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☆ Cryptocurrencies rise, sending bitcoin over $30,000 at one point, on optimism for a new ETF
▼ + stars: | 2023-10-16 | by ( Tanaya Macheel | ) www.cnbc.com time to read: +3 min

At one point Monday morning, bitcoin surged above $30,000 in a sudden spike on an unconfirmed report that the iShares spot bitcoin ETF had been formally approved by the Securities and Exchange Commission. Cryptocurrencies briefly soared to start the week as hopeful investors weighed the likelihood that the U.S. will finally see a bitcoin ETF in the coming months. Last week, bitcoin had jumped on Friday on news that the SEC would not appeal a ruling in Grayscale's lawsuit against regulators. In June of 2022, Grayscale sued the SEC over its denial of the company's application to convert the popular Grayscale Bitcoin Trust (GBTC) to an ETF. To be sure, bitcoin is coming off its worst week since Aug. 18 and first negative week in six.

Persons: bitcoin, Cryptocurrencies, rehearing, Paul Tudor Jones, Bernstein, Ripple's, —, Jesse Pound, Nick Wells, John Melloy Organizations: Securities and Exchange Commission, BlackRock, CNBC, SEC, Metrics, Appeals, Smart Locations: U.S

☆ The stock market has entered its worst 10-day stretch of the year historically
▼ + stars: | 2023-09-19 | by ( John Melloy | ) www.cnbc.com time to read: +1 min

The stock market on Monday entered what historically is its worst seasonal stretch of days of the year, according to Bank of America. So far, the S & P 500 is true to form, down about 0.6% this week. There is also a slew of worker stoppages affecting the economy, along with higher oil prices and a looming government shutdown troubling investors. The S & P 500 was already in the red for the first part of September and Suttmeier noted that doesn't make this stretch a buying opportunity. For example, the market benchmark around 4,425 today is still well above its 200-week moving average of 3,914, so it's still in a "secularly bullish" trend, according to Suttmeier.

Persons: Stephen Suttmeier, Goldman Sachs, Suttmeier, — CNBC's Michael Bloom Organizations: Bank of America

☆ This internet stock nearly cut in half this year is ready for a big comeback, Wolfe Research says
▼ + stars: | 2023-09-14 | by ( John Melloy | ) www.cnbc.com time to read: +1 min

Wolfe Research upgraded shares of Etsy , saying the one-time pandemic darling down nearly 50% this year is ready for a sizeable comeback. The firm raised its rating on Etsy to outperform from peer perform and set a $100 price target, representing more than 54% upside over the next 12 months. ETSY 5Y mountain Etsy - 5 years Etsy shares are down 46% so far in 2023 and about 80% from their pandemic high as inflation crimped consumers' wallets and investors dumped growth stocks in the wake of higher interest rates. Wolfe gave three reasons why the stock could rebound: a recovery in consumer spending with the improving economy, margin improvement potential and a better focus on its core franchise. "Our scenario analysis suggests that there are several paths for ETSY to reach over $850m in EBITDA in FY24," the note stated.

Persons: Wolfe, Deepak Mathivanan Organizations: Wolfe Research Locations: EBITDA

☆ Buy this warehouse club retailer with younger and wealthier customers than Costco, says TD Cowen
▼ + stars: | 2023-09-14 | by ( John Melloy | ) www.cnbc.com time to read: +1 min

Shares of BJ's Wholesale Club are ready to make a comeback against rival Costco, according to TD Cowen. "We like BJ's wholistic approach to club membership engagement which incorporates digital analytics & a complete basket value proposition with strong appeal to a younger demographic," analyst Oliver Chen wrote in a note Thursday. But Chen sees BJ's catching up as it leverages its customer base, grows stores and takes some market share. The average BJ's customer is 43 years old with a $104,000 income, compared to an average age of 45 years old and income of $103,000 for the typical Costco customer, according to TD Cowen. To be sure, TD Cowen is bullish on Costco as well, rating the warehouse competitor outperform and seeing it as a top pick in the sector.

Persons: TD Cowen, Oliver Chen, Chen, BJ Organizations: BJ's Wholesale, Costco

☆ The company with the ticker 'AI' doesn't appear to be benefiting from AI boom, Bank of America says
▼ + stars: | 2023-09-07 | by ( Alex Harring | ) www.cnbc.com time to read: +2 min

"Results do not suggest that C3 is benefiting from growing demand for AI," analyst Brad Sills said of the company, which trades under the ticker AI. AI is the hottest trend going in the stock market with chipmaker Nvidia leading the way, up more than 200% this year. But it only reaffirmed its full-year revenue guidance, which to Sills "does not suggest C3 benefiting from AI tailwinds." "Following the release of ChatGPT in November of 2022, we're seeing a dramatic increase in demand for enterprise AI adoption," he said on the call. "In Q1, we experienced strong traction with our enterprise AI applications and especially strong traction with C3 Generative AI."

Persons: Brad Sills, Sills, Thomas Siebel, — CNBC's Michael Bloom, John Melloy Organizations: Bank of, Nvidia, LSEG, Bank of America Locations: Wednesday's

☆ Goldman Sachs cuts recession odds to just 15%, says a September Fed hike is 'off the table'
▼ + stars: | 2023-09-05 | by ( John Melloy | ) www.cnbc.com time to read: +2 min

We view Chair Powell's promise at Jackson Hole to 'proceed carefully' as a signal that a September hike is off the table and the hurdle for a November hike is significant." "On net, our confidence that the Fed is done raising rates has grown in the past month," added Hatzius. Goldman also said taking out certain distortions shows underlying inflation may already be close to the Fed's 2% desired target. Goldman doesn't believe the Fed will start cutting rates anytime soon, in part because the firm sees the economy remaining strong. Hatzius said the Fed would begin "very gradual" rate cuts starting in the second quarter of next year.

Persons: Goldman Sachs, Jan Hatzius, Jackson, Nonfarm, Hatzius, Goldman, Goldman doesn't, — CNBC's Michael Bloom Organizations: Fed, Bloomberg Locations: U.S

☆ Tenbagger stocks that have more upside ahead
▼ + stars: | 2023-09-02 | by ( Alex Harring | ) www.cnbc.com time to read: +2 min

There is just a handful of stocks that have sizeable upside expectations ahead after seeing a more than 1,000% compound return over the last decade. We then looked for stocks where there is more upside potentially ahead. These names also have average analyst price targets implying an upside of at least 20%. The average upside suggests shares could gain around 34% over the next 12 months. Analysts see a reprieve from its current selloff on the horizon, with the average price target signaling an upside of more than 56%.

Persons: Wall, Goldman Sachs, Toshiya Hari, Hari, it's, — CNBC's Michael Bloom, John Melloy Organizations: CNBC Pro, Nvidia, Semiconductor, AMD, ON Semiconductor, Enphase Energy

☆ A 'tactical correction' is already underway in the stock market, says Bank of America
▼ + stars: | 2023-08-08 | by ( John Melloy | ) www.cnbc.com time to read: +1 min

With stocks struggling again on Tuesday , Bank of America's chart analyst said a "tactical correction" is underway and may continue for a bit longer because of seasonal weakness historically in the upcoming period. "If the tactical resistances highlighted above contain interim rallies on the SPX, then a seasonal corrective phase should continue from the late July high." .SPX YTD mountain S & P 500 YTD With Tuesday's sell-off, the S & P 500 is off by about 3% from its 52-week high — falling as low as 4465 or so. The S & P 500 is typically flat in August and down 1.08% in September on average during the third year of the presidential cycle, Bank of America data showed. The report suggests investors may win by getting more defensive, rotating into utilities and staples for the time being.

Persons: Stephen Suttmeier, Suttmeier Organizations: Bank, Bank of America Securities, Bank of America

There are two likely scenarios: The Fed raises its fed funds rate, but Powell signals the inflation fight is far from over. Market rates are likely to shoot higher, benefiting a select group of stocks highlighted below, while causing the broader market to decline. In order to do this, we used the short-term bond fund, the iShares 1-3 Year Treasury Bond ETF, as our proxy for the bond market. Since rates increase when bond prices fall this gives us the stocks that could win today if rates increase. If rates move higher on the Fed, Primerica can charge higher rates for its insurance and financial products.

Persons: Jerome Powell, Powell, Marcelli Organizations: Federal Reserve, Fed, UBS Global Wealth Management, Reserve, CNBC, Russell, Treasury Bond ETF, Primerica, PayPal

☆ These cheap stocks pay safe and high dividends
▼ + stars: | 2023-07-19 | by ( John Melloy | ) www.cnbc.com time to read: +1 min

Finding stocks paying high and safe dividend yields is getting harder as recession fears cause companies to hoard cash. With that in mind, CNBC Pro sought to find stocks that are paying high dividends that they can afford. Here was our criteria using data from FactSet: Dividend yield above 4%. Current forward price-earnings ratio is cheaper than its average forward P/E of the last five years. (Forward P/E looks at a share price relative to the consensus earnings estimate for the next 12 months.)

Persons: Dow, drugmaker, Carter's Organizations: Dow Jones, CNBC Pro, drugmaker Pfizer, Pfizer

☆ Tom Lee says the S&P 500 may rally 100 points on a lighter inflation reading this week
▼ + stars: | 2023-07-10 | by ( John Melloy | ) www.cnbc.com time to read: +2 min

Tom Lee told CNBC on Monday that the S & P 500 may jump 100 points following a lighter-than-expected inflation reading this week. After a roaring first half, the S & P 500 has cooled in July as investors interpreted some strong jobs data to mean the Federal Reserve would resume its hiking campaign after pausing in June. The S & P 500 shed 1.2% last week to close at 4,398.95. The widely followed Wall Street strategist, who was correctly bullish heading into this year, recently raised his year-end S & P 500 target to 4,825 — which would put the benchmark at a record. Lee pointed out that earnings for S & P 500 companies excluding the energy sector are holding up.

Persons: Tom Lee, Lee, Dow Jones, YTD Lee Organizations: CNBC, Fundstrat Global, Reserve, Treasury

☆ As investor focus shifts to EVs, analysts expect these auto stocks to soar
▼ + stars: | 2023-07-10 | by ( Weizhen Tan | ) www.cnbc.com time to read: +2 min

Investors are piling into electric vehicle stocks after the latest Tesla numbers showed it beat expectations for vehicle deliveries. Vanda Research in a Thursday note said it's seeing signs of some rotation from AI stocks to EVs. "We expect to see more retail demand for EV stocks going forward," the note said, highlighting "laggards" such as Nio , Li and Plug in particular. Its base case for China-made EVs implies 38% annual offshore sales growth through 2030. EV stocks with upside To see which EV stocks are expected to continue to rise, CNBC Pro screened two ETFs on FactSet: the KraneShares Electric Vehicles & Future Mobility Index ETF and the Global X Autonomous & Electric Vehicles ETF .

Persons: Li, Morgan Stanley, BYD, Tesla, Bernstein, — CNBC's Michael Bloom, John Melloy, Fred Imbert Organizations: Vanda Research, EV, CNBC Pro, KraneShares Electric Vehicles, Global, Autonomous & Electric Vehicles ETF, Geely Automobile Locations: China, New York, Milan, Paris

☆ These stocks win when short-term rates are surging like they are now
▼ + stars: | 2023-07-06 | by ( John Melloy | ) www.cnbc.com time to read: +1 min

As yields jump to their highest levels in more than 16 years, investors may want to seek out stocks that receive a tailwind from climbing interest rates. CNBC PRO sought to find stocks that go higher during periods of rising short-term rates. We then scrubbed the screen for stocks where analysts like the outlook today and anticipate a gain over the next 12 months. Defensive play PG & E is second as investors look to utilities for shelter in what is typically a tough environment for stocks. Several insurers also make the list as they stand to benefit from higher rates on their large fixed income portfolios.

Persons: Stocks Organizations: CNBC, FactSet, Marathon Petroleum

☆ Seth Klarman says regular investors make this mistake that ruins their returns
▼ + stars: | 2023-06-27 | by ( John Melloy | ) www.cnbc.com time to read: +2 min

Seth Klarman has some words of advice for regular investors who are following the guidance of Warren Buffett, and others, and are putting their money into stock index funds. In other words, when using index funds, you have to stay in the markets to capture the upside when it comes. The notable value investor also gave one other word of caution on index funds. Many financial advisors recommend steady buying over time when investing in index funds. Klarman is the editor of the recently released seventh edition of Benjamin Graham and David Dodd's investing classic "Security Analysis."

Persons: Seth Klarman, Warren Buffett, Benjamin Graham, David Dodd's Organizations: Baupost, Bank of, Klarman

☆ Morgan Stanley's Mike Wilson says risks for a major market correction ‘have rarely been higher’
▼ + stars: | 2023-06-26 | by ( John Melloy | ) www.cnbc.com time to read: +1 min

Morgan Stanley believes a rapid stock market pullback is imminent. "S & P 500 is at risk of a near-term drawdown." Here are the risks Wilson references: Consensus earnings expectations that are much too high given the deteriorating economic environment. Wilson's fourth quarter S & P 500 target is 3,900, or 10% lower from its Friday close. The strategist is more optimistic about next year, seeing the S & P 500 rebounding to 4,200 in the first half of 2024.

Persons: Morgan Stanley, Mike Wilson, Wilson, Michael Bloom Organizations: Bank, CNBC

☆ Analyst Dan Ives sees tech stocks gaining another 15% in the second half, led by these A.I. plays
▼ + stars: | 2023-06-26 | by ( John Melloy | ) www.cnbc.com time to read: +1 min

Technology analyst Dan Ives sees the rally in the industry's shares continuing in the second half, despite many calls on Wall Street that the gains are getting ahead of themselves. Ives disagrees and doesn't see this as a Dotcom Bubble moment but a "1995 Internet moment" with the boom from artificial intelligence only just beginning. "The 2nd, 3rd, and 4th derivatives of this AI Gold Rush are just starting to evolve for the tech landscape based on our recent work in the field." XLK YTD mountain S & P 500 tech sector so far in 2023 Ives sees tech stocks up another 12% to 15% in the second half. The analyst's two favorite stocks going into the second half are Microsoft and Nvidia, which are up 40% and 189%, respectively, so far this year.

Persons: Dan Ives, Ives, Rush Organizations: Communications, Microsoft, Nvidia, Wall

☆ These elite dividend stocks generate big income for investors
▼ + stars: | 2023-06-23 | by ( John Melloy | ) www.cnbc.com time to read: +1 min

Investors seeking some safe income with the potential for upside going into a tricky second half of the year for the economy may find these elite dividend stocks attractive. These dividend stocks give them a way to participate in an equity rally, but generate some steady income if that bull doesn't come to pass. CNBC PRO screened the S & P 500 using some stiff criteria that returned only eight stocks. We sought to find stocks that pay a hefty dividend, but that can clearly afford to do so with less risk of a lowered payout. These stocks offer hefty yields and a way to play the industry's comeback.

Organizations: CNBC PRO, Pfizer, Dow, Bank

☆ Wall Street is worried the stock market is already overvalued
▼ + stars: | 2023-06-22 | by ( John Melloy | ) www.cnbc.com time to read: +3 min

Even as the stock market is just trying to claw its way out of a bear market, multiple Wall Street firms on Thursday raised concerns that equities are already overvalued. Following a breakout in the past month, the S & P 500 is up more than 20% from its October low and is at a 13-month high. But while an official bull market is not yet confirmed (S & P 500 needs to hit a new all-time high for that), the stock market may already be overvalued, some major strategists said. .SPX ALL mountain S & P 500 long term The S & P 500 is trading at forward price-earnings ratio of 18.8, compared to the average valuation of 15.4 times the last four decades, according to UBS. Nevertheless, normally uber-bullish Wall Street is having trouble seeing boom times ahead for equity investors with valuations already so high.

Persons: Solita Marcelli, annualized, Jonathan Golub, Michael Bloom Organizations: UBS, Global Wealth Management, Americas, JPMorgan, Credit Suisse

☆ Goldman says these stocks will grow profitability, while the rest of corporate America struggles
▼ + stars: | 2023-06-20 | by ( John Melloy | ) www.cnbc.com time to read: +2 min

Corporate profitability has likely bottomed in this tough economy, but don't expect companies to expand margins and profits significantly in the next 12 months, a Goldman Sachs' analysis shows. "Looking forward, although S & P 500 ROE has potentially troughed, substantial ROE growth appears unlikely in the near term. Goldman looked at companies where its own analysts expect ROE to expand the most over the next 12 months. Here are some of the stocks in the basket: Disney will increase ROE by 21% over the next 12 months, Goldman expects. Over the long term, Goldman believes a new phenomenon could help get overall profits growing again: artificial intelligence.

Persons: Goldman Sachs, Goldman, David Kostin, ROE Organizations: Facebook

☆ Chart analyst sees buying opportunity in Ark Innovation fund for a trade
▼ + stars: | 2023-06-20 | by ( John Melloy | ) www.cnbc.com time to read: +1 min

There's an interesting trade opportunity in the ARK Innovation ETF as the stock market rallies here, according to Rick Bensignor of Bensignor Investment Strategies. ARKK YTD mountain ARK Innovation fund Cathie Wood's innovation fund was among the hardest hit vehicles out there as higher interest rates hit sentiment for growth and tech assets. Following a 67% drop last year, the fund is up more than 41% this year as artificial intelligence and stable rates raises interest in the overall tech sector again. The fund is also seen as a high beta way to capitalize on market rallies. The fund closed Friday at $44.31 a share and Bensignor sees the run going a little further.

Persons: Rick Bensignor, Bensignor Organizations: Bensignor

☆ A history of stocks with astronomical price-to-sales ratios doesn’t bode well for Nvidia
▼ + stars: | 2023-06-05 | by ( John Melloy | ) www.cnbc.com time to read: +2 min

At above 36 times sales, Nvidia's shares are trading at their highest valuation ever, according to Trivariate Research. Adam Parker's research firm looked at all the other times in market history when stocks traded above a 36 price-to-sales ratio and what happened next. When Nvidia joined the trillion-dollar market cap club briefly last week, it was clearly based on anticipation of a future AI revenue windfall. To be clear, Parker and his firm are not advocating shorting Nvidia's stock anytime soon. Still, the eye-popping valuation should give investors looking to buy Nvidia at these levels some pause.

Persons: Adam Parker's, Trivariate, Parker, Michael Bloom Organizations: Research, Nvidia

☆ Apple downgraded at Loop Capital, sees iPhone maker missing revenue forecast this quarter
▼ + stars: | 2023-05-22 | by ( John Melloy | ) www.cnbc.com time to read: +1 min

Shares of Apple were downgraded on Monday by Loop Capital, which predicted the iPhone maker would fall short of its June quarterly revenue guidance, citing proprietary shipments estimates from the research firm. Loop downgraded Apple to hold from buy and kept its price target at $180. Apple shares closed Friday at $175.16, up 35% for the year as investors huddled into the stock and other tech plays with a recession looming. "While we believe AAPL's Sep Q & Dec Q shipment outlook remains intact, we also believe the risk has increased it could eventually be lowered," stated the Loop note. Apple shares fell about 1% in premarket trading.

JPMorgan made a bold call on Friday, upgrading three regional banks despite a renewed rout in the sector this week that the investment bank says is partly due to short sellers. "To this end, we believe a sell-off in regional banks has become a catalyst itself to cause further fear and selling pressure." The SPDR S & P Regional Banking ETF , down 15% through Thursday this week, was up 4% in premarket trading Friday. The banks that JPMorgan upgraded have been hit even harder than the broader sector. The regional bank stocks have fallen despite the fact that the companies reported lower deposit outflows than First Republic.

☆ The U.S. could hit the debt ceiling by June 1, much sooner than expected, Yellen warns
▼ + stars: | 2023-05-01 | by ( Christina Wilkie | In | ) www.cnbc.com time to read: +3 min

WASHINGTON — Treasury Secretary Janet Yellen on Monday warned that the United States may run out of measures to pay its debt obligations by June 1, earlier than the government and Wall Street had been expecting. The combination of Yellen's letter and the new CBO estimate added a fresh sense of urgency to stalled negotiations between President Joe Biden and McCarthy's Republican majority in the House. "Republicans' failure to agree to cleanly raise the debt ceiling has brought the United States to the brink of economic catastrophe," said Democratic Senate Budget Committee chairman Sheldon Whitehouse, R.I., in response to Yellen's letter. The Goldman Sachs estimate noted that so far there have been few ripples in the markets from rising debt-related risk. But this could change, analysts wrote, "once the Treasury announces a specific deadline for Congress to raise the debt limit."

☆ GDP report points to dreaded stagflation, but these stocks can still work in this environment
▼ + stars: | 2023-04-27 | by ( John Melloy | ) www.cnbc.com time to read: +2 min

Investors may want to position themselves for a stagflationary environment after Thursday's gross domestic product reading for the first quarter showed lackluster economic growth and high inflation. First-quarter growth came in at a 1.1% annualized pace, much slower than the 2% growth expected by economists polled by Dow Jones. Stagflation is an economic condition the U.S. experienced in the 1970s, characterized by slow economic growth and elevated inflation, along with high unemployment. The one ingredient missing today is the high unemployment, but mounting layoffs are raising fears that will change soon too. But it's a reasonable bet that certain stocks with pricing power and resilient revenue sources could outperform in this kind of environment.

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