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S&P 500 futures are muted Thursday night after the broad index ended a three-day negative streak. Futures tied to the broad index added less than 0.1%, as did Nasdaq 100 futures . The Nasdaq Composite joined the S&P 500 in finishing the session in the green, with both lifted by Tesla' s post-earnings rally. A slide in Treasury yields also gave the S&P 500 and Nasdaq upward momentum, according to Megan Horneman, chief investment officer at Verdence. The Dow has fared the worst with a drop of more than 2% as of Thursday's close, while the S&P 500 and Nasdaq have shed 0.9% and 0.4%, respectively.
Persons: Dexcom, Tesla, Elon, Megan Horneman, Horneman, Dow, They'll Organizations: New York Stock Exchange, Dow Jones Industrial, Nasdaq, Treasury, IBM, Boeing, Colgate, Palmolive, AutoNation, Newell Brands, University of
Stock futures were flat in overnight trading after the Dow Jones Industrial Average snapped a three-day winning streak. The S&P 500 declined about 0.2%, while the Nasdaq Composite added close to 0.3%. Investor attention remains fixated on third-quarter earnings season, with about one-fifth of the S&P 500 slated to report results this week. "It is good to see analysts getting realistic about 2025 earnings growth," she said. "However, at 15% earnings growth, we believe it is still too optimistic given the expectation for slower economic growth in 2025."
Persons: Dow, Zions, Megan Horneman, Lockheed Martin Organizations: New York Stock Exchange, Stock, Dow Jones, Dow, Nasdaq, SAP, America, Verdence Capital Advisors, Lockheed, General Motors, Verizon, Tesla, IBM, Boeing
However, the economy and the job market may be too strong to warrant steep rate cuts in the near term. "September's strong employment report and upward revisions in July and August murdered the hard-landing scenario," Yardeni said in a note to clients this week. The 30-year mortgage rate has crept higher, not lower, since the Fed delivered its big rate cut. As the economy reaccelerates, inflation could become a problem again, solidifying a higher for longer interest rate outlook that many had abandoned after the Fed's jumbo rate cut last month. Advertisement"With benchmark interest rates coming down, most prospective borrowers don't feel relieved of high borrowing costs," according to Mark Hamrick, a senior economic analyst at Bankrate.
Persons: , Ed Yardeni, Yardeni, Megan Horneman, Steven Blitz, Mark Hamrick Organizations: Service, Federal Reserve, Yardeni, Fed, Verdence Capital Advisors, TS Lombard, Philadelphia Fed
Key data prints are hovering in recession territory, Megan Horneman said. "I think investors got a little ahead of themselves," she said. This over-enthusiasm could cost the market heavily, pushing stocks toward a 7% to 10% drop, the chief investment officer said. "I think investors got a little ahead of themselves as far as the what strength there is in the economy," she told Yahoo Finance. Still, these data prints have taken a backseat to labor data, which holds the spotlight on Wall Street.
Persons: Megan Horneman, , Tim Fiore, Morgan Stanley, Horneman Organizations: Yahoo Finance, Service, Conference Board, September's, PMI, US Federal Reserve
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailInvestors should not bank on Fed rate cut, says Verdence Capital's Megan HornemanMegan Horneman, chief investment officer at Verdence Capital Advisors, joins CNBC's 'Squawk Box' to discuss market outlooks, how to position, and more.
Persons: Verdence, Megan Horneman Megan Horneman Organizations: Verdence Capital Advisors
The Dow Jones Industrial Average rose on Tuesday as Wall Street sought its footing after an uneven start to the month. The S&P 500 added 0.15% to finish the session at 5,291.34, and the Nasdaq Composite advanced 0.17% to 16,857.05. Bath & Body Works was the worst-performing stock in the S&P 500, losing nearly 13% on the back of disappointing guidance. Tuesday's market move comes one day after the Dow fell more than 115 points, or 0.3%, on the first trading day of June. The S&P 500 and Nasdaq Composite both rose modestly on Monday as weak manufacturing data weighed on market sentiment.
Persons: Dow, Megan Horneman, Dow Jones Organizations: Dow Jones, Nasdaq, Treasury, Dow Inc, Caterpillar, Body, Verdence Capital Advisors, Labor Department
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailThe growth side of the S&P 500 has gone 'very far, very fast': Verdence Capital's Megan HornemanMegan Horneman, Verdence Capital Advisors CIO, joins 'Squawk Box' to discuss the latest market trends ahead of the opening bell on Wednesday.
Persons: Verdence, Megan Horneman Megan Horneman Organizations: Verdence
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailIt's too soon for the Fed to be taking a dovish tilt, says Verdence Capital’s Megan HornemanMegan Horneman, Verdence Capital Advisors CIO, joins 'Squawk Box' with the latest market trends ahead of opening bell on Monday.
Persons: Verdence, Megan Horneman Megan Horneman Organizations: Fed, Verdence
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailThe consumer is our biggest concern, says Verdence Capital's Megan HornemanMegan Horneman, Verdence Capital Advisors CIO, joins 'Squawk Box' to discuss the latest market trends, why she believes what we're experiencing in the markets is a valuation correction, the Fed's inflation fight, and more.
Persons: Verdence, Megan Horneman Megan Horneman Organizations: Verdence
Traders work on the floor of the New York Stock Exchange during opening bell in New York City on August 21, 2023. U.S. stock futures were flat Monday night as the Nasdaq Composite and the S&P 500 snapped a four-day negative streak, in what has been a losing month for all the major averages. S&P 500 and Nasdaq 100 futures both ticked down 0.1%. The S&P 500 added close to 0.7%. "We're seeing a positive return in the stock market, [which] we didn't see last week.
Persons: Katy Kaminski, CNBC's, Megan Horneman, Horneman, Jerome Powell's, Jackson Organizations: New York Stock Exchange, Nasdaq, Dow Jones, Treasury, Tech, Verdence Capital Advisors, Consumer, Philadelphia, Richmond Locations: New York City
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWe're looking for a recession in the second half of 2023, says Verdence Capital's Megan HornemanMegan Horneman, Verdence Capital Advisors COO, joins 'Squawk Box' to discuss the latest market trends, why investors may be getting ahead of themselves, the Fed's rate hike campaign, and more.
Persons: Verdence, Megan Horneman Megan Horneman Organizations: Verdence Capital
So when the yield curve does make headlines, it's generally because it's setting off some alarm bells among market watchers. In general terms, that means short-term bonds are paying higher interest rates than long-term bonds. An inverted yield curve is a classic signal that a recession is on the horizon. An inverted yield curve makes the math unprofitable for banks in many cases. But in another sense, an inverted yield curve presaging a recession is sort of a self-fulfilling prophecy.
Persons: It's, Megan Horneman, Sam Stovall, doesn't, Stovall, Banks Organizations: Verdence Capital Advisors, Federal Reserve
David Tesher: Before we were forecasting a short and shallow recession, but we no longer think there’s going to be a recession. Hard decisions are being made, and that’s going to feed back into corporate growth prospects. As economic conditions slow, credit is becoming tighter and companies are defaulting at a faster pace than they have. So yes, some corporations are distressed, but this isn’t something affecting the entire market, which is what you’d associate with a broad credit crunch. Big Tech is back with a vengeanceLast year was rough for tech companies: Tech stocks fell more than 30% in 2022, while the overall market dropped 20%.
Persons: Banks, Bell, David Tesher, we’re, We’re, There’s, reevaluation, it’s, Meta, Wedbush’s Daniel Ives, Liz Ann Sonders, Charles Schwab, , Megan Horneman, Matt Egan, John LaForge Organizations: CNN Business, Bell, CNN, P, Big Tech, Tech, Apple, Nvidia, Microsoft, Verdence Capital Advisors, Nasdaq, Dow Jones, AAA, That’s, US Energy Information Administration, Wells, Investment Institute
Against this backdrop, investors will head into the final week of June with a relatively light economic calendar. However, those few data sets could provide investors with clues on how the market will fare going into the second half. Key inflation data ahead Of note next week is the core personal consumption expenditures index, the Fed's preferred inflation gauge. Reports to watch out for include Tuesday's new home sales and Thursday's pending home sales data, both for May. Elsewhere, BTIG's Jonathan Krinsky warned this week the downside for tech names could be as "equally impressive" as their rally.
Persons: Jerome Powell, annualized, Dow Jones, Terry Sandven, Sandven, that's, Megan Horneman, Stephen Suttmeier, BTIG's Jonathan Krinsky, Art Hogan, Hogan, Mills, Paychex Organizations: Dow Jones, Nasdaq, Federal, Bank of England, Global Wealth Management, Americas, UBS, U.S, Bank Wealth Management, Verdence Capital Advisors, Bank of America, Dow, Riley Wealth Management, Fed, Walgreens, Micron, Nike, Constellation Brands
Despite some recent positive signs for the U.S. economy, the Wall Street consensus is holding out belief that a recession is lurking. Still, LPL doesn't see "another 2008" even though "investors should anticipate some volatility as the economic outlook remains cloudy." However, Wall Street persists in worries that the central bank will not be able to engineer its hoped-for soft landing. "Optimism around a soft landing [is] growing with the rally in equities and strong labor market," Horneman said. "We believe the chance of a soft landing is unlikely."
Persons: Jeffrey Roach, Lawrence Gillum, Roach, Gillum, LPL, BlackRock, DBRS Morningstar, Michael Heydt, Jerome Powell, Megan Horneman, Horneman Organizations: LPL, Fed, of Michigan, Atlanta, Wall, Investment, BlackRock, ECB, Wednesday, Financial Services Committee, Verdence Capital Advisors Locations: U.S
"The underlying numbers in the report today show that the Fed can probably feel comfortable with maybe one more rate hike, and then pausing." Or, at least those concerns were true until Friday's explosive rally, when more than six New York Stock Exchange issues rose for every one that fell, and all 11 sectors in the S & P 500 gained. Friday's advance carried the S & P 500 to its highest since Aug. 18, 2022, when the benchmark closed at 4,283.74. Another favorable straw in the wind may simply be the fact that the 11.2% rally in the S & P 500, just since the mid-March lows accompanying the failure of Silicon Valley Bank, is so hated and mistrusted. Week-ahead calendar Monday 9:45 a.m.: S & P Global Services PMI (May) 10 a.m.: Durable goods and factory orders (April) 10 a.m.: ISM services PMI (May) Tuesday Earnings: J.M.
Persons: Megan Horneman, Canaccord Genuity, JC O'Hara, Roth MKM, Ross Mayfield, Baird, Savita Subramanian, Subramanian, Brown, Forman, — CNBC's Alexander Harring, Fred Imbert, Michael Bloom Organizations: Federal Reserve, Verdence Capital Advisors, Nvidia, New York Stock Exchange, Silicon Valley Bank, Bank of America, P Global Services PMI, PMI, Growers, Ciena, GameStop Locations: Broad, 2H23, Silicon
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailThe market's gotten ahead of itself pricing in a dovish Fed, says Verdence Capital's HornemanMegan Horneman, Verdence Capital Advisors CIO, joins 'Power Lunch' to discuss the short-term market pessimism, how investors should consider the earnings thus far, and more.
Three investors on how to protect your portfolio
  + stars: | 2023-04-16 | by ( Krystal Hur | ) edition.cnn.com   time to read: +5 min
New York CNN —Wall Street has been hit with a barrage of complex signals about the economy’s health over the past month. From banking turmoil to weakening jobs data to slowing inflation, and now the start of earnings season, investors have remained largely resilient. So, how should investors protect their portfolios? Investors say there isn’t one asset that Wall Street should pile all their bets on, but there are fundamentals that should underlie their investment strategies. Doug Fincher, portfolio manager at Ionic Capital Management, says investors should brace their portfolios against inflation.
Next week's market action could be dictated by how well the latest quarterly reports from corporate America are received. Expectations about the immediate earnings outlook have been down for so long, the actual numbers themselves could look like up to investors. Earnings for all financials in the S & P 500 are actually expected to expand in the first quarter by 4.3%. ET: NAHB Housing Market Index (April) Earnings: Charles Schwab, M & T Bank, State Street, J.B. Hunt Transport Tuesday 8:30 a.m. ET: Philadelphia Fed President Patrick Harker speaks on the economic outlook Earnings: AT & T, American Express, D.R.
New York CNN —Corporate guidance statements will be front and center as earnings season kicks off, with investors trying to gauge the economy’s temperature. Analysts forecast that first-quarter earnings for companies in the S&P 500 will fall 6.8% from the same period the previous year, according to FactSet. “We all expect earnings to be less than stellar,” says Shana Sissel, chief executive officer at Banríon Capital Management. Earnings season for banks starts on Friday with JPMorgan Chase, Wells Fargo, BlackRock, Citigroup and PNC Financial Services slated to report before the bell. Still, earnings are just one factor driving markets, and inflation remains a key concern for the Fed.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWatch CNBC's full interview with Verdence Capital's Megan HornemanMegan Horneman, Verdence Capital Advisors CIO, joins 'Squawk Box' to discuss how Horneman viewed the developments in the banking sector, why the tech sector has rallied in recent weeks, and more.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailStock market is complacent as banking crisis filters into economic growth: Verdence's HornemanMegan Horneman, Verdence Capital Advisors CIO, joins 'Squawk Box' to discuss how Horneman viewed the developments in the banking sector, why the tech sector has rallied in recent weeks, and more.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailFirst half of 2023 will be choppy, says Verdance Capital's Megan HornemanMegan Horneman, chief investment officer at Verdence Capital Management, joins CNBC's 'Squawk Box' to break down her market outlook for 2023.
Stocks were unable to continue Wednesday's rally because investors were awaiting a key jobs report coming Friday, said Edward Moya, senior market analyst at Oanda. He said investors were purposefully pulling back ahead of non-farm payroll data coming in the morning. Investors will be looking for the right, middle-ground data, said Megan Horneman, chief investing officer at Verdence Capital Advisors. With "a so-so number, I think the markets can maybe rally on that," she added. "But if you get a really weak number, it's just going to spook investors after such a strong rally we've seen in November."
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailSome beat-up market sectors may still have room to weaken, says Verdence Capital CIOSylvia Jablonski, CEO and CIO of Defiance ETFs, and Megan Horneman, Verdence Capital Advisors CIO, join CNBC's 'Squawk Box' to discuss recent comments from Federal Reserve officials on inflation and what they mean for markets.
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