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The broad market index has also posted gains in 16 of the last 18 weeks — something that, according to Deutsche Bank strategist Jim Reid, hasn't happened since 1971. However, some on Wall Street now fear the market may have overextended itself to the upside, clearing the way for a pullback from record levels. BTIG chief market technician Jonathan Krinsky also noted there's a divergence never before seen in Big Tech. Volmageddon refers to a massive volatility spike in early 2018 in which the Cboe Volatility Index (VIX) more than doubled to more than 50. Bottom line: A short-term pullback in stocks could take place soon, if history is any guide.
Persons: Jim Reid, hasn't, Chris Montagu, Citi's, Jonathan Krinsky, Krinsky Organizations: Deutsche Bank, Nasdaq, Federal Reserve, Apple, RSI Locations: Big Tech
The S & P 500 surged by 5.85% last week, its best weekly performance going back to November 2022. .SPX 3M mountain S & P 500 But a number of market participants are concerned the rally has more to do with short covering. Of those instances, the S & P 500 was down five days after the move, by more than 1% on both an average and median basis. Commodity trading advisors also accelerated short covering, notably turning short in the front end, according to a Bank of America note on Monday. Elsewhere, Citi's Chris Montagu said S & P 500 futures positioning remains "moderately bearish" following the short-covering rally.
Persons: Chris Senyek, Senyek, Goldman Sachs, BTIG's Jonathan Krinsky, Krinsky, Citi's Chris Montagu, Montagu, Wolfe Research's Senyek Organizations: Wolfe Research, Nasdaq, Bank, America, Federal
Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., July 19, 2023. The ratings agency also warned that the sector's credit strength would likely be tested by funding risks and weaker profitability. Big banks Goldman Sachs (GS.N) and Bank of America (BAC.N) eased 0.8% and 1.4%, respectively, in premarket trading, while Bank of New York Mellon and U.S. Bancorp shed 2.3% each. "It also means that the concern that we had in March over those three bank defaults, is not over yet." Remarks by Philadelphia Fed President Harker and Richmond Fed President Barkin will be closely watched for cues about the U.S. central bank's rate path after mixed messages from New York Fed President John Williams and Fed Governor Michelle Bowman on Monday.
Persons: Brendan McDermid, Eli Lilly, Moody's, Goldman Sachs, Sam Stovall, Chris Montagu, Thursday's, Harker, Barkin, John Williams, Michelle Bowman, LLY.N, Zachary Kirkhorn, Elon Musk, Bansari Mayur Kamdar, Johann M, Sriraj Organizations: New York Stock Exchange, REUTERS, Dow, Nasdaq, Bank of New York Mellon, US Bancorp, Truist, Bank of America, U.S . Bancorp, U.S . Treasury, CFRA, Silicon Valley Bank, Signature Bank, Citi, Wall Street, Dow e, Philadelphia, Richmond Fed, New York Fed, United Parcel Service, Elon Musk ., Alibaba, Thomson Locations: New York City, U.S, Silicon, Richmond, New, Elon Musk . U.S, Bilibili, Bengaluru
After what has been a tumultuous year for stocks, many investors are hoping that markets are at a turning point. Defensive stocks ArcelorMittal , the world's largest steelmaker, made CNBC's screen. The stock is rated buy by nearly 60% of analysts covering it, who give it potential upside of 26.3%. The company is expected to grow its margin by 17.9% next year and analysts give it potential upside of 23.4%. Analysts give the stock potential upside of 34.8%.
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