicator of quality earnings. It ensures that the earnings growth is really coming from more business and not just production efficiencies or accounting jugglery. Therefore, it’s worth checking out what’s happening with revenues, if possible. Analyst revenue expectations for up to a couple of years are usually available. Although these are moving numbers and liable to change as analysts update their expectations, they are worth checking out.Third, in order to lower your risk, ascertain that the debt/total capital ratio is low, say under 40-50%. If a company falls into very hard times, it will still be required to pay its debt obligations. So, the lower this is, the better.Fourth, check the dividend yield and how far the dividend has grown in the last few years. This gives you an idea of what to expect.Fifth, make sure you choose stocks that have Zacks #1 (Strong Buy) or #2 (Buy) ranks, because our research has shown consistently that this is where most of the action will be in the near term.Finally, be sure to buy cheap. For example, the price based on earnings potential should be relatively lower than the past year (for example) and also preferably lower than a benchmark, say the S&P 500.Here are a few stocks that satisfy the above criteria:The RMR Group, Inc. RMRThis provider of business and property management services in the U.S. belongs in the top 37% of Zacks-classified industries. It also carries a Zacks Rank #1. RMR’s current dividend yield is 5.63% while dividend growth over the last five years is 11.6%. Revenue growth expectations for the company are 22.6% and 2.9% in its current and following fiscal years (ending September). RMR has no long-term debt. The shares also trade at 12.5X earnings, which is below their median level over the past year and the S&P 500’s 16.4X.Nippon Yusen Kabushiki Kaisha NPNYYThis provider of marine, land and air transportation services worldwide is in the top 18% of Zacks-classified industries. Moreover, it carries a Zacks Rank #2. These two factors in combination are normally enough to indicate upside in the shares. But since we are concerned with dividend growth potential, it’s worth looking at Nippon Yusen’s other numbers as well. And so, we see that analysts expect the company to grow revenues by 25.2% in the current year ending in March 2023 followed by 17.4% growth the following year. Nippon Yusen pays a dividend that yields 22.17%. Its dividend has grown 125.9% over the last five years. The Debt/Cap of 32.0 is totally manageable. At 1.3X earnings, the shares are well below their annual highs.Petroleo Brasileiro S.A. - Petrobras PBRZacks #1 ranked Petrobras explores for, produces, and sells oil and gas in Brazil and internationally. The industry to which it belongs is in the top 25%. What’s more, its dividend which currently yields 25.92% has grown 104.04% in the last five years. Petrobras’ revenues are expected to grow 32.1% this year. While a decline is currently forecasted for the following year, the direction of analyst estimate revisions is encouraging. Debt/Cap of 34.9% isn’t a cause for concern. P/E of 2.9X is lower than its median value over the past year.One-Month Price PerformanceImage Source: Zacks Investment Research Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock and 4 Runners Up >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Petroleo Brasileiro S.A. Petrobras (PBR): Free Stock Analysis Report The RMR Group Inc. (RMR): Free Stock Analysis Report Nippon Yusen Kabushiki Kaisha (NPNYY): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacks19 hr. 16 min. ago Related News

Thoughts From JPMorgan Futures Trader: "Any Rally Feels Fairly Unsustainable"

Thoughts From JPMorgan Futures Trader: "Any Rally Feels Fairly Unsustainable" Some macro thoughts from JPMorgan futures and options trader Marissa Gitler. After a handful recent conversations, the most salient theme from clients has been a lack of conviction as for how to handle the next few months of trading. What’s interesting is that the general thought process amongst many remains the same – EPS and company guidance are likely to fall short of articulated expectation in Q3 as inflation has failed to moderate globally while growth has definitively started to wane in lockstep. The FED will continue hiking to keep inflation under control in the short term, though much is out of their devices as energy, input prices, and supply chain bottlenecks outpace demand-led triggers in the market. Inflation will eventually start to moderate into the back half of the year (though still remain higher than ‘target normal’). Recession in the US isn’t a guarantee, but the likelihood is increasing – whereas Europe’s outlook is much more bleak and headed towards stagflation given inflation pressures are more heavily tilted towards the supply-side. Though emerging market economies have, in past, been better equipped to weather an inflationary storm – they are currently fairly anchored to the path of DM rates, and overall performance of DM countries (from a demand perspective), and (though to a bit lesser extent now) China. Energy upside makes sense fundamentally (inventories remain critically low), but desire to add to existing positioning is lacking at current elevated levels amidst lower liquidity, higher realized vol, and recession fears ticking higher. Similar can be said for Ags, which are broadly back to pre-invasion levels as positioning while wiped out in the broader macro sell-off. As per this thought process, risky assets continue to look fairly unattractive, while the popular front-end fixed income shorts that had ‘worked’ for the majority of the year now appear at more risk. Though the US outlook is better than most from a global perspective - a U.S. flight-to-quality trade fails as the FED path remains uncertain (highly inflation-print dependent) while equity valuations still appear stretched in the current macro environment. Consequently, investors have continued a pattern of degrossing in the equity space – from both the long and short sides. As has been well advertised at this point, CTAs were the first to de-gross when indexes crossed through technical downside levels, while long only’s have been working through books to take down exposures throughout the entirety of 2022. Though selling of growth plays by long-only’s has been taking place since the end of last year when yields began to move decidedly higher, the newest iteration of selling has been of well-owned winners (like Energy) as there remains overall less of the growthier/weak balance-sheet stocks to sell. Moreover, HFs – who had most recently been playing the market from the short side on the back of global central banks’ sharp hawkish pivot, have also taken down grosses ahead of the summer; covering short positions at the index lows, and unwinding index hedges given there is a higher bar for a further rollover (recession) vs a move higher (squeeze/chase). The question really becomes – how to go forward amongst what has now become fairly homogeneous (under-positioned) playbook and recession-led thought process amongst investors; especially as we enter the historically more ‘relaxed’ summer months. As the market awaits more information (eco data, inflation prints, CB rhetoric) there has been a fairly well advertised upside equity rebalancing view into month end – which has caused many macro investors to step back from selling at the index level in recent days. Moreover, there are worries arising that a drift higher will trigger CTAs to re-enter the market, which would then spiral into price moves higher given the reduced overall positioning. In the same vein, discussions of market bottoms preceding actual recessions have also begun to enter conversations. Any pullback in bond yields would also add to this conversation. The tactical upside play appears to me a bit of a shaky leg to stand on longer term, especially as the macro environment is far from decisive in its path forward, and index hedges have come down over recent weeks (which could lead to more violent down-trades). For those looking into upside in the next few months - would be best to play tactically from a positioning perspective – long in what is under-owned (growth/tech/short momentum), and balancing these trades scaling into some long-duration plays. Overall though, I still favor using equity upside as opportunity to re-engage in sales. What I continue to watch for (in equities), is growth in open interest (and net position growth by asset managers in CFTC data) that would imply CTA re-engagement and real money equity re-grossing – which would provide footing for a more sustained move higher - but this is yet to be seen... Bottom Line: light positioning could lead to an equity rally, but in absence of CTA re-engagement this feels fairly unsustainable, play any upside tactically – vol has cheapened, puts are attractive for short-term downside delta plays. Tyler Durden Wed, 06/29/2022 - 13:25.....»»

Category: blogSource: zerohedge19 hr. 16 min. ago Related News