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☆ Central banks in Asia could soon diverge from the Fed, Nomura says
▼ + stars: | 2023-07-11 | by ( Jihye Lee | ) www.cnbc.com time to read: +4 min

Francois Lochon | Gamma-rapho | Getty ImagesCentral banks in Asia could start cutting rates earlier than the Federal Reserve, economists at Nomura predicted. "Our view of Asian central banks cutting policy rates ahead of the Fed in this cycle is based on the fundamental divergences between Asian and U.S. economies," Nomura economists wrote. China's producer prices have already entered deflation territory, while South Korea's inflation hovered around 2.7%, nearing its central bank's target. Seoul could start cutsNomura expects the Bank of Korea to be one of the first central banks after China to cut rates. They pointed to the central bank's governor Rhee Chang-yong shrugging off investor concerns about a weakening South Korean currency.

Persons: Francois Lochon, Sonal Varma, Nomura, lockdowns, BOK, Rhee Chang, Rhee Organizations: Getty, Federal Reserve, Nomura, Federal, Bank of, CNBC, Korean, U.S Locations: Seoul, South, Asia, U.S, China, sputter, Indonesia, Philippines, India, Korea, Singapore, Bank of Korea

☆ The Fed has rolled out a new index for gauging the economy that could have big implications
▼ + stars: | 2023-07-08 | by ( Jeff Cox | ) www.cnbc.com time to read: +4 min

The Federal Reserve is changing the way it looks at "financial conditions," a move that could have important ramifications for policy ahead. The Fed has been using a series of interest rate increases to tighten financial conditions and, ultimately, to bring down inflation. Essentially, the move allows the Fed to distance itself from other financial conditions models, such as those formulated by Goldman Sachs and the Chicago Fed . By contrast, the Chicago Fed index's current reading is -0.28, implying relatively loose conditions. Capital Economics noted that the FCI-G "does a better job of illustrating the tightness of US financial conditions than various other measures."

Persons: they've, Krishna Guha, Jerome, Powell, Guha, Goldman Sachs Organizations: Federal, Evercore ISI, Fed, Chicago Fed, Treasury, Dow Jones, U.S, FCI

☆ How we're thinking about all 11 stock market sectors heading into Friday's key jobs report
▼ + stars: | 2023-07-06 | by ( Zev Fima | ) www.cnbc.com time to read: +11 min

While the natural inclination is to cheer a strong jobs market, investors are responding with a boo and bailing out of risk assets. The thinking goes like this: If people are at work and the labor market is stronger than expected, the ability of the consumer to absorb higher prices is also greater than previously thought. If the ability to absorb higher prices is greater than expected, above target (2%) inflation can last longer than estimated, regardless of the current fed funds rate. If the current fed funds rate isn't stopping hiring and consumers' ability to absorb higher prices, the rate simply isn't high enough. Energy is tough: We really need China's reopening to pick up as demand will be the key to higher energy prices.

Persons: —, — it's, it's, Staples, Eli Lilly, we've, Friday's nonfarm, We're, Jim Cramer's, Jim Cramer, Jim, Spencer Platt Organizations: Federal Reserve, Apple, Nvidia, American Electric Power, Treasury, Silicon Valley Bank, Constellation Brands, Management, GE Healthcare, Technology, Linde, LIN, Energy, buybacks, Microsoft, Verizon, Disney, Procter & Gamble, Jim Cramer's Charitable, CNBC, Traders, New York Stock Exchange, Getty Locations: Silicon, U.S, Friday's, New York City

The research arm of BlackRock, the world's biggest asset manager, shifted its view on Japanese equities to neutral from underweight. "We are looking for more evidence of corporate reform to support the enthusiasm for its equity markets that has gripped foreign investors so far this year," wrote analysts at BlackRock Investment Institute, in its mid-year outlook report last week. "It's not the case that we've already seen the completion of offshore investors' quite aggressive investment in Japan equity markets," said Nomura's chief equity strategist for Japan, Yunosuke Ikeda. "Now, a lot of asset owners have decided just not to invest in China any more, and that's made Japan the top dog in Asia." Many analysts and investors, though, consider the declines a healthy and necessary retracement before the next leg higher, with 35,000 often touted as a target for this year as slower-moving foreign investors start to buy in size.

Persons: Nomura, It's, Yunosuke Ikeda, Archie Ciganer, Rowe Price, Ciganer, that's, Warren Buffett, Vikas Pershad, Kevin Buckland, Ankur Banerjee, Junko Fujita, Jacqueline Wong Organizations: Nikkei, BlackRock Investment Institute, Nomura Securities, Graphics, G Investments, Thomson Locations: TOKYO, Japan, BlackRock, China, Asia, Tokyo, Singapore

☆ The US stock market rally is unsustainable, but making these 20 international investments can lead to long-term profits, according to 3 fund managers with over $43 billion in combined assets
▼ + stars: | 2023-06-30 | by ( James Faris | ) www.businessinsider.com time to read: +9 min

International stocks have underperformed for over a decade, while US growth names took off. However, foreign companies have attractive relative valuations and earnings growth. Why foreign stocks are more than just a good dealAnyone bullish on international stocks will almost always point to their valuations relative to US companies. Investors can get downside protection in this uncertain environment by buying international stocks that are high quality and can generate their own growth, Deladerriere said. And in addition to their rising earnings growth, the fund manager noted that the two pay sizable dividends.

Persons: they've, Nick Paul, Paul, Steve Gorham, who's, Gorham, Wes Crill, Crill, isn't, Alexis Deladerriere, Deladerriere, there's, Goldman, haven't, He's, it's Organizations: MFS Investment Management, Value, Vanguard, Index, Yahoo Finance, Dimensional Fund Advisors, Fund, Goldman Sachs International Equity Income, Goldman, Asset Management, Goldman Sachs, Management, HSBC, BNP, Schneider, MFS, Hitachi Locations: Europe, Asia, BlackRock, weightings, Gorham, Japan, London, Paris, Spanish, Ukraine, France, Australia, Taiwan

☆ Tech IPO drought reaches 18 months despite Nasdaq's sharp rebound in first half of 2023
▼ + stars: | 2023-06-29 | by ( Ari Levy | ) www.cnbc.com time to read: +12 min

Despite a bloated pipeline of companies waiting to go public and a rebound in tech stocks that pushed the Nasdaq up 30% in the first half of 2023, the IPO drought continues. Last Friday, Israeli beauty and tech company Oddity, which runs the Il Makiage and Spoiled Child brands, filed to go public on the Nasdaq. "You can make 15%-20% in the stock market but lose 15%-20%." "I think that’s done some harm to the traditional IPO market." With the public market still pretty closed, they're asking for alternatives."

Persons: Karl, Josef Hildenbrand, Turo, Reddit, hasn't, aren't, Lise Buyer, Buyer, Goldman Sachs, May, Shannon Stapleton, Jake Dollarhide, Dollarhide, Airbnb, they've, Instacart, Byron Deeter, Deeter, Larry Aschebrook, Aschebrook Organizations: AFP, Getty, Nasdaq, V, New York Stock Exchange, Apple, Nvidia, Coinbase Global Inc, Reuters Bankers, CNBC, Federal Reserve, Longbow Asset Management, Facebook, Clover Health, Venture, Companies, Bessemer Venture Partners, doesn't, Employees, Spotify Locations: U.S, Portola Valley , California, Cava, New York, Pinterest

☆ Friday could offer a once-in-a-year chance to cash in on tech gains
▼ + stars: | 2023-06-23 | by ( Bob Pisani | ) www.cnbc.com time to read: +5 min

Following on the rebalancing of S & P indexes last week, on Friday the Russell indexes will do their annual rebalancing. FTSE Russell also has a vast suite of products indexed to benchmarks like the small-cap Russell 2000 , the large-cap Russell 1000 , and the Russell 1000 Growth and Value indexes. FTSE Russell estimates that about $12.1 trillion is currently benchmarked to the FTSE Russell indexes. On average, about 12% of the Russell 2000 (about 242 stocks) turns over every year since 2006, according to FTSE Russell. This year, about 15% of the Russell 2000 will turnover, and about 2% of the Russell 1000, according to Wells Fargo.

Persons: Russell, It's, Wells Fargo, Chris Harvey, Mike O'Rourke, Wells Fargo's Harvey Organizations: Russell, Technology, Apple, Microsoft, Nvidia, Investors, Netflix, Google, FTSE Russell, Jones, Amazon Locations: Wells Fargo, Freeport McMoRan .

☆ Meta Platforms' return to growth index highlights annual Russell refresh
▼ + stars: | 2023-06-21 | by ( Chuck Mikolajczak | ) www.reuters.com time to read: +6 min

REUTERS/Peter DaSilvaNEW YORK, June 21 (Reuters) - Meta Platforms (META.O) will return to its former status as a full growth stock after financial data provider FTSE Russell finishes its annual shakeup of its stock index components on Friday. Every year, FTSE Russell reconstitutes, or refreshes, the components across its indexes, such as the Russell 2000 (.RUT) index of small cap stocks and Russell 1000 (.RUI) index of large-cap names. There are also style indexes such as the Russell 1000 Growth (.RLG) and Russell 2000 Value (.RUJ). FTSE Russell says about $12.1 trillion is currently benchmarked to the Russell US equity indexes. "The growth indexes look more like growth benchmarks and the value indexes look more like cyclical value indices," said Steven DeSanctis, equity analyst at Jefferies in New York.

Persons: Peter DaSilva, Russell, FTSE Russell reconstitutes, RUI, Goldman Sachs, Stocks, Goldman, Bryant VanCronkhite, VanCronkhite, Catherine Yoshimoto, Steven DeSanctis, You've, Thomas Martin, Chuck Mikolajczak, Alden Bentley, Matthew Lewis Organizations: Facebook, Meta, REUTERS, Russell, FTSE, FTSE Russell, London Stock Exchange, Allspring Global Investments, Walmart, Jefferies, Nasdaq, New York Stock Exchange, Globalt Investments, Thomson Locations: Mountain View , California, U.S, Menomonee Falls , Wisconsin, New York, Atlanta

☆ An investment strategist at a $939 billion firm shares the 4 asset classes investors should buy for big gains as the market shifts to a new normal — and why last market's losers will become the bigges
▼ + stars: | 2023-06-04 | by ( Lisa Kailai Han | ) www.businessinsider.com time to read: +6 min

And the implications don't just stop there — Armstrong believes that "virtually all assets" will feel the pain. Opportunities also exist within fixed income and commoditiesWith equities taking the spotlight in the prior regime, fixed income may have slipped under the radar for many investors. But now, Armstrong believes that the way in which investors think about fixed income needs to change. "So history would tell you that now is a decent time to be allocating to high-quality fixed income." In an environment with sticky inflation, commodities would serve investors well as a good inflation hedge and portfolio diversifier.

Persons: Schroder's Bob Armstrong, Bob Armstrong, Armstrong, — Armstrong Organizations: US, outperformance, Commodities

☆ History says stocks could rise 22% in the next year as the market rally builds momentum — and investors can profit by buying these 11 stocks, according to BMO Capital Markets
▼ + stars: | 2023-06-03 | by ( James Faris | ) www.businessinsider.com time to read: +3 min

But leading strategists at BMO don't see that narrow breadth as a serious concern. Investors shouldn't be too unsettled by the bad breadth in the stock market this year, according to top strategists at BMO Capital Markets. BMO Capital MarketsThose tech giants have beaten the broader market each of the first five months of 2023 and have crushed the S&P 500 overall. BMO Capital Markets"We found that narrow market breadth in general does not represent a bad omen for S&P 500 performance despite the contrary narrative being pushed by many investors," Belski wrote. Such scenarios have put the S&P 500 in positive territory 100% of the time in the following three and six months, with returns of at least 6%, Belski noted.

Persons: Brian Belski, Belski Organizations: BMO, BMO Capital Markets, Microsoft, Nvidia, BMO Capital

☆ Wall St Week Ahead: Surging US megacap stocks leave some wondering when to cash out
▼ + stars: | 2023-06-02 | by ( Lewis Krauskopf | ) www.reuters.com time to read: +5 min

The benchmark S&P 500 (.SPX) has risen 11.5% this year and stands at a 10-month high. The S&P 500 rose 1.45%. The recent surge in Nvidia showed how a stock can keep climbing even after posting hefty gains. At the same time, only 20.3% of S&P 500 stocks have outperformed the index on a rolling three-month basis, a record low dating back five decades, according to Ned Davis. Kotok views narrowing breadth as an ominous sign for the broader stock market, saying that equities also look less favorable in certain asset valuation metrics.

Persons: Ned Davis, Peter Tuz, Jay Hatfield, ” Hatfield, “, Brendan McDermid Michael Purves, Purves, Kevin Mahn, Refinitiv, ”, Mahn, Dow, David Kotok, Lewis Krauskopf, Ira Iosebashvili, Nick Zieminski, Diane Craft Organizations: YORK, BofA Global Research, Ned Davis Research, Chase Investment, Nvidia, Apple, Microsoft, Google, Federal Reserve, New York Stock Exchange, REUTERS, Tallbacken Capital Advisors, Nasdaq, Hennion, Walsh Asset Management, Dow Jones, Cumberland Advisors, Thomson Locations: megacap, BofA, New York City, U.S

☆ Wall St Week Ahead Surging US megacap stocks leave some wondering when to cash out
▼ + stars: | 2023-06-02 | by ( Lewis Krauskopf | ) www.reuters.com time to read: +5 min

The benchmark S&P 500 (.SPX) has risen 11% this year and stands at a 10-month high. He is overweight megacaps, including Nvidia, Microsoft and Google-parent Alphabet (GOOGL.O). The recent surge in Nvidia showed how a stock can keep climbing even after posting hefty gains. At the same time, only 20.3% of S&P 500 stocks have outperformed the index on a rolling three-month basis, a record low dating back five decades, according to Ned Davis. In one commonly used valuation metric, the S&P 500 is trading at 18.5 times forward earnings estimates compared to its historic average of 15.6 times, according to Refinitiv Datastream.

Persons: Ned Davis, Peter Tuz, Jay Hatfield, ” Hatfield, “, Michael Purves, Purves, Kevin Mahn, Refinitiv, ”, Mahn, Dow, David Kotok, Lewis Krauskopf, Ira Iosebashvili, Nick Zieminski Organizations: YORK, BofA Global Research, Ned Davis Research, Chase Investment, Nvidia, Apple, Microsoft, Google, Tallbacken Capital Advisors, Nasdaq, Hennion, Walsh Asset Management, Dow Jones, Cumberland Advisors, Thomson Locations: megacap, BofA

☆ Analysis: US debt ceiling deal could stall safety flight fueling megacap rally
▼ + stars: | 2023-05-19 | by ( David Randall | ) www.reuters.com time to read: +5 min

Their rally has been responsible for all of the 8.3% year-to-date gain in the S&P 500 (.SPX) through Wednesday's close, a Deutsche Bank report showed. A recent survey of global fund managers from BofA Global Research showed that 71% believe a deal to raise the debt ceiling will be reached before the X-date. Excitement over artificial intelligence, which has boosted some megacap names this year, is another factor that could support the category. At the same time, the debt ceiling has been only one of of several worries weighing on the market. Paul Christopher, head of global market strategy at Wells Fargo Investment Institute, expects lawmakers will reach an agreement to extend the debt ceiling through September.

☆ MSCI to lower free float of two Adani companies
▼ + stars: | 2023-05-05 | by ( ) www.reuters.com time to read: +1 min

May 5 (Reuters) - MSCI will lower the free float of two of India's Adani Group companies, Adani Total Gas (ADAG.NS) and Adani Transmission (ADAI.NS) in its May index review, the financial index provider said on Friday. MSCI now sees the Adani Total Gas' free float at 14% and Adani Transmission at 10%, from 25%. Free float is defined as the proportion of outstanding shares considered available for purchase in public equity markets by international investors. In February, MSCI postponed implementation of these updates to weightings that were due March and said "potential replicability issues" are behind the decision. MSCI also said in the same month it will review the free float designation of some of the Adani firms' securities after U.S. short seller Hindenburg Research accused it of improper use of offshore tax havens and stock manipulation.

☆ Bank of America: Hedge funds are most bullish on these 20 stocks right now while they brace for an 'Armageddon'-style recession similar to 2008
▼ + stars: | 2023-05-04 | by ( James Faris | ) www.businessinsider.com time to read: +3 min

Bank of America noted that hedge funds' bond weighting relative to stocks is at an all-time high. Here are 20 stocks that hedge funds are most optimistic about right now. "Our economists expect an economic recession of half the magnitude of a typical recession," Subramanian wrote in the late April note. Additionally, hedge funds' allocation to bonds relative to stocks is at a record high, according to Bank of America. 20 stocks that hedge funds love mostEven though hedge funds have soured on stocks, they still believe there are companies that will outperform in this challenging economic environment.

☆ Wall St Week Ahead Recession worries simmer beneath US stock market rally
▼ + stars: | 2023-04-28 | by ( Lewis Krauskopf | ) www.reuters.com time to read: +5 min

NEW YORK, April 28 (Reuters) - Economically sensitive areas of the U.S. stock market are flashing warnings over growth, even as major equity indexes edge higher. Beneath the surface, however, areas of the market tied to economic sentiment such as transports, semiconductors and small-cap stocks dropped in April, while so-called defensive sectors are outperforming. “People are starting to more defensively position themselves,” said Aaron Dunn, co-head of the value equity team at Eaton Vance. "They are talking about demand being down and they are ridiculously important shipping companies,” said Matt Maley, chief market strategist at Miller Tabak. Reporting by Lewis Krauskopf; Editing by Ira Iosebashvili and David GregorioOur Standards: The Thomson Reuters Trust Principles.

☆ Columbia Threadneedle launches real estate ETF even in the face of a potential recession
▼ + stars: | 2023-04-26 | by ( Jesse Pound | In Jesse-Pound | ) www.cnbc.com time to read: +4 min

Columbia Threadneedle is launching the Columbia Research Enhanced Real Estate ETF (CRED) on Wednesday, focused on real estate investment trusts. The private Blackstone Real Estate Investment Trust has repeatedly halted redemptions in recent months because investors have hit the fund's stated withdrawal limits. Columbia Threadneedle does not appear to be alone in thinking the bottom is near for real estate. Jeffrey Gundlach's DoubleLine launched a fixed income ETF focused on commercial real estate ( DCMB ) that began trading earlier this month, and iShares debuted an environmentally focused ETF in February ( ERET ). The University of California also invested $4.5 billion into BREIT, the non-listed Blackstone Real Estate Income Trust , in January.

☆ These mid-cap funds can give investors growth without Big Tech, Citi says
▼ + stars: | 2023-04-25 | by ( Jesse Pound | In Jesse-Pound | ) www.cnbc.com time to read: +2 min

Tech stocks with healthy cash flow have been the big winners so far this year, and those names are also dominating the growth indexes. One way to dial back your exposure to mega-cap tech while keeping bets on growth is through mid-cap growth ETFs, according to Citi. Another benefit of the mid-cap growth area is that is not as reliant on tech stocks as the large-cap growth bucket, he added. The Citi note highlighted several ETFs that track the mid-cap growth space, including the iShares Russell Mid-Cap Growth ETF (IWP) , the Vanguard Mid-Cap Growth ETF (VOT) , and the Invesco Nasdaq Next Gen 100 ETF (QQQJ) . These funds do have less concentrated exposure than other popular growth ETFs.

☆ The 'real leader' in the S&P 500 isn't Apple or Microsoft — it's this stock, analyst says
▼ + stars: | 2023-04-20 | by ( Weizhen Tan | ) www.cnbc.com time to read: +2 min

Tech stocks also make up much of the S & P 500, with the information technology sector forming 25.6% of the index, according to FactSet. "The leaders this year are definitely Apple and Microsoft ," Louis Navellier, chairman at Navellier & Associates, told CNBC's " Street Signs Asia " on Wednesday. "They are now the highest weightings ever in the S & P 500." "It dominates graphics chips, it dominates AI chips," he said, adding that Nvidia makes the "best" self-driving systems. Other stock picks Apart from Nvidia, Navellier had three other stock picks with high expected earnings growth.

☆ Bank of America: Buy these 10 stocks before they report earnings, then beat expectations and rally
▼ + stars: | 2023-04-16 | by ( Marley Jay | ) www.businessinsider.com time to read: +3 min

Bank of America says that the start of earnings season will be a critical stock-picking period. Strategist Savita Subramanian says a recession is coming, and earnings projections will get slashed. Subramanian identified companies that BofA expects to beat expectations again this quarter. "With the SVB collapse in March, data started to notably slow," Subramanian wrote. She also wrote that right now, Wall Street earnings projections for 2023 and 2024 look unrealistic if a recession is on the way.

☆ RBC: Buy these 30 high-conviction stocks as they continue delivering market-beating returns in an up-and-down year
▼ + stars: | 2023-04-09 | by ( Marley Jay | ) www.businessinsider.com time to read: +2 min

RBC's collection of 30 favorite global stocks handily outperformed US stocks in the first quarter. In the first quarter, that list of 30 stocks delivered an 11.9% total return, compared to a 7.7% return for the MSCI World Index and 7% for the S&P 500. The group also notes that since the end of 2020, the top 30 stocks have returned 37.8%, while the MSCI index has returned 24.5%. The following 30 stocks are ranked from lowest to highest based on how much RBC thinks they will deliver in returns over the next year. All of those implied upside figures were calculated based on the stocks' most recent closing prices.

☆ Stocks are rising, but megacap tech is doing most of the heavy lifting
▼ + stars: | 2023-03-29 | by ( Bob Pisani | ) www.cnbc.com time to read: +1 min

It's starting to look a lot like 2021 in the stock market. Tech stocks are dragging all the indexes up, just like 2021. The technicians seem to be happy, because the S & P is again showing a pattern of higher highs and higher lows that began in October. Most of this has been driven by the stunning performance in megacap tech. Megacap tech this quarter: NVIDIA up 80% Meta up 67% Tesla up 53% Those seven megacap tech companies are responsible for most of the gains for the S & P 500 this year.

☆ Tesla's forecast means boom times ahead for lithium demand. Citi's top stocks to play the trend
▼ + stars: | 2023-03-08 | by ( Tanaya Macheel | ) www.cnbc.com time to read: +3 min

We apply ~8x EV/EBITDA multiple to Energy Storage, ~9x to Specialties, and ~10x to Ketjen, all of which are in line with comparable peer valuations." Livent "Our $28 target price is based on a target EV/EBITDA of ~9.5x applied to our FY24 estimate. SQM "Our $92 target price is calculated using [sum of the parts] valuation on 2024E segment EBITDA. SQM's Lithium multiple is at a discount to LTHM as LTHM is a pure-play lithium hydroxide company. ... Our current price target assigns 3/90/7 weightings, respectively, to these three scenarios—yielding a $146 blended stock outcome."

Organizations: ~$

☆ Not all passports are created equal. Here's a list of the most powerful ones
▼ + stars: | 2023-03-02 | by ( Monica Pitrelli | Chris Dwyer | ) www.cnbc.com time to read: +5 min

The full listHere is the complete list, from 1 to 199:The scores on this year's ranking are generally lower than last year's, because of a change in the way Nomad Capitalist scored visa-free travel. 1Vojinovic called the UAE passport the "winner of the decade." The United Arab Emirates "added 106 new visa-free countries in the last decade, which is an amazing number," she said. "Also, they're a zero tax country." Still, the UAE passport is often regarded as being one of the most difficult passports to obtain.

☆ MSCI delays weighting cuts for two Adani companies, cites 'replicability' concerns
▼ + stars: | 2023-02-16 | by ( Jihye Lee | ) www.cnbc.com time to read: +1 min

Signage of Adani Group at Adani Defence and Aerospace booth during the Aero India 2023 at Air Force Station Yelahanka in Bengaluru, India, on Monday, Feb. 13, 2023. Index provider MSCI said that it will delay implementing weighting changes for some Adani Group companies until later this year, according to a Thursday announcement. The change in plans came after MSCI earlier this month said it will reduce the weightings of Adani Enterprises, Adani Total Gas, Adani Transmission and ACC, a major Indian cement company the Adani Group acquired from Holcim last year. Among the list of Adani companies, MSCI is delaying the measures for two companies: Adani Total Gas and Adani Transmission, according to its Thursday morning notice. The firm explained the decision came "in light of potential replicability issues due to impact from price limit mechanisms in specific securities associated with the Adani Group."

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