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5 charts that explain why stocks took off last year
  + stars: | 2024-01-12 | by ( Krystal Hur | ) edition.cnn.com   time to read: +4 min
Stocks ended on a high note last year, but were tested by the Federal Reserve’s interest rate hikes, banking turmoil, debt ceiling worries and war in the Middle East. Many early-year consensus predictions about what 2023 would bring — including a recession and several rate cuts — didn’t pan out. CNN spoke with five investors about the biggest lessons they learned and how they’ve helped shape their 2024 outlooks. Fundamentals have to start matteringThe S&P 500 index gained 24% last year despite an earnings recession, often defined as at least two straight quarters of corporate profit losses. Fourth-quarter earnings, which kick off on Friday with results from big banks, are expected to grow about 1% in the fourth quarter of 2023.
Persons: Stocks, they’ve, Taylor Swift, Beyoncé, David Kelly, , Kelly, Yung, Yu Ma, Don’t, George Cipolloni, Wall, Leslie Thompson, don’t, Thompson, she’s eyeing, FactSet, , Amanda Agati Organizations: New, New York CNN —, CNN, Asset Management, Treasury, BMO Wealth Management, Penn Mutual Asset Management, Fed, Spectrum Wealth Management, Nvidia, Microsoft, Apple, Companies, PNC Asset Management Locations: New York
CNN —The bond and stock markets are finally seeing eye to eye when it comes to the Federal Reserve. Stocks and the 10-year Treasury’s real yield have begun moving inversely again, according to a research note from Morgan Stanley. That’s a reversal from earlier this year, when yields and stocks both moved higher. A concurrent rally both in bond yields and stocks is atypical. The Consumer Price Index report for June showed that annual inflation slowed to 3%, marking its lowest rate since March 2021.
Persons: Morgan Stanley, George Cipolloni, they’re, , Price, Michael Kushma, We’re, Laura He, Read, Goldman Sachs Organizations: CNN Business, Bell, CNN, Federal Reserve, Stocks, Valley Bank, Signature Bank, Penn Mutual Asset Management, Nasdaq, Cyberspace Administration, Financial Services, Bank of America, US Bancorp, Ally, American Express Locations: China
New York CNN —There’s been a seismic shift in investor perspective: Bad news is no longer good news. Markets teetered after a slew of economic reports signaled that the red-hot labor market is finally cooling (more on that later), flashing warning signals across Wall Street. Now that Wall Street is in “bad news is bad news and good news is good news” mode, it will be looking for signs that the economy remains resilient. President Joe Biden said in a statement Friday that the March data is “a good jobs report for hard-working Americans.”The March jobs report revealed that US employers added a lower-than-expected 236,000 jobs last month. The jobs report was also the first one in 12 months that came in below expectations.
April 3 (Reuters) - U.S. energy stocks hit an over one-month high on Monday, following a rally in European peers as crude prices rose more than 6% following a surprise announcement by Saudi Arabia and other OPEC+ oil producers to cut production. The S&P 500 energy index (.SPNY) added 4.2%, eying its best day in six months, while the benchmark S&P 500 (.SPX) traded flat. So any amount of oil price incrementally higher from here is very good for margins and it's very good for these stocks." Other oil producers Occidental Petroleum (OXY.N), ConocoPhillips (COP.N), Devon Energy (DVN.N), Marathon Oil (MRO.N) and APA Corp (APA.O) gained between 6.3% and 9.5%. Alastair Syme, head of energy research at Citi, said investors had recently been reducing the weight of energy stocks in their portfolios, and that any move to re-weight would likely benefit most of the largest cap stocks.
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