Thursday, July 29

US stocks

delta variant, Dow Jones, earnings beat, inflation, Markets, MI Exclusive, Q2 earnings, quarterly earnings, s&p 500, S&P 500 forecast, US stocks, Weekend BI UK

The S&P 500 is on track for the best quarterly earnings growth since 2009 as companies smash expectations

LoadingSomething is loading. S&P 500 companies are on track for the best earnings growth since 2009, with companies smashing estimates as the US economy bounces back to life from COVID-19 lockdowns.The strong quarter is helping support stocks despite high equity prices, rising inflation, and the threat of the delta coronavirus variant.Earnings for S&P 500 companies are expected to grow 78.1% year-on-year in the second quarter, according to...
European Stocks, Investing Strategy, Markets, MI Exclusive, Reflation Trade, s&p 500, Stoxx 600, US stocks, Wall Street

Wall Street says European stocks offer the best opportunity to lock in gains as the US rally cools

The European recovery has much further to run, strategists said. Michael Gottschalk/Getty Images Wall Street firms are increasingly keen on European stocks, as many expect the rapid US rally to slow. Strategists say Europe's economy still has further to rebound and that its stocks are cheap. They also say the continent has plenty of cyclical stocks that do better when growth and inflation rise. Sign up here for our daily newsletter, 10 Things Before the Opening Bell. Wall Street strategists have zeroed in on European stocks as the place to realize chunky gains in the coming year, as the red-hot rally in US equities cools.Morgan Stanley, BlackRock, Nuveen and JPMorgan Asset Management are just some of the financial firms that have said Europe is the place to be for investors, give...
inflation, inflation and stocks, Markets, MI Exclusive, Reflation Trade, s&p 500, S&P 500 forecast, Stock Market Outlook, US stocks

Wall Street analysts expect the S&P 500 to rise 10% over the next year as the reflation trade picks up pace

The S&P 500 has rebounded sharply from its pandemic-induced plunge in 2020. Spencer Platt/Getty Images The S&P 500 has rallied sharply over the last year to hit repeated record highs-but Wall Street analysts are backing the benchmark US stock index to continue its ascent.Industry analysts on average expect the S&P 500 to rise 9.6% from Monday's closing price of 4,384.6 over the next 12 months to hit 4,803.6, according to data compiled by FactSet.A 9.6% rise would be considerably slower than the 37% increase the S&P 500 has experienced over the last 12 months. But it would nonetheless represent a solid gain at a time when some investors are questioning whether US stocks can continue their stellar rally.FactSet, a data company which aggregates industry forecasts, said analysts expe...
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US stock futures tumble as investors fret about economic recovery, while bond yields slide for 8th straight day

Investors have become more cautious about US stocks in recent weeks. Johannes Eisele/Getty Images US futures tumbled in European trading on Thursday as investors reassessed the economic outlook. Bond yields, which move inversely to prices, also fell as investors took cover in the safe assets. Investors are concerned about the delta COVID-19 variant and central bank policy, analysts said. Sign up here for our daily newsletter, 10 Things Before the Opening Bell. US stock futures fell sharply on Thursday, as doubts crept in about the strength of the global economic recovery, and concerns grew about the delta coronavirus variant.Meanwhile, bond yields fell for the eighth session in a row as investors bet that inflation would be weaker than previously expected.S&P 500 futures fell 1% ...
BlackRock Investment Institute, equity markets, European Stocks, Japanese Stocks, Markets, MI Exclusive, reopening stocks, stock markets, Tech stocks, US Stock Market, US stocks, Vaccinations

BlackRock cuts outlook for US stocks to neutral as the reopening trade shifts to Europe and Japan

The reopening of economies after the worst of COVID-19 should boost European and Japanese stocks this year. REUTERS/Charles Platiau BlackRock Investment Institute said Wednesday it has cut its outlook on US stocks to neutral from overweight. BlackRock's strategists upgrade European and Japanese stocks which they see benefitting from a wider reopening of economies from the COVID-19 crisis. Strategists remain overweight on US small-caps. See more stories on Insider's business page. BlackRock strategists have switched to a neutral stance on US stocks while upgrading their views on European and Japanese equities, which they see as growing beneficiaries from the further reopenings of economies shut down by the COVID-19 crisis. BlackRock Investment Institute outlined, among other i...
JPMorgan, JPMorgan Asset Management, Markets, MI Exclusive, Reflation Trade, reopening, reopening trade, Rotation to value, Stock Market Outlook, US stocks, value stocks

The rotation into value stocks will get a new lease of life as the US economy booms, JPMorgan strategist says

The US economy is booming as Americans spend built-up savings. Noam Galai/Getty Images The rotation into value stocks should pick up pace again as the US economy roars, a JPMorgan strategist said. Hugh Gimber said Americans with built-up savings should benefit banks and consumer-focused companies. The so-called reflation trade has paused in recent days after the Fed appeared to shift its stance. Sign up here for our daily newsletter, 10 Things Before the Opening Bell. The rotation into so-called value stocks in the US has further to run as rapid economic growth pushes up bond yields, a JPMorgan strategist has said, despite signs that the trade has cooled in recent days.Hugh Gimber, JPMorgan Asset Management's global market strategist, told Insider that companies in the financial ...
Bond Yields, Goldman Sachs, inflation, Markets, MI Exclusive, s&p 500, Stock Market Outlook, US stocks

Goldman Sachs says a surge in bond yields could knock the S&P 500 down 17% this year, as it imagines surprise scenarios

Goldman Sachs analysts looked into possible risks to US stocks. Ramin Talaie/Getty Images A surge in bond yields could cause the S&P 500 to tumble 17% from its current level, according to a Goldman Sachs research note looking into factors that could cause the benchmark index to rise or fall more than expected.Goldman analysts, led by chief US equity strategist David Kostin, said a sharp rise in the 10-year US Treasury yield to 2.5% by the end of the year would weigh on stock prices by making companies' dividends look less attractive.Such a jump in yields would imply a fair value for the S&P 500 of just 3,550, Goldman said-around 17% below Monday's closing price of 4,290.61.Yet Goldman and the rest of the market believe bond yields are very unlikely to rise that far. Such a jump w...
Bond Yields, Fed inflation outlook, Federal Reserve, HSBC, inflation, Markets, MI Exclusive, s&p 500, Stock Market Outlook, US stocks

The Fed has created a ‘Goldilocks’ environment that will push stocks higher, top HSBC investment strategist says

The Fed has said strong inflation will prove transitory. Liu Jie/Xinhua/Getty Images The Fed has created a "Goldilocks" scenario in which stocks should keep rising, Willem Sels said. The HSBC Private Banking investment boss said inflation and rising bond yields should prove transitory. He said he was seeking a balance between growth and value stocks as the recovery continues. Sign up here for our daily newsletter, 10 Things Before the Opening Bell. The Federal Reserve has created a "Goldilocks" environment in which inflation should stay under control and stocks can keep rising, the chief investment officer at HSBC Private Banking and Wealth Management has said.Willem Sels said he believed the Fed had struck the right balance between keeping monetary policy loose and signaling tha...
Bond Yields, Dow Jones, infrastructure bill, Joe Biden, Markets, MI Exclusive, NASDAQ, oil prices, s&p 500, ukmarketwrap, US stocks

S&P 500 and Nasdaq futures hover near record highs after Joe Biden strikes $1 trillion infrastructure deal, while oil prices rise

President Joe Biden (right) reached a deal with Republicans on infrastructure. Jacquelyn Martin/AP S&P 500 futures hovered near a record high on Friday after President Joe Biden struck a deal with Republicans on a $1 trillion infrastructure deal, which includes $579 billion of new spending.Futures for the benchmark S&P 500 were up 0.05%, while Nasdaq 100 futures rose 0.04%, after both indices hit a record high on Thursday. Dow Jones futures rose 0.26%, with industrial firms more likely to benefit from infrastructure spending.In Asia overnight, China's CSI 300 jumped 1.63% while Japan's Nikkei 225 climbed 0.66%. In Europe, the Stoxx 600 index slipped 0.09% in early trading.President Biden's deal would see over $1 trillion spent on upgrading the US's infrastructure over the next ei...
Bank of England, bitcoin price, Dow Jones, Federal Reserve Bank, Markets, MI Exclusive, NASDAQ, oil prices, s&p 500, Stock Market Today, ukmarketwrap, US stocks, weekly jobless claims

US futures rise ahead of jobless claims and Fed speeches, while oil extends rally as outlook brightens

US stock index futures climbed on Thursday as investors awaited the release of weekly jobless claims data and prepared to digest a series of speeches from Federal Reserve officials.Meanwhile, oil prices extended their rally as the outlook for the global economy brightened, with vaccine rollouts spurring expectations of strong demand for energy in the coming months. Oil is on course for a third straight monthly gain in June. In Europe, stocks rose ahead of the Bank of England's interest rate decision. It is expected to leave monetary policy on hold but investors will scrutinize the decision for signs of concerns about inflation, which jumped abo...