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Brigham Minerals (MNRL) Passes Through 6% Yield Mark

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Category: topSource: redinewsMay 1st, 2021

Vail Resorts (MTN) to Post Q4 Earnings: What"s in the Offing?

Vail Resorts' (MTN) fiscal fourth-quarter performance is likely to reflect strong contributions from the 2021-2022 North American ski season. Vail Resorts, Inc. MTN is scheduled to report fourth-quarter fiscal 2021 results on Sep 23, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 0.8%.How are Estimates Placed?The Zacks Consensus Estimate for fiscal fourth-quarter earnings is pegged at a loss of $3.57 per share, indicating an improvement of 6.5% from a loss of $3.82 reported in the year-ago quarter.Vail Resorts, Inc. Price and EPS Surprise  Vail Resorts, Inc. price-eps-surprise | Vail Resorts, Inc. Quote For revenues, the consensus mark is pegged at nearly $188.8 million. The metric suggests an increase of 144.5% from the year-ago quarter’s figure.Let's take a look at how things have shaped up in the quarter.Factors at PlayVail Resorts’ fourth-quarter fiscal 2021 performance is likely to reflect solid contributions from the 2021-2022 North American ski season. During the previous quarter’s earnings call, the company reported solid pass product sales (through Jun 1, 2021), up 50% in units and 33% in sales dollars from 2019 levels. The company expects the momentum to continue in the fiscal fourth quarter, primarily on the back of 20% price reduction in all pass products. This will likely lead to a stronger unit growth in new pass holders, higher pass renewals and increased trade up to higher-value passes. The Zacks Consensus Estimate for fiscal fourth-quarter resort revenues is pegged at $194 million, indicating growth of 152% year over year.Investments related to resources and technology (including staffing increases in call centers and self-service technology) along with infrastructure maintenance are likely to have benefitted the company in the to-be-reported quarter.However, pandemic-related capacity constraints and limitations — particularly in food and beverage and ski school — are likely to have negatively impacted the company’s ancillary lines of business in the fiscal fourth quarter. This along with a rise in wages is expected to have hurt the company’s fiscal fourth-quarter bottom line.What Our Model SaysOur proven model does not conclusively predict an earnings beat for Vail Resorts this time around. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat earnings. But that's not the case here.Earnings ESP: Vail Resorts has an Earnings ESP of -9.03%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Zacks Rank: The company has a Zacks Rank #4 (Sell).Stocks Poised to Beat Earnings EstimatesHere are some stocks from the Zacks Consumer Discretionary space that investors may consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:Crocs, Inc. CROX, sports a Zacks Rank #1, and has an Earnings ESP of +1.20%. You can see the complete list of today’s Zacks #1 Rank stocks here.Roku, Inc. ROKU, has a Zacks Rank #1, and an Earnings ESP of +152%.Camping World Holdings Inc. CWH, has a Zacks Rank #3, and an Earnings ESP of +10.55%. Breakout Biotech Stocks with Triple-Digit Profit Potential The biotech sector is projected to surge beyond $2.4 trillion by 2028 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases. Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Recommendations from previous editions of this report have produced gains of +205%, +258% and +477%. The stocks in this report could perform even better.See these 7 breakthrough stocks now>>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 Crocs, Inc. (CROX): Free Stock Analysis Report Camping World Holdings Inc. (CWH): Free Stock Analysis Report Vail Resorts, Inc. (MTN): Free Stock Analysis Report Roku, Inc. (ROKU): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

Here"s Why Investors Should Retain CNA Financial (CNA) Stock

CNA Financial (CNA) holds the potential to reap benefits from its solid capital position, higher new business, strong rate and favorable acquisition ratio. CNA Financial Corporation CNA is well-poised for growth, driven by higher new businesses, strong rate and higher net earned premiums as well as effective capital deployment.Growth ProjectionsThe Zacks Consensus Estimate for 2021 and 2022 earnings per share is pegged at $3.95 and $4.28, indicating growth of 46.3% and 8.2%, respectively, from the year-ago reported figures. The expected long-term earnings growth rate is pegged at 5%.Estimate RevisionEstimates for 2021 and 2022 have moved up 1.8% and 0.7%, respectively, in the past 60 days, which reflects investors’ optimism.Earnings Surprise HistoryCNA Financial has a decent earnings surprise history. It beat estimates in each of the last four quarters, the average being 10.81%.Zacks Rank & Price PerformanceCNA Financial currently carries a Zacks Rank #3 (Hold). In the past year, the stock has rallied 40.1% compared with the industry’s growth of 21.7%. Image Source: Zacks Investment Research Return on Equity (ROE)The company’s ROE for the trailing 12 months is 9.1%, better than the industry average of 5.7%, reflecting the company’s efficiency in utilizing shareholders’ funds.Business TailwindsCNA Financial remains well-poised to gain from higher new businesses, strong rate, lower net catastrophe losses, improved non-catastrophe current accident year underwriting results, higher net earned premium, which continue to contribute to premium growth across its Specialty, Commercial and International segments.By the virtue of strong investment income and lower level of catastrophe losses, earnings of the property and casualty insurer are likely to improve in the long run.The combined ratio has been improving largely due to lower net catastrophe losses as well as higher underlying underwriting profit.While the expense ratio should continue to gain from higher net earned premiums, lower acquisition costs and a favorable acquisition ratio; the loss ratio should benefit from improved non-catastrophe current accident year underwriting results and lower net catastrophe losses.Given higher income from limited partnerships, investment income is expected to improve despite the current low interest rate environment. The strong limited partnership returns across both P&C and life and group segments were significantly driven by private equity investments.The insurer maintains liquidity in the forms of cash and short-term investments, and has sufficient liquidity holdings to meet obligations and withstand significant business variability. Riding on improved current accident year underwriting profitability and a lower level of paid losses, operating cash flow continues to remain strong.Courtesy of solid financial strength, the insurer engages in capital deployment to enhance its shareholders’ value. Notably, its dividend payments have witnessed a CAGR of 24.1% in the past seven years (2014-2021) and currently yield 3.6%, which is better than the industry average of 0.4%. This makes the stock an attractive pick for yield-seeking investors.Stocks to ConsiderSome better-ranked players in the property and casualty industry are American Financial Group, Inc. AFG, Everest Re Group, Ltd. RE and Cincinnati Financial Corporation CINF, each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The bottom line of American Financial surpassed estimates in each of the last four quarters, the average being 52.82%.Everest Re surpassed estimates in two of the last four quarters and missed in the other two, the average earnings surprise being 20.33%.Cincinnati Financial’s earnings surpassed estimates in three of the last four quarters and missed the mark on the remaining occasion, the average surprise being 36.01%. Breakout Biotech Stocks with Triple-Digit Profit Potential The biotech sector is projected to surge beyond $2.4 trillion by 2028 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases. Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Recommendations from previous editions of this report have produced gains of +205%, +258% and +477%. The stocks in this report could perform even better.See these 7 breakthrough stocks now>>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 Cincinnati Financial Corporation (CINF): Free Stock Analysis Report Everest Re Group, Ltd. (RE): Free Stock Analysis Report CNA Financial Corporation (CNA): Free Stock Analysis Report American Financial Group, Inc. (AFG): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

Still Waiting for that New S&P High

Still Waiting for that New S&P High The S&P made another attempt at a new high on Thursday, but couldn’t close the deal and ended lower for the second time in the past three days. The index came into this session less than 6 points away from a record close… and momentarily pushed through that mark of 3386.15 from February 19. But the upward momentum didn't last. It finished lower by 0.20% to 3373.43, so there's still only a deficit of about 13 points. The Dow never saw any green on Thursday, though it did come off its lows and finish with a loss of only 0.29% (or around 80 points) to 27,896.72. The S&P and Dow recently had seven-day winning streaks each after going wall-to-wall green in the first week of August, but now they’ve had two losing sessions in the past four days. The NASDAQ, however, advanced 0.27% (or about 30 points) to 11,042.50. Apple (AAPL) and Netflix (NFLX) each gained more than 1% as the stay-home names outperformed the recovery plays.  Apple also set a new record today. Meanwhile, we got some very encouraging news on the jobs front. For the first time in the covid era, jobless claims were under 1 million! That breaks 20 consecutive weeks of being above that disheartening level. The report said 963,000 claims were filed last week, which was significantly better than expectations for 1.1 million. That's the second solid jobs number in the past week. Last Friday, the Government Employment Situation stated that 1.7 million jobs were added in July, which also surpassed forecasts. Despite today’s ho-hum session, the major indices each move into Friday’s session with gains for the week. In fact, the Dow is up by well over 1%. So what do you think happens first? The S&P climbs 13 points from here and reaches a new record, or Congress passes a coronavirus relief package?  OK… dumb question. Today's Portfolio Highlights: Surprise Trader: The portfolio added a name on Thursday that offers exposure to the stay-home economy, as well as China’s burgeoning middle class. Autohome (ATHM) is a Zacks Rank #2 (Buy) online destination for automobile consumers. The company has yet to officially confirm its earnings date, but Dave says it could be anytime now. ATHM heads toward that release with an Earnings ESP of 1.96%. The editor added the stock with a 12% allocation today, while also selling Benefitfocus (BNFT) for a small gain. The complete commentary has more on these moves. By the way, Revolve Group (RVLV) was added just 24 hours ago and it's already the top performer of the day. The e-commerce fashion company reported earnings after the bell yesterday that easily beat expectations, which helped the stock soar more than 22% in today's session.  TAZR Trader: Several analysts believe that Infinera (INFN) will have lots of opportunity to increase its footprint in digital optical networking systems moving forward, especially with all the troubles surrounding Huawei. Kevin likes to hear of such potential momentum, and also enjoyed INFN’s strong second quarter report that included a 35% earnings beat and a 4% sales outperformance. The company is expected to make a big surge toward profitability next year, so the editor decided to buy it today with a 7% allocation. Read the complete commentary for a detailed look at INFN and to see what those analysts are saying about the company.  Income Investor: "The bulls and the bears are battling it out at critical market levels today as the S&P 500 fights its way towards pre-COVID highs, trading less than a percent below. The Nasdaq 100 has been relentlessly pushing towards continuously new highs despite a growing number of sellers entering the market. "There appears to be a rotation towards cyclical value names that have underperformed the broader market because of their sizable pandemic exposure. Still, tech bulls have remained persistent buying up every dip the bears throw at them. "We are trading up to quite frothy valuations in innovation-driven sectors. The market is pricing in a very optimistic economic recovery, and it feels as if equity prices are hanging by a thread. We will need value sectors like financials, industrials, utilities, and energy to start participating materially if the market rally is to continue." -- Dan Laboe, who's filling in for Maddy this week. All the Best, Jim Giaquinto Recommendations from Zacks' Private Portfolios: Believe it or not, this article is not available on the Zacks.com website. The commentary is a partial overview of the daily activity from Zacks' private recommendation services. If you would like to follow our Buy and Sell signals in real time, we've made a special arrangement for readers of this website. Starting today you can see all the recommendations from all of Zacks' portfolios absolutely free for 7 days. Our services cover everything from value stocks and momentum trades to insider buying and positive earnings surprises (which we've predicted with an astonishing 80%+ accuracy). Click here to "test drive" Zacks Ultimate for FREE >>  Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

NASDAQ Keeps Setting Records

NASDAQ Keeps Setting Records SPECIAL ALERT: The latest episode of the Zacks Ultimate Strategy Session will be available for viewing no later than this Wednesday, December 9. Kevin Matras, Sheraz Mian, Jeremy Mullin, Tracey Ryniec and Madeleine Johnson will cover the investment landscape from several angles in this informative event.    Don’t miss your chance to hear: ▪ Tracey and Madeleine Agree to Disagree on whether Black Friday, when consumers rush to stores to get deals the day after Thanksgiving, is over in 2020 as online shopping takes precedence ▪ Kevin answers your questions in Zacks Mailbag ▪ Sheraz and Jeremy choose one portfolio to give feedback for improvement ▪ And much more So be sure to mark your calendar then log on to Zacks.com and bookmark this page. Lazy start to the week with two of the major indices pulling back from all-time highs. However, the NASDAQ refused to go along with the sluggishness and continued pushing higher. The tech-heavy index rose another 0.45% (or about 55 points) to a new high of 12,519.95. That marks fresh records in three consecutive sessions and in four of the past five. Meanwhile, the S&P slipped 0.19% to 3691.96, while the Dow was off 0.49% (or about 148 points) to 30,069.79. The latter index snapped a four-day winning streak, but did manage to stay above 30K for a second straight session and only the third time ever. Stocks are coming back from a solid week that saw the NASDAQ rise 2.1%, while the S&P advanced 1.7% and the Dow improved 1%. Each of them finished at all-time highs. The theme of this week might be all about a stimulus package… or the lack thereof. While we’re waiting, stocks moved toward the safer names in tech on Monday.     Investors are hoping that the weaker-than-expected Government Employment Situation report on Friday will wake up Washington and underscore the need for more stimulus now despite all the good vaccine news of late.      “The market is waiting to hear some much-needed stimulus news. I would love to say I am shocked it is taking this long, but nothing on Capitol Hill shocks me anymore. The market is going to rally on news of that deal,” said Dave Bartosiak in today’s Surprise Trader. In the last few days, we’ve received a bipartisan plan worth approximately $900 billion, along with statements from Senate Majority Leader McConnell and Speaker Pelosi that they both want to see a deal as soon as possible. Despite all the setbacks in the past, the market does expect something to get done. Coronavirus cases continue to rise, the economic recovery is slowing and we’re still months away from the vaccines doing their jobs. Let’s hope investors get what they want this holiday season. Today's Portfolio Highlights: Income Investor: The logo for life insurance giant Prudential Financial (PRU) is the Rock of Gibraltar, and that message of strength and stability is a big reason why Maddy added this name on Monday. The company is highly diversified and has a very strong balance sheet, which adds some cushion amid all the uncertainty out there right now. It’s dividend is “one of the best in the sector” with a yield of 5.4% and a payout ratio at 34%. Best of all, PRU trades well below its peers and the broader market. The editor sees this name as “a strong, undervalued stock that is poised for a rebound from the pandemic”. Read the complete commentary for a lot more on this new addition.   Marijuana Innovators: This industry has been on a tear for the past few weeks, but Hexo Corp. (HEXO) hasn’t come along for the ride. Therefore, this consumer-packaged goods cannabis company is a “legitimate bargain”, according to Dave. Shares of the company struggled over the past week due to an upcoming reverse split. The editor finds such a pullback to be “pretty silly” and the move below $1 to be a “pure opportunity”. Get the whole story on this buy in the full write-up. Insider Trader: We don’t hear much about industrial names like Myers Industries (MYE), but Tracey is bringing this company to the forefront today by adding it to the portfolio. The company makes polymer products and distributes for the tire, wheel and under-vehicle service industry. It recently outlined a 9-year strategic vision that will involve looking at M&A. Perhaps this forward-looking plan is why we saw a rare cluster buy among MYE’s insiders. Late last month, the CEO and three directors bought shares. In addition, it has great cash flows and pays a 3% dividend yield. Tracey added MYE with an 8% allocation. By the way, Tracey also sold the idled Bristol-Myers (BMY) position for a 7.6% return since late June. The full write-up has more specifics on today’s moves. Blockchain Innovators: In addition to a recent upgrade to Zacks Rank #1 (Strong Buy) status, Alpha and Omega Semiconductor (AOSL) was also the best performing stock of the day among all ZU services. The company soared 14.5%. Dave added AOSL back on August 31, and it has been a big winner for the portfolio with a gain of more than 104% since inception. The stock is now one of the biggest movers over the past 30 days with a rise of more than 52%. By the way, Camtek (CAMT) also made the top 5 list with an advance of 6.45%. Black Box Trader: More than half of the portfolio was changed this week with six swaps, including a double-digit winner. The positions that were sold today included: • Owens & Minor (OMI, +16.7%) • Flex Ltd. (FLEX, +6.7%) • General Motors (GM, +6.6%) • Realogy Holdings (RLGY, +5.3%) • TRI Pointe Group (TPH) • DICK'S Sporting Goods (DKS) The new buys that filled these spots were: • Adient PLC (ADNT) • Big Lots (BIG) • Brinker Int'l (EAT) • Builders FirstSource (BLDR) • Flagstar Bancorp (FBC) • L Brands (LB) Read the Black Box Trader’s Guide to learn more about this computer-driven service. Counterstrike: "Very limited action today led to a mixed result with the S&P down 0.19% and the Nasdaq up 0.54%. Stimulus is coming, but the question is when and how much. Washington continues to stagnate, while COVID cases increase. "The bears have a great case for stocks to go lower, but they refuse to do so. There is just too much money out there with limited places to go, so stocks stay bid. "The day was pretty boring unless you were trading Tesla or a few other movers. I have this feeling that things really slow down into the end of the year. So expect these low volumes that we are seeing to continue." -- Jeremy Mullin Until Next Time, Jim Giaquinto   Recommendations from Zacks' Private Portfolios: Believe it or not, this article is not available on the Zacks.com website. The commentary is a partial overview of the daily activity from Zacks' private recommendation services. If you would like to follow our Buy and Sell signals in real time, we've made a special arrangement for readers of this website. Starting today you can see all the recommendations from all of Zacks' portfolios absolutely free for 7 days. Our services cover everything from value stocks and momentum trades to insider buying and positive earnings surprises (which we've predicted with an astonishing 80%+ accuracy). Click here to "test drive" Zacks Ultimate for FREE >>  Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

NASDAQ Drops Another 2.7% as Bond Yields Rise Again

NASDAQ Drops Another 2.7% as Bond Yields Rise Again SPECIAL ALERT: Remember, we need your input to make next week’s new Zacks Ultimate Strategy Session episode the best it can be. There are two ways you can participate: 1) Zacks Mailbag: In this regular segment, Kevin Matras answers your questions ranging from current market conditions, general investing wisdom, usage of the Zacks Rank or any resources of Zacks.com and more. Pretty much anything goes.   2) Portfolio Makeover: Sheraz Mian and Daniel Laboe review a customer portfolio to give feedback for improvement. No need to send us personal information such as dollar value of holdings. Simply email us with all of the tickers you own. Just make sure to email your submissions for either one, or both, by Thursday morning, March 4. Email now to mailbag@zacks.com. March started out so positively with a solid rally across the board, but stocks have since pulled back in two consecutive sessions as bond yields move higher. The NASDAQ has now given back all of its 3% surge from two days ago… and then some. The 10-year Treasury yield rose on Wednesday after steadying in the previous two sessions and came awfully close to 1.5% at its peak. Investors are still stinging a bit from the surge past 1.6% last Thursday. If yields are going up, then you can bet that tech is going down. Case in point, the NASDAQ plunged 2.7% (or about 361 points) to 12,997.75. Along with yesterday’s nearly 1.7% slip, the index has now squandered the 3% rally on Monday and closed beneath 13,000 for the first time since January 15. The FAANGs really took their lumps with Netflix (NFLX) plunging 4.95%, while Apple (AAPL), Amazon (AMZN) and Alphabet (GOOG) all dropped more than 2%. Facebook (FB) slipped 1.39%. Meanwhile, Microsoft (MSFT) was off 2.7%. The S&P dropped 1.31% to 3819.72, while the Dow managed better than its counterparts since recovery names are performing pretty well at the moment. The index still slipped 0.39% (or about 121 points) to 31,270.09 despite being in the green for most of the session. These indices are still up for the week thanks to the Monday rally, but not by much. The ADP report showed that private payrolls added 117,000 jobs in February, which was well below expectations north of 200K. The result is all the more disappointing since last month’s print of 174K was three times better than forecasts. On the brighter side, its further proof that the $1.9 trillion stimulus bill in the Senate is still needed, though its kind of a moot point now as the relief is widely expected to pass sometime this month. This isn’t the last we’ll be hearing about jobs this week. Tomorrow comes jobless claims, per usual, and then Friday brings the government employment situation report. Today's Portfolio Highlights: Home Run Investor: The portfolio had a busy Wednesday as it swapped out two positions, which involved selling SailPoint Technologies (SAIL) for a nice 88% return after slipping to a Zacks Rank #4 (Sell). Brian also sold Merit Medical Systems (MMSI) after going nowhere in the service in three months. The new buys are Radius Health (RDUS) and Primoris Services (PRIM). RDUS is a Zacks Rank #2 (Buy) that will maintain the service's healthcare exposure after dropping MMSI. The editor was most impressed with the huge move in estimates for next year to 88 cents from 45 cents, which would mark a return to profitability. PRIM is a Zacks Rank #1 (Strong Buy) construction name that beat in three of the last four quarters. Earnings estimates are rising here too and Brian considers it to be “a bargain”. Read the full write-up for more specifics on today’s action. Insider Trader: Rates for rental cars are still low at the moment, but that will change once travel picks up later this year. Therefore, Tracey added Avis Budget Group (CAR) on Wednesday, a recovery play that’s up 60% in the past month. However, that epic advance did not keep the CFO from buying 6200 shares last week. In fact, this was his second buy of the month. When insiders buy rising stocks, Tracey finds it an especially bullish signal. The editor sold the weak MannKind (MNKD) position today and used its proceeds to buy CAR. The allocation comes to about 7%. Read the full write-up for more. Surprise Trader: The tail end of earnings season is when we get a lot of retailers going to the plate, which is where Dave went for today’s addition. He picked up Zumiez (ZUMZ), a member of the highly-ranked (Top 26%) retail – apparel & shoes industry. The company has a positive Earnings ESP for the quarter being reported after the bell on Thursday, March 11. Last time it beat by over 52%. The editor added ZUMZ on Wednesday, while also selling Travere (TVTX) for a slight loss. Read the full write-up for more. Healthcare Innovators: The market correction is raging right now and could get even more intense moving forward, so Kevin decided to sell a few positions on Wednesday. The big winner was Guardant Health (GH), which was sold for an approximately 80% profit in more than a year. The editor still thinks there’s upside to this diagnostics company, but it has slipped to a Zacks Rank #5 (Strong Sell) due to its guidance. He also cut his losses by selling Vaxart (VXRT) and Quidel (QDEL) today.   Counterstrike: Amid the market’s “wacky” movement of late, Jeremy has been patient when it comes to new moves. But on Wednesday, he felt comfortable enough to buy twice and sell once. The editor picked up Anaplan (PLAN) and The Trade Desk (TTD) with allocations of 5% and 4%, respectively. PLAN is a Zacks Rank #2 (Buy) cloud platform for business applications, which is down sharply despite a strong quarterly report. TTD provides a technology platform for advertising, and it’s getting beaten up during all this tech weakness. The editor thinks both of these names are poised to bounce back moving forward. He also sold BJ’s Wholesale Club (BJ) today for a small loss. See the full write-up for more specifics on all of these moves. TAZR Trader: Vaccine makers have been getting shellacked during all the praise for Johnson & Johnson’s recent single-dose treatment, but Kevin sees a buying opportunity. For example, Novavax (NVAX) has plunged 20% after its report, but a few firms have been raising their price targets on this biotech. The editor thinks this pessimism for vaccine makers is overdone and was willing to add NVAX on Wednesday with a small, 5% allocation to start. Read his full write-up for more. Have a Great Evening, Jim Giaquinto Recommendations from Zacks' Private Portfolios: Believe it or not, this article is not available on the Zacks.com website. The commentary is a partial overview of the daily activity from Zacks' private recommendation services. If you would like to follow our Buy and Sell signals in real time, we've made a special arrangement for readers of this website. Starting today you can see all the recommendations from all of Zacks' portfolios absolutely free for 7 days. Our services cover everything from value stocks and momentum trades to insider buying and positive earnings surprises (which we've predicted with an astonishing 80%+ accuracy). Click here to "test drive" Zacks Ultimate for FREE >>  Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

Dow Up Another 1%, Continues to Benefit from Tech Selloff

Dow Up Another 1%, Continues to Benefit from Tech Selloff SPECIAL ALERT: The latest episode of the Zacks Ultimate Strategy Session will be available for viewing no later than this Wednesday, March 10. Kevin Matras, Jeremy Mullin, Daniel Laboe, Brian Bolan and Sheraz Mian will cover the investment landscape from several angles in this informative event. Don’t miss your chance to hear: ▪ Jeremy and Brian Agree to Disagree on Investing in SPACs versus traditional IPOs   ▪ Kevin answers your questions in Zacks Mailbag ▪ Sheraz and Daniel choose one portfolio to give feedback for improvement ▪ And much more So be sure to mark your calendar then log on to Zacks.com and bookmark this page. The market’s attitude was unchanged to begin a new week on Monday. The Dow and NASDAQ continue to go their separate ways as money flows out of tech in preparation for new stimulus and eventually a grand reopening. Things are looking so good for the Dow these days that it momentarily reached a new high in the session. However, it pulled back by the close to finish with an advance of 0.97% (or about 306 points) to 31,802.44. The index easily outperformed its counterparts last week with a rise of 1.8%. The S&P was down 0.54% to 3821.35 after gaining 0.8% last week. But the NASDAQ just keeps getting beaten up as investors run away from the space that kept things afloat during the worst of the pandemic. On Monday, the index slumped 2.41% (or just about 311 points) to 12,609.16. It dropped 2.1% last week. All of the FAANGs were solidly lower, especially drops of 4% or more for Apple (AAPL), Netflix (NFLX) and Alphabet (GOOG) each. Meanwhile, Tesla (TSLA) was off more than 5.8% and Microsoft (MSFT) dipped 1.8%. This rush toward recovery names was further reinforced on Monday by the Senate approving the covid stimulus package over the weekend, which pretty much ensures that the whole thing will be done before the March 14 expirations. The bill now goes back to the House for approval (possibly tomorrow) and then onto the President’s desk. As a result, the 10-year Treasury yield again jumped past 1.6% in the session, which may explain why stocks weren’t able to keep their highs of the session.   Today's Portfolio Highlights: Counterstrike: The solar names are close to long-term support levels, so Jeremy initiated “an aggressive trade” in the space by adding Enphase Energy (ENPH) with a 5% allocation and Invesco Solar ETF (TAN) with a 4% allocation. The plan is to take a quick winner in TAN, while holding onto ENPH to capitalize on a “violent” bounce that’ll bring a larger gain. Meanwhile, the addition of Polaris (PII) worked out just as planned, and today the editor sold it for a nice 17.4% in a little over a month as it comes into targets. Read the full write-up for more on all of today’s action. TAZR Trader: You can put Kevin in the camp that believes this tech selloff is way overdone and setting up a huge buying opportunity for investors. Therefore, the editor started this week by adding a couple smaller digital advertising players. He picked up Magnite (MGNI) and Perion Network (PERI) with 5% allocations each. These companies both saw firms raise their price targets lately. The drop in MGNI provides a great entry point for a stock that should benefit from Google’s decision to stop targeting ads from a user’s browsing history. PERI is expected to surpass $370 million in sales at 14% growth this year, so it’s only trading at 1.65X revenues. Read the full write-up for a lot more on these additions, including their buy ranges. Marijuana Innovators: Guess which healthcare giant has been quietly diversifying into research for cannabis-based drugs. None other than Johnson & Johnson (JNJ), which is fresh off the FDA approval for its single-dose covid vaccine. Dave added JNJ to the portfolio on Monday and has all the details in his full write-up.    Black Box Trader: The portfolio cashed in a double-digit profit in this week's adjustment as it switched out three positions. The stocks that were sold included: • Olin Corp. (OLN, +22.3%) • Toll Brothers (TOL, +3.2%) • Flex Ltd. (FLEX) The new buys that replaced these names were: • American Axle & Manufacturing (AXL) • Athene Holdings (ATH) • Resideo Technologies (REZI) Read the Black Box Trader’s Guide to learn more about this computer-driven service. By the way, this portfolio had a couple top performers today with Abercrombie & Fitch (ANF, +9%) and Dick's Sporting Goods (DKS, +7.5%). Until Tomorrow, Jim Giaquinto Recommendations from Zacks' Private Portfolios: Believe it or not, this article is not available on the Zacks.com website. The commentary is a partial overview of the daily activity from Zacks' private recommendation services. If you would like to follow our Buy and Sell signals in real time, we've made a special arrangement for readers of this website. Starting today you can see all the recommendations from all of Zacks' portfolios absolutely free for 7 days. Our services cover everything from value stocks and momentum trades to insider buying and positive earnings surprises (which we've predicted with an astonishing 80%+ accuracy). Click here to "test drive" Zacks Ultimate for FREE >>  Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

Dow Jumps Nearly 1.5% to Reach a New Closing High

Dow Jumps Nearly 1.5% to Reach a New Closing High SPECIAL ALERT: Remember, the March episode of the Zacks Ultimate Strategy Session is now available for viewing! Don’t miss your chance to hear: ▪ Jeremy Mullin and Brian Bolan Agree to Disagree on Investing in SPACs versus traditional IPOs ▪ Kevin Matras covers whether we should be worried about rising rates with all of the talk about inflation and rising treasury yields in Zacks Mailbag ▪ Sheraz Mian and Daniel Laboe choose one portfolio to give feedback for improvement ▪ Market conditions from both fundamental and technical views ▪ The full list of top-performing stocks over the past 30 days ▪ New stocks added to the Zacks Ultimate portfolio ▪ And much more Simply log on to Zacks.com and view the March episode here. And please let us know what you think of these monthly episodes. Email all feedback to mailbag@zacks.com. The NASDAQ and Dow continued going their separate ways on Wednesday with the former index failing to add onto its recent surge while the latter reached a new all-time high. Recovery stocks took off amid tepid inflation data and the passage of more stimulus, while tech took a breather. The Dow soared 1.46% (or about 464 points) to 32,297.02, which marks its first closing high since February 24. It has advanced more than 4% over this four-day winning streak. Meanwhile, the S&P rose 0.60% to 3898.81, which means it’s within 1% of its own record. The tech rebound on Tuesday had no follow though, as recovery names were again getting most of the attention on Wednesday. However, the NASDAQ managed to hold onto pretty much all of yesterday’s 3.7% surge, which was its best single-day performance of 2021 thus far. The index slipped only 0.04% (or less than five points) to 13,068.83. There were a couple reasons for investors to remain bullish on Wednesday. First of all, the House passed the $1.9 trillion covid stimulus plan today. President Biden will sign it later this week or this weekend with the $1400 checks starting to roll out shortly thereafter. The bill passed without any support from Republicans, which underscores why the market was so happy with the Democrats taking complete control of the government in the recent elections. The passage was widely expected and, therefore, didn’t have much of an impact, but the Consumer Price Index was a bit more unpredictable and carried more potential to move the market. And it did!   Consumer prices rose last month by 0.4%, but that was in-line with expectations. In other words, we didn’t see any spikes that would suggest inflation becoming a problem sooner rather than later. Despite investor concerns, it’s still in check and the economic recovery can continue unabated for the time being. As a result, the 10-year Treasury yield remained well below 1.6% for a second day after crossing over that mark this past Monday. Today's Portfolio Highlights: Home Run Investor: The recent tech rebound convinced Brian to add some exposure to that space, so he picked up Cutera (CUTR) on Wednesday. This Zacks Rank #2 (Buy) is in the cosmetic laser business. It has beaten the Zacks Consensus Estimate in the past three quarters, but the editor most appreciates that those positive surprises have been growing over that time on a percentage basis. Plus, expectations for this year have flipped to a one-cent profit from an 8-cent loss over the past 30 days. In fact, earnings and sales growth expectations are very encouraging for this year and next. The addition of CUTR means the portfolio is only one position shy of being fully-invested at 15 names. Read the full write-up for more on today’s move. Surprise Trader: Gaming stocks just can’t wait for the economy to re-open. The space is up big today and could see more momentum moving forward. Dave decided to get involved by adding Golden Entertainment (GDEN) ahead of its quarterly report tomorrow after the bell. This diverse gaming company offers casino, gaming and lottery services. It has a positive Earnings ESP of 2.86% for the upcoming report. The editor bought GDEN on Wednesday with a 12.5% allocation, while also selling half of Primoris (PRIM) for a 23% return in less than a month. Read the full write-up for more on today’s moves. Healthcare Innovators: After selling Guardant Health (GH) exactly one week ago for a more than 83% return, this portfolio is looking to re-gain exposure to diagnostics companies. On Wednesday, Kevin added Exact Sciences (EXAS), a molecular diagnostics company focused on the early detection and prevention of cancer. It’s best-known for its Cologuard test. Earnings estimates for EXAS were cut after their report last month, but that was due to heavy investment in its business to expand the menu of critical diagnostics. The editor thinks the future looks great for EXAS and sees an upside to at least $150 this year. The portfolio also got out of Acadia Pharma (ACAD) today. Read the full write-up for more on today’s moves. All the Best, Jim Giaquinto Recommendations from Zacks' Private Portfolios: Believe it or not, this article is not available on the Zacks.com website. The commentary is a partial overview of the daily activity from Zacks' private recommendation services. If you would like to follow our Buy and Sell signals in real time, we've made a special arrangement for readers of this website. Starting today you can see all the recommendations from all of Zacks' portfolios absolutely free for 7 days. Our services cover everything from value stocks and momentum trades to insider buying and positive earnings surprises (which we've predicted with an astonishing 80%+ accuracy). Click here to "test drive" Zacks Ultimate for FREE >>  Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

NASDAQ Ends Three-Week Skid Despite Rising Yields

NASDAQ Ends Three-Week Skid Despite Rising Yields Soaring bond yields kept the Dow and NASDAQ on separate paths on Friday, but it wasn’t enough to spoil the week. The major indices all finished these five days with solid gains… and even a couple new all-time highs. The Dow rose 0.90% (or about 293 points) today to 32,778.64, while the S&P was up 0.10% to 3943.34. Those are new closing records for both; the third straight for the former index and the second straight for the latter. Unsurprisingly, the Dow had the strongest week with an advance of 4%, as it is benefiting from the recovery rally amid a new, massive stimulus and accelerated vaccine rollout. The S&P was up 2.6% for the week. The NASDAQ slipped 0.59% (or around 78 points) on Friday to 13,319.86. However, the index broke a three-week losing streak by rising 3% over the five days, thanks to sharp rallies of 3.7% on Tuesday and 2.5% yesterday. It’s been a crazy week for the NASDAQ, which began with a 2.4% plunge on Monday that put the index in correction territory. But now it’s down less than 6% from its closing high from mid-February. Tech’s big problem today was the 10-year Treasury yield soaring well past 1.6% on Friday. It moved above that mark on Monday, but pulled back and moderated in the subsequent few sessions. The major news of the week was passage of the $1.9 trillion covid relief package. Talk about warp speed! The plan was approved by the Senate last weekend with the House following on Wednesday. And then the President signed it yesterday with the first $1400 checks probably going out this weekend. The market is very optimistic right now, though rising rates and inflation fears continue to bother many investors. With earnings season pretty much over and little economic data on the schedule, next week’s Fed meeting could move the market. The Committee keeps saying that the economy is still far from the goals that would necessitate a change in policy, but you never know what investors will focus on in the language. Today's Portfolio Highlights: Headline Trader: The biggest story in the market right now is the economic reopening, so you can probably tell what Dan was thinking when he added Home Depot (HD) on Friday with a 6% allocation. This home improvement giant has traded sideways over the past six months, but it might be ready to break out again as Americans get those $1400 checks as part of the $1.9 trillion stimulus plan. HD is a stable cyclical play with secular characteristics and a “reasonable” valuation. The editor considers this cyclical diversification play to be a “no-brainer” in the current environment. Read the full write-up for a lot more on today’s addition. Blockchain Innovators: The semiconductor – general industry space is in the Top 16% of the Zacks Industry Rank, which was where Dave went for today’s addition. He picked up Amtech Systems (ASYS), which makes capital equipment used by customers that manufacturer semiconductors. It’s a hardware play with some pretty impressive growth expectations for both the top and bottom lines. For example, current year EPS growth is set for 157%, while sales growth is seen at 14.5%. Expectations for next year are solid as well. The full write-up has more on this buy. Be on the lookout for another addition early next week. Meanwhile, Camtek (CAMT) made the top movers list today with an advance of 10.6%. Insider Trader: The upcoming economic reopening has invigorated insiders, so Tracey added two new stocks on Friday. S&T Bancorp (STBA) is a community bank that should benefit from a return to normal and the rising 10-year Treasury yield. A director bought 2300 shares earlier this week, while a different director bought 2000 back on February 17. These insider buys are all the more encouraging since STBA shares are up 23.5% over the past month. The other buy today was Carrol’s Restaurant Group (TAST), the largest franchisee of Burger King with 1010 restaurants. The $1400 stimulus checks should really help this company’s stalled out shares. On Monday, a director (and 10% owner) bought 75,000 shares. The editor will be adding these names with allocations of between 6.5% and 7.5% each after splitting the proceeds from selling Conagra Brands (CAG, +9.9%) and Myers Industries (MYE, +8.9%). Read the full write-up for a lot more on today’s action. ETF Investor: Spending on consumer items and services is likely to surge in the weeks ahead as the vaccine rollout continues and the stimulus checks are sent. In order to capitalize on this return to normalcy, Neena added the Invesco DWA Consumer Cyclicals Momentum ETF (PEZ) on Friday. This fund selects and weights US consumer cyclical stocks by price momentum. About a third of its 30 stocks are restaurants, hotels and leisure names, which will be among the biggest beneficiaries of the rebound. PEZ has a “reasonable” expense ratio of 60 basis points and over $97 million in assets. The editor strongly suggests using a limit order. To make room for PEZ, the portfolio sold SPDR Gold MiniShares Trust (GLDM) for a 14.6% return. The full write-up has more on today’s moves. Surprise Trader: The homebuilders have been successful in the portfolio of late, so Dave went “back to the well” on Friday by adding Lennar (LEN). This Zacks Rank #2 (Buy) has beaten earnings expectations for seven straight quarters now and has a positive Earnings ESP of 7.99% for the report coming after the bell on Tuesday March 16. Last time it beat by approximately 18.5%. The editor added LEN today with a 12.5% allocation, while also selling Purple Innovations (PRPL) for a loss. Read the complete commentary for more. In other news, this portfolio had a top performer on Friday as Golden Entertainment (GDEN) rose 11.3%. Value Investor: Even with stocks hitting new highs all over the place, there’s still value out there if you know where to look. Fortunately, Tracey does know where to find them! On Friday, she added Micron (MU), which fulfills this portfolio’s need for some semiconductor exposure. Last week, this Zacks Rank #2 (Buy) raised its EPS and sales guidance during a fiscal second quarter update. The editor thinks this is a sign that a new “up” cycle has begun. Check out the full commentary for all the specifics on the MU addition, including a detailed look at its value characteristics.   Have a Great Weekend! Jim Giaquinto Recommendations from Zacks' Private Portfolios: Believe it or not, this article is not available on the Zacks.com website. The commentary is a partial overview of the daily activity from Zacks' private recommendation services. If you would like to follow our Buy and Sell signals in real time, we've made a special arrangement for readers of this website. Starting today you can see all the recommendations from all of Zacks' portfolios absolutely free for 7 days. Our services cover everything from value stocks and momentum trades to insider buying and positive earnings surprises (which we've predicted with an astonishing 80%+ accuracy). Click here to "test drive" Zacks Ultimate for FREE >>  Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

S&P, Dow Close at New Highs After Soaring Over 1%

S&P, Dow Close at New Highs After Soaring Over 1% The market got the strong Friday rally that it really needed to finish this volatile week with a positive flourish. The major indices all gained more than 1% today and two of them closed at all-time highs.   For the third straight session, most of the action came late in the day. Fortunately, the past two finishes have been to the upside, which mitigated or completely reversed previous sluggishness. The biggest winner on Friday was the S&P, which jumped 1.66% to 3974.54. It was the biggest winner of the week as well by climbing 1.6% over the five days. The Dow advanced 1.39% (or a little more than 450 points) to 33,072.88, giving it a weekly advance of 1.4%. Both of these indices reached fresh record closes for the first time since Wednesday, March 17.   The NASDAQ had a rougher road recently, though it rallied into the close as well and increased 1.24% (or around 161 points) to 13,138.72. Its weekly loss was 0.6%, but that’s rather impressive since the index lost 3% on Tuesday and Wednesday combined. However, this does mark a second straight losing week as tech remains under pressure while the market prepares for the economy to reopen. The inflation-obsessed market got some relief today when core personal consumption expenditures rose 1.4% in February year over year, which was an inch below expectations of 1.5%. Meanwhile, the 10-year Treasury yield was up a bit on Friday, but remained below 1.7% all week. Fed Chair Jerome Powell was all over the place in recent days trying to convince skittish investors to calm down. He testified in front of Congress, along with Treasury Secretary Janet Yellen, on Tuesday and Wednesday, while also making comments on Monday and yesterday. His overall message was that the economy is improving significantly, but remains far from the goals that would require a change in policy. This week turned out a lot better than we thought it would a few days ago, and now there are only three more trading days in March. It should come as no surprise that the Dow and S&P both have solid gains for the month so far, but the NASDAQ is still in the red… but only slightly! Let’s see if we can finish the month with as much enthusiasm as we ended this week. Today's Portfolio Highlights: Insider Trader: It’s always bullish to see insider buying when a company has the wind at its back. That’s happening at Veritiv (VRTV), a Zacks Rank #1 (Strong Buy) provider of business-to-business solutions. The company reported a record fourth quarter earlier this month thanks to a hot packaging segment. Shares are up 69% in the past month to new 2-year highs, but that didn’t stop a director from buying 5,000 shares earlier this week. Apparently, he sees more upside for VRTV. Tracey added this stock on Friday with a 10% allocation, but warns that it’s likely to be volatile given its small-cap stature. Read the full write-up for a lot more on the addition of VRTV. TAZR Trader: Shares of Baidu (BIDU) plunged 30% this week on fears that the Holding Foreign Companies Accountable Act may lead to a delisting of Chinese companies on U.S. exchanges. There was obviously a lot of panic out there, but Kevin doesn’t think the delisting is as imminent as some feared. Therefore, the pullback presents a fantastic opportunity to buy more of BIDU, an AI-focused player in Chinese big data that is currently up nearly 30% in the portfolio. Remember that this stock is a play on the burgeoning autonomous driving space. Speaking of fantastic opportunities, the editor also took advantage of a couple other “incredible values” by adding Quidel Corp. (QDEL) and Invitae Corp. (NVTA). Read the full write-up for more on all of today’s moves.   Marijuana Innovators: The portfolio bought several names during the “clean sweep” of state legalization referendums back in November. One of those buys was GrowGeneration (GRWG), an owner and operator of specialty retail hydroponic and organic gardening stores. Well, the move accomplished exactly what Dave wanted, but he’s not convinced it will continue with as much gusto moving forward. Therefore, the editor sold GRWG for a more than 90% return in less than five months. The full write-up has more on this move. Have a Great Weekend! Jim Giaquinto Recommendations from Zacks' Private Portfolios: Believe it or not, this article is not available on the Zacks.com website. The commentary is a partial overview of the daily activity from Zacks' private recommendation services. If you would like to follow our Buy and Sell signals in real time, we've made a special arrangement for readers of this website. Starting today you can see all the recommendations from all of Zacks' portfolios absolutely free for 7 days. Our services cover everything from value stocks and momentum trades to insider buying and positive earnings surprises (which we've predicted with an astonishing 80%+ accuracy). Click here to "test drive" Zacks Ultimate for FREE >>  Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

Resilient Dow Stays at Record Despite Margin Call Volatility

Resilient Dow Stays at Record Despite Margin Call Volatility The market didn’t let reports of a multi-billion-dollar margin call cramp it’s style on Monday… at least not too much. Stocks recovered nicely from a morning move lower, and the Dow even finished in the green at another new closing high. The sharply negative open was due to news reports that highly-leveraged firm Archegos Capital Management was forced to sell-off billions of dollars in assets. Consequently, Credit Suisse (CS, -11.5%) and Nomura Holdings (NMR, -14.1%) were among those that will take some losses due to this situation. And that’s the real concern with all this craziness. Investors don’t want the Archegos problem to spread to other parts of the market, especially at such a skittish time when so many are concerned about rising bond yields. (By the way, the 10-year Treasury yield jumped back above 1.7% on Monday after staying below that mark all of last week.) Despite such worries, stocks proved resilient and fought back from the morning doldrums. The Dow completely recovered and advanced 0.30% (or nearly 100 points) to 33,171.37. That’s a second straight session with a new closing high for the index, which has been the biggest beneficiary of the rotation out of tech. Meanwhile, the S&P only lost 0.09% to 3971.09, while the NASDAQ was lower by 0.60% (or nearly 80 points) to 13,059.65. Stocks had a strong end to last week with all three indices jumping by more than 1% on Friday. A late rally lifted the S&P and Dow to new closing highs, while the NASDAQ cut its weekly loss from nearly 2% to just 0.6%. Looking forward, the market will be closed on Good Friday, but you may want to prepare for higher volatility than usual. Potential ramifications from the margin call and end-of-the-quarter rebalancing could make things pretty exciting (or exhausting) in the days ahead. Today's Portfolio Highlights: Black Box Trader: The portfolio had four changes in this week's adjustment. The stocks that were sold today included: • Valero Energy (VLO, +7.4%) • Taylor Morrison Home (TMHC, +6.2%) • Deutsche Bank (DB) • American Axle & Manufacturing (AXL) The new buys that replaced these names were: • Alcoa (AA) • Covanta (CVA) • Groupon (GRPN) • Resideo Technologies (REZI) Meanwhile, this portfolio had a top performer on Monday as U.S. Steel (X) rose nearly 3.7%. Read the Black Box Trader’s Guide to learn more about this computer-driven service. Headline Trader: "The market was down across the board in morning trading, with one overleveraged hedge fund seemingly catalyzing a cascade of sell-offs. Like I said at the end of last week, we have climbed a steep wall of worry throughout the past 52-weeks. Now that some level of normality is in sight, some of the excess in the equity market is beginning to show its colors.   "We saw some buyers in the afternoon on the dip, and all the major indices clawed their way back towards the green, but there may be some more systemic risks associated with Archegos Capital's recent implosion. The bulls continue to enter the market, with retail investors being a significant driver despite the inherent risk. Still, bears are ready to pounce if Archegos's forced sell-off has rippling effects across hedge funds. "The bears have been able to keep the VIX (aka the fear index) elevated above 20 today, and overly bullish fund managers may be in for a rude awakening if they haven't felt it yet. The Headline Trader will be moving in on some of the best-positioned discounted equities." -- Dan Laboe Counterstrike: "What astonishes me is the market resilience with all of this. The Nasdaq was still weak, but the SPX rallied back above Friday's highs. So what does this mean for us? "Well as much as we love buying dips, I would like to reiterate something I said above. In times of liquidation, they don't care about price, they just want out. While the pain seems mostly over, there might be others still on the verge of blowing up. I'm very hesitant to buy and with the Nasdaq remaining very weak and still in a short up, I sat on my hands today. "I think another day of trading might clear things up, but let's remember we have the quarter end coming. So, these banks want these positions off their books and they will slam a stock without hesitation. Let's remain patient and cautious." -- Jeremy Mullin Zacks Short Sell List: This portfolio was made for volatile days like this. On Monday, it had the top three winners among all ZU services through its short positions in TAL Education Group (TAL, +7.3%), NeoGenomics (NEO, +4.9%) and Teradata (TDC, +4.1%). Don't forget that this portfolio's weekly adjustment is tomorrow. Learn more about this emotion-free portfolio that takes advantage of falling and volatile markets by reading the Short Sell List Trader Guide. Until Tomorrow, Jim Giaquinto Recommendations from Zacks' Private Portfolios: Believe it or not, this article is not available on the Zacks.com website. The commentary is a partial overview of the daily activity from Zacks' private recommendation services. If you would like to follow our Buy and Sell signals in real time, we've made a special arrangement for readers of this website. Starting today you can see all the recommendations from all of Zacks' portfolios absolutely free for 7 days. Our services cover everything from value stocks and momentum trades to insider buying and positive earnings surprises (which we've predicted with an astonishing 80%+ accuracy). Click here to "test drive" Zacks Ultimate for FREE >>  Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

Dow Takes a Break as We Prepare to End Month, Quarter

Dow Takes a Break as We Prepare to End Month, Quarter SPECIAL ALERT: The April episode of the Zacks Ultimate Strategy Session will be available for viewing no later than Wednesday, April 7. Kevin Matras, Kevin Cook, David Borun and Daniel Laboe will cover the investment landscape from several angles in this popular event.   Don’t miss your chance to hear: ▪ Kevin Cook and David Agree to Disagree on America's National Debt: Are we headed for a government-led financial crisis? ▪ Kevin Matras answers your questions in Zacks Mailbag ▪ Kevin Cook and Daniel choose one portfolio to give feedback for improvement ▪ And much more Remember, we need your input. Please submit your questions for Zacks Mailbag and Portfolio Makeover by Thursday morning, April 1. Email now to mailbag@zacks.com. Then log on to Zacks.com and bookmark this page. The Dow may have pulled back from all-time highs in this next-to-last session of March 2021, but the index is still poised for solid monthly gains. The S&P is also on target for a positive performance despite all the concerns of rising bond yields in recent weeks. The margin call mania of the previous two sessions seems to have waned, as several stocks that got caught up in the Archegos drama bounced back during the day. For example, Baidu (BIDU) rose 6.6%, while Discovery (DISCA) was up 5.4% and ViacomCBS (VIAC) advanced 3.5%.   However, concerns over rising rates remain on the minds of investors. So the market was less-than-thrilled to see the 10-year Treasury yield jump to 1.77% at its high. It calmed down by the close and finished just slightly above 1.7%, but this was the second straight session above that mark after remaining below it all of last week. The market’s reaction was not too severe though. The Dow slipped 0.31% (or about 104 points) to 33,066.96, which ends back-to-back sessions of new closing highs. Meanwhile, the S&P was off 0.32% to 3958.55 and the NASDAQ dipped 0.11% (or a little more than 14 points) to 13,045.39. The Dow is heading into the final session of March with an impressive gain of 6.9% for the month amid optimism of the grand re-opening. The S&P is up 3.9% for the month so far. Unsurprisingly, the NASDAQ is in the red for March by about 1.1%, which doesn’t seem too bad when you consider all the money that has fled tech over the past several weeks. Don’t forget that tomorrow is not only the end of the month, but also the end of the quarter. So be prepared for some craziness. Further details on the Biden Administration’s infrastructure plan could also have an impact. Today's Portfolio Highlights: Large-Cap Trader: The portfolio cashed in THREE double-digit profits in today’s adjustment. John sold WestRock Co. (WRK) for nearly 22% in three months, while also getting out of Louisiana-Pacific Corp. (LPX) and McKesson (MCK) for approximately 14.6% each in less than a month. The proceeds were spread out equally into these three buys: • Synnex (SNX) – a business process outsourcing company • Panasonic (PCRFY) – a worldwide leader in electronic products • Evercore (EVR) – an investment banking company EVR is a Zacks Rank #1 (Strong Buy), while the other two are Zacks Rank #2s (Buys). In addition to the strong Zacks Ranks, these stocks are also in highly-ranked industries; beat expectations by double-digits in their most recent quarterly reports; and have reasonable valuations. John thinks they will do well in the current environment. Read the full write-up for a lot more on today’s moves. Blockchain Innovators: The healthcare industry offers exciting potential for blockchain. The technology is used to keep medical records confidential, but also share patient data across broad networks when necessary. And you can just imagine how much help blockchain can be in streamlining medical billing. On Tuesday, Dave added iCAD (ICAD), which has a product called iCAD Profound AI that provides an advanced, deep-learning cancer detection software solution. Revenue and earnings growth for this year are expected at 32.75% and 55.81%, respectively. And next year looks to be even better! A recent pullback gave the editor a great opportunity to pick up this innovative name. Read the full write-up for a lot more on today’s addition. In other news, this portfolio had a top performer today as Rekor Systems (REKR) rose 9.1%. TAZR Trader: Last Friday’s margin calls sure did unnerve the market and took a big toll on some of Kevin’s favorite stocks. However, it looks like the selling is already exhausted and fears of a hedge fund massacre are waning. What’s left is a great opportunity to add more to the portfolio’s innovative names. Therefore, the editor bought more of payment processor Square (SQ) on Tuesday. Read the full write-up for more on Kevin’s views of the recent volatility, and how you can take advantage. Surprise Trader: We’re in between earnings seasons at the moment, so it’s the quiet time for this portfolio. But Dave is still at work at making moves when he can. And today he did! On Tuesday, the service added Acuity (AYI), a Zacks Rank #2 (Buy) lighting fixtures maker. The company will be going for its fourth straight quarterly surprise when it reports before the bell tomorrow, March 31. It beat by more than 11.5% last time and has an Earnings ESP of 7.14% for the upcoming report. The editor added AYI today with a 12.5% allocation and sold the disappointing Evolus (EOLS) position. Get more specifics on today’s action in the full write-up. Zacks Short Sell List: This week’s adjustment included only one change... but the portfolio cashed in a double-digit return! The service short-covered Illumina (ILMN) for approximately 14% in less than two months, and then filled that open spot by adding Autodesk (ADSK). Learn more about this emotion-free portfolio that takes advantage of falling and volatile markets by reading the Short Sell List Trader Guide. All the Best, Jim Giaquinto Recommendations from Zacks' Private Portfolios: Believe it or not, this article is not available on the Zacks.com website. The commentary is a partial overview of the daily activity from Zacks' private recommendation services. If you would like to follow our Buy and Sell signals in real time, we've made a special arrangement for readers of this website. Starting today you can see all the recommendations from all of Zacks' portfolios absolutely free for 7 days. Our services cover everything from value stocks and momentum trades to insider buying and positive earnings surprises (which we've predicted with an astonishing 80%+ accuracy). Click here to "test drive" Zacks Ultimate for FREE >>  Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

S&P Crosses 4,000 to Begin New Quarter with New Milestone

S&P Crosses 4,000 to Begin New Quarter with New Milestone SPECIAL ALERT: We’ve just released this quarter’s Ultimate Four report which includes four stocks our team believes have the greatest upside potential over the upcoming quarter. This latest report features favorite stocks from David Bartosiak, Jeremy Mullin, Neena Mishra, CFA, FRM, and David Borun. Log on to Zacks.com to see these stocks today. There’s perhaps no better way to start a new quarter than with a fresh milestone, which is exactly what we got on Thursday when the S&P closed above 4,000 for the first time. It’s also a pretty good way to begin a new month! The index jumped 1.18% to 4019.87. Needless to say, that’s a new all-time high and brings the S&P’s weekly advance to about 1.1%. The Dow increased 0.52% (or about 171 points) to 33,153.21 and was up 0.2% for the week. However, the NASDAQ enjoyed the best performance on Thursday by advancing 1.76% (or about 233 points) to 13,480.11. It rose 2.6% over this shortened week after increasing more than 1.5% in each of the past two sessions. The indices are coming off of a challenging but ultimately positive first quarter, which saw the Dow jump 7.8%, the S&P rise 5.8% and even the challenged NASDAQ advance 2.8%. They were all in the green for the month of March as well. This upswing comes a day after the Biden Administration outlined its more than $2 trillion infrastructure plan. The market loves the spending, but the taxes that come along with it could be a problem moving forward. Plus, it will certainly face problems in Congress. This is a story that’s going to be with us for a long while. Fortunately, there are plenty of encouraging things happening right now! In addition to the vaccine rollout and the accommodative Fed, we enjoyed some solid economic data today. The ISM manufacturing index soared to 64.7 in March, which crushed February’s 60.8 and expectations for 61.5. The market was also pleased to see the 10-year Treasury yield dip below 1.7% for the first time in several days, which is probably a big reason why tech had such a strong session. And then there were the jobless claims, which unfortunately didn’t join in the fun and rose to 719,000 last week. The result soared past expectations of 675K. The most disappointing aspect, however, was that claims were back over 700K after moving below that mark last week for the first time in months. The main event when it comes to jobs is tomorrow’s Government Employment Situation report… though the market will be closed for Good Friday. Expectations are for more than 650K jobs added, which would trounce the previous month’s 379K. Today's Portfolio Highlights: Headline Trader: The new $2.3 trillion infrastructure bill is a real boon for renewable energy producers, so Dan gained exposure to that group on Thursday by adding NextEra Energy (NEE). This clean energy utility enterprise is the largest producer of solar and wind energy; a leader in battery storage; and maintains a massive backlog of renewable energy projects. The portfolio added NEE today with a 5% allocation as the stock has pulled back from its January highs. But the editor feels it may be ready to break out given the new bill and the low interest rate environment. The portfolio also sold Alibaba (BABA), as the Chinese tech powerhouse has been a “dog” since being added a month and a half ago. Read the full write-up for more on today’s moves, including Dan’s comments on that infrastructure bill.  Counterstrike: The market started a new month and quarter today with a rally that saw the S&P close above 4,000, so Jeremy added to a couple names on Thursday to kick things off with some “aggression”. He added 4% each to The Trade Desk (TTD) and Canada Goose (GOOS). Meanwhile, the NASDAQ rose above its 50-day, which was the stop for ProShares UltraPro Short QQQ (SQQQ). The editor exited this hedge today. Read the full write-up for more. Blockchain Innovators: This portfolio had the two best performers of the day among all ZU names as Camtek (CAMT) rose 9.9% and Amtech Systems (ASYS) advanced 8.6%. CAMT is one of the service’s biggest winners by soaring more than 350% since being added a year ago. ASYS was only added three weeks ago and has advanced about 5% in that time.   Have a Great Weekend! Jim Giaquinto Recommendations from Zacks' Private Portfolios: Believe it or not, this article is not available on the Zacks.com website. The commentary is a partial overview of the daily activity from Zacks' private recommendation services. If you would like to follow our Buy and Sell signals in real time, we've made a special arrangement for readers of this website. Starting today you can see all the recommendations from all of Zacks' portfolios absolutely free for 7 days. Our services cover everything from value stocks and momentum trades to insider buying and positive earnings surprises (which we've predicted with an astonishing 80%+ accuracy). Click here to "test drive" Zacks Ultimate for FREE >>  Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

Tech Rally Lifts NASDAQ by 1%, Sends S&P to Another Record

Tech Rally Lifts NASDAQ by 1%, Sends S&P to Another Record Chalk up another new closing high for the S&P on Thursday, but the big news this session was the tech rally that lifted the NASDAQ by more than 1% despite continued low trading activity. Meanwhile, the major indices are heading into Friday with solid gains for the week. The tech-heavy index jumped 1.03% (or about 140 points) today to 13,829.31, which ends two straight days of slight losses. It also puts the NASDAQ within 2% of its all-time closing high just under 14,100 from almost two months ago. The FAANGs were nearly all higher, especially Apple (AAPL, +1.92%) and Netflix (NFLX, +1.39%). Tesla (TSLA) and Microsoft (MSFT) were also each over 1%. The S&P’s trek through record territory toward 4100 continued on Thursday, as it rose 0.42% to 4097.17. That marks two consecutive days of record highs, as well as four in the first five sessions of April 2021. Meanwhile, the Dow advanced 0.17% (or about 57 points) to 33,503.57. The market stayed positive despite a disappointing jobless claims number, which soared to 744,000 last week. The print was expected to stay below 700K. The number was also more than the previous week’s upwardly revised mark of 728K. It’s hard to get too disheartened by this news, though, in the wake of last Friday’s Government Employment Situation report. Not only did the result soar past expectations by more than 200K, but many investors expect this to be the beginning of a labor rebound as the vaccine rollout continues and the economy reopens. For right now though, the major indices go into Friday’s session with solid gains for the week. The NASDAQ is up more than 2.5% through the first four days, while the S&P is knocking on the door of 2%. The Dow goes into the final session higher by about 1%. And then once this week is over... it’s all about earnings season! Today's Portfolio Highlights: Blockchain Innovators: As subscribers of this portfolio know, Dave isn’t afraid to take a chance and add a riskier name that’s promoting blockchain technology. But today’s addition of The Hackett Group (HCKT) isn’t like that. This Zacks Rank #2 (Buy) advisory firm is very established with a track record on Wall Street and a steady business outside of blockchain exposure. The company provides all kinds of advice on things like shared services, offshoring and outsourcing... but it also offers businesses with suggestions on how to integrate blockchain technologies. The editor appreciates that EPS growth for the current year is expected at more than 50% for HCKT, while next year is in the double-digits as well. Read the full write-up for more on this new addition. In other news, this portfolio had three of the top five winners among all ZU names on Thursday, including the only double-digit return. Those strong performances came from Rekor Systems (REKR, +10.4%), Danaos (DAC, +5.7%) and Exp World Holdings (EXPI, +4.9%). TAZR Trader: After a nice consolidation above $1150, Kevin thinks that Shopify (SHOP) is poised to challenge bigger resistance in the $1250 to $1300 zone. And it could happen in just a matter of days! Therefore, the editor added to this cloud-based, multi-channel commerce platform on Thursday. SHOP was originally picked up in early March and is currently up more than 8% in the portfolio. Read the full write-up for more. Commodity Innovators: The portfolio had a busy session on Thursday with two sells (both for double-digit returns) and three buys. First of all, Jeremy sold Steel Dynamics (STLD) and Sunoco (SUN) for profits of 35% and 13.2%, respectively. Both names recently hit their targets after being in the portfolio for a few months. The new buys include Nutrien (NTR) and Devon Energy (DVN), which are both Zacks Rank #1s (Strong Buy). NTR is a fertilizer name that gives the service some agriculture exposure, while DVN is an energy company that's holding its 50-day MA very nicely. The editor also got back into Energy Select Sector SPDR ETF (XLE) since its dividend yield is well over 4% again. DVN is a long term holding, while the other two are mid-terms. Read the full write-up for a lot more on all of today’s action.   Surprise Trader: One of the first companies to report every earnings season is good old Alcoa (AA), the global leader in bauxite, alumina and aluminum products. It reports after the bell next Thursday, April 15, when it will be going for a fifth straight beat. A positive Earnings ESP of 8.9% suggests that AA is poised to keep the streak alive next week. Last quarter’s surprise was 73%. Furthermore, the company is a Zacks Rank #1 (Strong Buy) and part of a space (Metal Products – Distribution) that’s in the top 32% of the Zacks Industry Rank. Dave added AA on Thursday with a 12.5% allocation, while selling the rest of Primoris (PRIM) for a 4.6% return. See the complete commentary for more on today’s moves. Have a Good Evening, Jim Giaquinto Recommendations from Zacks' Private Portfolios: Believe it or not, this article is not available on the Zacks.com website. The commentary is a partial overview of the daily activity from Zacks' private recommendation services. If you would like to follow our Buy and Sell signals in real time, we've made a special arrangement for readers of this website. Starting today you can see all the recommendations from all of Zacks' portfolios absolutely free for 7 days. Our services cover everything from value stocks and momentum trades to insider buying and positive earnings surprises (which we've predicted with an astonishing 80%+ accuracy). Click here to "test drive" Zacks Ultimate for FREE >>  Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

Dow Closes Above 34K on Strong Retail, Jobs Data

Dow Closes Above 34K on Strong Retail, Jobs Data SPECIAL ALERT: We’ve just released our new 5 Stocks Set to Double Special Report which includes five stocks our team believes have the potential to grow +100% in the next 12 months. This latest report features favorite stocks from Kevin Cook, Tracey Ryniec, Daniel Laboe, Madeleine Johnson and Ben Rains. Log on to Zacks.com to see these stocks today. A couple very encouraging economic data points overshadowed earnings season on Thursday, leaving two of the major indices with new records. Let’s start with the Dow, which jumped 0.90% (or about 305 points) to 34,035.99. Not only does this result mark its first new record since last Friday, but it’s also the first close above 34K ever. Meanwhile, the S&P rose 1.11% to 4170.42 for its second new high of the week. The NASDAQ isn’t quite there yet, but it did finish above 14K for the first time since mid-February. It rose 1.31% (or around 180 points) to 14038.76, which is less than 0.5% from making history. The index has moved by 1% or more in each of the last three sessions. As you’d expect, tech had a nice rebound from Wednesday’s sluggishness. Each of the FAANGs and Microsoft (MSFT) all gained by more than 1% in the session.   We enjoyed solid reports from two of the most important parts of the economy on Thursday. First of all, retail sales in March soared 9.8%, which beat expectations of around 6% and trounced the previous month’s nearly 3% decline. Consumers are obviously spending those stimulus checks and are optimistic that the vaccine rollout is putting an end to this pandemic. But there was more! Jobless claims came in at 576,000 last week, which was the lowest result in the covid era and an impressive improvement over expectations of around 700K. The result was also substantially better than the previous week’s 769K. Oh and one more thing, the 10-year Treasury yield was under 1.6% today. The data may have received most of the attention today, but earnings season continued, nonetheless. Bank of America (BAC, -2.86%) and Citigroup (C, -0.51%) were the latest big banks to report, and they easily beat earnings expectations by double digits. BAC surprised by more than 32% and C topped by over 41%. These numbers followed impressive reports from JPMorgan (JPM, +0.63%), Wells Fargo (WFC, +0.6%) and Goldman Sachs (GS, +0.95%) yesterday.   Meanwhile, Taiwan Semiconductor (TSM) exceeded expectations by more than 5%, but slipped over 2%. However, UnitedHealth Group (UNH) surprised by 20% AND managed to advance nearly 4% in the session. The major indices all head into Friday with gains for the week. There’ll be more big banks going to the plate tomorrow, including Morgan Stanley (MS) and PNC Financial (PNC). Today's Portfolio Highlights: Surprise Trader: The early days of earnings season are dominated by banks, but you don’t hear much about a name like First Hawaiian (FHB). However, Dave likes this Zacks Rank #1 (Strong Buy) from the Banks – West space, which is in the top 7% of the Zacks Industry Rank. The company has easily beaten earnings estimates in the past two quarters by double-digit percentages, and has a positive Earnings ESP for the report coming before the bell on Friday, April 23. The editor added FHB on Thursday with a 12.5% allocation, while also selling half of Acuity Brands (AYI) for profit of 17.6% in just a little over two weeks. Read the full write-up for more on today’s moves. Commodity Innovators: After struggling the past couple months to hold the $1700 level, gold is starting to look good again after breaking the 50-day. Jeremy wants some exposure to the gold miners so he added VanEck Vectors Gold Miners ETF (GDX) on Thursday. Meanwhile, the big rally has pretty much saved Farmland Partners (FPI), which almost got stopped out recently on its “wild ride lower”. But today the editor sold the position for a nice 18% return in a little over two months. Read the full write-up for more on today’s action. Counterstrike: For a while now, Jeremy has been talking about the 4150-4160 area as a potential technical selling point. Well, the S&P just keeps moving higher, so the editor decided to pull some profits on a couple bigger positions today before it surpassed that level. He sold a third of The Trade Desk (TTD) for a 15.6% return in a little over a month and two-thirds of eBay (EBAY) for 8.25%. Read the full write-up for more on these moves and learn what to expect now that the S&P has passed 4160. Options Trader: "Regarding earnings, after seeing big beats from financial giants Goldman Sachs, Wells Fargo, and JP Morgan Chase on Wednesday, we saw more positive surprises from Citigroup, US Bancorp, and Bank of America today. And for good measure, Alcoa, which has long been considered the ‘official’ start of earnings season, surprised as well with a 64.58% positive surprise. "Earnings season is off to an auspicious start. And if the next 4-5 weeks are anything like we’ve seen so far, it could end up being nothing short of spectacular. "We’ll get another 20 companies reporting earnings tomorrow. And then another 408 next week." -- Kevin Matras Until Tomorrow, Jim Giaquinto Recommendations from Zacks' Private Portfolios: Believe it or not, this article is not available on the Zacks.com website. The commentary is a partial overview of the daily activity from Zacks' private recommendation services. If you would like to follow our Buy and Sell signals in real time, we've made a special arrangement for readers of this website. Starting today you can see all the recommendations from all of Zacks' portfolios absolutely free for 7 days. Our services cover everything from value stocks and momentum trades to insider buying and positive earnings surprises (which we've predicted with an astonishing 80%+ accuracy). Click here to "test drive" Zacks Ultimate for FREE >>  Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

Tech Outperforms Again Amid Light Trading

Tech Outperforms Again Amid Light Trading We had another low volume session on Wednesday as investors amble their way toward the Memorial Day weekend, but at least this time we managed to have slight gains rather than slight losses. Interestingly, the NASDAQ has now outperformed its counterparts for three consecutive days. The tech-heavy index rose 0.59% (or about 80 points) to 13,738. The NASDAQ finally broke a four-week losing streak last Friday and is now up nearly 2% as we pass the halfway mark of this week. Of course, its still down by more than 1.5% for the month with two sessions left.   The S&P was up 0.19% today to 4195.99, while the Dow barely stayed positive with a rise of 0.03% (or around 10 points) to 34,323.05. “Very slow trading day with low volumes and a tight range. This market has seldom been boring, but today it was very boring due to lack of movement,” said Jeremy Mullin in Counterstrike. The major indices were all down slightly yesterday amid light trading and some moderately disappointing results for consumer confidence and new home sales. One of the last major reports of this earnings season came after the bell today when graphics chip pioneer NVIDIA (NVDA) announced better-than-expected fiscal first quarter results. Specifically, it beat the Zacks Consensus Estimate by 11.6% while sales soared 84% from last year. Furthermore, gaming revenue jumped 106% while data center revenue increased 79%, which were both records for a company that makes chips used in gaming and cryptocurrency mining. Shares of NVDA are down slightly afterhours, as of this writing, which isn’t too bad for an earnings season that rarely rewarded strong reports. Of course, the final days of earnings season are all about the retailers, and we saw some pretty good performances despite the market’s stubborn nature. For example, Dick’s Sporting Goods (DKS) soared by 16.9% today after a strong report before the market opened! Abercrombie & Fitch (ANF, +7.8%) reported at the same time, while Williams-Sonoma (WSM) went to the plate after the close today and is actually up afterhours. And Urban Outfitters (URBN) jumped approximately 10% in its first session after last night’s report. The big release tomorrow will be salesforce.com (CRM) after the close, as well as retailers like Costco (COST), Dollar General (DG) and Best Buy (BBY), among others. Today's Portfolio Highlights: Income Investor: It’s going to be difficult for a consumer foods giant like General Mills (GIS) to match last year’s pandemic-related surge, so Maddy sold the name on Wednesday for a more than 41% return. The move freed up space for two new additions. First of all, Procter & Gamble (PG) should be able to hold up pretty well post-Covid due to its market share, cash flow and growth potential. The maker of Tide laundry detergent, Bounty paper towels and Luvs diapers reported strong third-quarter results. It also enjoys surging cash and is considered a “Dividend King” that just hiked its payout by 10%. The other buy is swanky furniture company Ethan Allen Interiors (ETH), which has bounced back nicely from the shutdown and is now benefiting from a hot housing market. The editor considers it a “real bargain right now” and appreciates its strong cash flow and dividend yield of 3.6%. Read the full write-up for a lot more on all of today’s moves. Home Run Investor: Good growth is hard to find these days, but Brian thinks that Smith & Wesson Brands (SWBI) has it. This firearms company had topline growth of 54% in its most recent quarter with analysts expecting even more moving forward. In fact, they expect growth of 392% this year! SWBI has topped the Zacks Consensus Estimate in each of the past four quarters with an average beat of 48% in that time. Rising earnings estimates have made SWBI a Zacks Rank #1 (Strong Buy). The editor made some room for this new addition by selling the underperforming Hillenbrand (HI) position for a slight loss. Learn more about all of today’s moves in the complete commentary. Insider Trader: Consumers are still focused on the home, which was exemplified when The Container Store (TCS) recently reported fiscal fourth-quarter sales that soared 30% year over year. Nevertheless, shares are down 11% in the past month. The move lower prompted the company’s new CEO to buy more than 20,000 shares last week. Tracey knows a “confidence buy” when she sees one. The insider is sending a signal that he “still believes”, despite the recent pullback. Well, so does our editor, who sold half of Chipotle (CMG) on Wednesday to make room for TCS. She added the stock with a 4.5% allocation, which is smaller than a normal position because there isn’t much cash left in the portfolio. Read the full write-up for more on today’s action.    Surprise Trader: For the past four quarters, NetApp (NTAP) has beaten the Zacks Consensus Estimate and amassed an average surprise of approximately 38%. The company will be going for five-in-a-row after the bell on Wednesday, June 2. This Zacks Rank #2 (Buy) provides enterprise storage as well as data management software and hardware products and services. NTAP has a positive Earnings ESP of 2.77% for the upcoming report. Dave added the stock on Wednesday with a 12.5% allocation, while also selling Nautilus Group (NLS) for a more than 4% return in three weeks. Read the complete commentary for more on today’s moves. By the way, the portfolio's Guess (GES) position was one of the big movers today with an advance of 7.7%. Marijuana Innovators: Shares of Hydrofarm Holdings Group (HYFM) soared after going public in December 2020. Dave didn’t think it was a good value at the time, but his opinion has changed after a recent pullback and some savvy deal-making. The editor added this distributor and manufacturer of hydroponics equipment and supplies on Wednesday. Read the full write-up for a lot more on this new buy. In other news, this portfolio had a top performer today with Tilray (TLRY) rising 7.8%. Value Investor: The portfolio wants more exposure to the consumer and needs something from the auto manufacturing space. Tracey accomplished both goals on Wednesday by added General Motors (GM), an auto giant that “has really turned around during the pandemic”. It has all the classic valuation characteristics, while earnings are expected to rise 8% this year and 24% next year. With the consumer feeling good about the economy and the GDP expected to soar in the second half, the editor is confident that auto sales will be solid this year and into next. Shares of GM are down 39% year to date, which means it has plenty of ground to recover and then some. Get more specifics on this new addition in the full write up. Until Tomorrow, Jim Giaquinto Recommendations from Zacks' Private Portfolios: Believe it or not, this article is not available on the Zacks.com website. The commentary is a partial overview of the daily activity from Zacks' private recommendation services. If you would like to follow our Buy and Sell signals in real time, we've made a special arrangement for readers of this website. Starting today you can see all the recommendations from all of Zacks' portfolios absolutely free for 7 days. Our services cover everything from value stocks and momentum trades to insider buying and positive earnings surprises (which we've predicted with an astonishing 80%+ accuracy). Click here to "test drive" Zacks Ultimate for FREE >>  Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

BTFD Arrives: Futures Rebound, Europe Surges While Asia Slumps On Evergrande Fears

BTFD Arrives: Futures Rebound, Europe Surges While Asia Slumps On Evergrande Fears Even though China was closed for a second day, and even though the Evergrande drama is nowhere closer to a resolution with a bond default imminent and with Beijing mute on how it will resolve the potential "Lehman moment" even as rating agency S&P chimed in saying a default is likely and it does not expect China’s government “to provide any direct support” to the privately owned developer, overnight the BTFD crew emerged in full force, and ramped futures amid growing speculation that Beijing will rescue the troubled developer... Algos about to go on a rampage — zerohedge (@zerohedge) September 21, 2021 ... pushing spoos almost 100 points higher from their Monday lows, and European stock were solidly in the green - despite Asian stocks hitting a one-month low - as investors tried to shake off fears of contagion from a potential collapse of China’s Evergrande, although gains were capped by concerns the Federal Reserve could set out a timeline to taper its stimulus at its meeting tomorrow. The dollar dropped from a one-month high, Treasury yields rose and cryptos rebounded from yesterday's rout. To be sure, the "this is not a Lehman moment" crowed was out in full force, as indicated by this note from Mizuho analysts who wrote that “while street wisdom is that Evergrande is not a ‘Lehman risk’, it is by no stretch of the imagination any meaningful comfort. It could end up being China’s proverbial house of cards ... with cross-sector headwinds already felt in materials/commodities.” At 7:00 a.m. ET, S&P 500 e-minis were up 34.00 points, or 0.79% and Nasdaq 100 e-minis 110.25 points, or 0.73%, while futures tracking the Dow  jumped 0.97%, a day after the index tumbled 1.8% in its worst day since late-July,  suggesting a rebound in sentiment after concerns about contagion from China Evergrande Group’s upcoming default woes roiled markets Monday. Dip-buyers in the last hour of trading Monday helped the S&P 500 pare some losses, though the index still posted the biggest drop since May. The bounce also came after the S&P 500 dropped substantially below its 50-day moving average - which had served as a resilient floor for the index this year - on Monday, its first major breach in more than six months. Freeport-McMoRan mining stocks higher with a 3% jump, following a 3.2% plunge in the S&P mining index a day earlier as copper prices hit a one-month low. Interest rate-sensitive banking stocks also bounced, tracking a rise in Treasury yields. Here are some of the biggest U.S. movers today: U.S.-listed Chinese stocks start to recover from Monday’s slump in premarket trading as the global selloff moderates. Alibaba (BABA US), Baidu (BIDU US), Nio (NIO US), Tencent Music (TME US)and Bilibili (BILI US) are among the gainers Verrica Pharma (VRCA US) plunges 30% in premarket trading after failing to get FDA approval for VP-102 for the treatment of molluscum contagiosum ReWalk Robotics (RWLK US) shares jump 43% in U.S. premarket trading amid a spike in volume in the stock. Being discussed on StockTwits Aprea Therapeutics gains 21% in U.S. premarket trading after the company reported complete remission in a bladder cancer patient in Phase 1/2 clinical trial of eprenetapopt in combination with pembrolizumab Lennar (LEN US) shares fell 3% in Monday postmarket trading after the homebuilder forecast 4Q new orders below analysts’ consensus hurt by unprecedented supply chain challenges ConocoPhillips (COP US) ticks higher in U.S. premarket trading after it agreed to buy Shell’s  Permian Basin assets for $9.5 billion in cash, accelerating the consolidation of the largest U.S. oil patch SmileDirect (SDC US) slightly higher in premarket trading after it said on Monday that it plans to enter France with an initial location in Paris KAR Global (KAR US) shares fell 4.6% in post-market trading on Monday after the company withdrew is full-year financial outlook citing disruption caused by chip shortage Sportradar (SRAD US) shares jumped 4.5% in Monday postmarket trading, after the company said basketball legend Michael Jordan will serve as a special adviser to its board and also increase his investment in the sports betting and entertainment services provider, effective immediately Orbital Energy Group (OEG US) gained 6% postmarket Monday after a unit won a contract  to construct 1,910 miles of rural broadband network in Virginia. Terms were not disclosed “So much of this information is already known that we don’t think it will necessary set off a wave of problems,” John Bilton, head of global multi-asset strategy at JPMorgan Asset Management, said on Bloomberg TV. “I’m more concerned about knock-on sentiment at a time when investor sentiment is a bit fragile. But when we look at the fundamentals -- the general growth, and direction in the wider economy -- we still feel reasonably confident that the situation will right itself.” Aside from worries over Evergrande’s ability to make good on $300 billion of liabilities, investors are also positioning for the two-day Fed meeting starting Tuesday, where policy makers are expected to start laying the groundwork for paring stimulus.  Europe's Stoxx 600 index climbed more than 1%, rebounding from the biggest slump in two months, with energy companies leading the advance and all industry sectors in the green. Royal Dutch Shell rose after the company offered shareholders a payout from the sale of shale oil fields. Universal Music Group BV shares soared in their stock market debut after being spun off from Vivendi SE. European airlines other travel-related stocks rise for a second day following the U.S. decision to soon allow entry to most foreign air travelers as long as they’re fully vaccinated against Covid-19; British Airways parent IAG soars as much as 6.9%, extending Monday’s 11% jump. Here are some of the biggest European movers today: Stagecoach shares jump as much as 24% after the company confirmed it is in takeover talks with peer National Express. Shell climbs as much as 4.4% after selling its Permian Basin assets to ConocoPhillips for $9.5 billion. Bechtle gains as much as 4.3% after UBS initiated coverage at buy. Husqvarna tumbles as much as 9% after the company said it is suing Briggs & Stratton in the U.S. for failing to deliver sufficient lawn mower engines for the 2022 season. Kingfisher slides as much as 6.4% after the DIY retailer posted 1H results and forecast higher profits this fiscal year. The mood was decidedly more sour earlier in the session, when Asian stocks fell for a second day amid continued concerns over China’s property sector, with Japan leading regional declines as the market reopened after a holiday. The MSCI Asia Pacific Index was down 0.5%, headed for its lowest close since Aug. 30, with Alibaba and SoftBank the biggest drags. China Evergrande Group slid deeper in equity and credit markets Tuesday after S&P said the developer is on the brink of default. Markets in China, Taiwan and South Korea were closed for holidays. Worries over contagion risk from the Chinese developer’s debt problems and Beijing’s ongoing crackdowns, combined with concern over Federal Reserve tapering, sent global stocks tumbling Monday. The MSCI All-Country World Index fell 1.6%, the most since July 19. Japan’s stocks joined the selloff Tuesday as investor concerns grew over China’s real-estate sector as well as Federal Reserve tapering, with the Nikkei 225 sliding 2.2% - its biggest drop in three months, catching up with losses in global peers after a holiday - after a four-week rally boosted by expectations for favorable economic policies from a new government. Electronics makers were the biggest drag on the Topix, which declined 1.7%. SoftBank Group and Fast Retailing were the largest contributors to a 2.2% loss in the Nikkei 225. Japanese stocks with high China exposure including Toto and Nippon Paint also dropped. “The outsized reaction in global markets may be a function of having too many uncertainties bunched into this period,” Eugene Leow, a macro strategist at DBS Bank Ltd., wrote in a note. “It probably does not help that risk taking (especially in equities) has gone on for an extended period and may be vulnerable to a correction.” “The proportion of Japan’s exports to China is greater than those to the U.S. or Europe, making it sensitive to any slowdown worries in the Chinese economy,” said Hideyuki Ishiguro, a senior strategist at Nomura Asset Management in Tokyo. “The stock market has yet to fully price in the possibility of a bankruptcy by Evergrande Group.” The Nikkei 225 has been the best-performing major stock gauge in the world this month, up 6.2%, buoyed by expectations for favorable policies from a new government and an inflow of foreign cash. The Topix is up 5.3% so far in September. In FX, the Bloomberg Dollar Spot Index inched lower and the greenback fell versus most of its Group-of-10 peers as a selloff in global stocks over the past two sessions abated; the euro hovered while commodity currencies led by the Norwegian krone were the best performers amid an advance in crude oil prices. Sweden’s krona was little changed after the Riksbank steered clear of signaling any post-pandemic tightening, as it remains unconvinced that a recent surge in inflation will last. The pound bucked a three-day losing streak as global risk appetite revived, while investors look to Thursday’s Bank of England meeting for policy clues. The yen erased earlier gains as signs that risk appetite is stabilizing damped demand for haven assets. At the same time, losses were capped due to uncertainty over China’s handling of the Evergrande debt crisis. In rates, Treasuries were lower, although off worst levels of the day as U.S. stock futures recover around half of Monday’s losses while European equities trade with a strong bid tone. Yields are cheaper by up to 2.5bp across long-end of the curve, steepening 5s30s spread by 1.2bp; 10-year yields around 1.3226%, cheaper by 1.5bp on the day, lagging bunds and gilts by 1bp-2bp. The long-end of the curve lags ahead of $24b 20-year bond reopening. Treasury will auction $24b 20-year bonds in first reopening at 1pm ET; WI yield ~1.82% is below auction stops since January and ~3bp richer than last month’s new-issue result In commodities, crude futures rose, with the front month WTI up 1.5% near $71.50. Brent stalls near $75. Spot gold trades a narrow range near $1,765/oz. Base metals are mostly in the green with LME aluminum the best performer Looking at the day ahead now, and data releases include US housing starts and building permits for August, along with the UK public finances for September. From central banks, we’ll hear from ECB Vice President de Guindos. Otherwise, the General Debate will begin at the UN General Assembly, and the OECD publishes their Interim Economic Outlook. Market Snapshot S&P 500 futures up 1.0% to 4,392.75 STOXX Europe 600 up 1.1% to 459.10 MXAP down 0.5% to 200.25 MXAPJ up 0.2% to 640.31 Nikkei down 2.2% to 29,839.71 Topix down 1.7% to 2,064.55 Hang Seng Index up 0.5% to 24,221.54 Shanghai Composite up 0.2% to 3,613.97 Sensex up 0.4% to 58,751.30 Australia S&P/ASX 200 up 0.4% to 7,273.83 Kospi up 0.3% to 3,140.51 Brent Futures up 1.6% to $75.13/bbl Gold spot down 0.1% to $1,761.68 U.S. Dollar Index little changed at 93.19 German 10Y yield fell 5.0 bps to -0.304% Euro little changed at $1.1729 Top Overnight News from Bloomberg Lael Brainard is a leading candidate to be the Federal Reserve’s banking watchdog and is also being discussed for more prominent Biden administration appointments, including to replace Fed chairman Jerome Powell and, potentially, for Treasury secretary if Janet Yellen leaves Federal Reserve Chair Jerome Powell will this week face the challenge of convincing investors that plans to scale back asset purchases aren’t a runway to raising interest rates for the first time since 2018 ECB Vice President Luis de Guindos says there is “good news” with respect to the euro-area recovery after a strong development in the second and third quarter The ECB is likely to continue purchasing junk-rated Greek sovereign debt even after the pandemic crisis has passed, according to Governing Council member and Greek central bank chief Yannis Stournaras U.K. government borrowing was well below official forecasts in the first five months of the fiscal year, providing a fillip for Chancellor of the Exchequer Rishi Sunak as he prepares for a review of tax and spending next month U.K. Business Secretary Kwasi Kwarteng warned the next few days will be challenging as the energy crisis deepens, and meat producers struggle with a crunch in carbon dioxide supplies The U.K.’s green bond debut broke demand records for the nation’s debt as investors leaped on the long-anticipated sterling asset. The nation is offering a green bond maturing in 2033 via banks on Tuesday at 7.5 basis points over the June 2032 gilt. It has not given an exact size target for the sale, which has attracted a record of more than 90 billion pounds ($123 billion) in orders Germany cut planned debt sales in the fourth quarter by 4 billion euros ($4.7 billion), suggesting the surge in borrowing triggered by the coronavirus pandemic is receding Contagion from China Evergrande Group has started to engulf even safer debt in Asia, sparking the worst sustained selloff of the securities since April. Premiums on Asian investment-grade dollar bonds widened 2-3 basis points Tuesday, according to credit traders, after a jump of 3.4 basis points on Monday Swiss National Bank policy makers watching the effects of negative interest rates on the economy are worrying about the real-estate bubble that their policy is helping to foster Global central banks need to set out clear strategies for coping with inflation risks as the world economy experiences faster-than-expected cost increases amid an uneven recovery from the pandemic, the OECD said A quick look at global markets courtesy of Newsquawk Asian equities traded cautiously following the recent downbeat global risk appetite due to Evergrande contagion concerns which resulted in the worst day for Wall Street since May, with the region also contending with holiday-thinned conditions due to the ongoing closures in China, South Korea and Taiwan. ASX 200 (+0.2%) was indecisive with a rebound in the mining-related sectors counterbalanced by underperformance in utilities, financials and tech, while there were also reports that the Byron Bay area in New South Wales will be subject to a seven-day lockdown from this evening. Nikkei 225 (-1.8%) was heavily pressured and relinquished the 30k status as it played catch up to the contagion downturn on return from the extended weekend with recent detrimental currency inflows also contributing to the losses for exporters. Hang Seng (-0.3%) was choppy amid the continued absence of mainland participants with markets second-guessing whether Chinese authorities will intervene in the event of an Evergrande collapse, while shares in the world’s most indebted developer fluctuated and wiped out an early rebound, although affiliate Evergrande Property Services and other property names fared better after Sun Hung Kai disputed reports of China pressuring Hong Kong developers and with Guangzhou R&F Properties boosted by reports major shareholders pledged funds in the Co. which is also selling key assets to Country Garden. Finally, 10yr JGBs were higher amid the underperformance in Japanese stocks and with the Japan Securities Dealers Association recently noting that global funds purchased the most ultra-long Japanese bonds since 2014, although upside was limited amid softer demand at the enhanced liquidity auction for 2yr-20yr maturities and with the BoJ kickstarting its two-day policy meeting. Top Asian News Richest Banker Says Evergrande Is China’s ‘Lehman Moment’ Hong Kong Tycoons, Casino Giants Find Respite in Stock Rebound Taliban Add More Male Ministers, Say Will Include Women Later Asian Stocks Drop to Lowest Level This Month; Japan Leads Losses European equities (Stoxx 600 +1.1%) trade on a firmer footing attempting to recoup some of yesterday’s losses with not much in the way of incremental newsflow driving the upside. Despite the attempt to claw back some of the prior session’s lost ground, the Stoxx 600 is still lower by around 1.6% on the week. The Asia-Pac session was one characterised by caution and regional market closures with China remaining away from market. Focus remains on whether Evergrande will meet USD 83mln in interest payments due on Thursday and what actions Chinese authorities could take to limit the contagion from the company in the event of further troubles. Stateside, futures are also on a firmer footing with some slight outperformance in the RTY (+1.2%) vs. peers (ES +0.8%). Again, there is not much in the way of fresh positivity driving the upside and instead gains are likely more a by-product of dip-buying; attention for the US is set to become increasingly geared towards tomorrow’s FOMC policy announcement. Sectors in Europe are firmer across the board with outperformance in Oil & Gas names amid a recovery in the crude complex and gains in Shell (+4.4%) after news that the Co. is to sell its Permian Basin assets to ConocoPhillips (COP) for USD 9.5bln in cash. Other outperforming sectors include Tech, Insurance and Basic Resources. IAG (+4.1%) and Deutsche Lufthansa (+3.8%) both sit at the top of the Stoxx 600 as the Co.’s continue to enjoy the fallout from yesterday’s decision by the US to allow travel from vaccinated EU and UK passengers. Swatch (-0.7%) is lagging in the luxury space following a downgrade at RBC, whilst data showed Swiss watch exports were +11.5% Y/Y in August (prev. 29.1%). Finally, National Express (+7.7%) is reportedly considering a takeover of Stagecoach (+21.4%), which is valued at around GBP 370mln. Top European News U.K. Warns of Challenging Few Days as Energy Crisis Deepens Germany Trims Planned Debt Sales as Pandemic Impact Recedes U.K.’s Green Bond Debut Draws Record Demand of $123 Billion Goldman Plans $1.5 Billion Petershill Partners IPO in London In FX, all the signs are constructive for a classic turnaround Tuesday when it comes to Loonie fortunes as broad risk sentiment improves markedly, WTI consolidates within a firm range around Usd 71/brl compared to yesterday’s sub-Usd 70 low and incoming results from Canada’s general election indicate victory for the incumbent Liberal party that will secure a 3rd term for PM Trudeau. Hence, it’s better the devil you know as such and Usd/Cad retreated further from its stop-induced spike to just pips short of 1.2900 to probe 1.2750 at one stage before bouncing ahead of new house price data for August. Conversely, the Swedish Krona seems somewhat reluctant to get carried away with the much better market mood after the latest Riksbank policy meeting only acknowledged significantly stronger than expected inflation data in passing, and the repo rate path remained rooted to zero percent for the full forecast horizon as a consequence. However, Eur/Sek has slipped back to test 10.1600 bids/support following an initial upturn to almost 10.1800, irrespective of a rise in unemployment. NOK/AUD/NZD - No such qualms for the Norwegian Crown as Brent hovers near the top of a Usd 75.18-74.20/brl band and the Norges Bank is widely, if not universally tipped to become the first major Central Bank to shift into tightening mode on Thursday, with Eur/Nok hugging the base of a 10.1700-10.2430 range. Elsewhere, the Aussie and Kiwi look relieved rather than rejuvenated in their own right given dovish RBA minutes, a deterioration in Westpac’s NZ consumer sentiment and near reversal in credit card spending from 6.9% y/y in July to -6.3% last month. Instead, Aud/Usd and Nzd/Usd have rebounded amidst the recovery in risk appetite that has undermined their US rival to top 0.7380 and 0.7050 respectively at best. GBP/CHF/EUR/JPY/DXY - Sterling is latching on to the ongoing Dollar retracement and more supportive backdrop elsewhere to pare losses under 1.3700, while the Franc continues its revival to 0.9250 or so and almost 1.0850 against the Euro even though the SNB is bound to check its stride at the upcoming policy review, and the single currency is also forming a firmer base above 1.1700 vs the Buck. Indeed, the collective reprieve in all components of the Greenback basket, bar the Yen on diminished safe-haven demand, has pushed the index down to 93.116 from 93.277 at the earlier apex, and Monday’s elevated 93.455 perch, while Usd/Jpy is straddling 109.50 and flanked by decent option expiry interest either side. On that note, 1.4 bn resides at the 109.00 strike and 1.1 bn between 109.60-70, while there is 1.6 bn in Usd/Cad bang on 1.2800. EM - Some respite across the board in wake of yesterday’s mauling at the hands of risk-off positioning in favour of the Usd, while the Czk has also been underpinned by more hawkish CNB commentary as Holub echoes the Governor by advocating a 50 bp hike at the end of September and a further 25-50 bp in November. In commodities, WTI and Brent are firmer in the European morning post gains in excess of 1.0%, though the benchmarks are off highs after an early foray saw Brent Nov’21 eclipse USD 75.00/bbl, for instance. While there has been newsflow for the complex, mainly from various energy ministers, there hasn’t been much explicitly for crude to change the dial; thus, the benchmarks are seemingly moving in tandem with broader risk sentiment (see equities). In terms of the energy commentary, the Qatar minister said they are not thinking of re-joining OPEC+ while the UAE minister spoke on the gas situation. On this, reports in Russian press suggests that Russia might allow Rosneft to supply 10bcm of gas to Europe per year under an agency agreement with Gazprom “as an experiment”, developments to this will be closely eyed for any indication that it could serve to ease the current gas situation. Looking ahead, we have the weekly private inventory report which is expected to post a headline draw of 2.4mln and draws, albeit of a smaller magnitude, are expected for distillate and gasoline as well. Moving to metals, spot gold is marginally firmer while silver outperforms with base-metals picking up across the board from the poor performance seen yesterday that, for instance, saw LME copper below the USD 9k mark. Note, the action is more of a steadying from yesterday’s downside performance than any notable upside, with the likes of copper well within Monday’s parameters. US Event Calendar 8:30am: Aug. Building Permits MoM, est. -1.8%, prior 2.6%, revised 2.3% 8:30am: Aug. Housing Starts MoM, est. 1.0%, prior -7.0% 8:30am: Aug. Building Permits, est. 1.6m, prior 1.64m, revised 1.63m 8:30am: Aug. Housing Starts, est. 1.55m, prior 1.53m 8:30am: 2Q Current Account Balance, est. -$190.8b, prior -$195.7b DB's Jim Reid concludes the overnight wrap Global markets slumped across the board yesterday in what was one of the worst days of the year as an array of concerns about the outlook gathered pace. The crisis at Evergrande and in the Chinese real estate sector was the catalyst most people were talking about, but truth be told, the market rout we’re seeing is reflecting a wider set of risks than just Chinese property, and comes after increasing questions have been asked about whether current valuations could still be justified, with talk of a potential correction picking up. Remember that 68% of respondents to my survey last week (link here) thought they’d be at least a 5% correction in equity markets before year end. So this has been front and centre of people’s mind even if the catalyst hasn’t been clear. We’ve all known about Evergrande’s woes and how big it was for a while but it wasn’t until Friday’s story of the Chinese regulatory crackdown extending into property that crystallised the story into having wider implications. As I noted in my chart of the day yesterday link here Chinese USD HY had been widening aggressively over the last couple of months but IG has been pretty rock solid. There were still no domestic signs of contagion by close of business Friday. However as it stands, there will likely be by the reopening post holidays tomorrow which reflects how quickly the story has evolved even without much new news. Before we get to the latest on this, note that we’ve still got a bumper couple of weeks on the calendar to get through, including the Fed decision tomorrow, which comes just as a potential government shutdown and debt ceiling fight are coming into view, alongside big debates on how much spending the Democrats will actually manage to pass. There has been some respite overnight with S&P 500 futures +0.58% higher and 10y UST yields up +1.5bps to 1.327%. Crude oil prices are also up c. 1%. On Evergrande, S&P Global Ratings has said that the company is on the brink of default and that it’s failure is unlikely to result in a scenario where China will be compelled to step in. The report added that they see China stepping in only if “there is a far-reaching contagion causing multiple major developers to fail and posing systemic risks to the economy.” The Hang Seng (-0.32%) is lower but the Hang Seng Properties index is up (+1.59%) and bouncing off the 5 plus year lows it hit yesterday. Elsewhere the ASX (+0.30%) and India’s Nifty (+0.35%) have also advanced. Chinese and South Korean markets are closed for a holiday but the Nikkei has reopened and is -1.80% and catching down to yesterday’s global move. Looking at yesterday’s moves in more depth, the gathering storm clouds saw the S&P 500 shed -1.70% in its worst day since May 12, with cyclical industries leading the declines and with just 10% of S&P 500 index members gaining. There was a late rally at the end of the US trading session that saw equity indices bounce off their lows, with the S&P 500 (-2.87%) and NASDAQ (-3.42%) both looking like they were going to register their worst days since October 2020 and late-February 2021 respectively. However, yesterday was still the 5th worst day for the S&P 500 in 2021. Reflecting the risk-off tone, small caps suffered in particular with the Russell 2000 falling -2.44%, whilst tech stocks were another underperformer as the NASDAQ lost -2.19% and the FANG+ index of 10 megacap tech firms saw an even bigger -3.16% decline. For Europe it was much the same story, with the STOXX 600 (-1.67%) and other bourses including the DAX (-2.31%) seeing significant losses amidst the cyclical underperformance. It was the STOXX 600’s worst performance since mid-July and the 6th worst day of the year overall. Unsurprisingly, there was also a significant spike in volatility, with the VIX index climbing +4.9pts to 25.7 – its highest closing level since mid-May – after trading above 28.0pts midday. In line with the broader risk-off move, especially sovereign bonds rallied strongly as investors downgraded their assessment of the economic outlook and moved to price out the chances of near-term rate hikes. By the close of trade, yields on 10yr Treasuries had fallen -5.1bps to 1.311%, with lower inflation breakevens (-4.1bps) leading the bulk of the declines. Meanwhile in Europe, yields on 10yr bunds (-4.0bps), OATs (-2.6bps) and BTPs (-0.9bps) similarly fell back, although there was a widening in spreads between core and periphery as investors turned more cautious. Elsewhere, commodities took a hit as concerns grew about the economic outlook, with Bloomberg’s Commodity Spot Index (-1.53%) losing ground for a third consecutive session. That said, European natural gas prices (+15.69%) were the massive exception once again, with the latest surge taking them above the peak from last Wednesday, and thus bringing the price gains since the start of August to +84.80%. Here in the UK, Business Secretary Kwarteng said that he didn’t expect an emergency regarding the energy supply, but also said that the government wouldn’t bail out failed companies. Meanwhile, EU transport and energy ministers are set to meet from tomorrow for an informal meeting, at which the massive spike in prices are likely to be discussed. Overnight, we have the first projections of the Canadian federal election with CBC News projecting that the Liberals will win enough seats to form a government for the third time albeit likely a minority government. With the counting still underway, Liberals are currently projected to win 156 seats while Conservatives are projected to win 120 seats. Both the parties are currently projected to win a seat less than last time. The Canadian dollar is up +0.44% overnight as the results remove some election uncertainty. Turning to the pandemic, the main news yesterday was that the US is set to relax its travel rules for foreign arrivals. President Biden announced the move yesterday, mandating that all adult visitors show proof of vaccination before entering the country. Airline stocks outperformed strongly in response, with the S&P 500 airlines (+1.55%) being one of the few industry groups that actually advanced yesterday. Otherwise, we heard from Pfizer and BioNTech that their vaccine trials on 5-11 year olds had successfully produced an antibody response among that age group. The dose was just a third of that used in those aged 12 and above, and they said they planned to share the data with regulators “as soon as possible”. Furthermore, they said that trials for the younger cohorts (2-5 and 6m-2) are expected as soon as Q4. In Germany, there are just 5 days left until the election now, and the last Insa poll before the vote showed a slight tightening in the race, with the centre-left SPD down a point to 25%, whilst the CDU/CSU bloc were up 1.5 points to 22%. Noticeably, that would also put the race back within the +/- 2.5% margin of error. The Greens were unchanged in third place on 15%. Staying with politics and shifting back to the US, there was news last night that Congressional Democratic leaders are looking to tie the suspension of the US debt ceiling vote to the spending bill that is due by the end of this month. If the spending bill is not enacted it would trigger a government shutdown, and if the debt ceiling is not raised it would cause defaults on federal payments as soon as October. Senate Majority Leader Schumer said the House will pass a spending bill that will fund the government through December 3rd and that the “legislation to avoid a government shutdown will also include a suspension of the debt limit through December 2022.” Republicans may balk at the second measure, given that it would take the issue off the table until after the 2022 midterm elections in November of that year. There wasn’t a great deal of data out yesterday, though German producer price inflation rose to +12.0% in August (vs. +11.1% expected), marking the fastest pace since December 1974. Separately in the US, the NAHB’s housing market index unexpectedly rose to 76 in September (vs. 75 expected), the first monthly increase since April. To the day ahead now, and data releases include US housing starts and building permits for August, along with the UK public finances for September. From central banks, we’ll hear from ECB Vice President de Guindos. Otherwise, the General Debate will begin at the UN General Assembly, and the OECD will be publishing their Interim Economic Outlook. Tyler Durden Tue, 09/21/2021 - 07:45.....»»

Category: blogSource: zerohedgeSep 21st, 2021

Evergrande jitters send Wall Street"s "fear gauge" to biggest pop in over 6 months and yields tumble the most in weeks

A measure of implied volatility on Wall Street Monday rose by the most since February as the Dow Jones Industrial Average tumbled nearly 1,000 points at its lows on concerns about China's property market highlighted by the potential collapse of China Evergrande Group. The CBOE Volatility Index jumped by about 32% to 28.30, marking its biggest one-day rise since Feb. 25, when it rose 35.4%, FactSet data show. The index, also known as the VIX, for its ticker symbol, has become well known as Wall Street's "fear gauge," since it was created in the early 1990s. The VIX itself, which uses S&P 500 options to measure trader expectations for volatility over the coming 30-day period, tends to rise as stocks fall and is often therefore referred to as a guide to the level of investor fear. The S&P 500 index was trading 2% lower at 4,343, which would mark its steepest drop since May 12, according to FactSet data. The Nasdaq Composite Index was down 2.6% to 14,653, which would also represent its sharpest daily lose on a percentage basis since May 12. The Dow was trading 1.9% lower at 33,921. but had been down by as many as 970 points. The decline for stocks also came as the benchmark 10-year Treasury note yield fell by the most since Aug. 13, down 6.1 basis points to 1.308%, Dow Jones Market Data show. Evergrande, a Chinese property giant nursing more than $300 billion in debt, remains on the brink of default - sending global equities tumbling Monday as investors, who had previously ignored the situation, sat up and took notice. 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: marketwatchSep 21st, 2021

Gold futures fall, but hold above the $1,700 mark

Gold futures dropped Thursday, as the 10-year Treasury bond yield climbed past 1.5%, pushing prices for the precious metal to their lowest settlement since June. During a Wall Street Journal webinar Thursday, .....»»

Category: topSource: marketwatchMar 4th, 2021

Bond Report: U.S. government bonds just staged epic yield climbs.What’s next?

U.S. Treasury yields see a steady rise in rates ignite into a surge Thursday, putting government debt across the curve on track to mark the biggest weekly yield moves in months and their sharpest monthly moves in four years......»»

Category: topSource: marketwatchFeb 25th, 2021

10-year Treasury rate briefly passes S&P 500 dividend yield

Benchmark Treasury yields on Thursday briefly broke through a key line in the sand that investors say could start to pre.....»»

Category: topSource: marketwatchFeb 25th, 2021