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Category: topSource: redinewsMay 1st, 2021

Futures Bounce On Evergrande Reprieve With Fed Looming

Futures Bounce On Evergrande Reprieve With Fed Looming Despite today's looming hawkish FOMC meeting in which Powell is widely expected to unveil that tapering is set to begin as soon as November and where the Fed's dot plot may signal one rate hike in 2022, futures climbed as investor concerns over China's Evergrande eased after the property developer negotiated a domestic bond payment deal. Commodities rallied while the dollar was steady. Contracts on the S&P 500 and Nasdaq 100 flipped from losses to gains as China’s central bank boosted liquidity when it injected a gross 120BN in yuan, the most since January... ... and investors mulled a vaguely-worded statement from the troubled developer about an interest payment.  S&P 500 E-minis were up 23.0 points, or 0.53%, at 7:30 a.m. ET. Dow E-minis were up 199 points, or 0.60%, and Nasdaq 100 E-minis were up 44.00 points, or 0.29%. Among individual stocks, Fedex fell 5.8% after the delivery company cut its profit outlook on higher costs and stalled growth in shipments. Morgan Stanley says it sees the company’s 1Q issues getting “tougher from here.” Commodity-linked oil and metal stocks led gains in premarket trade, while a slight rise in Treasury yields supported major banks. However, most sectors were nursing steep losses in recent sessions. Here are some of the biggest U.S. movers: Adobe (ADBE US) down 3.1% after 3Q update disappointed the high expectations of investors, though the broader picture still looks solid, Morgan Stanley said in a note Freeport McMoRan (FCX US), Cleveland- Cliffs (CLF US), Alcoa (AA US) and U.S. Steel (X US) up 2%-3% premarket, following the path of global peers as iron ore prices in China rallied Aethlon Medical (AEMD US) and Exela Technologies (XELAU US) advance along with other retail traders’ favorites in the U.S. premarket session. Aethlon jumps 21%; Exela up 8.3% Other so-called meme stocks also rise: ContextLogic +1%; Clover Health +0.9%; Naked Brand +0.9%; AMC +0.5% ReWalk Robotics slumps 18% in U.S. premarket trading, a day after nearly doubling in value Stitch Fix (SFIX US) rises 15.7% in light volume after the personal styling company’s 4Q profit and sales blew past analysts’ expectations Hyatt Hotels (H US) seen opening lower after the company launches a seven-million-share stock offering Summit Therapeutics (SMMT US) shares fell as much as 17% in Tuesday extended trading after it said the FDA doesn’t agree with the change to the primary endpoint that has been implemented in the ongoing Phase III Ri-CoDIFy studies when combining the studies Marin Software (MRIN US) surged more than 75% Tuesday postmarket after signing a new revenue-sharing agreement with Google to develop its enterprise technology platforms and software products The S&P 500 had fallen for 10 of the past 12 sessions since hitting a record high, as fears of an Evergrande default exacerbated seasonally weak trends and saw investors pull out of stocks trading at lofty valuations. The Nasdaq fell the least among its peers in recent sessions, as investors pivoted back into big technology names that had proven resilient through the pandemic. Focus now turns to the Fed's decision, due at 2 p.m. ET where officials are expected to signal a start to scaling down monthly bond purchases (see our preview here).  The Fed meeting comes after a period of market volatility stoked by Evergrande’s woes. China’s wider property-sector curbs are also feeding into concerns about a slowdown in the economic recovery from the pandemic. “Chair Jerome Powell could hint at the tapering approaching shortly,” said Sébastien Barbé, a strategist at Credit Agricole CIB. “However, given the current uncertainty factors (China property market, Covid, pace of global slowdown), the Fed should remain cautious when it comes to withdrawing liquidity support.” Meanwhile, confirming what Ray Dalio said that the taper will just bring more QE, Governing Council member Madis Muller said the  European Central Bank may boost its regular asset purchases once the pandemic-era emergency stimulus comes to an end. “Dovish signals could unwind some of the greenback’s gains while offering relief to stock markets,” Han Tan, chief market analyst at Exinity Group, wrote in emailed comments. A “hawkish shift would jolt markets, potentially pushing Treasury yields and the dollar past the upper bound of recent ranges, while gold and equities would sell off hunting down the next levels of support.” China avoided a major selloff as trading resumed following a holiday, after the country’s central bank boosted its injection of short-term cash into the financial system. MSCI’s Asia-Pacific index declined for a third day, dragged lower by Japan. Stocks were also higher in Europe. Basic resources - which bounced from a seven month low - and energy were among the leading gainers in the Stoxx Europe 600 index as commodity prices steadied after Beijing moved to contain fears of a spiraling debt crisis. Entain Plc rose more than 7%, extending Tuesday’s gain as it confirmed it received a takeover proposal from DraftKings Inc. Peer Flutter Entertainment Plc climbed after settling a legal dispute.  Here are some of the biggest European movers today: Entain shares jump as much as 11% after DraftKings Inc. offered to acquire the U.K. gambling company for about $22.4 billion. Vivendi rises as much as 3.1% in Paris, after Tuesday’s spinoff of Universal Music Group. Legrand climbs as much as 2.1% after Exane BNP Paribas upgrades to outperform and raises PT to a Street-high of EU135. Orpea shares falls as much as 2.9%, after delivering 1H results that Jefferies (buy) says were a “touch” below consensus. Bechtle slides as much as 5.1% after Metzler downgrades to hold from buy, saying persistent supply chain problems seem to be weighing on growth. Sopra Steria drops as much as 4.1% after Stifel initiates coverage with a sell, citing caution on company’s M&A strategy Despite the Evergrande announcement, Asian stocks headed for their longest losing streak in more than a month amid continued China-related concerns, with traders also eying policy decisions from major central banks. The MSCI Asia Pacific Index dropped as much as 0.7% in its third day of declines, with TSMC and Keyence the biggest drags. China’s CSI 300 tumbled as much as 1.9% as the local market reopened following a two-day holiday. However, the gauge came off lows after an Evergrande unit said it will make a bond interest payment and as China’s central bank boosted liquidity.  Taiwan’s equity benchmark led losses in Asia on Wednesday, dragged by TSMC after a two-day holiday, while markets in Hong Kong and South Korea were closed. Key stock gauges in Australia, Indonesia and Vietnam rose “A liquidity injection from the People’s Bank of China accompanied the Evergrande announcement, which only served to bolster sentiment further,” according to DailyFX’s Thomas Westwater and Daniel Dubrovsky. “For now, it appears that market-wide contagion risk linked to a potential Evergrande collapse is off the table.” Japanese equities fell for a second day amid global concern over China’s real-estate sector, as the Bank of Japan held its key stimulus tools in place while flagging pressures on the economy. Electronics makers were the biggest drag on the Topix, which declined 1%. Daikin and Fanuc were the largest contributors to a 0.7% loss in the Nikkei 225. The BOJ had been expected to maintain its policy levers ahead of next week’s key ruling party election. Traders are keenly awaiting the Federal Reserve’s decision due later for clues on the U.S. central banks plan for tapering stimulus. “Markets for some time have been convinced that the BOJ has reached the end of the line on normalization and will remain in a holding pattern on policy until at least April 2023 when Governor Kuroda is scheduled to leave,” UOB economist Alvin Liew wrote in a note. “Attention for the BOJ will now likely shift to dealing with the long-term climate change issues.” In the despotic lockdown regime that is Australia, the S&P/ASX 200 index rose 0.3% to close at 7,296.90, reversing an early decline in a rally led by mining and energy stocks. Banks closed lower for the fourth day in a row. Champion Iron was among the top performers after it was upgraded at Citi. IAG was among the worst performers after an earthquake caused damage to buildings in Melbourne. In New Zealand, the S&P/NZX 50 index rose 0.3% to 13,215.80 In FX, commodity currencies rallied as concerns about China Evergrande Group’s debt troubles eased as China’s central bank boosted liquidity and investors reviewed a statement from the troubled developer about an interest payment. Overnight implied volatility on the pound climbed to the highest since March ahead of Bank of England’s meeting on Thursday. The British pound weakened after Business Secretary Kwasi Kwarteng warnedthat people should prepare for longer-term high energy prices amid a natural-gas shortage that sent power costs soaring. Several U.K. power firms have stopped taking in new clients as small energy suppliers struggle to meet their previous commitments to sell supplies at lower prices. Overnight volatility in the euro rises above 10% for the first time since July ahead of the Federal Reserve’s monetary policy decision announcement. The Aussie jumped as much as 0.5% as iron-ore prices rebounded. Spot surged through option-related selling at 0.7240 before topping out near 0.7265 strikes expiring Wednesday, according to Asia- based FX traders.  Elsewhere, the yen weakened and commodity-linked currencies such as the Australian dollar pushed higher. In rates, the dollar weakened against most of its Group-of-10 peers. Treasury futures were under modest pressure in early U.S. trading, leaving yields cheaper by ~1.5bp from belly to long-end of the curve. The 10-year yield was at ~1.336% steepening the 2s10s curve by ~1bp as the front-end was little changed. Improved risk appetite weighed; with stock futures have recovering much of Tuesday’s losses as Evergrande concerns subside. Focal point for Wednesday’s session is FOMC rate decision at 2pm ET.   FOMC is expected to suggest it will start scaling back asset purchases later this year, while its quarterly summary of economic projections reveals policy makers’ expectations for the fed funds target in coming years in the dot-plot update; eurodollar positions have emerged recently that anticipate a hawkish shift Bitcoin dropped briefly below $40,000 for the first time since August amid rising criticism from regulators, before rallying as the mood in global markets improved. In commodities, Iron ore halted its collapse and metals steadied. Oil advanced for a second day. Bitcoin slid below $40,000 for the first time since early August before rebounding back above $42,000.   To the day ahead now, and the main highlight will be the aforementioned Federal Reserve decision and Chair Powell’s subsequent press conference. Otherwise on the data side, we’ll get US existing home sales for August, and the European Commission’s advance consumer confidence reading for the Euro Area in September. Market Snapshot S&P 500 futures up 0.4% to 4,362.25 STOXX Europe 600 up 0.5% to 461.19 MXAP down 0.7% to 199.29 MXAPJ down 0.4% to 638.39 Nikkei down 0.7% to 29,639.40 Topix down 1.0% to 2,043.55 Hang Seng Index up 0.5% to 24,221.54 Shanghai Composite up 0.4% to 3,628.49 Sensex little changed at 59,046.84 Australia S&P/ASX 200 up 0.3% to 7,296.94 Kospi up 0.3% to 3,140.51 Brent Futures up 1.5% to $75.47/bbl Gold spot up 0.0% to $1,775.15 U.S. Dollar Index little changed at 93.26 German 10Y yield rose 0.6 bps to -0.319% Euro little changed at $1.1725 Top Overnight News from Bloomberg What would it take to knock the U.S. recovery off course and send Federal Reserve policy makers back to the drawing board? Not much — and there are plenty of candidates to deliver the blow The European Central Bank will discuss boosting its regular asset purchases once the pandemic-era emergency stimulus comes to an end, but any such increase is uncertain, Governing Council member Madis Muller said Investors seeking hints about how Beijing plans to deal with China Evergrande Group’s debt crisis are training their cross hairs on the central bank’s liquidity management A quick look at global markets courtesy of Newsquawk Asian equity markets traded mixed as caution lingered ahead of upcoming risk events including the FOMC, with participants also digesting the latest Evergrande developments and China’s return to the market from the Mid-Autumn Festival. ASX 200 (+0.3%) was positive with the index led higher by the energy sector after a rebound in oil prices and as tech also outperformed, but with gains capped by weakness in the largest-weighted financials sector including Westpac which was forced to scrap the sale of its Pacific businesses after failing to secure regulatory approval. Nikkei 225 (-0.7%) was subdued amid the lack of fireworks from the BoJ announcement to keep policy settings unchanged and ahead of the upcoming holiday closure with the index only briefly supported by favourable currency outflows. Shanghai Comp. (+0.4%) was initially pressured on return from the long-weekend and with Hong Kong markets closed, but pared losses with risk appetite supported by news that Evergrande’s main unit Hengda Real Estate will make coupon payments due tomorrow, although other sources noted this is referring to the onshore bond payments valued around USD 36mln and that there was no mention of the offshore bond payments valued at USD 83.5mln which are also due tomorrow. Meanwhile, the PBoC facilitated liquidity through a CNY 120bln injection and provided no surprises in keeping its 1-year and 5-year Loan Prime Rates unchanged for the 17th consecutive month at 3.85% and 4.65%, respectively. Finally, 10yr JGBs were flat amid the absence of any major surprises from the BoJ policy announcement and following the choppy trade in T-notes which were briefly pressured in a knee-jerk reaction to the news that Evergrande’s unit will satisfy its coupon obligations tomorrow, but then faded most of the losses as cautiousness prevailed. Top Asian News Gold Steady as Traders Await Outcome of Fed Policy Meeting Evergrande Filing on Yuan Bond Interest Leaves Analysts Guessing Singapore Category E COE Price Rises to Highest Since April 2014 Asian Stocks Fall for Third Day as Focus Turns to Central Banks European equities (Stoxx 600 +0.5%) trade on a firmer footing in the wake of an encouraging APAC handover. Focus overnight was on the return of Chinese participants from the Mid-Autumn Festival and news that Evergrande’s main unit, Hengda Real Estate will make coupon payments due tomorrow; however, we await indication as to whether they will meet Thursday’s offshore payment deadline as well. Furthermore, the PBoC facilitated liquidity through a CNY 120bln injection whilst keeping its 1-year and 5-year Loan Prime Rates unchanged (as expected). Note, despite gaining yesterday and today, thus far, the Stoxx 600 is still lower to the tune of 0.7% on the week. Stateside, futures are also trading on a firmer footing ahead of today’s FOMC policy announcement, at which, market participants will be eyeing any clues for when the taper will begin and digesting the latest dot plot forecasts. Furthermore, the US House voted to pass the bill to fund the government through to December 3rd and suspend the debt limit to end-2022, although this will likely be blocked by Senate Republicans. Back to Europe, sectors are mostly firmer with outperformance in Basic Resources and Oil & Gas amid upside in the metals and energy complex. Elsewhere, Travel & Leisure is faring well amid further upside in Entain (+6.1%) with the Co. noting it rejected an earlier approach from DraftKings at GBP 25/shr with the new offer standing at GBP 28/shr. Additionally for the sector, Flutter Entertainment (+4.1%) are trading higher after settling the legal dispute between the Co. and Commonwealth of Kentucky. Elsewhere, in terms of deal flow, Iliad announced that it is to acquire UPC Poland for around USD 1.8bln. Top European News Energy Cost Spike Gets on EU Ministers’ Green Deal Agenda Travel Startup HomeToGo Gains in Frankfurt Debut After SPAC Deal London Stock Exchange to Shut Down CurveGlobal Exchange EU Banks Expected to Add Capital for Climate Risk, EBA Says In FX, trade remains volatile as this week’s deluge of global Central Bank policy meetings continues to unfold amidst fluctuations in broad risk sentiment from relatively pronounced aversion at various stages to a measured and cautious pick-up in appetite more recently. Hence, the tide is currently turning in favour of activity, cyclical and commodity currencies, albeit tentatively in the run up to the Fed, with the Kiwi and Aussie trying to regroup on the 0.7000 handle and 0.7350 axis against their US counterpart, and the latter also striving to shrug off negative domestic impulses like a further decline below zero in Westpac’s leading index and an earthquake near Melbourne. Next up for Nzd/Usd and Aud/Usd, beyond the FOMC, trade data and preliminary PMIs respectively. DXY/CHF/EUR/CAD - Notwithstanding the overall improvement in market tone noted above, or another major change in mood and direction, the Dollar index appears to have found a base just ahead of 93.000 and ceiling a similar distance away from 93.500, as it meanders inside those extremes awaiting US existing home sales that are scheduled for release before the main Fed events (policy statement, SEP and post-meeting press conference from chair Powell). Indeed, the Franc, Euro and Loonie have all recoiled into tighter bands vs the Greenback, between 0.9250-26, 1.1739-17 and 1.2831-1.2770, but with the former still retaining an underlying bid more evident in the Eur/Chf cross that is consolidating under 1.0850 and will undoubtedly be acknowledged by the SNB tomorrow. Meanwhile, Eur/Usd has hardly reacted to latest ECB commentary from Muller underpinning that the APP is likely to be boosted once the PEPP envelope is closed, though Usd/Cad is eyeing a firm rebound in oil prices in conjunction with hefty option expiry interest at the 1.2750 strike (1.8 bn) that may prevent the headline pair from revisiting w-t-d lows not far beneath the half round number. GBP/JPY - The major laggards, as Sterling slips slightly further beneath 1.3650 against the Buck to a fresh weekly low and Eur/Gbp rebounds from circa 0.8574 to top 0.8600 on FOMC day and T-1 to super BoE Thursday. Elsewhere, the Yen has lost momentum after peaking around 109.12 and still not garnering sufficient impetus to test 109.00 via an unchanged BoJ in terms of all policy settings and guidance, as Governor Kuroda trotted out the no hesitation to loosen the reins if required line for the umpteenth time. However, Usd/Jpy is holding around 109.61 and some distance from 1.1 bn option expiries rolling off between 109.85-110.00 at the NY cut. SCANDI/EM - Brent’s revival to Usd 75.50+/brl from sub-Usd 73.50 only yesterday has given the Nok another fillip pending confirmation of a Norges Bank hike tomorrow, while the Zar has regained some poise with the aid of firmer than forecast SA headline and core CPI alongside a degree of retracement following Wednesday’s breakdown of talks on a pay deal for engineering workers that prompted the union to call a strike from early October. Similarly, the Cnh and Cny by default have regrouped amidst reports that the CCP is finalising details to restructure Evergrande into 3 separate entities under a plan that will see the Chinese Government take control. In commodities, WTI and Brent are firmer this morning though once again fresh newsflow for the complex has been relatively slim and largely consisting of gas-related commentary; as such, the benchmarks are taking their cue from the broader risk tone (see equity section). The improvement in sentiment today has brought WTI and Brent back in proximity to being unchanged on the week so far as a whole; however, the complex will be dictated directly by the EIA weekly inventory first and then indirectly, but perhaps more pertinently, by today’s FOMC. On the weekly inventories, last nights private release was a larger than expected draw for the headline and distillate components, though the Cushing draw was beneath expectations; for today, consensus is a headline draw pf 2.44mln. Moving to metals where the return of China has seen a resurgence for base metals with LME copper posting upside of nearly 3.0%, for instance. Albeit there is no fresh newsflow for the complex as such, so it remains to be seen how lasting this resurgence will be. Finally, spot gold and silver are firmer but with the magnitude once again favouring silver over the yellow metal. US Event Calendar 10am: Aug. Existing Home Sales MoM, est. -1.7%, prior 2.0% 2pm: Sept. FOMC Rate Decision (Lower Boun, est. 0%, prior 0% DB's Jim Reid concludes the overnight wrap All eyes firmly on China this morning as it reopens following a 2-day holiday. As expected the indices there have opened lower but the scale of the declines are being softened by the PBoC increasing its short term cash injections into the economy. They’ve added a net CNY 90bn into the system. On Evergrande, we’ve also seen some positive headlines as the property developers’ main unit Hengda Real Estate Group has said that it will make coupon payment for an onshore bond tomorrow. However, the exchange filing said that the interest payment “has been resolved via negotiations with bondholders off the clearing house”. This is all a bit vague and doesn’t mention the dollar bond at this stage. Meanwhile, Bloomberg has reported that Chinese authorities have begun to lay the groundwork for a potential restructuring that could be one of the country’s biggest, assembling accounting and legal experts to examine the finances of the group. All this follows news from Bloomberg yesterday that Evergrande missed interest payments that had been due on Monday to at least two banks. In terms of markets the CSI (-1.11%), Shanghai Comp (-0.29%) and Shenzhen Comp (-0.53%) are all lower but have pared back deeper losses from the open. We did a flash poll in the CoTD yesterday (link here) and after over 700 responses in a couple of hours we found only 8% who we thought Evergrande would still be impacting financial markets significantly in a month’s time. 24% thought it would be slightly impacting. The other 68% thought limited or no impact. So the world is relatively relaxed about contagion risk for now. The bigger risk might be the knock on impact of weaker Chinese growth. So that’s one to watch even if you’re sanguine on the systemic threat. Craig Nicol in my credit team did a good note yesterday (link here) looking at the contagion risk to the broader HY market. I thought he summed it up nicely as to why we all need to care one way or another in saying that “Evergrande is the largest corporate, in the largest sector, of the second largest economy in the world”. For context AT&T is the largest corporate borrower in the US market and VW the largest in Europe. Turning back to other Asian markets now and the Nikkei (-0.65%) is down but the Hang Seng (+0.51%) and Asx (+0.58%) are up. South Korean markets continue to remain closed for a holiday. Elsewhere, yields on 10y USTs are trading flattish while futures on the S&P 500 are up +0.10% and those on the Stoxx 50 are up +0.21%. Crude oil prices are also up c.+1% this morning. In other news, the Bank of Japan policy announcement overnight was a non-event as the central bank maintained its yield curve target while keeping the policy rate and asset purchases plan unchanged. The central bank also unveiled more details of its green lending program and said that it would immediately start accepting applications and would begin making the loans in December. The relatively calm Asian session follows a stabilisation in markets yesterday following their rout on Monday as investors looked forward to the outcome of the Fed’s meeting later today. That said, it was hardly a resounding performance, with the S&P 500 unable to hold on to its intraday gains and ending just worse than unchanged after the -1.70% decline the previous day as investors remained vigilant as to the array of risks that continue to pile up on the horizon. One of these is in US politics and legislators seem no closer to resolving the various issues surrounding a potential government shutdown at the end of the month, along with a potential debt ceiling crisis in October, which is another flashing alert on the dashboard for investors that’s further contributing to weaker sentiment right now. Looking ahead now, today’s main highlight will be the latest Federal Reserve decision along with Chair Powell’s subsequent press conference, with the policy decision out at 19:00 London time. Markets have been on edge for any clues about when the Fed might begin to taper asset purchases, but concern about tapering actually being announced at this meeting has dissipated over recent weeks, particularly after the most recent nonfarm payrolls in August came in at just +235k, and the monthly CPI print also came in beneath consensus expectations for the first time since November. In terms of what to expect, our US economists write in their preview (link here) that they see the statement adopting Chair Powell’s language that a reduction in the pace of asset purchases is appropriate “this year”, so long as the economy remains on track. They see Powell maintaining optionality about the exact timing of that announcement, but they think that the message will effectively be that the bar to pushing the announcement beyond November is relatively high in the absence of any material downside surprises. This meeting also sees the release of the FOMC’s latest economic projections and the dot plot, where they expect there’ll be an upward drift in the dots that raises the number of rate hikes in 2023 to 3, followed by another 3 increases in 2024. Back to yesterday, and as mentioned US equity markets fell for a second straight day after being unable to hold on to earlier gains, with the S&P 500 slightly lower (-0.08%). High-growth industries outperformed with biotech (+0.38%) and semiconductors (+0.18%) leading the NASDAQ (+0.22%) slightly higher, however the Dow Jones (-0.15%) also struggled. Europe saw a much stronger performance though as much of the US decline came after Europe had closed. The STOXX 600 gained +1.00% to erase most of Monday’s losses, with almost every sector in the index ending the day in positive territory. With risk sentiment improving for much of the day yesterday, US Treasuries sold off slightly and by the close of trade yields on 10yr Treasuries were up +1.2bps to 1.3226%, thanks to a +1.8bps increase in real yields. However, sovereign bonds in Europe told a different story as yields on 10yr bunds (-0.3bps), OATs (-0.3bps) and BTPs (-1.9bps) moved lower. Other safe havens including gold (+0.59%) and silver (+1.02%) also benefited, but this wasn’t reflected across commodities more broadly, with Bloomberg’s Commodity Spot Index (-0.30%) losing ground for a 4th consecutive session. Democratic Party leaders plan to vote on the Senate-approved $500bn bipartisan infrastructure bill next Monday, even with no resolution to the $3.5tr budget reconciliation measure that encompasses the remainder of the Biden Administration’s economic agenda. Democrats continue to work on the reconciliation measure but have turned their attention to the debt ceiling and government funding bills.Congress has fewer than two weeks before the current budget expires – on Oct 1 – to fund the government and raise the debt ceiling. Republicans yesterday noted that the Democrats could raise the ceiling on their own through the reconciliation process, with many saying that they would not be offering their support to any funding bill. Democrats continue to push for a bipartisan bill to raise the debt ceiling, pointing to their votes during the Trump administration. If Democrats are forced to tie the debt ceiling and funding bills to budget reconciliation, it could limit how much of the $3.5 trillion bill survives the last minute negotiations between progressives and moderates. More to come over the next 10 days. Staying on the US, there was an important announcement in President Biden’s speech at the UN General Assembly, as he said that he would work with Congress to double US funding to poorer nations to deal with climate change. That comes as UK Prime Minister Johnson (with the UK hosting the COP26 summit in less than 6 weeks’ time) has been lobbying other world leaders to find the $100bn per year that developed economies pledged by 2020 to support developing countries as they reduce their emissions and deal with climate change. In Germany, there are just 4 days to go now until the federal election, and a Forsa poll out yesterday showed a slight narrowing in the race, with the centre-left SPD remaining on 25%, but the CDU/CSU gained a point on last week to 22%, which puts them within the +/- 2.5 point margin of error. That narrowing has been seen in Politico’s Poll of Polls as well, with the race having tightened from a 5-point SPD lead over the CDU/CSU last week to a 3-point one now. Turning to the pandemic, Johnson & Johnson reported that their booster shot given 8 weeks after the first offered 100% protection against severe disease, 94% protection against symptomatic Covid in the US, and 75% against symptomatic Covid globally. Speaking of boosters, Bloomberg reported that the FDA was expected to decide as soon as today on a recommendation for Pfizer’s booster vaccine. That follows an FDA advisory panel rejecting a booster for all adults last Friday, restricting the recommendation to those over-65 and other high-risk categories. Staying with the US and vaccines, President Biden announced that the US was ordering 500mn doses of the Pfizer vaccine to be exported to the rest of the world. On the data front, there were some strong US housing releases for August, with housing starts up by an annualised 1.615m (vs. 1.55m expected), and building permits up by 1.728m (vs. 1.6m expected). Separately, the OECD released their Interim Economic Outlook, which saw them upgrade their inflation expectations for the G20 this year to +3.7% (up +0.2ppts from May) and for 2022 to +3.9% (up +0.5ppts from May). Their global growth forecast saw little change at +5.7% in 2021 (down a tenth) and +4.5% for 2022 (up a tenth). To the day ahead now, and the main highlight will be the aforementioned Federal Reserve decision and Chair Powell’s subsequent press conference. Otherwise on the data side, we’ll get US existing home sales for August, and the European Commission’s advance consumer confidence reading for the Euro Area in September. Tyler Durden Wed, 09/22/2021 - 08:05.....»»

Category: blogSource: zerohedgeSep 22nd, 2021

4 Dirt Cheap Stocks to Bet on Amid September Market Meltdown

Amid the decline of the benchmarks, investors should bet on discounted stocks like SNDR, NOG, GIII, and ANF for future growth. The number of new COVID-19 cases and the market both displayed a rising trend in the last three months. The job market gained consistently in this period, reflecting a stable economy. In August, particularly, unemployment rates were lower in 15 states and the District of Columbia and stable in 35 states. Nonfarm payroll employment increased in 11 states, decreased in three states, and was unchanged in 36 states and the District — per the data by the U.S. Bureau of Labour Statistics.While many of the market watchers assured us about this sustained bull run despite a massive spread of the more lethal Delta strain, others apprehended a bloodbath round the corner. Eventually, over the past two trading days, the market is deep into the bear territory, displaying the worst run since May.Yesterday, the stock market crashed with benchmarks like the S&P 500 and Dow Jones both down nearly 2%. NASDAQ Composite Index, which gained support last week from the technology bigwigs, declined 2.2% yesterday, shedding more than 300 points.Two Primary Pull-Down FactorsThe intensifying China property market crisis is expected to have played a major role behind the dragging down of the benchmarks. Alliance Bernstein’s Co-Head of Asia Pacific Fixed Income Jenny Zeng recently warned that the highly distressed real estate developer of China, Evergrande (tagged as the world’s most indebted developer with $300 billion of debt at present) is on the edge of default. As quoted by CNBC, she also stated that this collapse will have a ‘domino effect’ on China’s property sector. In the overseas dollar market, these distressed developers combinedly hold a meaningful portion. Consequently, market watchers are worried that the collapse, if it occurs, will have a spillover effect worldwide.Another point that is troubling the investors is the apprehension that amid the job market growth, the COVID-19 induced monetary stimulus might get significantly tapered. During the economic crisis, several stimulus measures were launched mainly in the form of rate cuts and bond purchases.  There are concerns that the Fed and other central banks, which are going to have a two-day meeting starting today, might start winding down stimulus.Market to Revive with OSHA RuleThanks to the ongoing market selloffs, a number of growth stocks have once again moved into the undervalued territory. However, the ongoing extensive rollout of vaccines across the nation, particularly, the latest launch of President Biden’s COVID-19 action plan called “Path Out of the Pandemic” is claimed to boost the financial market rebound.As per the six-pronged, comprehensive national strategy, the Department of Labor’s Occupational Safety and Health Administration (OSHA) will develop a rule that will require all employers with 100 or more employees to ensure that their workforce is fully vaccinated. Any worker who remains unvaccinated will be required to produce a negative test result on at least a weekly basis before coming to work. The OSHA will issue an Emergency Temporary Standard (ETS) to implement this requirement.Once the OSHA rule is implemented, the COVID-19 fear factor is likely to ease further. Market watchers believe that steep rebounds are once again in the cards for the currently beaten-down stocks.Value Investing: The Ideal Strategy NowGiven the grim U.S. stock market scenario, investors may choose some fundamentally strong stocks,which have been currently pushed into the value territory because of the September market meltdown. These beaten-down stocks are currently available at dirt-cheap prices.It has been observed that growth stocks outshine value stocks during economic downturns. However, when the economy picks up pace, post the pandemic-led economic mayhem, value stocks are expected to outperform the market.To narrow down the list, we have selected stocks with a Value Style Score of A or B. Our research shows that stocks with a Value Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2 (Buy), offer the best upside potential. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Listed below are four companies that investors can consider during these trying times.Schneider National SNDR: This Zacks Rank #1 stock with a Value Score of A is a leading transportation and logistics services company. The company is currently being aided by strong performances of the Intermodal and Logistics units. The Intermodal segment is benefiting from yield management and increased volumes, while the Logistics unit is thriving on the back of favorable constructive market conditions and other factors. The stock is currently priced at $22.30. In 2021, the company’s earnings and sales are expected to grow 56.8% and 8.5% respectively.Schneider National, Inc. Price Schneider National, Inc. price | Schneider National, Inc. QuoteNorthern Oil and Gas NOG: The company’s core operations are focused on three leading basins of the United States — the Williston, Permian,and the Appalachian. The company employs a unique non-operating business model, which helps it to keep costs down and increase free cash flow. Prioritizing returns to investors, Northern Oil and Gas recently initiated a 3 cents per share quarterly base dividend, with the first payment to be made in the third quarter.This Zacks Rank #1 stock with a Value Score of A is currently priced at $19 a share. In 2021, the company’s earnings and sales are expected to grow 70.9% and 209.7% respectively.Northern Oil and Gas, Inc. Price Northern Oil and Gas, Inc. price | Northern Oil and Gas, Inc. QuoteG-III Apparel, Ltd. GIII: Solid gains from the company’s assortments and digital business are currently driving results. Although the retail business has been sluggish, management has completed the division’s restructuring and the new model is poised to attain profitability. G-III Apparel’s digital business also continues to exhibit strength.This stock too sports a Zacks Rank #1 and has a Value Score of A. It is currently priced at $28.45 a share. In 2021, the company’s earnings and sales are expected to grow 341.6% and 30.2%, respectively.GIII Apparel Group, LTD. Price GIII Apparel Group, LTD. price | GIII Apparel Group, LTD. QuoteAbercrombie & Fitch Company ANF: The company operates as a specialty retailer of premium, high-quality casual apparel for men, women, and kids through a network of approximately 850 stores across North America, Europe, Asia, and the Middle East. Abercrombie is making significant progress in expanding digital and omni-channel capabilities to better engage with consumers. Despite the reopening of stores, the company’s strong digital momentum continued in the last-reported second-quarter 2021.This stock too sports a Zacks Rank #1 and has a Value Score A. It is currently priced at $28.45 a share.In 2021, the company’s earnings and sales are expected to grow 341.6% and 30.2%, respectively.Abercrombie & Fitch Company Price Abercrombie & Fitch Company price | Abercrombie & Fitch Company Quote 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>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 Abercrombie & Fitch Company (ANF): Free Stock Analysis Report GIII Apparel Group, LTD. (GIII): Free Stock Analysis Report Northern Oil and Gas, Inc. (NOG): Free Stock Analysis Report Schneider National, Inc. (SNDR): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacksSep 21st, 2021

Stock Market News for Sep 21, 2021

Wall Street tumbled on Monday as the three major stock indexes ended deep in negative territory. Wall Street tumbled on Monday as the three major stock indexes ended deep in negative territory. The possible bankruptcy of a large Chinese property developer, uncertainty of any shift in the Fed’s existing monetary policies and a discord in Washington over debt ceiling, led to a sharp fall in U.S. stock markets.How Did The Benchmarks Perform?The Dow Jones Industrial Average (DJI) fell 1.8% or 614.41 points to close at 33,970.47, marking its worst daily decline since Jul 19. Notably, just 1 components of the 30-stock index ended in the green while 29 in red. At its session low, the blue-chip index was down more than 970 points.The tech-heavy Nasdaq Composite finished at 14,713.90, sliding 2.2% or 330.06 points due to weak performance by large-cap technology stocks. This was the tech-laden index’s worst daily performance since May 12.Meanwhile, the S&P 500 moved down 1.7% to end at 4,357.73, reflecting its biggest single-day drop since May 12. The Energy Select Sector SPDR (XLE), the Financials Select Sector SPDR (XLF), the Consumer Discretionary Select Sector SPDR (XLY) and the Communications Services Select Sector SPDR (XLC) tanked 3.1%, 2.3%, 2.3% and 2%, respectively. All eleven sectors of the benchmark index closed in negative territory.The fear-gauge CBOE Volatility Index (VIX) jumped 23.6% to 25.71. At its session high, the fear-gauge climbed to 28.79, its highest since May. A total of 12.24 billion shares were traded on Monday, higher than the last 20-session average of 9.89 billion. Decliners outnumbered advancers on the NYSE by a 5.40-to-1 ratio. On Nasdaq, a 4.66-to-1 ratio favored declining issues.Global Stock Markets DeclineGlobal stock markets including U.S. stock markets fell sharply yesterday following news that a large Chinese property developer, the China Evergrande Group, is in possible bankruptcy. The company faced a debt payment on its offshore bonds last week and said that it is suffering from unprecedented difficulties. It has more than $300 billion of offshore bonds.Fearing a recession in the Chinese property development market, metal stocks, especially the steel stocks suffered a blow. Shares of steel majors like Nucor Corp. NUE and ArcelorMittal MT plunged 7.6% and 7.8%, respectively. Nucor sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Crude oil prices have also dropped fearing a Chinese economic downturn that will weaken the global economic recovery. The global benchmark - the Brent crude price fell more than 1% while the U.S. benchmark – the WTI crude dropped nearly 2%. As a result, shares of APA Corp. APA and Devon Energy Corp. DVN plummeted 6.1% and 5.4%, respectively.Fearing a global slowdown, market participants have shifted funds from risky assets like equities to safe-haven government bonds. Consequently, bond prices rose and the yield on the benchmark 10-Year U.S. Treasury Note fell 6.1 basis points to around 1.308%. Lower market interest rate led to a fall in financial giants like The Goldman Sachs Group Inc. GS and JPMorgan Chase & Co. JPM that fell 3.4% and 3%, respectively.Fed’s FOMC Meeting and Government Debt Ceiling in FocusThe Federal Reserve will conduct its next FOMC meeting on Sep 21-22. After the close of the event, the Fed Chairman Jerome Powell will give a statement regarding the outcome of the meeting. Investors are keenly waiting for the central bank’s decision about any sort of tapering of its ongoing $120 billion per month bond-buy program.Investors are also concerned as the deadline to raise the government debt ceiling approaches. Lawmakers need to clear the bill to avoid any kind of government shut down. Moreover, the discontent among lawmakers about the Biden administration’s proposed $3.5 billion spending plan and new taxation rule is another concern.Economic DataThe National Association of Home Builders reported that its monthly confidence index increased one point to 76 in September, terminating a losing-streak of three consecutive months.Stocks That Have Made HeadlineConocoPhillips' $9.5B Accord to Boost Permian PresenceConocoPhillips COP announced an agreement to purchase all Royal Dutch Shell plc’s (RDS.A) assets in the Permian, the most prolific basin in the United States. (Read More) 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Goldman Sachs Group, Inc. (GS): Free Stock Analysis Report JPMorgan Chase & Co. (JPM): Free Stock Analysis Report Devon Energy Corporation (DVN): Free Stock Analysis Report ConocoPhillips (COP): Free Stock Analysis Report Royal Dutch Shell PLC (RDS.A): Free Stock Analysis Report APA Corporation (APA): Free Stock Analysis Report ArcelorMittal (MT): Free Stock Analysis Report Nucor Corporation (NUE): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacksSep 21st, 2021

NASDAQ Down for 2021 as Stocks Drop for a Third Day

NASDAQ Down for 2021 as Stocks Drop for a Third Day Investors are getting so demanding and so nervous at the moment that not even Fed Chair Jerome Powell could make them feel better on Thursday. As a result, the market dropped for a third consecutive session and completely took out the NASDAQ’s gains for 2021. The tech-heavy index dropped another 2.11% (or about 274 points) today to 12,723.47. It began the year at a little over 12,888. Meanwhile, the S&P slipped 1.34% to 3768.47, while the Dow was off 1.11% (or around 345 points) to 30,924.14. The NASDAQ is down more than 3.5% for the week heading into Friday, as tech just can’t catch a break amid rising bond yields and inflation. It lost over 5% last week. The S&P is down approximately 1.1% over these four days, but the Dow is only off by about 8 points. The latter index is benefitting from the other side of that tech rotation, as more money moves into recovery names. Of course, it hasn’t benefitted enough to close in the green over the past three sessions. At a Wall Street Journal summit today, Mr. Powell stayed his usual dovish self and promised to be patient before making any policy changes. The economy isn’t even close to the parameters (maximum employment + inflation moving past 2%) that are needed before mixing things up.    But that wasn’t enough this time. Apparently, investors wanted something more proactive, such as an “Operation Twist” that would sell short-term bills and buy longer-term bonds in an effort to force rates lower and further excite the economy. It’s been done before, and investors apparently want it to happen again. In response to his statements, the 10-year Treasury yield jumped to 1.55%. It had managed to stay below 1.5% since surging to 1.6% last Thursday. In other news, the jobless claims report was at 745,000 last week, which was about 5,000 better than expectations. That makes two straight weeks ahead of forecasts, though last Thursday’s beat was much more substantial. The report comes after Wednesday’s disappointing ADP report and before tomorrow’s employment situation print. Expectations are for somewhere around 175K to 210K jobs being added with the unemployment rate staying at 6.3%.  Today's Portfolio Highlights: Headline Trader: The portfolio added a couple tech disrupters on Thursday that are likely to continue changing the game as the “Roaring 20s” continue. Dan is finally getting into fintech giant Square (SQ) after watching from the sidelines for years. The tech-driven volatility has taken a 20% bite out of the company since its all-time highs on February 16, but the editor thinks this stock is only beginning to take off as “Main Street digitalization becomes a necessity”. SQ was added at a reasonable valuation on today with a 5% allocation. Meanwhile, Splunk (SPLK) is getting beaten up for no good reason right now, which gives Dan a fantastic entry point to pick up an AI-powered cloud giant that is evolving into much more than a cybersecurity business. Learn a lot more about today’s moves in the complete commentary. TAZR Trader: This ongoing selloff is opening up some tremendous buying opportunities, and Kevin took advantage several times on Thursday. While Shopify (SHOP) was making new lows this afternoon, the editor added a 5% allocation in this cloud-based, multi-channel commerce platform. He sees good support between $1080 and $1100. Kevin also added to his Novavax (NVAX) and The Trade Desk (TTD) positions. Get specifics on all these moves in the complete commentary. Counterstrike: This tech selloff is pushing portfolio positions into technical support, which is giving Jeremy an opportunity to add more to a couple solid names. On Thursday he added 4% each to eBay (EBAY) and The Trade Desk (TTD). Get all the details in the complete commentary. Insider Trader: It’s been rare to see insider buying at Big Oil in recent years, so it certainly caught Tracey’s attention when two new board members at Exxon (XOM) bought shares this week. The last time insiders bought at XOM was during the coronavirus sell-off nearly a year ago! The portfolio now has two Big Oil plays with XOM and Chevron (CVX). The editor also picked up Matador (MTDR), which has been in the portfolio before because insiders are much more active in this energy name. For example, an insider just bought 450 shares on Tuesday of this week. Tracey sold BridgeBio (BBIO) and Lantheus (LNTH, +0.6%) to make room and will split the cash into XOM and MTDR. Get more specifics in the full write-up. Commodity Innovators: Commodities held up better than stocks in the recent selloff, but Jeremy still wants to tidy up the portfolio a bit. The editor sold all of his metals names and some energy. The sells today included Williams Cos. (WMB) for an 8.3% return in a little under seven months and iShares Silver Trust (SLV) for 1.7% in less than two months. He also got rid of SPDR Gold Shares (GLD) and Murphy USA (MUSA) for slight losses. But there was a buy too! Jeremy added Invesco DB Commodity Index Tracking ETF (DBC) because this seems like a good place to rest while the market gets over this selling pressure. The fund was positive today in a sea of red and should have longer upside potential as the commodity and inflation story continues. Read the full write-up for more on the editor’s reasoning. ETF Investor: "Major indexes fell sharply today after Federal Reserve Chair Jerome Powell failed to address investors’ concerns about surging bond yields and inflation expectations. "The tech-heavy Nasdaq is now in the red for the year as earlier hot growth have been the worst sufferers lately. Tesla shares plunged 5% today. The index had fallen into the correction territory intraday, down more than 10% from its recent 52-week high. "Jobless claims totaled 745,000 last week, up from 736,000 the previous week but below the consensus estimate of 750,000. All eyes are now on the jobs report for the month of February due tomorrow. Economists expect addition of 210,000 jobs in February, a jump from just 49,000 in January." -- Neena Mishra 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

Late Rally Saves Week for S&P, Dow

Late Rally Saves Week for S&P, Dow The market’s weekly performance ended up looking a lot better than was expected just this afternoon, as stocks snapped their three-day losing streak with a sharp rally on Friday that pulled two of the major indices into the green. The Dow was up 1.8% for the week, while the S&P managed a 0.8% advance. The NASDAQ still slipped by 2.1%. However, all of these indices were lower over the previous four days heading into Friday, especially deficits of 1.1% and 3.7% for the S&P and NASDAQ, respectively.     These performances offer a glimpse into one of the major themes of this past week. Money has been moving out of technology and into recovery names, underscoring the disparity between the Dow and NASDAQ. The big story on Friday was the government employment situation report, which turned out much better than expected with the economy adding 379,000 jobs. The forecasts were for somewhere between 175,000 and 210,000. And for a little icing, the unemployment rate dipped to 6.2% instead of staying put at 6.3%. This reading suggests the economic recovery may be faster and stronger than investors’ already lofty expectations. It also raises concern of overheating. The market’s immediate reaction to the jobs report was for the 10-year Treasury yield to jump to the dreaded 1.6%, sending stocks sharply lower. However, the yield pulled back and the selling pressure was exhausted, leading to a sharp late-day rally. The S&P finished the session higher by 1.95% to 3841.94, while the Dow was up 1.85% (or about 572 points) to 31,496.30. The beleaguered NASDAQ jumped 1.55% (or about 196 points) to 12,920.15, which means it’s again barely in the green for 2021 after sliding into negative territory yesterday. What a crazy week! It was bookended with a couple of nice rallies and a rough three-day losing streak right in the middle. What will next week have in store for us? Today's Portfolio Highlights: Value Investor: There's a couple positions in the portfolio that Tracey wanted to sell now while she could still get a nice profit. Atlas Air Worldwide (AAWW) continues having great quarters as its able to charge a premium due to high demand. However, the market seems to think this freighter aircraft company is purely a pandemic play that will come back to earth when we return to normal. Whether that’s true or not, the editor doesn’t want to take any chances. She sold AAWW on Friday for a 16.3% return in about seven months. Meanwhile, cabinet manufacturer American Woodmark (AMWD) is facing inflationary cost pressures for things like wood and labor, which is likely to get worse moving forward. Tracey also sold AMWD today for a 6.3% return in about six months. Read the full write-up for more specifics on these moves. By the way, this portfolio had a top performer today as Penske Automotive Group (PAG) rose 8.8%. TAZR Trader: With the NASDAQ barely positive for the year after a double-digit correction, Kevin is getting ready for the bounce once all the weak hands have been flushed out. On Friday, he added more to payment processor Square (SQ). The editor first added this name back in November and it has climbed more than 13% in the portfolio since then. However, SQ is expected to continue growing even after the pandemic. Plus, its still at a great price. Read the full write-up for more on this move. Counterstrike: Don’t expect Jeremy to sell into this tech dump, because he thinks it’s a huge overreaction. Instead, the editor decided to “nibble” on a name that has really pulled back in the last week. Rocket Companies (RKT) consists of personal finance and consumer service brands. Despite the pullback, this stock is still a Zacks Rank #1 (Strong Buy) that beat the Zacks Consensus Estimate by 37% in late February. The editor added a small, 4% allocation in RKT on Friday. Get a lot more details on this move in the full write-up.  Surprise Trader: Shares of Purple Innovation (PRPL) got shellacked yesterday after its quarterly report, but Dave decided to stick with this mattress, pillow and cushions maker. He didn’t think the report was that bad and considers the selloff to be a complete overreaction. Well, the editor’s patience was the right move because PRPL bounced by nearly 28% on Friday, which made it the top performer of the day among all ZU names. Headline Trader: "I believe that tech's correction is only a temporary reaction to the surging bond yields and reflation trade. "The S&P 500 and the Dow remain buoyant in the first two months of 2021 trading, with energy and financials leading the rally.   "COVID winners are getting the foam blown off the top of their frothy valuations, and it is time to start picking up those niche tech players that will continue to thrive in the new normal economy." -- Dan Laboe 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

NASDAQ Jumps 3.7% in Best Day of 2021 So Far

NASDAQ Jumps 3.7% in Best Day of 2021 So Far SPECIAL ALERT: The March episode of the Zacks Ultimate Strategy Session is now available for viewing! Tune in to this “must-see” event when Kevin Matras, Jeremy Mullin, Daniel Laboe, Brian Bolan and Sheraz Mian discuss the investment landscape from several angles. Don’t miss your chance to hear: ▪ Jeremy and Brian Agree to Disagree on Investing in SPACs versus traditional IPOs ▪ Kevin covers whether we should be worried about rising rates with all of the talk about inflation and rising treasury yields in Zacks Mailbag ▪ Sheraz and Daniel choose one portfolio to give feedback for improvement ▪ And much more Simply log on to Zacks.com and view the March episode here. And please let us know what you think of this format. Email all feedback to mailbag@zacks.com. It’s about time! The NASDAQ finally had a significant bounce on Tuesday with its best session of the year so far, as investors rediscovered tech stocks after several weeks of giving the cold shoulder.   The index soared 3.69% (or about 464 points) today to 13,073.82. It’s probably no coincidence that this epic gain comes just one day after the NASDAQ slipped into correction territory. This bounce was long overdue! As you’d expect, the FAANGs were all solidly higher, especially gains of more than 4% for Facebook (FB) and Apple (AAPL) each. Amazon (AMZN) advanced 3.8%. Meanwhile, Tesla (TSLA) soared 19.6%, while Microsoft (MSFT) improved 2.8%. Elsewhere, the S&P rose 1.42% to 3875.44, while the Dow could only muster an advance of 0.10% (or about 30 points) to 31,832.74. The latter index has been the big beneficiary of the recent tech selloff. It even reached a new intraday high just yesterday and easily outperformed its counterparts in February with a rise of 3.2%.   However, the Dow and the NASDAQ just can’t be in the same room together right now, as recovery names and tech play tug-of-war with the market’s money while waiting for more stimulus and more vaccinations. If you want a reason for today’s advance, it certainly helped that the 10-year Treasury yield pulled back after spiking on Monday. It’s still above the dreaded 1.5%, but that’s an improvement after crossing over 1.6% yesterday. But another reason for the rally might have been that the NASDAQ entered this session lower by approximately 1500 points, or 10%, in less than a month! Something had to give, and today investors decided that enough was enough. But the NASDAQ remains nearly 8% away from its highs. That’s a lot of ground to recover. Is this bounce a one-time thing... or just the beginning of something? Let’s see what happens tomorrow. Today's Portfolio Highlights: Options Trader: The portfolio pulled its profits in Lear (LEA) and Snap-On (SNA) on Tuesday and then immediately repositioned into new, further out options. The sold positions were both March options, which brought returns of 50% and 251%, respectively. They expire next week and Kevin wants more time, so he reinvested by buying to open a June 195.00 Call in LEA and a June 230.00 Call in SNA. In other news, the service also bought to open a June 145.00 Call in Thor Industries (THO), which is the world’s largest RV manufacturer. The editor thinks this Zacks Rank #2 (Buy) is breaking out of a bullish flagging pattern, and he loves its projected EPS growth of 70% and low P/S ratio of 0.84. Read the full write-up for specifics on all of these moves. Stocks Under $10: It looks like the tech selloff may finally be over, so Brian decided to bring the portfolio back up to 15 names. On Tuesday, he added Extreme Networks (EXTR) and Frank's International (FI), which are both Zacks Rank #2s (Buys) due to rising earnings estimates. EXTR is a networking name that has been a big winner for this portfolio before. Despite a slight miss in its most recent report, there’s “a lot of optimism on Wall Street for this stock”. FI is an oil & gas name that beat by 77% in its most recent report. The editor really likes its growth story and valuation. Read the full write-up for more on these additions and Brian’s market outlook. Counterstrike: The move into solar names yesterday came at the perfect time for this service, as Jeremy sold Invesco Solar ETF (TAN) on Tuesday for a 10.5% profit. That’s in just one day! And he still has exposure to solar through Enphase Energy (ENPH). The editor also sold a third of The Trade Desk (TTD) for a 2.1% return in just about a week. He would be willing to add again if the stock pulls back. Zacks Short Sell List: This week's adjustment included only one change. The portfolio short-covered Intuit (INTU) for a 3.7% return and replaced it 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. 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

NASDAQ Rises 2.5% While S&P Hits New Record

NASDAQ Rises 2.5% While S&P Hits New Record SPECIAL ALERT: In a newly released Special Report, How to Profit from the Trillion-Dollar Infrastructure Boom, Zacks Editor and Stock Strategist, Benjamin Rains, unearths his top seven favorite stocks. The new presidential administration is committed to building a modern and sustainable infrastructure in America and these companies are poised for substantial growth as they help this effort. Strengthen your portfolio by logging on to Zacks.com to see these stocks today. The massive covid relief plan is now real, which helped the S&P to a new closing high on Thursday while sparking another sharp rally for the beleaguered tech space. Just a day after passing the House, President Biden signed the $1.9 trillion stimulus plan that includes direct payments of $1400 to Americans, along with funds for local governments and the vaccine rollout. It was certainly no surprise since the Democrats took over complete control of the government in the recent elections, but the market still appreciated that this long-awaited help was finally a reality. The S&P jumped 1.04% to a fresh closing high of 3939.34. The index’s last record was nearly a month ago on February 12. The Dow made history for a second straight day by rising 0.58% (or about 188 points) to 32485.59. However, the most impressive performance came from the NASDAQ, which jumped 2.52% (or nearly 330 points) to 13,398.67. The index was briefly in correction territory earlier this week, but has halved the double-digit deficit since then. It is now just a little more than 5% away from its own record. The stimulus plan wasn’t the only bit of good news on Thursday. Last week’s jobless claims came to 712,000, compared to expectations at 725K. This report marks three straight weeks of better-than-expected results. Furthermore, the 10-year Treasury yield, which wreaked so much havoc over the past few weeks, remained rather steady at just over 1.5% after jumping past 1.6% on Monday. Yesterday, we received a pretty good Consumer Price Index that was in-line with expectations rather than spiking higher. So for the moment, investors aren’t hyperventilating about rising rates or inflation. The S&P and Dow are each up about 2.5% for the week heading into Friday’s session. However, the NASDAQ has gained more than 3.5% after rallies of 3.7% on Tuesday and 2.5% today, so the index looks poised to break its three-week losing streak. Today's Portfolio Highlights:   Options Trader: The March 135.00 Call in Nasdaq, Inc. (NDAQ) expires next week, so there would be no time to recover in the event of a pullback. Therefore, Kevin pulled his profits in that March option for 18% and repositioned for more time by buying to open a June 145.00 Call in NDAQ. In other news, Lennox Industries (LII) looks like its finally ready to break out after a six-month consolidation. The editor bought to open a June 310.00 Call in this heating, air conditioning and refrigeration staple. Read the full write-up for a lot more on today’s moves.   Counterstrike: The recent tech selloff created countless opportunities for investors, and Jeremy capitalized on one today by adding Casa Systems (CASA) with an 11% allocation. The company develops and provides digital cable video and broadband services. It beat the Zacks Consensus Estimate by 145% in its recent report and just moved back above its 50-day MA. Meanwhile, the editor also added 4% more to his eBay (EBAY) position as it comes up to the 50-day. Jeremy thinks the resistance will break and send the stock back to the $59-$60 area. Get more specifics on today's moves in the complete commmentary. Technology Innovators: With the tech selloff easing and stimulus on the way, Brian thinks its time to increase overall exposure in the portfolio. On Thursday, he added satellite communications company Iridium Communications (IRDM). This stock got “smashed” lately, but the editor thinks it still has good prospects. IRDM topped the Zacks Consensus Estimate in each of the last four quarters with an average surprise of 49% over that time. Earnings estimates are also inching higher. Read the complete commentary for more on this new addition.   Commodity Innovators: The portfolio picked up two ETNs on Thursday; one is focused on meat while the other is all about cotton. First of all, Jeremy picked up IPath Series B Bloomberg Livestock Subindex Total Return ETN (COW), which offers exposure to livestock as we wait for restaurants to finally reopen. More specifically, hogs are breaking higher right now, while cattle could get a bounce as it comes into the 50-day MA. The editor also picked up IPath Series B Bloomberg Cotton Subindex Total Return ETN (BAL), which should benefit from increasing demand and lower supply for the rest of the year. These are both considering long-term holdings. Speaking of the long term, Jeremy decided to sell Energy Select Sector SPDR ETF (XLE) to collect a nice 50.8% return in about five months. Read the full write-up for more on all of today’s moves. Surprise Trader: In order to book some profits and free up some space, Dave sold half of Rent-A-Center (RCII) on Thursday for a nice return of more than 20% in less than a month. He’ll let the other half run for a bit longer. The new addition is Titan Machinery (TITN), which offers a diversified mix of agricultural, construction and consumer products dealerships in the upper Midwest. The company has a positive Earnings ESP of 27% for the quarter being reported before the bell on Thursday, March 18. TITN was added with a 12.5% allocation. Read the full write-up for more on today’s action. 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

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

Late-Day Rally Keeps Dow, S&P in Record Territory

Late-Day Rally Keeps Dow, S&P in Record Territory A late rally in Monday’s session kept last week’s momentum going, which means two of the major indices reached new records once again while tech continued recovering from its recent selloff. The NASDAQ easily had the best performance today with a rise of 1.05% (or nearly 140 points) to 13,459.71. We saw strong results from heavy hitters like Apple (AAPL), Tesla (TSLA) and Facebook (FB), which each advanced 2% or more on the day. Last Monday, this index slipped into correction territory, but it ended up gaining 3% for the week by Friday’s close. The result snapped three straight weeks of losses and now the index is within 5% of making history again. The other two major indices have been hitting records for several days now, which continued in this session. The S&P rose 0.65% to 3968.94, while the Dow improved 0.53% (or almost 175 points) to 32,953.46. These indices are coming back from a week that saw gains of 2.6% and 4%, respectively. The Dow has now reached new highs for four straight sessions, as it benefits from the rotation into recovery names. The S&P is right behind with three straight days of new records. The 10-year Treasury yield remains above 1.6%, which is too high for investor comfort. But it was down a bit in the session after spiking higher last Friday. You can be certain that Fed Chair Jerome Powell will be saying something about rising yields after the Committee’s two-day meeting on Wednesday. He’ll also speak about inflation; the impact of the recently-signed $1.9 trillion relief package; investor concerns about an overheated market; and much more. Mr. Powell is expected to stay the course and reiterate the Fed’s support for this economy as we get back to normal. However, it’s all about the language he uses. Today's Portfolio Highlights: Stocks Under $10: Over the weekend, privately-held digital payments company Stripe announced that it raised $600 million, boosting its valuation to $95 billion. Brian thinks such news will be a big spark for a fellow fintech name like Mogo (MOGO). Over the past four quarters, the company has beaten the Zacks Consensus Estimate three times and matched once. Most importantly to the editor, those surprises have been getting bigger. In fact, the most recent beat was 109%!. Rising earnings estimates for next year have made MOGO a Zacks Rank #2 (Buy). In other news, the portfolio has enough exposure to the oil patch, so Brian thought this was a good time to sell Northern Oil & Gas (NOG) for a solid 49.6% return in just under three months. Read the complete commentary for a lot more on today’s action and be prepared for another move tomorrow. Meanwhile, this portfolio had a top performer on Monday as Himax Technologies (HIMX) rose 10.2%. Surprise Trader: You might not think that a ‘business development company’ would have a lot of growth, but Barings BDC (BBDC) would beg to differ. Next year’s revenue and earnings growth are expected to climb more than 41% and nearly 24%, respectively. Furthermore, BBDC, which makes debt investments in middle market companies, reported a 13% positive surprise last time, which was its first beat in three quarters. Now the company has a positive Earnings ESP of 7.55% for the quarter coming before the bell on Wednesday, March 24. Dave thinks BBDC has turned a corner, so he added this name on Monday with a 12.5% allocation. The editor also sold Resideo Technologies (REZI) for an 8% return in less than a month. Read the full write-up for more. Technology Innovators: The first of two new buys this week is Covetrus (CVET), a Zacks Rank #2 (Buy) software play that provides animal-health technology and services. This stock is right on the verge of becoming a mid-cap, so Brian got involved today before it joins a new league of bigger stocks. CVET has beaten the Zacks Consensus Estimate in three of the past four quarters, while earnings estimates for this year and next have improved. The editor appreciates the topline growth of 11% in the most recent quarter and the beatable estimates for the full year. Get more specifics about this new pick in the full write-up. Brian wants the portfolio to be fully invested, so they’ll be another buy later this week to get the service up to 15 names. Black Box Trader: The portfolio only swapped out two names in this week's adjustment. It sold Dick's Sporting Goods (DKS, +10.8%) and Vista Outdoor (VSTO) on Monday, and then re-filled these spots by adding Olin Corporation (OLN) and United Natural Foods (UNFI). Read the Black Box Trader’s Guide to learn more about this computer-driven service. 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

Stocks Return to All-Time Highs After Fed Statement

Stocks Return to All-Time Highs After Fed Statement The Fed told investors exactly what they wanted to hear on Wednesday, paving the way for a late-day rally that returned two of the major indices to all-time highs. We got the best of both worlds from Chair Jerome Powell and Friends today. The Committee sharply increased its U.S. growth forecast to 6.5% for 2021 following the $1.9 trillion stimulus package and accelerated vaccine rollout. However, there are no plans to raise rates this year… or next year… or even the year after that! (Though some officials think a hike in 2023 might be warranted.)   And investors shouldn’t worry too much about rising inflation either. The Committee will give it a long leash. Inflation would have to move well above 2% for an extended period of time before the Fed would consider acting on it. You could tell investors loved the news because stocks took off in the second half after a rather lethargic open. Also, the 10-year Treasury yield came off its high of the session, though was still up for the day and remains well above 1.6% for a fourth straight session. The Dow advanced 0.58% (or nearly 190 points) to 33,015.37, which marks its first close above 33K. The S&P improved 0.29% to 3974.12. These indices both returned to all-time highs after taking a break on Tuesday in the runup to the Fed statement. Nevertheless, the Dow has now reached a new record in five of the last six sessions, while the S&P has done so in four of the last five. The NASDAQ plunged well over 1% at its worst point today, but recovered on the Fed news. It finished higher by 0.40% (or around 53 points) to 13,525.20. The index is on a three-day winning streak and is now a little more than 4% away from making its own history, marking an impressive recovery after dropping into correction territory a little over a week ago. Today's Portfolio Highlights: Home Run Investor: The portfolio is now fully invested with 15 names after today’s addition of LeMaitre Vascular (LMAT), a medical products name that recently pulled back despite beating the Zacks Consensus Estimate in its most recent quarter. In fact, the company has topped our expectations three times and matched once in the past four quarters. Rising earnings estimates have made the stock a Zacks Rank #2 (Buy), while Brian loves to see that operating margins have increased in the past two quarters. The pullback offers a chance to buy LMAT at an attractive entry point. Read the full write-up for more specifics on today’s addition. Counterstrike: “Stocks were weak all morning, but the Fed stepped in and told the market that the recent worries were unfounded. The Fed reiterated they will stay the course and will not raise rates anytime soon. The key is inflation and the Fed sees the recent movement higher in prices as short-lived. “All-time highs again! It is pretty remarkable, but the Fed has your back if you are in stocks. Looking to add some positions. We might have missed catching some bottoms, but a lot of stocks have regained technical support and look good to buy.” – Jeremy Mullin Headline Trader: “Unfortunately, the only thing green in this morning's market were value stocks and the 10-Year Treasury yield, which once again drove high-valuation exposed tech stocks into the red. Then like a St. Patty's Day miracle, the markets flipped a switch following sweet words of sustained easy money policies by Jerome Powell, and tech stocks turned green, providing a nice little pot of gold for long stockholders like ourselves. “Unsurprisingly, the Federal Reserve has decided to maintain its current Fed Funds rate and bond purchasing regimes, following its two-day March meeting. The Fed's economic indicators point to a moderate economic recovery pace but cited that the most impacted sectors remained weak. “This maintained the Fed's dovish tone, which some thought might turn hawkish in the wake of recent bond moves. The stock market loved what it saw, specifically the interest-rate-sensitive tech sector, with the Nasdaq 100 making a miraculous recovery into the green (likely to avoid being pinched). The Nasdaq 100 rallied over 1.5% in just 45 minutes following the Fed's press release.” – Daniel Laboe 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

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

Financial ETF surges toward a record as Treasury yields rally

The financial sector enjoyed a broad rally Monday, with the SPDR Financial Select Sector ETF rallying into record territory, as the yield on the 10-year Treasury note climbed toward a 13-month high. The Financial ETF climbed 2......»»

Category: topSource: marketwatchMar 8th, 2021

Bond Report: 10-year Treasury yield pushes below 1.30%, falling further into record territory

U.S. Treasury yields extend their drop into record territory on Thursday as jitters around COVID-19 spreading within the U.S., draws investors away from stocks to the benefit of bonds......»»

Category: topSource: marketwatchFeb 27th, 2020

Bond Report: Treasury yield curve slides further into inversion territory, heightening recession fears

Treasury prices rise Wednesday, pushing yields lower, as fears of a further escalation in trade tensions drew selling in global equities, stoking demand for haven assets......»»

Category: topSource: marketwatchMay 29th, 2019

Metals Stocks: Gold heads for 3-session skid as yields climb stocks rise

Gold futures head for a third straight loss on Friday as a benchmark Treasury yield gained altitude and stocks trade near record territory, drawing demand away from haven bullion......»»

Category: topSource: marketwatchApr 5th, 2019

Mortgage rates are now breaking to new lower territory, and they could stay there for months

The average rate on the 30-year fixed mortgage is falling again today, as investors rush into the bond market. Mortgage rates loosely follow the yield on the 10-year Treasury. Lower rates area already igniting home buying......»»

Category: realestateSource: cnbcMar 22nd, 2019

Mortgage rates are breaking to new lower territory, and they could stay there for months

The average rate on the 30-year fixed mortgage is falling again today, as investors rush into the bond market. Mortgage rates loosely follow the yield on the 10-year Treasury. Lower rates area already igniting home buying......»»

Category: realestateSource: cnbcMar 22nd, 2019

Stock Market News For Apr 25, 2018

Markets ended in negative territory on Tuesday after the 10-year Treasury yield briefly hit the psychological 3% mark for the first time since January 2014. Mark.....»»

Category: personnelSource: nytApr 25th, 2018

ETFs to Bet On as Fed Turns Hawkish, Signals Tapering

The Federal Reserve Chair Jerome Powell kept the interest rates near zero at 0-0.25% but signaled bond-buying tapering ahead followed by interest rate hikes as early as next year. In the FOMC meeting that concluded on Sep 22, the Federal Reserve Chair Jerome Powell kept the interest rates near zero at 0-0.25% but signaled bond-buying tapering ahead followed by interest rate hikes as early as next year.The central bank is expected to begin scaling back the monthly bond purchases as soon as November and complete the process by mid-2022. This is because it expects the Delta variant of the coronavirus, which has dented economic activity in the recent months, to have a short-lived effect on the recovery. Per the officials, the economy will likely make “substantial further progress” by the end of the year, a threshold needed for the central bank to begin slowing the pace of asset purchases (read: Buy the Dip With These Top-Ranked ETFs).Fed Chair Jerome Powell reiterated that he believes the U.S. economy has already surpassed the central bank's goals for inflation, and said a "reasonably good" September jobs report would indicate that the Fed's employment goals to begin tapering had been satisfied as well. Notably, the central bank has been buying $120 billion per month of Treasuries and mortgage-backed securities since the start of the COVID-19 crisis.The policy statement also revealed that nine of 18 Fed policymakers foresee a liftoff in interest rates next year, compared to seven policymakers in June. The median dot also projects three to four total rate hikes by the end of 2023. Through the end of 2024, the median FOMC member sees six to seven total rate hikes.Given this, investors should continue to focus on areas/sectors that will benefit the most from the Fed’s tightening policy. Here, we have detailed four of these and their ETFs below:FinancialsA rising interest rate scenario is highly profitable for the financial sector. This is because the steepening yield curve would bolster profits for banks, insurance companies, and discount brokerage firms. A broad way to play this trend is with Financial Select Sector SPDR Fund XLF, which has a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook.This is the most popular financial ETF in the space with AUM of $40 billion and an average daily volume of about 43 million shares. The fund follows the Financial Select Sector Index, holding 65 stocks in its basket. It is heavily concentrated on the top two firms, making up for double-digits share each while other firms hold no more than 7.2% share. In terms of industrial exposure, banks take the top spot at 37.5% while capital markets, insurance, and diversified financial services make up for double-digit exposure each. The fund charges 12 bps in annual fees and is up 27.5% in the year-to-date timeframe (read: 401(k) Balances at All-Time Highs: 6 ETFs to Buy).Consumer DiscretionaryConsumer discretionary stocks also seem good bets. This is because a tight policy is seemingly the result of a pickup in economic growth supported by solid job growth, wage growth and increased lending activity that result in higher spending power. One exciting pick in this space can be Vanguard Consumer Discretionary ETF VCR, which has a Zacks ETF Rank #1 with a Medium risk outlook (read: ETF Areas to Gain From the Upcoming Holiday Shopping Season).This fund follows the MSCI U.S. Investable Market Consumer Discretionary 25/50 Index and holds 296 stocks in its basket. It has heavy concentration on the top firm – Amazon AMZN – at 23.5% share while the other firms hold no more than 10% of the assets. The product has managed $6.7 billion in its asset base and charges 10 bps in annual fees. In terms of industrial exposure, Internet & direct marketing, retail takes the largest share at 27.6% while automobile manufacturers, restaurants, and home improvement retail round of the next three spots. The ETF trades in average daily volume of 59,000 shares and has gained 15.8% in the same timeframe.TechnologyIn a tight policy era, technology seems one of the safest sectors as most of the companies are sitting on a huge cash pile. The cash reserves will ensure that these companies are not plagued by any financial trouble even in a rising interest rate environment. While there are several ETFs to bet on, First Trust NASDAQ-100-Technology Sector Index Fund QTEC could be an intriguing option. It has a Zacks ETF Rank #1 with a High risk outlook.    This ETF tracks the NASDAQ-100 Technology Sector Index, holding 41 stocks in its basket with almost equal allocation. From an industry look, software and semiconductors dominate the list with 34.9% and 32.7% share, respectively, while production technology equipment and consumer digital services make up for the next two spots. QTEC is a large cap centric fund with AUM of $3.9 billion and average daily volume of around 66,000 shares. It charges 57 bps in annual fees and gained 19.6% so far this year.DollarTightening policy and higher rates would attract more capital to the country from foreign investors, thereby boosting the U.S. dollar against the basket of other currencies. Invesco DB US Dollar Index Bullish Fund UUP offers exposure to a dollar against a basket of six world currencies. This is done by tracking the Deutsche Bank Long USD Currency Portfolio Index - Excess Return plus the interest income from the fund’s holdings of U.S. Treasury securities. In terms of holdings, UUP allocates nearly 57.6% in euro and 25.5% collectively in the Japanese yen and British pound. The fund has so far managed an asset base of $487.9 million and sees an average daily volume of around 697,000 shares. It charges 76 bps in annual fees and has gained 3.5% so far this year. The fund has a Zacks ETF Rank #2 with a Medium risk outlook (read: U.S. Dollar to Gain Ahead? ETFs to Gain/Lose).  More Stock News: This Is Bigger than the iPhone! It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market. Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.Click here for the 4 trades >>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 Amazon.com, Inc. (AMZN): Free Stock Analysis Report Financial Select Sector SPDR ETF (XLF): ETF Research Reports Invesco DB US Dollar Index Bullish ETF (UUP): ETF Research Reports Vanguard Consumer Discretionary ETF (VCR): ETF Research Reports First Trust NASDAQ100Technology Sector ETF (QTEC): ETF Research Reports To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacks1 hr. 20 min. ago

VRTX vs. PRTA: Which Stock Should Value Investors Buy Now?

VRTX vs. PRTA: Which Stock Is the Better Value Option? Investors interested in stocks from the Medical - Biomedical and Genetics sector have probably already heard of Vertex Pharmaceuticals (VRTX) and Prothena (PRTA). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.Currently, both Vertex Pharmaceuticals and Prothena are holding a Zacks Rank of # 2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is only part of the picture for value investors.Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.VRTX currently has a forward P/E ratio of 14.90, while PRTA has a forward P/E of 52.53. We also note that VRTX has a PEG ratio of 1.52. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. PRTA currently has a PEG ratio of 22.54.Another notable valuation metric for VRTX is its P/B ratio of 5.20. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, PRTA has a P/B of 11.66.These are just a few of the metrics contributing to VRTX's Value grade of B and PRTA's Value grade of F.Both VRTX and PRTA are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that VRTX is the superior value option right now. More Stock News: This Is Bigger than the iPhone! It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market. Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.Click here for the 4 trades >>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 Vertex Pharmaceuticals Incorporated (VRTX): Free Stock Analysis Report Prothena Corporation plc (PRTA): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacks1 hr. 20 min. ago