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Stocks slip as consumer confidence comes up short

U.S. equity markets slid Tuesday following a disappointing consumer confidence reading and mixed housing data......»»

Category: topSource: foxnewsMay 25th, 2021

September Swoon Just Getting Started: Dial In Your Buy Targets

Sell-off is unfolding and even a "lovey-dovey" Fed won't save it. In short-term trading, you know what's better than having high accuracy in your "predictions?"It's having a robust method for evaluating risk, reward, and volatility so that you can place appropriate odds, and bet sizes, on possible outcomes.I call my method "Scenarios & Probabilities," and it's served me well for over a decade in the stock market.Right now, the market is fulfilling a few of my early scenarios in the path to a bigger decline.It all started with this view from two weeks ago that I gave Zacks Ultimate members after Labor Day, and then recapped in a video and article on Sep 9...September Swoon Targets: Where to Buy the DipOn 9/14, I told my group this...Raising cash last week was definitely the right call because this slow-motion roll-over could easily turn into a big gap down one morning.And that will trap lots of longs who didn't see it coming.On 9/20, I wrote about "The Gap That Traps"...So, here we are. The SPX has now broken clean through the first support at 4370.Also recall that I said "any catalyst will do." The financial headlines are filled with "Evergrande! Evergrande! Chinese real estate contagion!"But we knew that any catalyst would do.Bounce or Pounce: Which Comes First?With a pivotal Fed meeting starting tomorrow, I can confidently say the SPX will most likely test today's low at 4305 -- and probably lower -- before it fills that gap up above 4400.How sure am I? I'd give 3 to 1 odds.In other digits, 1 chance in 4 we rally right after the Fed meeting.So that's a big fat NO to a meaningful bounce any time soon.Because that would take something extraordinary from that meeting (like a "no-taper, ZIRP-forever" kinda promise).Plus, to differentiate itself from the 4 prior bounces off the 50-day (in May, June, July, August), this plunge well through it makes this "the gap that traps."The video that accompanies this article has the chart map that explain where I'm buying the imminent dip(s).For some aggressive trading ideas, I'll tell you that I am long the ProShares UltraPro Short QQQ ETF SQQQ now and will flip out of that and into ProShares UltraPro QQQ TQQQ, the 3X bullish ETF.My first "pounce" area will be near 4200.I'm also looking at adding to my The Trade Desk TTD position and hoping to scoop some Shopify SHOP under $1,400.And Advanced Micro Devices AMD is also on my shopping list under $100. Maybe some NVDA under $200 as well.One Set-Up Leads to AnotherAny good technical trader will tell you that. As scenarios unfold, probabilities shift. Especially as volatility rises, and ranges expand to exert more stop-loss pressure and panic.So I'll also be paying close attention to how much selling accelerates, as more over-leveraged and vulnerable hedge funds are discovered in the market correction they didn't count on.A more important point of view (than pointing at Chinese real estate contagion) comes from Morgan Stanley's resident curmudgeon, Mike Wilson.Mike Wilson to the Bears' RescueAs Wilson likes to always point out, "The market and the economy are not the same thing."And he reminds us of this as the market ran ahead of the recovery and over-shot to the upside. Now with growth flattening, the market will run the other way.In his interview Monday morning on Bloomberg, he went over his "fire and ice" thesis...He's calling for a plunge of 20% in US stocks (his worst-case scenario), citing weaker growth and falling consumer confidence.In the fire outcome of his thesis (his more optimistic view), the Fed tapers to keep the economy from running too hot. This will get us a garden variety 10% correction (think SPX 4050).The more bearish “ice” scenario is where Wilson leans though as he sees the economy sharply decelerating and downward earnings revisions spike.The Wilson team wrote in their note published Monday morning...“Will it be fire or ice? We don’t know, but the ice scenario would be worse for markets and we are leaning in that direction. We think the mid-cycle transition will end with the rolling correction finally hitting the S&P 500.”I certainly didn't see a growth deceleration coming that would negatively impact earnings estimates.I just thought we would get a technical washout of 5-7% to scare everybody.So now I'm reevaluating the growth outlook too.Which means we don't need to rush and buy the first dip to SPX 4200. We'll be patient and wait until we get more information.Wilson says smart investors will probably wait until most of the Q3 report cards are in (late Oct/early Nov) to know better.I expect to know enough in 2-3 weeks, not 6.Meanwhile, even a "lovey-dovey" Fed result one hour from now won't turn me bullish in the short-term.Disclosure: I own shares of AMD, TTD, NVDA, and SQQQ for the Zacks TAZR Trader portfolio.  Infrastructure Stock Boom to Sweep America A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made. The only question is “Will you get into the right stocks early when their growth potential is greatest?” Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.Download FREE: How to Profit from Trillions on Spending for Infrastructure >>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 Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report Shopify Inc. (SHOP): Free Stock Analysis Report ProShares UltraPro QQQ (TQQQ): ETF Research Reports The Trade Desk Inc. (TTD): Free Stock Analysis Report ProShares UltraPro Short QQQ (SQQQ): ETF Research Reports To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacks18 hr. 12 min. ago

Are You a Value Investor? This 1 Stock Could Be the Perfect Pick

Whether you're a value, growth, or momentum investor, finding strong stocks becomes easier with the Zacks Style Scores, a top feature of the Zacks Premium research service. Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.It also includes access to the Zacks Style Scores.What are the Zacks Style Scores?Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.The Style Scores are broken down into four categories:Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.How Style Scores Work with the Zacks RankThe Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +25.41% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.That's where the Style Scores come in.To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.Stock to Watch: Element Solutions (ESI)Based in Florida, Element Solutions Inc, earlier known as Platform Specialty Products Corporation, is a leading specialty chemicals provider. The company offers innovative and differentiated solutions to its customers across a vast spectrum of industries including automotive, electronics, communications infrastructure, industrial surface finishing, consumer packaging as well as offshore energy. The company generated sales of $1.85 billion in 2020.ESI is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 15.01; value investors should take notice.For fiscal 2021, one analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.01 to $1.38 per share. ESI boasts an average earnings surprise of 7.1%.With a solid Zacks Rank and top-tier Value and VGM Style Scores, ESI should be on investors' short list. Infrastructure Stock Boom to Sweep America A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made. The only question is “Will you get into the right stocks early when their growth potential is greatest?” Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.Download FREE: How to Profit from Trillions on Spending for Infrastructure >>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 Element Solutions Inc. (ESI): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 22nd, 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

Another Session of New Highs for the NASDAQ and S&P

Another Session of New Highs for the NASDAQ and S&P Even a rare decline in Apple (AAPL) couldn’t derail the record-setting pace of the NASDAQ and S&P on Tuesday, but the Dow was another story as the index snapped a three-day winning streak. The NASDAQ may have seen some red in the morning, but it eventually moved higher again and finished with a gain of 0.76% to 11,466.47. Apple’s five-day winning streak came to an end just a few days before its 4-for-1 stock split, but the rest of the FAANGs did fine. Facebook (FB) even rose by nearly 3.5%, while Amazon (AMZN) and Alphabet (GOOG) each rose by over 1%. Meanwhile, the S&P advanced 0.36% to 3443.62. Both this index and the NASDAQ had another round of new highs… of course any advance currently makes history for these indices. Unfortunately, the Dow wasn’t included, though it did come well of the lows of the session and remained above 28K. The index slid 0.21% (or about 60 points) to 28,248.44. In addition to the decline in Apple, the Dow may have been under a bit of pressure after yesterday’s announcement of a major shake-up due to the iPhone maker’s stock split. Salesforce (CRM, +3.64%), Amgen (AMGN, +5.37%) and Honeywell (HON, +3.24%) will replace ExxonMobil (XOM, -3.17%), Pfizer (PFE, -1.11%) and Raytheon (RTX, -1.5%), respectively. The changes will be effective before the open on Monday, August 31. The dropping of XOM is the end of an era, as the oil giant has been in the index longer than any other. Stocks also had to wade through a disappointing consumer confidence result, but also an ebullient report for newly-built homes that included a 36% surge in July. And despite the rising tensions between the two countries, it looks like there’s been some progress between the U.S. and China when it comes to working on that Phase 1 trade deal. Remember when that was the big story? Through the good news and the bad, this market just keeps moving higher for the most part. It’s making some folks nervous. How much longer will this last? Today's Portfolio Highlights: Stocks Under $10: With Sangamo Therapeutics (SGMO) sliding to Zacks Rank #4 (Buy) status, Brian thought it was a good time to exit this biotech and take a nice 31% return in a little over three months. The new addition was Lincoln Educational Services (LINC), a leading and diversified for-profit provider of a career-oriented post-secondary education. It’s more of a trade school than anything else, according to the editor, and there’s always going to be a need for skilled labor. The company beat the Zacks Consensus Estimate in the past two quarters, convincing analysts to raise their estimates for this year and next. As a result, LINC is a Zacks Rank #2 (Buy). Brian was also impressed with the steady increase in operating margins over the last three quarters, which should lead to higher EPS moving forward. Read the full write-up for more specifics.  Counterstrike: The market’s record-setting pace leaves it vulnerable to a significant downside move, according to Jeremy. Therefore, the editor made a couple moves on Tuesday to prepare for the slide. He’s giving ProShares UltraPro Short QQQ (SQQQ) one more chance by adding 5% to the position, which was originally bought in early July. It hasn’t been performing well because the NASDAQ just refuses to move lower, but that's got to change at some point and today's weakness in Apple (AAPL) could mean it's close. Meanwhile, Logitech (LOGI) would be hurt if there’s a tech downturn, so the portfolio sold the stock for a 7.6% return in one month. Read the full write-up for more on today’s moves.  Commodity Innovators: Crude oil not only avoided breaking lower last week, but it has cleared its 200-day moving average and looks to move even higher. Jeremy thinks the commodity is going to $45 or more. Therefore, he added ProShares Ultra Bloomberg Crude oil (UCO) on Tuesday, which will trade 2X the daily move in crude. He considers this a short-term position. In other news, the editor also sold IPath Series B Bloomberg Coffee Subindex Total Return ETN (JO) for a more than 9% return. Read the full write-up for more. Zacks Short List: The portfolio swapped out two positions in this week's adjustment. The short-covered stocks were Pinduoduo (PDD, +4.4%) and Tiffany (TIF, +2.6%), while the new buys that filled these open spots were Netflix (NFLX) and Yandex N.V. (YNDX). Learn more about this emotion-free portfolio that takes advantage of falling and volatile markets by reading the Short List Trader Guide. Until Tomorrow, Jim Giaquinto Recommendations from Zacks' Private Portfolios: Believe it or not, this article is not available on the Zacks.com website. The commentary is a partial overview of the daily activity from Zacks' private recommendation services. If you would like to follow our Buy and Sell signals in real time, we've made a special arrangement for readers of this website. Starting today you can see all the recommendations from all of Zacks' portfolios absolutely free for 7 days. Our services cover everything from value stocks and momentum trades to insider buying and positive earnings surprises (which we've predicted with an astonishing 80%+ accuracy). Click here to "test drive" Zacks Ultimate for FREE >>  Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

Slight Losses Put an End to Three-Day Winning Run

Slight Losses Put an End to Three-Day Winning Run SPECIAL ALERT: The October episode of the Zacks Ultimate Strategy Session will be available for viewing no later than Wednesday, October 7. Kevin Matras, Jeremy Mullin, Tracey Ryniec, Neena Mishra, CFA, FRM, Dan Laboe and Sheraz Mian will cover the investment landscape from several angles in this popular event.  Don't miss your chance to hear: ▪ Tracey and Neena Agree to Disagree on whether the S&P 500 will retest its March lows ▪ Kevin Matras answers your questions in Zacks Mailbag ▪ Sheraz and Dan choose one portfolio to give feedback for improvement ▪ And much more Remember, we need your input. Please submit your questions for Zacks Mailbag and Portfolio Makeover by Thursday morning, October 1. Email now to mailbag@zacks.com. Then log on to Zacks.com and bookmark this page. Three consecutive days of gains is a pretty good run at a time of such uncertainty, so it’s not much of a shock that the market took a break on Tuesday. However, the declines were  modest, especially when you consider advances of more than 1% for each of the major indices in the previous two sessions. The S&P slipped 0.48% to 3335.47, while the Dow also declined by 0.48% (or about 131 points) to 27,452.66. But these indices had climbed 3% or more during the winning streak. The NASDAQ was off 0.29% (or around 32 points) to 11,085.25, after jumping more than 4.5% in the previous three sessions. This nice run will certainly make September look a lot better than previously feared. However, its still likely to be the first losing month for the market since March. Heading into the final day of the month tomorrow, the NASDAQ is down more than 6% for September, the S&P is off nearly 5% and the Dow has slipped approximately 3.5%. The market shrugged off a strong consumer confidence report on Tuesday. The number soared to 101.8 points in September, which was up more than 15 points from the previous month. It was the biggest gain since 2003, and suggests that people are feeling pretty good about the economy despite all the challenges out there. This report is just the tip of the iceberg for a big turn-of-the-month data week. The ADP employment report comes tomorrow. The past two numbers have been big misses, but the market hasn’t cared much. Thursday brings ISM Manufacturing, which has been above 50 (expansion) for the past several months. The session will also see construction spending and jobless claims (as usual). And then comes Friday and the next installment of the government employment situation. Last month, the economy added 1.37 million jobs and the unemployment rate was back in the single digits at 8.4% for the first time in the pandemic era. Today's Portfolio Highlights: Large-Cap Trader: It was time for a “refresh exercise” in the portfolio, so John swapped out three names on Tuesday. He began by selling Dollar General (DG, +9.8%), Northern Trust (NTRS) and Leidos (LDOS). Then the editor filled these spots with the following buys: ▪ Best Buy (BBY) – consumer electronics giant ▪ Kimberly Clark (KMB) – consumer products staple ▪ Owens Corning (OC) -- building materials systems and composite solutions BBY is a Zacks Rank #1 (Strong Buy), while KMB and OC are Zacks Rank #2s (Buys). They are all off their highs, which provides plenty of running room moving forward. They also registered impressive earnings surprises in their most recent quarters and come from highly-ranked industries. John added each stock today with an allocation of around 5%. Read his complete commentary for more specifics on today’s moves.  Stocks Under $10: Hungry for profits? What about tacos? Brian has found a way to satisfy both of those cravings by adding Del Taco Restaurants (TACO), the country’s second-largest Mexican-American QSR chain by units. The past two quarters included impressive beats of 100% and 50%, while rising earnings estimates pushed the company to Zacks Rank #2 (Buy) status. With several states continuing to open, the editor thinks TACO will see more growth moving forward. Read the full write-up for more on this new addition. In other news, this portfolio had a couple top performers on Tuesday with Digital Turbine (APPS, +6.4%) and Harmonic (HLIT, +5.2%). Zacks Short List: Big adjustment this week as the portfolio swapped out seven names. The stocks that were short-covered on Tuesday included: ▪ V.F. Corp. (VFC, +6.2%) ▪ TAL Education (TAL, +0.9%) ▪ Netflix (NFLX, +0.2%) ▪ StoneCo (STNE, +x%) ▪ XPO Logistics (XPO) ▪ Nike (NKE) ▪ Sunrun (RUN) The new buys that filled these spots were: ▪ BioMarin Pharma (BMRN) ▪ Burlington Stores (BURL) ▪ China Lodging (HTHT) ▪ Illumina (ILMN) ▪ Las Vegas Sands (LVS) ▪ Performance Food (PFGC) ▪ Sysco (SYY) Learn more about this emotion-free portfolio that takes advantage of falling and volatile markets by reading the Short List Trader Guide. Until Tomorrow, Jim Giaquinto Recommendations from Zacks' Private Portfolios: Believe it or not, this article is not available on the Zacks.com website. The commentary is a partial overview of the daily activity from Zacks' private recommendation services. If you would like to follow our Buy and Sell signals in real time, we've made a special arrangement for readers of this website. Starting today you can see all the recommendations from all of Zacks' portfolios absolutely free for 7 days. Our services cover everything from value stocks and momentum trades to insider buying and positive earnings surprises (which we've predicted with an astonishing 80%+ accuracy). Click here to "test drive" Zacks Ultimate for FREE >>  Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

Stocks Can"t Follow Through in Low Volume Session

Stocks Can't Follow Through in Low Volume Session Despite a positive start to Tuesday’s action, the market couldn’t add onto yesterday’s impressive rally as choppy trading eventually chipped away at the gains and left us with a rather lackluster session. The NASDAQ was the best performer again today… but only because it had the narrowest loss. It slipped 0.03% (or 4 points) to 13,657.17, which means it held onto nearly all of yesterday’s 1.4% surge. Meanwhile, the Dow declined 0.24% (or about 81 points) to 34,312.46, while the S&P was off 0.21% to 4188.13. These indices were up 0.54% and 0.99%, respectively, on Monday, but couldn’t decide on a direction today amid low volume.   “I am surprised there wasn’t follow through, but because it is the end of the month, it’s not surprising to see some back-and-forth action," said Jeremy Mullin in today’s Counterstrike. “Some big players want positions off the books, while other big players want to mark up prices. This gives us a tug of war, while retail traders get stuck in between.” The consumer confidence report was a mixed bag, as the 117.2 result fell short of expectations north of 118. But the result is still just 0.3 below April’s 117.5, so it’s pretty strong out there despite concerns of rising inflation. However, a 5.9% drop in new home sales in April suggests that consumers may be more hesitant to spend on big ticket items. Sales moved lower to 863K from the previous month’s 917K. Meanwhile, the Case-Shiller national home price index soared 13.2% annually in March, suggesting that the robust rise in home prices may be scaring off potential buyers at the moment. “The surprise today was the weakness in new home sales and consumer confidence coming in below expectations. That said, the market didn’t sell off in a meaningful way and the action really sets up for a strong move tomorrow,” said Brian Bolan in Stocks Under $10. And if you’re missing the hustle and bustle of big earnings reports, then you’ll be happy to hear that graphics chip pioneer NVIDIA (NVDA) will be reporting after the bell tomorrow. The company was up 0.23% today and has an Earnings ESP of 1.94%. It has now beaten the Zacks Consensus Estimate for nine straight quarters. Today's Portfolio Highlights: Headline Trader: With chip stocks finally finding support and a $52 billion bill being considered to confront the shortage; Dan feels that “now is the time to jump into this momentum-building segment". On Tuesday he added Synopsys (SNPS), a global leader in semiconductor IP and electronic design automation tools. Basically, EDA provides the foundation for digital chips being used in all the most innovative new technologies, including AI, cloud computing, the IoT and 5G. SNPS reported a “blowout” quarter last week, which continued a long stretch of outperforming the Zacks Consensus Estimate. “The pandemic created the perfect storm for the future of this business, with digital adaptation accelerating 10 years in just 10 months,” according to the editor. He believes the company is poised to rise to $300. Read the complete commentary for an in-depth analysis of SNPS. Zacks Short Sell List: This week's adjustment swapped out two portfolio positions. The stocks that were short-covered on Tuesday included Sunrun (RUN) and Shopify (SHOP), while the new buys that filled these opened spots were Chegg (CHGG) and Shake Shack (SHAK). Learn more about this emotion-free portfolio that takes advantage of falling and volatile markets by reading the Short Sell List Trader Guide. Stocks Under $10: With crypto coming under pressure lately, gold has been increasing in value. Brian is taking advantage of this situation by adding Comstock Mining (LODE), a Zacks Rank #2 (Buy) gold miner with earnings estimates that have “radically” jumped to a profit of 23 cents from a loss of 13 cents for this year. The company beat by 150% last quarter and analysts expect topline growth of 60% for the full year. Read the complete commentary for a lot more on this new addition. Insider Trader: "That growth stock momentum from the last 2 days petered out today as stocks finished mixed on the session. "However, it really felt like a lot of people have already gone on their Memorial Day vacations. "No one even cares about this week's earnings reports, even though we'll be hearing from tech powerhouses NVIDIA (NVDA) and Salesforce (CRM). "But keep an eye on the retailers. They are the key to where the economy is heading in the second half of 2021." -- Tracey Ryniec Have a Great Evening, Jim Giaquinto Recommendations from Zacks' Private Portfolios: Believe it or not, this article is not available on the Zacks.com website. The commentary is a partial overview of the daily activity from Zacks' private recommendation services. If you would like to follow our Buy and Sell signals in real time, we've made a special arrangement for readers of this website. Starting today you can see all the recommendations from all of Zacks' portfolios absolutely free for 7 days. Our services cover everything from value stocks and momentum trades to insider buying and positive earnings surprises (which we've predicted with an astonishing 80%+ accuracy). Click here to "test drive" Zacks Ultimate for FREE >>  Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

S&P, NASDAQ Keep Setting Records to Begin Big Week of Data

S&P, NASDAQ Keep Setting Records to Begin Big Week of Data Another strong day for tech kept two of the major indices on their record-breaking pace to start this last week of the second quarter. But the big news comes in the next few days, as a week full of economic data concludes on Friday with the all-important Government Employment Situation report. The NASDAQ jumped 0.98% (or about 140 points) on Monday to 14,500.51, which marks its fourth record close in the past 5 sessions. The S&P was up 0.23% to 4290.61 for a third straight new high. The Dow was off 0.44% (or about 150 points) to 34,283.27. Stocks really had the wind at their backs coming into the session after such a strong performance last week. The Dow ended Friday higher by 3.4% for the previous five days, while the S&P was up 2.7% and the NASDAQ advanced 2.4%. The market sidestepped another soaring PCE result on hopes that these increases are transitory. It also benefited from an infrastructure agreement and a successful round of stress tests for the banks. On Monday, though, the big deal was good old Facebook (FB). The social media pioneer advanced practically 4.2% after a federal judge threw out the FTC’s antitrust complaint against the company, though it could be filed again. Another antitrust lawsuit from dozens of states was also dismissed. As a result, FB’s market cap surpassed $1 Trillion for the first time. Meanwhile, Apple (AAPL), Amazon (AMZN), Netflix (NFLX) and Microsoft (MSFT) were all on point as well with gains of more than 1% each. The upcoming jobs report will keep investors nervous all week, especially since the last one was pretty much perfect. But that result is coming on Friday, and there’s plenty of other data coming out before then. We’ve got the consumer confidence index tomorrow and the ADP employment on Wednesday. Per usual, jobless claims comes out on Thursday, but so does ISM manufacturing and construction spending. This week of data and the upcoming earnings season are two big factors that will help determine the market’s direction moving forward. Today's Portfolio Highlights: Headline Trader: Despite marginally missing earnings expectations, FedEx (FDX) had solid underlying fundamentals in its recent quarterly report. This express delivery staple obviously has a big part to play in the “new normal”. Analysts believe FDX is in a good position to capitalize on the surge in online shopping that will continue after Covid, so they raised estimates and pushed the stock to Zacks Rank #2 (Buy) status. However, investors had a very different take on the quarter as shares plunged after the report. Dan has been waiting patiently and it looks like FDX has finally run out of sellers. The editor believes this post-earnings dip provided the perfect opportunity to start a position, especially since FDX appears to have fixed the problems with its European business TNT Express. Learn a lot more about this new addition in the complete commentary. TAZR Trader: Shares of The Trade Desk (TTD) were plunging in early May despite a better-than-expected quarterly report and news of a 10-for-1 stock split. Kevin’s response to the pullback was to add more of this digital-advertising platform operator. Now the stock is exceeding most analyst price targets, so the editor trimmed TTD for a more than 60% return on Monday. He’ll hold onto the rest to see how high it can go. Read the full write-up for more. Blockchain Innovators: Shares of Perion Network (PERI) soared 16.3% on Monday to become the best performer of the day among all ZU names. This global technology company just released strong preliminary second-quarter results, which included a raised guidance for the year. PERI is global technology company that delivers online advertising solutions and search monetization to brands and publishers. The stock has gained more than 30% since Dave added it earlier this month. By the way, Coinbase Global (COIN) also made the top 5 biggest winners today with a rise of 9.9%. Healthcare Innovators: A positive Phase 1 clinical study has shares of Intellia Therapeutics (NTLA) skyrocketing today. With the stock soaring past $130 on a huge short-covering spike, Kevin decided to sell this small CRISPR player for an impressive return of over 90% in less than five months. Don’t be surprised if this name reappears in the portfolio down the road. The editor thinks CAR-T and mRNA therapies will be catalysts for this name moving forward, so he’s looking to reevaluate NTLA shares down the road. See the complete commentary for more specifics. Black Box Trader: More than half of the portfolio was replaced in this week's adjustment. The stocks that were sold on Monday were: • Stellantis N.V. (STLA, +10.6%) • Build-A-Bear Workshop (BBW, +2.6%) • The Chemours Co. (CC, +1.8%) • Tronox Holdings (TROX) • American Axle & Manufacturing (AXL) • Avis Budget Group (CAR) The new buys that filled these spots are: • Alcoa (AA) • Archer Daniels Midland (ADM) • Camping World (CWH) • Foot Locker(FL) • Party City (PRTY) • Sally Beauty (SBH) Read the Black Box Trader’s Guide to learn more about this computer-driven service. Counterstrike: "The big focus this week will be the jobs number on Friday. Investors don't want this data to be too hot as it could create a perception that the Fed would have to get more hawkish. At the same time, if the data is weak, we could see some worries about the upcoming earnings season. "The perfect Goldilocks scenario would be a number right about in line, that would let the Fed hold steady through the end of the year. "Because this number is so important, we shouldn't expect much in direction for the rest of the week. We could grind to all-time highs or drift lower, but I would not expect any outsized moves as the market settles in to a summer nap." -- Jeremy Mullin 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

Slow Trading Can"t Stop S&P, NASDAQ From Setting New Records

Slow Trading Can't Stop S&P, NASDAQ From Setting New Records SPECIAL ALERT: We’ve just released this quarter’s Ultimate Four Special Report which includes four stocks our team believes have the greatest upside potential over the upcoming quarter. This latest report features favorite stocks from Kevin Cook, Jeremy Mullin, Neena Mishra, CFA, FRM, and Daniel Laboe. Log on to Zacks.com to see these stocks today. This week’s data deluge began in earnest on Tuesday with a couple solid reports, but slow summer trading eventually left the major indies little changed in the session. Nevertheless, the S&P and NASDAQ managed another day of new records. The Conference Board’s consumer confidence index jumped to 127.3 in June, which bettered the previous month’s 120 and easily beat expectations. It was also the fifth straight month with a gain. Obviously, fears of inflation are not handcuffing consumers, who are finally getting out and spending now that the pandemic is against the ropes. Furthermore, the S&P CoreLogic Case-Shiller national home price index soared 14.6% in April, compared to 13.3% in March. That makes 11 months of rising prices and shows again that consumers are in a spending mood, even for high-priced items. We’re about to see three straight sessions of jobs data, beginning with ADP employment tomorrow, jobless claims on Thursday and, of course, the Government Employment Situation on Friday. But for today, stocks stuck pretty close to the flatline as these summer sessions tend to just amble forward. The NASDAQ again outperformed, but was only higher by 0.19% (or about 27 points) to 14,528.33. That still makes five new records in the past six sessions, including the last two consecutively. The other major indices rallied in the morning on the data news, but then lost steam as the day progressed. The S&P only advanced 0.03% to 4291.80, but that was still enough for a fourth day in record territory. The Dow was up by 0.03% too (or about 9 points) to 34,292.29. Well, June 2021 is almost in the books with only one day to go. The monthly totals show the resurgence of tech in recent weeks, as the NASDAQ is up more than 5% so far this month. However, the Dow is actually in the red by less than 1% while the S&P makes up the middle with a rise of about 2%. Let’s see how June finishes up tomorrow. Today's Portfolio Highlights: Stocks Under $10: The portfolio had a position to fill this morning, so Brian added Entravision Communication Corp. (EVC). This broadcast radio and TV company is highly correlated with Univision and owns stations in 17 of the top 50 Hispanic markets. The company surpassed the Zacks Consensus Estimate for the past four consecutive quarters with an average beat of more than 70%. And rising earnings estimates have given EVC the status of Zacks Rank #2 (Buy). Furthermore, the valuation is looking pretty attractive for a company that reported topline growth of 131% in the most recent quarter with growth of 100% expected this year. Read the full write-up for more on this new addition. Surprise Trader: The semiconductor memory space is in the top 4% of the Zacks Industry Rank, so that’s where Dave went for today’s addition. He picked up Micron (MU), which is one of the biggest names in the field and will be reporting after the bell tomorrow. MU has beaten the Zacks Consensus Estimate for eight straight quarters now and has a positive Earnings ESP of 5.78% for the upcoming release. The editor added this Zacks Rank #2 (Buy) on Tuesday with a 12.5% allocation. But Dave really needs to make some room for earnings season, which is ‘right around the corner’. Therefore, he sold two names today, including Winnebago (WGO) for a 7.8% return in less than two weeks and NetApp (NTAP) for 4.8% in a little over a month. Read the full write-up for more on all of today’s action. Counterstrike: Even a strong quarterly report from KB Home (KBH) couldn’t stop shares of this homebuilder from sliding. It had already lost about 20% before announcing a positive earnings surprise of 16%. But Jeremy thinks its about to make a comeback, especially after finding support around its 200-day. The editor feels that KBH could bounce to $45 in the coming month, so he added the stock on Tuesday with a 4% allocation. Meanwhile, Facebook (FB) was the big story yesterday after a couple antitrust lawsuits were thrown out, prompting the social media pioneer’s market cap to surpass $1 Trillion. So now the targets have been hit and there’s been some pullback today. Jeremy needs to raise cash for the upcoming earnings season, so it was a good time to sell FB for a 13.9% return. Read the full write-up for more on today’s action. In other news, this portfolio had a top performer on Tuesday as Grayscale Bitcoin Trust (GBTC) rose 6.4%. Healthcare Innovators: This portfolio sure did dominate the top performers list on Tuesday with four of the top five positions. Those solid results came from Twist Bioscience (TWST, +6.6%), Dynavax Technologies (DVAX, +6.2%), Meridian Bioscience (VIVO, +5.4%) and Editas Medicine (EDIT, +4.8%). Options Trader: "It's been a relatively quiet week so far, with relatively small trading ranges. "Given that, I wouldn't be surprised to see some bigger moves as we head into the end of the week, which will be a 3-day holiday weekend as the markets are closed on Monday in observance of the 4th of July. "Volatility can go either way. And short-term moves are hard to predict. But with the improving economic outlook, and prospects for it to get even stronger, it looks like there's a lot more upside to go." -- Kevin Matras 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

Five-Day Rally Ends While Waiting for Big Tech Reports

Five-Day Rally Ends While Waiting for Big Tech Reports Stocks finally took a break after five days of gains on Tuesday as investors waited on a trio of big tech heavyweights to report after the bell. Meanwhile, the Fed’s two-day policy meeting began today. The NASDAQ saw the sharpest decline of 1.21% (or about 180 points) to 14,660.58. Shares of Alphabet (GOOG) dropped more than 2% in the session, while Apple (AAPL) was off 1.5% and Microsoft (MSFT) dipped almost 0.9%. These declines came as the market awaited their quarterly reports after the close. The S&P, which has a good amount of tech exposure as well, slipped 0.47% to 4401.46, while the Dow declined 0.24% (or about 85 points) to 35,058.52. These losses end a very impressive five-day winning streak for all the indices, which began after the sharp selloff on Monday, July 19 due to delta variant concerns. It also ended two consecutive sessions of closing highs.   We saw positive earnings data on Tuesday with rising consumer confidence in July and soaring home prices in May, while durable goods orders increased but fell short of expectations. However, investors were most interested with the upcoming tech reports, which all beat expectations on both the top and bottom lines. AAPL’s fiscal third quarter earnings beat the Zacks Consensus Estimate by 30% as revenues jumped 36% year over year. MSFT’s fiscal fourth quarter earnings beat by 14.2% as revenue for its Intelligent Cloud climbed 30%. And GOOG’s second quarter earnings topped 37% on total revenue growth of 62%. Unsurprisingly, though, the market’s being kind of a spoilsport, just like it was last earnings season. AAPL and MSFT are each off about 2% afterhours, as of this writing, while GOOG could only muster a 0.5% advance. The major tech name coming after the bell on Thursday is Facebook (FB). Other reports include Pfizer (PFE), Shopify (SHOP), McDonalds (MCD), Boeing (BA), and hundreds of others. Tomorrow may end up being the most consequential session of the week. Not only will we see how the market reacts to tonight’s three major reports, but we’ll also be hearing from Fed Chair Jerome Powell after the Committee concludes its two-day meeting. Will the delta variant impact their future plans, especially when it comes to tapering? We’ll see... Today's Portfolio Highlights: Stocks Under $10: With people finally being able to celebrate birthdays and other special events, it’s no wonder than Party City Holdco (PRTY) has caught Brian’s eye. Earnings estimates have moved higher for this year and next, which helped this party supplies company gain the enviable status of Zacks Rank #2 (Buy). The editor likes its valuation of 14x forward earnings multiple, especially for a company that posted topline growth of 3% last quarter with expectations for 11% this year. He also appreciates that margins have been improving by about 80 basis points in each of the last few quarters. Brian decided to buy the dip in PRTY on Tuesday, while also getting rid of Berry Corp. (BRY) after a downturn in the oil patch. Read the complete commentary for more specifics on today’s action. Meanwhile, Cassava Sciences (SAVA) was the best performer among all ZU names today with a rise of 6.3% and is also the biggest gainer in the past 30 days by surging 62.6%. Surprise Trader: Over the past four quarters, AdvanSix (ASIX) has topped the Zacks Consensus Estimate each time with an average beat of 45%. And now this chemicals company, which is a producer and supplier of Nylon 6 materials, has a positive Earnings ESP of 21.3% for the quarter coming before the bell on Friday, July 30. This Zacks Rank #1 (Strong Buy) also has a Zacks VGM Score of “A”. Dave thinks this stock is poised for another positive surprise, so he added ASIX on Tuesday with a 12.5% allocation while also selling Hancock Whitney (HWC) for a slight loss. Read the full write-up for more on today’s moves. Large-Cap Trader: We’re having a selloff in the last week of July, so John thought this was a good time for his turn-of-the-month portfolio changes. He sold Jabil (JBL) and NetApp (NTAP) for slight losses and then bought three large-cap growth stocks from a diverse set of attractive industries. The new buys are: • Laboratory Corp. of America (LH) – a leading global life sciences company • Lattice Semiconductor (LSCC) – developer of programmable logic devices • Regal Beloit (RBC) – maker of motion control and power generation products In addition to being major players in top-ranked industries, these companies are Zacks Rank #2s (Buys) that beat earnings estimates by double digits in their most recent quarterly reports. These companies also averaged double-digit surprises over the last four reports. The editor is putting 5% into each of these names. Make sure to read his complete commentary to learn a lot more about these new buys. Headline Trader: Shares of FedEx (FDX) sold off this morning in sympathy with its main competitor UPS (UPS), which announced slowing domestic volumes and pinching margins in its quarterly report today. However, Dan thinks the prospects of these two companies are different, despite the similarity of their business. UPS was at a massive valuation premium compared to its competitor, so this pullback seems justifiable. But the editor thinks FDX is ready for its “next leg higher as today’s sell-off pulls back the slingshot”. He thinks this is the perfect entry point to double down on his FDX position. Read the full write-up for more.   Zacks Short Sell List: This week's adjustment swapped out two positions. The short-covered stocks were Incyte (INCY, +3.3%) and StoneCo (STNE, +1.9%), while the new buys that filled these opened spots were GoodRx Holdings (GDRX) and Maxar Technologies (MAXR). Learn more about this emotion-free portfolio that takes advantage of falling and volatile markets by reading the Short Sell List Trader Guide. In other news, this portfolio had a top performer today as the short in Las Vegas Sands (LVS) rose nearly 4%. 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 Remained Hot in August

Stocks Remained Hot in August SPECIAL ALERT: The September episode of the Zacks Ultimate Strategy Session will be available for viewing no later than Thursday, September 9. Kevin Matras, Kevin Cook, Daniel Laboe, Dr. John Blank and Sheraz Mian will cover the investment landscape from several angles in this popular event. Don’t miss your chance to hear: ▪ Kevin Cook and John Agree to Disagree on where the S&P 500 will end in 2021 ▪ Kevin Matras answers your questions in Zacks Mailbag ▪ Sheraz and Daniel choose one portfolio to give feedback for improvement ▪ And much more Remember, we need your input. Please submit your questions for Zacks Mailbag and Portfolio Makeover by Thursday morning, September 2. Email now to mailbag@zacks.com. Then log on to Zacks.com and bookmark this page. The last day of August was certainly not representative of the full month. Stocks pulled back from record highs and finished in the red on Tuesday but were solidly higher over the past 31 days. The S&P climbed 2.9% for its seventh straight monthly gain, while the Dow managed to rise 1.2%. The biggest winner in August, though, was easily the NASDAQ, which soared 4% as investors were much kinder to the safe haven of tech as the delta variant complicated the recovery.   “For even greater perspective, since the pandemic lows in late March of last year (that’s 17 months), the S&P has been up in all but 3 of those months. That means the S&P has been up in 14 of the last 17 months. Pretty incredible,” said Kevin Matras in Options Trader. “And with the economy still growing, the jobs market still expanding, and with intertest rates still near zero (and likely to stay that way for the foreseeable future), it looks like there’s a lot more upside to go.” But for Tuesday, the S&P slipped 0.13% to 4522.68, while the Dow was off 0.11% (or about 39 points) to 35,360.73. The NASDAQ outperformed its counterparts like it did all month, but still finished in the red by 0.04% (or around 6 points) to 15,259.24. The S&P and NASDAQ had back-to-back record highs coming into the session and have been in the green for seven of the past nine days. Given such success during challenging times, it was no surprise to see stocks take a step back. Of course, it didn’t help that the Conference Board’s consumer confidence index slipped to 133.8 in August, which was well short of expectations at 123 and July’s print of 125.1. The data suggests that the delta variant and rising inflation are impacting consumer decisions. But this is a week full of economic data. The ISM manufacturing and construction spending reports are scheduled for tomorrow. And Wednesday also brings the ADP employment report, which is the precursor for the Government Employment Situation on Friday. Today's Portfolio Highlights: Stocks Under $10: A number of small-cap biotech names are starting to recover after slipping this summer. One of these rebounds is Flexion Therapeutics (FLXN), a specialty pharmaceutical company that develops and sells pain therapies. It has one approved drug called Zilretta to treat osteoarthritis pain in the knee. And they’re expanding the use of the drug to other areas of the body, such as the shoulders. FLXN also has other indications in the pipeline. Earnings estimates are on the rise, but the biotech is still not making money yet. However, revenue growth was 82% year over year in the most recent quarter, while price to sales of 2.8x is pretty low for an early stage biotech. Read the full write-up for more. In other news, this portfolio had two of the best performers among all ZU names today as GT Biopharma (GTBP) rose 6.1% and Cross Country Healthcare (CCRN) advanced 5.1%. Surprise Trader: Buying a property is one thing, but maintaining it is something completely different. That’s where a company like ABM Industries (ABM) comes in. This Zacks Rank #2 (Buy) provides integrated facility solutions, such as janitorial, energy, electrical & lighting, landscape & turf, HVAC and even parking, among many other services. It has beaten the Zacks Consensus Estimate in three of the past four quarters, and now has a positive Earnings ESP of 2.7% for its next report after the bell on Wednesday, September 9. Dave added ABM on Tuesday with a 12.5% allocation, while also selling Abercrombie & Fitch (ANF). See the complete commentary for more on today’s action. Insider Trader: It’s been less than a week since Digital Turbine (APPS) was added to the portfolio, but this provider of products and solutions to mobile operators is already a top mover. The stock was easily the best performer among all ZU names on Tuesday by climbing more than 14% after news that it would join the S&P MidCap 400 index. Tracey picked up APPS last Friday after three directors added during August.   Zacks Short Sell List: The portfolio cashed in a double-digit winner on Tuesday while swapping out three positions for this week's adjustment. The stocks that were short-covered today included: • Peloton (PTON, +16.6%) • Autodesk (ADSK, +4.8%) • The AZEK Co. (AZEK) The new buys that replaced these names were: • Intuit (INTU) • JD.com (JD) • StoneCo (STNE) Learn more about this emotion-free portfolio that takes advantage of falling and volatile markets by reading the Short Sell List Trader Guide. Headline Trader: "We are entering the historically weakest month of the year for investments. The S&P 500 has, on average, surrendered about 0.7% of its value in September over the past 4 decades of trading (2019 was no exception with a 4.2% drop). "This doesn't mean that we are guaranteed to lose ground in this upcoming month, but it does raise the odds of a broader market decline. Market participants have been trading on self-fulfilling prophecies since the pandemic began, but will September mark a deviation from this trend?" -- Dan Laboe See You in September, 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 slip as consumer confidence comes up short

U.S. equity markets slid Tuesday following a disappointing consumer confidence reading and mixed housing data......»»

Category: topSource: foxnewsMay 25th, 2021

Gold futures mark lowest finish in over 6 weeks

Gold futures moved sharply lower on Thursday to log their lowest finish in more than six weeks. The loss is "related to a combination of factors centered around investor confidence improving and fear easing," said Colin Cieszynski, chief market strategist at SIA Wealth Management. So far, China property giant Evergrande's problems have been contained, the Federal Reserve is moving toward tapering and at the Bank of England's monetary policy committee vote, there were two "hawkish dissenters" calling for reducing stimulus as well, he said. "A more hawkish trend for central banks improves the value of paper money relative to hard currency like gold." December gold fell $29, or 1.6%, to settle at $1,749.80 an ounce, the lowest most-active contract finish since Aug. 10, FactSet data show.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news......»»

Category: topSource: marketwatch1 min. ago

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: zacks28 min. ago

Fed Gives Bond-Buy Tapering Signal Without Timeline: 5 Picks

We have narrowed down our search to five U.S. corporate behemoths that have strong growth potential for the rest of 2021. These are: AAPL, MSFT, NVDA, DHR and COST. On Sep 22, Wall Street closed sharply higher ending its 4-day losing streak and recouped some of the losses it has suffered in September. The three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — rallied 1% each, while the small-cap-centric Russell 2000 surged 1.5%.U.S. stock markets rebounded following Fed Chairman Jerome Powell’s confirmation that a shift from the central bank’s ultra-dovish monetary policy is not immediate. The Fed will maintain its monetary stimulus and stick to a near-zero short-term benchmark interest rate at least for the time being.Powell Maintains Dovish StanceIn his statement after the conclusion of the two-day FOMC meeting, Fed Chairman Jerome Powell said “If progress continues broadly as expected, the Committee judges that a moderation in the pace of asset purchases may soon be warranted.”Fed Chairman made the point that it is “more important to do it right than fast.” “While no decisions were made, participants generally viewed that so long as the recovery remains on track, a gradual tapering process that concludes around the middle of next year is likely to be appropriate,” he said.Powell said that the central bank’s further progress test has been met regarding its inflation target. He added “My own view is the test for substantial further progress on employment is all but met.” However, Powell made it clear “For me it wouldn’t take a knockout, great, super strong employment report. It would take a reasonably good employment report for me to feel like that test is met.”Fed’s latest dot plot for rate projection is showing nine out of18 members believing that the first rate cut will come in the second half of 2022. This number was just seven after June’s FOMC meeting. However, Powell had commented in June that dot plots should be taken with a “big grain of salt.” It is “not a great forecaster of future rate moves." Fed's policy will be guided by the actual outcome of economic variables and not by its officials' expectations about the future.Tapering Likely Priced in Market ValuationThe Fed Chairman has said repeatedly that the central bank will give enough indication to market participants before it actually starts tapering in order to minimize volatility.Although the Fed has restrained from providing any timeline as to when the tapering of the monthly $120 billion bond-buy program will start, many economists and financial researchers believe that the announcement will come in the next FOMC meeting in November and the process will start from December.Despite this, yesterday’s rally indicates that the impact of tapering seems already factored in market valuations. The central bank had taken this extraordinary measure last year to tackle an extraordinary health hazard-led economic devastation. Everyone knows that this monetary stimulus will fade out gradually with the pace of U.S. economic recovery.Therefore, a possible tapering of the Fed’s monthly $80 billion Treasury Notes and $40 billion mortgage-backed bond-buying program this year may not shake market participants’ confidence. The important point is that the Fed has taken an extremely cautious approach to tapering its quantitative easing program.Stock Selection CriteriaAt this stage, it will be prudent to invest in stocks of U.S. corporate behemoths (market capital > $100 billion) that have performed better than the market’s benchmark — the S&P 500 Index — in the past month, amid September’s volatility.The stocks must carry a favorable Zacks Rank. These companies have highly established business models spread across the world, lucrative product pipelines, globally acclaimed brand recognition and robust financial positions, which will help them to cope with a higher interest rate.Accordingly, we have narrowed down our search to five U.S. corporate behemoths that have strong growth potential for the rest of 2021. These stocks have seen positive earnings estimate revisions in the last 60 days. Each of our picks carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The chart below shows the price performance of our five picks in the past month.Image Source: Zacks Investment ResearchApple Inc.'s AAPL Services and Wearables businesses are expected to drive top-line growth in fiscal 2021 and beyond. Although Apple’s business primarily runs around its flagship iPhone, the Services portfolio has emerged as the company’s new cash cow. Its focus on autonomous vehicles and augmented reality/virtual reality technologies presents growth opportunities in the long haul.This Zacks Rank #1 company has an expected earnings growth rate of 2.2% for next year (ending September 2022) after estimated 70.4% growth in the current year (ending September 2021). The Zacks Consensus Estimate for next year improved 6.3% over the last 60 days.Microsoft Corp. MSFT is introducing new and improved Surface devices that could encourage enterprises to stick with Windows as they move toward BYOD and cloud computing. Microsoft’s advantages in this respect are two-fold.First, the company has a very large installed base of Office users. Most legacy data are based on Office, so enterprises are usually reluctant to use other productivity solutions. Second, the BYOD model is dependent on security and cloud integration, both of which are Microsoft’s strengths.This Zacks Rank#2 company has an expected earnings growth rate of 8.4% for the current year (ending June 2022). The Zacks Consensus Estimate for current-year earnings improved 3.7% over the last 60 days.NVIDIA Corp. NVDA is benefiting from the coronavirus-induced work-from-home and learn-at-home wave. It is also benefiting from strong growth in GeForce desktop and notebook GPUs, which are boosting gaming revenues.Moreover, a surge in Hyperscale demand remains a tailwind for the company’s Data Center business. The expansion of NVIDIA GeForce NOW is expected to drive its user base. Further, a solid uptake of artificial intelligence-based smart cockpit infotainment solutions is a boon.This Zacks Rank #2 company has an expected earnings growth rate of 68% for the current year (ending January 2022). The Zacks Consensus Estimate for current-year earnings has improved 5.8% over the last 60 days.Danaher Corp. DHR is poised to gain from Danaher Business System (“DBS”), the policy of rewarding shareholders through dividend payments, synergistic benefits from acquired assets and investment in product innovation in the quarters ahead.The company anticipates core revenue growth in the mid to high-teens range for the third quarter of 2021 and in the high-teens for 2021. The pandemic-led tailwinds are expected to boost core sales by high-single digits in the third quarter and by 10% in 2021.This Zacks Rank #2 company has an expected earnings growth rate of 50.4% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 1% over the last 30 days.Costco Wholesale Corp. COST operates membership warehouses in the United States, Puerto Rico, Canada, the United Kingdom, Mexico, Japan, Korea, Australia, Spain, France, Iceland, China, and Taiwan. It offers branded and private-label products in a range of merchandise categories.Its growth strategies, better price management, decent membership trend and increasing penetration of e-commerce business reinforce its position. The strategy to sell products at discounted prices has helped to draw customers seeking both value and convenience. These factors have been aiding in registering impressive sales numbers.This Zacks Rank #2 company has an expected earnings growth rate of 7.9% for the current year (ending August 2022). The Zacks Consensus Estimate for current-year earnings has improved 1.1% over the last 30 days. 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 Apple Inc. (AAPL): Free Stock Analysis Report Microsoft Corporation (MSFT): Free Stock Analysis Report Danaher Corporation (DHR): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report Costco Wholesale Corporation (COST): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacks1 hr. 44 min. ago

5 Stocks to Watch as EV Adoption Revs Up

EV adoption has witnessed significant growth this year. Thus, investors should keep an eye on Nikola (NKLA), Hyliion (HYLN), Tesla (TSLA), Ford (F) & General Motors (GM). Electric vehicles (EV) are rapidly gaining in terms of reliability and a way to reduce the global carbon footprint. Longest-lasting, farthest-driving and affordable batteries are the key parameters of the race in the EV market.The automobile industry is moving toward electrification and the U.S. government is providing aid through the promotion of EV infrastructure and consumer rebates. Regardless of the government’s boost and the infrastructure bill scheduled to be passed on Sep 27, the industry is poised to witness tremendous growth.Consumer enthusiasm has been a key to EV growth, as can be seen from the boom in sales. In the first quarter of 2021, global EV sales surged 160% from the same quarter last year to 2.6 million units, according to a report by Canalys. Sales have been spectacular despite several supply-side constraints, especially the pandemic and chip shortage.China is the largest EV market while Europe has the highest EV adoption, with Norway leading with more than 80% of new car sales. Meanwhile, the United States is trying to catch up and the Biden administration hopes 40% to 50% of all new cars sales to be EVs by 2030.Recent technological developments are also boosting the EV space, starting from carmakers to battery producers and charging networks. In fact, batteries are the linchpin of any EV and this segment has especially witnessed exponential growth. Companies like Hyliion Holdings Corp. HYLN are developing electric powertrains that are compatible with renewable natural gas and hydrogen fuel cells. Meanwhile, QuantumScape announced a major breakthrough in solid-state lithium metal batteries that can totally change the way consumers view EVs.The EV market has also created several niches like battery recycling and disposal of old batteries. Companies like Li-Cycle Holdings, founded only in 2016, estimates that the EV industry will produce more than 15 million tons of discarded lithium-ion batteries by 2030. Li-Cycle, a battery recycling firm, plans to capture this segment by offering an outlet for used batteries and a sustainable source for materials to be used in recycled batteries. It aims to recover usable materials from thrown-away batteries and touts that up to 95% of the battery materials can be processed for recovery, which in turn will reduce waste.Automobile bigwigs are also investing millions into EVs. On Sep 22, Ford Motor Company F reported that it is investing $50 million in Redwood Materials to recycle EV batteries. Redwood, which is well known for recycling batteries for e-bike, will expand its manufacturing facilities and cater to make EVs more sustainable and affordable. This deal is part of the $22-billion plan that Ford earlier announced to up its game in the EV market. The company also has the Mach-E, the e-Transit commercial van, and an electric F-150 line-up, set to be launched this year and the next.5 Stocks to WatchGlobal administration bodies are increasing regulations to phase out fossil fuel-powered vehicles and promoting EV infrastructure. Additionally, the decline in the cost of batteries and the luxury that EVs provide are also attracting buyers. Per a Meticulous Market Research forecast, the global EV market is expected to reach $2.5 trillion by 2027, at a CAGR of 33.6% from 2020. The company estimates the sale of 233.9 million units by 2027, at a CAGR of 21.7%.Given the positives, we have shortlisted five stocks covering EV manufacturers (pure-play & traditional), battery makers and charging networks that are poised to grow and investors should look out for.Nikola Corporation NKLA develops and commercializes battery-electric (BEV) and fuel cell electric (FCEV) Class 8 trucks for the short, medium, and long-haul trucking sector and also offers hydrogen EVs, EV drivetrains, vehicle components, and energy storage systems. Earlier in September, Nikola inaugurated a joint-venture manufacturing facility with CNH Industrial dedicated to the development of the Nikola Tre electric heavy-duty trucks.The company’s expected earnings growth rate for the current quarter is 16.1% against the Zacks Automotive - Domestic industry’s projected decline of 48.7%. The Zacks Consensus Estimate for this company’s current-year earnings has been revised 18.5% upward over the past 60 days. Nikola currently holds a Zack Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Hyliion Holdings designs, develops, and sells electrified powertrain solutions and also provides battery management systems for hybrid and fully EV applications. This Zack Rank #2 company that belongs to the Zacks Automotive - Original Equipment industry has an expected earnings growth rate of 50% for the current quarter. The Zacks Consensus Estimate for this company’s current-year earnings has been revised 9.4% upward over the past 60 days.Tesla, Inc. TSLA designs, develops, manufactures, leases, and sells electric vehicles, and energy generation and storage systems.The company’s expected earnings growth rate for the current year is more than 100% compared with the Zacks Automotive - Domestic industry’s projected growth of 15.2%. The Zacks Consensus Estimate for this company’s current-year earnings has been revised 19.1% upward over the past 60 days. Tesla carries a Zack Rank #3 (Hold).Ford, a Zack Rank #3 company, designs, manufactures, markets, and services a range of Ford trucks, cars, sport utility vehicles, electrified vehicles, and Lincoln luxury vehicles. The company plans to add F-150 Lightning with four series and two battery options to the range of Mustang Mach-E catalog by spring 2022.The auto giant has an expected earnings growth rate for the current year of more than 100% compared with the Zacks Automotive - Domestic industry’s projected growth of 15.2%. The Zacks Consensus Estimate for this company’s current-year earnings has been revised 28.2% upward over the past 60 days.General Motors Company GM designs, builds, and sells cars, trucks, crossovers, and automobile parts. The company recently unveiled the Cadillac LYRIQ show car and the GMC HUMMER EV, which joined the Chevrolet Bolt EV, and is currently on the market. The auto giant will invest $27 billion in EVs and associated products between 2020 and 2025.This Zack Rank #3 company’s expected earnings growth rate for the current year is 25.7% compared with the Zacks Automotive - Domestic industry’s projected growth of 15.2%. The Zacks Consensus Estimate for this company’s current-year earnings has been revised 0.7% upward over the past 90 days. 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 Ford Motor Company (F): Free Stock Analysis Report General Motors Company (GM): Free Stock Analysis Report Tesla, Inc. (TSLA): Free Stock Analysis Report Nikola Corporation (NKLA): Free Stock Analysis Report Hyliion Holdings Corp. (HYLN): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacks1 hr. 44 min. ago

Why Sohu.com (SOHU) is a Top Value Stock for the Long-Term

The Zacks Style Scores offers investors a way to easily find top-rated stocks based on their investing style. Here's why you should take advantage. It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.Zacks Premium includes access to the Zacks Style Scores as well.What are the Zacks Style Scores?The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.The Style Scores are broken down into four categories:Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.How Style Scores Work with the Zacks RankThe Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.#1 (Strong Buy) stocks have produced an unmatched +25.41% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.That's where the Style Scores come in.To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.Stock to Watch: Sohu.com (SOHU)Sohu.com is a leading provider of online advertising, media and gaming services in China. The company reported revenues of $749.9 million in 2020.SOHU is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 9; value investors should take notice.One analysts revised their earnings estimate upwards in the last 60 days for fiscal 2021. The Zacks Consensus Estimate has increased $1.78 to $2.43 per share. SOHU boasts an average earnings surprise of 211.2%.With a solid Zacks Rank and top-tier Value and VGM Style Scores, SOHU should be on investors' short list. 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 Sohu.com Inc. (SOHU): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacks1 hr. 44 min. ago

TotalEnergies SE Sponsored ADR (TTE) is a Top-Ranked Momentum Stock: Should You Buy?

The Zacks Style Scores offers investors a way to easily find top-rated stocks based on their investing style. Here's why you should take advantage. Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.Zacks Premium includes access to the Zacks Style Scores as well.What are the Zacks Style Scores?The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.The Style Scores are broken down into four categories:Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.How Style Scores Work with the Zacks RankThe Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +25.41% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.That's where the Style Scores come in.To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.Stock to Watch: TotalEnergies SE Sponsored ADR (TTE)France-based TotalEnergies SE is among the top five publicly traded global integrated oil and gas companies based on production volumes, proved reserves and market capitalization. The company has operations in more than 130 countries across five continents. The company was founded in 1924. The company has changed its name from TOTAL SE to TotalEnergies SE, which better reflects its transition toward a broad energy company. The new trading symbol of the company is TTE.TTE is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.Momentum investors should take note of this Oils-Energy stock. TTE has a Momentum Style Score of A, and shares are up 3.3% over the past four weeks.Four analysts revised their earnings estimate upwards in the last 60 days for fiscal 2021. The Zacks Consensus Estimate has increased $0.42 to $5.35 per share. TTE boasts an average earnings surprise of 75.4%.With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, TTE should be on investors' short list. 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 TotalEnergies SE Sponsored ADR (TTE): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacks1 hr. 44 min. ago

Workday (WDAY) is a Top-Ranked Momentum Stock: Should You Buy?

The Zacks Style Scores offers investors a way to easily find top-rated stocks based on their investing style. Here's why you should take advantage. Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.Zacks Premium includes access to the Zacks Style Scores as well.What are the Zacks Style Scores?The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.The Style Scores are broken down into four categories:Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.How Style Scores Work with the Zacks RankThe Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +25.41% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.That's where the Style Scores come in.To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.Stock to Watch: Workday (WDAY)Founded in 2005 and headquartered in Pleasanton, CA, Workday Inc. (WDAY) is a provider of enterprise-level software solutions for financial management and human resource domains. The company’s cloud-based platform combines finance and HR in a single system that makes it easier for organizations to provide analytical insights and decision support.WDAY is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.Momentum investors should take note of this Computer and Technology stock. WDAY has a Momentum Style Score of A, and shares are up 10% over the past four weeks.27 analysts revised their earnings estimate upwards in the last 60 days for fiscal 2022. The Zacks Consensus Estimate has increased $0.67 to $3.60 per share. WDAY boasts an average earnings surprise of 34.5%.With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, WDAY should be on investors' short list. 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 Workday, Inc. (WDAY): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacks1 hr. 44 min. ago

Tenneco (TEN) is a Top-Ranked Growth Stock: Should You Buy?

The Zacks Style Scores offers investors a way to easily find top-rated stocks based on their investing style. Here's why you should take advantage. Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.Zacks Premium includes access to the Zacks Style Scores as well.What are the Zacks Style Scores?The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.The Style Scores are broken down into four categories:Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.How Style Scores Work with the Zacks RankThe Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +25.41% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.That's where the Style Scores come in.To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.Stock to Watch: Tenneco (TEN)Tenneco Inc., headquartered in Lake Forest, IL, is a leading designer, manufacturer and supplier of clean air, powertrain and ride performance products and systems caters to light vehicle, commercial truck, off-highway, industrial and aftermarket customers. The company’s products can be used in light vehicle, commercial truck, off-highway, industrial and aftermarket customers. Few of Tenneco’s brands are- Monroe, Champion, Ohlins, MOOG, Walker, Fel-Pro, Wagner, Ferodo, Rancho, Thrush, National, and Sealed Power, among others.TEN is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.Additionally, the company could be a top pick for growth investors. TEN has a Growth Style Score of B, forecasting year-over-year earnings growth of 902.3% for the current fiscal year.Two analysts revised their earnings estimate upwards in the last 60 days for fiscal 2021. The Zacks Consensus Estimate has increased -$0.16 to $3.53 per share. TEN boasts an average earnings surprise of 23.5%.With a solid Zacks Rank and top-tier Growth and VGM Style Scores, TEN should be on investors' short list. 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 Tenneco Inc. (TEN): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacks1 hr. 44 min. ago

Carnival to have over half of its cruise ships sailing again by the end of October

Shares of Carnival Corp. climbed 2.1% in premarket trading Thursday, after the cruise operator said it expects to have more than 50% of its cruise capacity operating by the end of October. The company said it also targets 65% of capacity returning to operation by the end of the year. The company said to date, eight of its nine cruise brands have resumed sailings, and those eight brands have announced that they will be operating 42 ships by the end of October, which is more than half of Carnival's global fleet capacity. "Based on our initial restart of guest cruise operations across eight brands, it is clear from our guests that there is tremendous confidence in our brands, our health and safety protocols, and the return of cruising as one of the world's most popular vacations," said Chief Communications Officer Roger Frizzell. Carnival's stock has dropped 16.1% over the past three months through Wednesday, while the S&P 500 has gained 3.6%.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news......»»

Category: topSource: marketwatch2 hr. 28 min. ago