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US stocks have defied all odds this year, and the market rally only strengthened in July. After two months of nearly nonstop gains for the S&P 500, a long-time chartmaster warns that the weakness that markets displayed in early August is just the beginning. As expected, the S&P 500 rallied after October when that headwind passed, and finished 2022 with a bang. Charts that Keller studies also indicate that this market rally has reached its late innings. Exchange-traded funds (ETFs) tracking those sectors include the Energy Select Sector SPDR Fund (XLE), the Financial Select Sector SPDR Fund (XLF), the Industrial Select Sector SPDR Fund (XLI), and the Materials Select Sector SPDR Fund (XLB).
Persons: David Keller, Keller, chartmaster, Stocks, headwind, Brace, we've, StockCharts.com, Keller doesn't Organizations: Energy, P Oil & Gas Exploration, Production, Commodities
Dividend stocks have long been a favorite of BMO's since their yields offer protection against heightened market volatility. And to have sufficient dividend growth and yield, companies must have a higher dividend yield than the S&P 500's, and it must be growing at a faster rate than the market's yield. Additional qualifications include having a below-market dividend payout ratio, a free cash flow yield higher than its dividend yield, and no dividend cuts in the prior five years, according to the note. "By focusing solely on high current dividend yield investors could be missing potential recovery and/or dividend growth opportunities." After outlining its barbell strategy and methodology, BMO listed eight stocks in each group that fit those descriptions and are worth considering.
Persons: Mike Wilson, Morgan Stanley, Brian Belski, Oppenheimer, Belski, BMO's Organizations: BMO Capital Markets, BMO, BMO Capital Markets Profit Locations:
Here's how Bank of America, Morgan Stanley, and UBS recommend investing in AI. Bank of America, Morgan Stanley, and UBS are more optimistic about AI stocks after each expressed hesitations earlier this year as shares of companies tied to the technology exploded higher. In contrast, Morgan Stanley has dismissed concerns that AI stocks are in a bubble. "Inevitably, the market will compare AI to the dot-com boom," wrote Morgan Stanley analyst Shawn Kim in a July report. As for chipmakers, Morgan Stanley agreed with Bank of America that the path forward is bifurcated.
Persons: Morgan Stanley, Marcelli, Art Cashin, Michael Hartnett, Shawn Kim, Mike Wilson, Morgan, Vivek Arya, Wilson Organizations: Wall, Bank of America, UBS, Americas, Nvidia, Marvell Technology, Broadcom, Cadence Design Systems, Bank of, Accenture, Microsoft, Taiwan Semiconductor Manufacturing Company, Consumer Locations: California, Snowflake, OpenAI
Here are five investments VanCronkhite loves now with market volatility likely to rise in late 2023. According to fund manager Bryant VanCronkhite, many investors make a common mistake when building portfolios: overlooking mid-sized stocks. After all, he's co-managed the $12.8 billion Allspring Special Mid Cap Value Fund (WFPAX) since early 2009 and has crushed his competitors in that span. Investors with the exact same priorities will likely target similar stocks and end up with average returns, VanCronkhite noted. 5 top stocks to buy as market volatility spikesAn outstanding rally for US stocks so far this year could get choppy in the coming months, VanCronkhite warned.
Persons: Bryant VanCronkhite, he's, Morningstar, VanCronkhite, James Tringas, they're suboptimal, VanCronkhite isn't, we're Organizations: Value, Value Fund
Here are 38 stocks that will revise earnings estimates higher, according to Morgan Stanley. Corporate profits are on pace to fall 9% through roughly a fifth of the Q2 earnings season, which is about 6 percentage points better than anticipated, according to Morgan Stanley. Morgan StanleyIn fact, the firm found that earnings revisions decelerated in two thirds of industries in the weeks since early July. That's cause for concern as a seasonally challenging time for revisions nears — earnings revisions breadth traditionally trends downwards in the months of July through November. Morgan Stanley expects nominal earnings and sales growth to suffer as price growth slows faster than expected, even if long-awaited interest rate cuts come.
Persons: haven't, Morgan Stanley, Ed Yardeni, Morgan, Mike Wilson, isn't, Wilson, they've
Here are 38 cities where rent is cheaper than it was last year, according to Zumper. ZumperLower rent growth comes as inflation falls from multi-decade-highs. While rent growth is modest compared to the double-digit rates of 2022, renters are contending with an affordability crisis, Zumper's researchers noted. That's a recipe for lower rent growth, but not a dramatic dip. Along with each city are its year-over-year and month-over-month rent changes, average rent price, and national rent ranking among the largest 100 US cities.
Persons: Anthemos Georgiades, Lofty, Georgiades
Here's which entertainment companies will outperform, according to analysts and industry insiders. Four industry veterans Insider spoke with unanimously agreed that unless the strikes are resolved soon, the movie industry's much-needed revival will fizzle out. In a mid-July note about the movie industry, Reese and Pachter highlighted three theater-related companies that are best positioned to survive in this difficult environment. FuboTV should be a winner since it's a solid alternative for cord cutters who still need news and sports coverage, which aren't impacted by the strikes, Pachter noted. Netflix is perhaps the most fascinating company in the media industry right now.
Persons: Barbie, Oppenheimer, Paul Dergarabedian, Alicia Reese, David A, Gross, Strikes, Reese, Michael Pachter, Dergarabedian, Pachter, Richard Gelfond, JPMorgan's David Karnovsky, Wedbush's Pachter, aren't, it's Organizations: Hollywood, Wedbush Securities, Entertainment Research, Alliance, Television Producers, Consumers, Netflix Locations: Hollywood, creatives
Fidelity's Adam Kramer has overseen one of the top multi-asset income funds of the past five years. Here are five asset classes he's targeting right now in this uncertain environment. The composition of the fund is weighted toward whichever asset classes are improperly priced by the market at a given time. An equally compelling aspect of the Fidelity Multi-Asset Income Fund is its ability to protect against losses and hedge against volatility. This year, convertible bonds have rebounded dramatically and are the best-performing class within fixed income, Kramer said.
Persons: Fidelity's Adam Kramer, Kramer, Adam Kramer, Morningstar, , Ford O'Neil, Ramona Persaud, Kramer doesn't, what's, he's Organizations: Fidelity Investments, Fidelity, Fund, Microsoft, Apple
Here are six top growth stocks in rapidly expanding industries like artificial intelligence. In an ocean of growth-focused funds, the Virtus Zevenbergen Innovative Growth Stock Fund (SAGAX) has an unrivaled knack for standing out — for better or worse. The basket of growth stocks has logged an astounding 62% year-to-date gain, which makes it one of the best-performing mutual funds in 2023. How to successfully invest in growth stocks in any marketThe core tenets that have anchored the Virtus Zevenbergen Innovative Growth Stock Fund through the storms of the last few years are simple, though following them can be challenging. The Virtus Zevenbergen Innovative Growth Stock Fund usually has 30-to-40 holdings at a time, Dennison said, and stocks stay in the portfolio for an average of over five years.
Persons: Anthony Zackery, Joe Dennison don't, they've, Dennison, Zackery, Nancy Zevenbergen, Brooke de Boutray, who've, Zackery isn't, He's, he's Organizations: Virtus, Stock Fund, Fund, Devices, Nvidia, Technology, Amazon, Netflix, Mercado Libre Locations: Zackery, Canada, Latin America, The Uruguay
But most of Wall Street still sees a recession hitting the US economy by the end of the year. With markets up but uncertainty rising, we asked 6 pros where they'd invest $10,000 right now. After the S&P 500 dropped nearly 20% last year, it's no wonder Wall Street wasn't particularly bullish heading into 2023. What nobody could have anticipated was the hype created by artificial intelligence, and the stock market boom that accompanied it. That's why Insider asked six financial gurus, ranging from portfolio managers to economists, where they would invest $10,000 right now.
Persons: Goldman Sachs, David Kostin, Mark Reeth
Here are 20 stocks that UBS says will post better-than-anticipated earnings in Q2. During the first week of Q2, earnings estimates for the quarter were revised lower by just under 1 percentage point, Simonds noted. 20 stocks with the most earnings upside in Q2While stocks broadly may struggle to achieve earnings growth in Q2, UBS analysts are confident that some companies can blow estimates out of the water. Below are the 20 US-based stocks that UBS analysts believe have the most earnings upside in Q2 compared to consensus estimates. Note that one company, Wintrust Financial Corporation, already reported Q2 earnings on July 19.
Persons: Sean Simonds, Simonds Organizations: UBS, Wintrust Financial Corporation
This year's stock market rally has only gotten stronger in the second half of 2023. Through the first two and a half weeks of July, the S&P 500 has risen 2%, which extends its year-to-date gain to over 18%. After gathering outlooks on stocks and the economy from seven leading investment firms, Insider compiled a list of investing recommendations from each of those firms. Below are the actionable ideas from each firm, along with their outlook for the second half of 2023, sorted in alphabetical order. For reference, here's what investment firms recommended heading into this year.
Persons: Mark Reeth
Here are 10 AI stocks that may be unexpected winners, according to Bank of America. Innovation has boosted productivity throughout history, and AI will be no exception, according to Bank of America. Bank of AmericaBank of America recently released projections about the possible productivity gains from AI through 2025, after which it sees productivity growth retreating to its post-2004 average of 1.4%. "AI stocks are priced for a bygone world of 2% bond yields, low costs of capital, easy globalization, and friendly inflation." Challenges for AI stocks include expensive valuations, low rates of profitability relative to other technology stocks, and other threats like regulation, according to Bank of America.
Persons: Jared Woodard, Woodard Organizations: Bank of America, Bank of America Bank of America, Bank of Locations: Bank of America .
Goldman Sachs is bullish about stocks in the second half of 2023. Here are 17 stocks with dramatically higher 2024 earnings estimates from Goldman than the consensus. Instead of simply watching to see whether corporate profits continue to decline this quarter, Goldman Sachs is already keeping a pulse on next year's earnings growth. Unlike most of its peers, Goldman Sachs expects the S&P 500 to build on its gain, though its year-end price target of 4,500 suggests near-term upside will be hard to come by. David Kostin, the chief US equity strategist at Goldman Sachs, wrote in a note that just 33% of large-cap mutual fund managers beat their benchmark in the first half.
Persons: Goldman Sachs, David Kostin Organizations: Goldman, Research, Credit Suisse
Here are four investments to make right now with stocks at risk of giving up their gains. "When we see windows of market distress, we tend to have a range of different opportunities to deploy that cash," McLennan said. If foreign currencies continue to strengthen relative to the dollar, the fund managers think international stocks could take off. Perhaps that's why, of their four favorite investments to make right now, three are international stocks. All three of the stocks McLennan and Brooker are most bullish on are all trading at discounts despite being leaders in their fields and having strong leadership teams, they said.
Persons: Matt McLennan, Kimball Brooker, McLennan, it's, Morningstar, Brooker, there's, they're, Wednesday's, Goldman Sachs, they'll, They've Organizations: Eagle Global Fund, Federal, McLennan
Once ubiquitous, affordable starter homes are now challenging to find in the US. Here are 17 cities that have reasonably priced starter homes and are appealing for young people. Cheap starter homes have mostly gone the way of wood paneling and popcorn ceilings. While starter homes aren't completely gone, it's understandable why millennials and Gen Zers might make that assumption. Note that the mortgage calculation is based on a 30-year fixed-rate mortgage of 6.4% on the average starter home price.
Persons: Zers, they're, There's, millennials, homebuyers Organizations: Federal Reserve, House
But even bullish firms like Goldman Sachs agree that further upside is very limited. But some strategists think this year's robust rally has legs, including those at Goldman Sachs. Only one firm, Deutsche Bank, set an S&P 500 target that wasn't exceeded in the first half of the year. Though that bear case may sound compelling, Goldman Sachs doesn't buy into it. Below are those companies, along with the ticker, market capitalization, and upside to price target for each.
Persons: Goldman Sachs, David Kostin, Kostin Organizations: Investors, Deutsche Bank, JPMorgan
Stocks performed much better than most strategists expected in the first half of 2023. However, leading investment firms now think gains will be much harder to come by. Instead, they've enjoyed a remarkably strong first half for the S&P 500 and the best start in 40 years for the technology-heavy Nasdaq Composite. However, there's serious doubt among strategists as to whether the S&P 500 can maintain its momentum. Below are the views on stocks, the economy, and the S&P 500's trajectory at the midpoint of 2023 from seven top investment firms, sorted from highest S&P 500 target to lowest.
Persons: Stocks, Here's, they've Organizations: Investors, Nasdaq, JPMorgan, UBS
But that plan carries serious risk, as it would jeopardize still-sizable cable revenue without guaranteeing that enough sports fans would support such a product. Several other analysts — including Barton Crockett of Rosenblatt Securities, who has a buy rating for Disney shares — seconded those concerns about cannibalizing cable revenue. Nollen estimated 35 million current cable customers would switch to ESPN DTC. ESPN DTC is zero incremental cost and potentially billions in incremental revenue." An ESPN streamer (in light purple) would gradually drive revenue for Disney, Wells Fargo predicts.
Persons: Disney, that's, Jalen Rose, Todd McShay, Bob Iger, Macquarie's Tim Nollen, Nollen, Barton Crockett, , Crockett, who'd, Will, you've, they'll, William Cohan, Cohan, Joe Bonner, Bonner, Brandon Nispel, Iger, Nispel, We've, Jason Bazinet, Bazinet, Hulu —, Wells Fargo's Steven Cahall, Cahall, Wells Organizations: ESPN, Disney, Bank of America, NBA, Sports, ESPN Disney's ESPN, Rosenblatt Securities, ESPN DTC, Will Disney, Citigroup, NFL, NBC, Apple, Comcast, NBC Sports, Netflix Netflix, Hearst, Argus Research, Netflix, KeyBanc, Hulu, DIS, Wells Fargo Sports Locations: Wells Fargo, it's, Wells, Hulu, Puck
After a surprisingly strong rally in the first half of 2023, BMO Capital Markets remains bullish. Here are six stocks for investors to consider in the second half of the year. Investors can count on further gains for US stocks in the next six months after a startlingly strong start to 2023, said strategists at BMO Capital Markets. In its bull case, the firm thinks the S&P 500 could climb another 13.5% to end the year at 5,050. BMO Capital Markets"SMID-caps have been unfairly punished, in our view," Belski wrote.
Persons: Brian Belski, Belski Organizations: BMO Capital Markets, BMO Capital, BMO Locations: Canada
Here are 33 cities where rents are less than they were in June 2022, according to Zumper. That's a stark difference from May, where rent prices set a new record after rising from the prior month for the first time since December. For example, a $100 rent increase would be 10% of $1,000, but about 7% of $1,500. 33 markets where rent growth is droppingBelow are the 33 metro areas where rents for a one-bedroom apartment are lower than they were in 2022, according to Zumper. Along with each city are its year-over-year and month-over-month rent changes, average rent price, and national rent ranking among the largest 100 US cities.
Persons: It's, Zumper, Anthemos Georgiades
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
World Bank approves $700 mln for crisis-hit Sri Lanka
  + stars: | 2023-06-28 | by ( ) www.reuters.com   time to read: +1 min
[1/2] People wait in line to buy domestic gas tanks near a distributor, amid the country's economic crisis, in Colombo, Sri Lanka, May 23, 2022. REUTERS/Dinuka Liyanawatte/File PhotoCOLOMBO, June 29 (Reuters) - The World Bank approved $700 million in budgetary and welfare support for Sri Lanka on Thursday, the biggest funding tranche for the crisis-hit island nation since an International Monetary Fund (IMF) deal in March. "Through a phased approach, the World Bank Group strategy focuses on early economic stabilization, structural reforms, and protection of the poor and vulnerable," the World Bank's country director for Sri Lanka, Faris Hadad-Zervos, said in a statement. Sri Lanka is struggling with the worst financial crisis since its independence from Britain in 1948 after the country's foreign exchange hit record lows and triggered its first foreign debt default last year. The IMF approved a bailout of nearly $3 billion in March, which Sri Lanka expects will bring additional funding of up to $4 billion from the World Bank, the Asian Development Bank and other multilateral agencies.
Persons: Dinuka, Faris Hadad, Zervos, Uditha Jayasinghe, Chris Reese, Sonali Paul Organizations: REUTERS, World Bank, Sri, Monetary Fund, World Bank Group, IMF, Asian Development Bank, Thomson Locations: Colombo, Sri Lanka, Britain, China, Japan, India
World Bank approves $700 million for crisis-hit Sri Lanka
  + stars: | 2023-06-28 | by ( ) edition.cnn.com   time to read: +1 min
Colombo CNN —The World Bank approved $700 million in budgetary and welfare support for Sri Lanka on Thursday, in the biggest funding tranche for the crisis-hit island nation since an International Monetary Fund (IMF) deal in March. About $500 million of the funds will be allocated for budgetary support while the remaining $200 million will be for welfare support earmarked for those worst hit by the crisis. “Through a phased approach, the World Bank Group strategy focuses on early economic stabilization, structural reforms, and protection of the poor and vulnerable,” the World Bank’s country director for Sri Lanka, Faris Hadad-Zervos, said in a statement. Sri Lanka is struggling with the worst financial crisis since its independence from Britain in 1948 after the country’s foreign exchange hit record lows and triggered its first foreign debt default last year. The IMF approved a bailout of nearly $3 billion in March, which Sri Lanka expects will bring additional funding of up to $4 billion from the World Bank, the Asian Development Bank and other multilateral agencies.
Persons: Faris Hadad, Zervos, ” Zervos Organizations: Colombo CNN, Bank, Sri, Monetary Fund, World Bank Group, IMF, World Bank, Asian Development Bank Locations: Sri Lanka, Britain, China, Japan, India
Here are five small companies that could have huge returns with a bit of good fortune. Kevin Rendino, formerly of Merrill Lynch and BlackRock, is an activist investor focused on reviving small companies that might just be sleeping giants. He still believes the so-called "end-of-the-world" scenario that investors are pricing in for that group of stocks right now is completely unwarranted. "I don't see the excesses in the system like we saw in 2008, which would cause a recession," Rendino said. Below are five of Rendino's favorite stocks right now along with the ticker, market capitalization, and thesis for each.
Persons: Kevin Rendino, there's, Merrill Lynch, Rendino, We're, We've, We'll, we're, they've, Russell Microcap, Russell, , — Rendino, he's, Warren Buffett Organizations: BlackRock, Capital, Nasdaq, Investors
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