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☆ Wall St Week Ahead Bargain or trap? US bank stock outlook hinges on Fed's path
▼ + stars: | 2023-11-10 | by ( David Randall | ) www.reuters.com time to read: +4 min

Bank stocks are at an all-time low compared with the S&P 500 based on relative prices, according to data from BofA Global Research. One key factor for bank stocks is whether the Federal Reserve is close to wrapping up a monetary tightening cycle that has brought the highest U.S. interest rates in decades. Yet signs the Fed may keep rates around current levels through most of next year have weighed on bank stocks. This month, analysts at BofA Global Research said investors should “selectively” add exposure to bank stocks in anticipation of an interest rate peak. Overall, about 61% of all outstanding mortgages have an interest rate below 4%, according to the Apollo Group, leaving consumers little incentive to refinance or move.

Persons: Brendan McDermid, ”, Quincy Krosby, Bill Gross, Neville Javeri, Goldman Sachs, Jeff Muhlenkamp, David Randall, Bansari Mayur, Ira Iosebashvili, David Gregorio Our Organizations: New York Stock Exchange, REUTERS, Silicon Valley Bank, Bank, BofA Global Research, LPL, Federal Reserve, Fund, Allspring Global Investments, Fifth Third Bancorp, Investors, Apollo Group, financials, Fed, Muhlenkamp & Company, Thomson Locations: New York City, U.S, Silicon

☆ US companies' debt cushion smallest since Q1 2021 :BofA
▼ + stars: | 2023-11-08 | by ( Matt Tracy | ) www.reuters.com time to read: +2 min

Coverage ratios hit their lowest since the first quarter of 2021, when companies in many sectors struggled with pandemic-related supply cost increases and weak demand. Median year-over-year earnings growth jumped 4.2% in the third quarter, from 0.6% in the second quarter, according to BofA Global. The median cost of debt increased to 3.77% in the third quarter from the second quarter - its highest since the fourth quarter of 2018. Companies' gross debt was little changed, but net debt growth turned negative for the first time since the third quarter of 2021. "(Investment-grade) issuers continued to manage their balance sheets conservatively in 3Q," wrote Yuri Seliger, credit strategist at BofA Global.

Persons: Carlo Allegri, Yuri Seliger, Matt Tracy, Chizu Organizations: New York Stock, REUTERS, BofA Global Research, BofA Global, Companies, BofA, Thomson Locations: Manhattan, New York City , New York, U.S, 11.24x

☆ Birkenstock gets Wall Street's top rating on capacity boost, expansion
▼ + stars: | 2023-11-06 | by ( ) www.reuters.com time to read: +2 min

Nov 6 (Reuters) - Wall Street brokerages largely initiated Birkenstock (BIRK.N) with their top ratings, pointing to a likely boost from the German luxury sandal maker's recent investments to increase capacity, expansion into newer styles and brand loyalty. Birkenstock's shares dropped to as low as $35.83 in the days after listing on Oct. 11 and has traded below the IPO price of $46 apiece. Citigroup was among the most bullish, with a price target of $52, a more than 26% jump from the last close. Telsey Advisory Group analysts said Birkenstock has further avenue to expand into footwear categories such as orthopedics and professional, outdoor and active, kids, home, and sneakers. Morgan Stanley assigned a price target of $41 and an "equal-weight" rating, saying most catalysts were already priced in.

Persons: Birkenstock's, Morgan, Goldman Sachs, Jefferies, Birkenstock, Bernard Arnault, Lorraine Hutchinson, Morgan Stanley, Hogan, Riley, Reshma Rockie George, Susan Mathew, Savyata Mishra, Amruta Khandekar, Maju Samuel, Sriraj Organizations: Arm Holdings, Citigroup, Telsey Advisory, U.S ., Global, Thomson Locations: U.S, French, Bengaluru

☆ Nutrien misses quarterly profit estimates as potash prices plummet
▼ + stars: | 2023-11-01 | by ( ) www.reuters.com time to read: +1 min

Nov 1 (Reuters) - Nutrien (NTR.TO) fell short of analysts' estimates for third-quarter profit on Wednesday, as lower potash prices weighed on the world's biggest fertilizer producer. Potash prices have been falling after shipments from Belarus and Russia resumed. Demand for fertilizers was also weak during much of the year, analysts have said, as farmers waited for prices to settle down. Potash prices averaged $250 per tonne during the reported quarter, the company said, compared with $633 per tonne a year earlier. Nutrien said potash sales volumes, however, climbed 23% on strong sales in North America.

Persons: Steve Byrne, Nutrien, Sourasis Bose, Sriraj Organizations: BofA Global, Thomson Locations: Belarus, Russia, Ukraine, U.S, North America, Borger, Bengaluru

☆ Disney's ESPN could be valued at $24 bln, likely buyers include Apple, Verizon - BofA
▼ + stars: | 2023-11-01 | by ( ) www.reuters.com time to read: +2 min

Toy figures of people are seen in front of the displayed Disney + logo, in this illustration taken January 20, 2022. REUTERS/Dado Ruvic/Illustration/File Photo Acquire Licensing RightsNov 1 (Reuters) - Walt Disney's ESPN sports network could secure an enterprise value of $24 billion and attract investment interest from sports leagues, tech firms like Apple and telecom majors including Verizon, according to BofA Global Research. Benefits to prospective buyers, however, appear "nebulous", BofA said. "ESPN is still a strong business and a premier brand, but it sits at the nexus of possible major business transformation. Reporting by Chavi Mehta in Bengaluru; Editing by Anil D'SilvaOur Standards: The Thomson Reuters Trust Principles.

Persons: Dado Ruvic, Walt Disney's, Bob Iger, Jessica Reif Ehrlich, BofA, Chavi Mehta, Anil D'Silva Organizations: REUTERS, Walt Disney's ESPN, Apple, Verizon, BofA Global Research, ESPN, Disney, National Football League, National Basketball Association, Comcast, Thomson Locations: Bengaluru

☆ Wavering ‘Magnificent Seven’ draw bargain-hunters amid U.S. stock sell-off
▼ + stars: | 2023-11-01 | by ( Lewis Krauskopf | ) www.reuters.com time to read: +5 min

Surging bond yields and mixed earnings reports have weighed on the so-called Magnificent Seven stocks, which are collectively down an average of about 15% from their 52-week highs, though they all still sit on hefty gains for the year. The stocks now trade at an average forward price-to-earnings ratio of about 30 times compared with 45 times in mid-June. I actually think the Magnificent Seven will hold up better,” said King Lip, chief strategist at Baker Avenue Wealth Management. Because the Magnificent Seven have a combined weighting of 28% in the S&P 500, their performance holds a large sway over the broader index. Lip said his firm owns shares of all seven companies and has recently added to its holdings in some of them.

Persons: Brendan McDermid, Meta, ”, Lip, Jay Hatfield, Kim Forrest, ” Forrest, Apple’s, Hatfield, Thomas Ognar, Ognar, ” Ognar, Lewis Krauskopf, Ira Iosebashvili, Jonathan Oatis Organizations: NVIDIA Corp, New York Stock Exchange, REUTERS, Apple, Microsoft, Wealth Management, Tech, BofA Global Research, Vanda Research, Federal, Treasury, U.S, Google, Facebook, Bokeh Capital Partners, Nvidia, Allspring, Thomson Locations: New York City, U.S

Oct 27 (Reuters) - Bargain hunting drove investors to exchange-traded funds (ETFs) tracking technology companies after shares fell sharply on mixed earnings from heavyweights. The fund's price fell nearly 4% in the week, as mixed results from megacaps like Alphabet (GOOGL.O) weighed on the sector. Tech funds saw inflows of $2 billion in the week to Wednesday, their largest in eight weeks, according to BofA Global Research, which it attributed to investors "buying the dip". The $14 billion ProShares UltraPro QQQ (TQQQ.O) posted net weekly inflows of $68.15 million, even as the price of the fund fell 9.5%. The $46.5 billion Technology Select Sector SPDR Fund and the $9 billion VanEck Semiconductor ETF (SMH.O) posted net inflows of $205.7 million and $280.6 million, respectively, for the week.

Persons: Todd Sohn, Todd Rosenbluth, Vanda Research's, Bansari Mayur, Shweta Agarwal Organizations: Technology ETF, Apple, Microsoft, Strategas Securities, VettaFi . Tech, Nasdaq, Tech, BofA Global Research, Fund, Semiconductor, Thomson Locations: VettaFi, Bengaluru

☆ Barclays downgraded by BofA on restructuring uncertainty
▼ + stars: | 2023-10-26 | by ( ) www.reuters.com time to read: +1 min

A Barclays sign is seen outside a branch of the bank in London, Britain, February 23, 2017. REUTERS/Stefan Wermuth/File Photo Acquire Licensing RightsMILAN, Oct 26 (Reuters) - BofA Global Research downgraded Barclays (BARC.L) to underperform on Thursday, citing uncertainty over the UK bank's restructuring and near-term risks to capital distributions. "A potential material, but unspecified, restructuring charge to deliver unspecified benefits over an unspecified time period adds to uncertainty about Barclays strategy and financial target," wrote analysts at the U.S. bank. Barclays on Tuesday said it would embark on another restructuring round in the coming months to mitigate the effects of margin pressure from competition in the savings market and another lacklustre performance from its investment bank. Barclays shares have lost over 17% so far in 2023 and on Thursday, were down 1.3%, in their seventh straight daily fall.

Persons: Stefan Wermuth, Danilo Masoni, Amanda Cooper Organizations: Barclays, REUTERS, Research, Corporate & Investment Bank, Thomson Locations: London, Britain, underperform, U.S

☆ Soaring Treasury yields threaten long-term performance of US stocks
▼ + stars: | 2023-10-26 | by ( Lewis Krauskopf | ) www.reuters.com time to read: +5 min

This year’s climb in Treasury yields is changing that calculus, as government bonds offer income that is viewed as risk-free to investors who hold them to term. The 10-year Treasury yield has climbed about a full percentage point since then. The term premium is the added compensation investors expect for owning longer-term debt and is measured using financial models. Stocks have averaged a forward price-to-earnings ratio of 17.8 over the last 10 years, while the term premium has averaged -0.3%. That compares with a historical average forward P/E of 15.6 and a term premium of 1.4% since 1985.

Persons: Brendan McDermid, ”, Quincy Krosby, Elon Musk, John Lynch, Lynch, LSEG, Matthew Miskin, Keith Lerner, ” Lerner, Lewis Krauskopf, Dan Burns, Ira Iosebashvili, Marguerita Choy Organizations: New York Stock Exchange, REUTERS, Soaring U.S, Treasury, U.S . Federal Reserve, . Treasury, BofA Global Research, LPL, Comerica Wealth Management, Reuters Graphics, John Hancock Investment Management, UBS Global Wealth Management, Advisory, Thomson Locations: New York City, U.S

A street sign for Wall Street is seen in the financial district in New York, U.S., November 8, 2021. Comments from Philadelphia Fed President Patrick Harker and Cleveland Fed President Loretta Mester will also be on investor radar during the day as Fed officials will be entering a media blackout starting Saturday ahead of their meeting on Nov 1. The 10-year Treasury yield , which briefly crossed 5% on Thursday for the first time since July 2007, were last at 4.9392%. ET, Dow e-minis were down 78 points, or 0.23%, S&P 500 e-minis were down 13 points, or 0.3%, and Nasdaq 100 e-minis were down 61 points, or 0.41%. Shares of solar firms Enphase Energy (ENPH.O) and First Solar (FSLR.O) were also down 15.6% and 5.2%, respectively.

Persons: Brendan McDermid, Jerome Powell, Powell, Jay Powell, Michael Hewson, Lorie Logan, Patrick Harker, Loretta Mester, CME's, Shubham Batra, Shashwat Chauhan, Arun Koyyur, Vinay Dwivedi Organizations: Wall, REUTERS, Dow, Nasdaq, Treasury, Federal, Economic, of New, CMC, Fed Bank of Dallas, Market, BofA, Research, U.S, Philadelphia Fed, Cleveland Fed, Traders, American Express, Investors, Dow e, Enphase Energy, Thomson Locations: New York, U.S, of New York, East, Israel, Gaza, Bengaluru

☆ Falling stocks, climbing mortgage rates: how 5% Treasury yields could roil markets
▼ + stars: | 2023-10-20 | by ( Saqib Iqbal Ahmed | ) www.reuters.com time to read: +5 min

Expectations that the Federal Reserve will keep interest rates elevated and mounting U.S. fiscal concerns are among the factors driving the move. Because the $25-trillion Treasury market is considered the bedrock of the global financial system, soaring yields on U.S. government bonds have had wide-ranging effects. "The longer we remain at higher interest rates, the more likely something is to break." Elon Musk warned that high interest rates could sap electric-vehicle demand, which knocked shares of the sector on Thursday. Reuters GraphicsThe U.S. dollar has advanced an average of about 6.4% against its G10 peers since the rise in Treasury yields accelerated in mid-July.

Persons: Brendan McDermid, Gennadiy Goldberg, Jerome Powell, Powell, Elon Musk, Tesla’s, gravitating, Athanasios Vamvakidis, Saqib Iqbal Ahmed, Ira Iosebashvili, Stephen Coates Organizations: New York Stock Exchange, REUTERS, Treasury, Federal Reserve, TD Securities, Reuters, Global Research, Reuters Graphics, ICE, Fed, Thomson Locations: New York City, U.S, New York, Treasuries

A United Auto Workers (UAW) union member wears a pin while picketing outside Ford's Kentucky truck plant after going on strike in Louisville, Kentucky, U.S. October 12, 2023. With the United Auto Workers (UAW) strike entering its 36th day and the total economic cost pegged at more than $7 billion, companies are counting the cost of lost revenue amid an uncertain economy and persistent inflation. "The damage from the strikes will last long after UAW members return to work," University of Michigan professor Erik Gordon said. Earlier this week, consultancy firm Anderson Economic Group estimated the economic losses related to supplier wages and earnings of about $2.67 billion through fourth week of the strike. An agreement remains elusive so far and shares of automakers and suppliers have fallen since the strike began on Sept. 15.

Persons: Luke Sharrett, Erik Gordon, Gordon, Lear, John Murphy, Aptiv, Mikael Bratt, Raechel Thankam, Shivansh, Marie, Nathan Gomes, Arun Koyyur Organizations: United Auto Workers, UAW, REUTERS, Detroit Three, University of Michigan, Workers, Delta Air Lines, Detroit . Paints, PPG Industries, railroader Union, Analysts, General Motors, Ford Motor, Trucking, Magna International, Global Research, Anderson Economic Group, Reuters, EV, Auto, Marie Mannes, Thomson Locations: Ford's Kentucky, Louisville , Kentucky, U.S, Detroit, French, Forvia, Bengaluru, Stockholm

☆ Analysis: Wall Street's 'Magnificent Seven' face moment of truth as earnings season arrives
▼ + stars: | 2023-10-19 | by ( Lewis Krauskopf | ) www.reuters.com time to read: +5 min

Valuations have swelled, with the Magnificent Seven trading at an average forward price-to-earnings ratio of 33.5, compared with the S&P 500's P/E of 18.3. “Everybody knows these guys are going to make money," said Sameer Samana, senior global market strategist at the Wells Fargo Investment Institute (WFII), referring to the Magnificent Seven. "The reallocation of funds going forward is going to suggest lower returns and more difficulty for the Magnificent Seven to maintain their leadership." The seven companies' combined market capitalization topped 30% of the S&P 500's overall market value earlier this month, according to LSEG Datastream. Some investors are also drawing distinctions among the seven stocks.

Persons: Aly, Tesla, Sameer Samana, Tajinder Dhillon, Tim Pagliara, CapWealth, Pagliara, Elon Musk, LSEG Datastream, Torsten Slok, Patrick Kaser, Kaser, Lewis Krauskopf, Ira Iosebashvili, Jonathan Oatis Organizations: Apple, REUTERS, Microsoft, Nvidia, U.S, Tesla, Wells, Investment Institute, Google, Facebook, Federal, Treasury, “, Global, Apollo Global Management, Brandywine Global, Thomson Locations: Shanghai, China, Apple

☆ Instacart IPO banks tout e-grocery shopping potential, but challenges loom
▼ + stars: | 2023-10-16 | by ( Savyata Mishra | ) www.reuters.com time to read: +2 min

REUTERS/Cheney Orr/File Photo Acquire Licensing RightsOct 16 (Reuters) - Most Wall Street brokerages, including J.P.Morgan and Goldman Sachs, kicked off coverage on Instacart (CART.O) with a bullish view, betting on the grocery delivery app's growth amid a shift to online shopping. The stock — following a lukewarm debut in September — closed at $25.57 on Friday, below its $30 initial public offering (IPO) price. At least half of Instacart's 20 IPO underwriters have initiated coverage with their top ratings after the quiet period ended. Instacart's slow growth compared to rivals is a top concern, as a reduction in food stamp benefits and a shift back to in-store shopping could limit GTV growth, according to Piper Sandler analyst Alexander Potter. As of Friday, the six brokerages that were not involved in the IPO started coverage with an average rating of "hold", LSEG data showed.

Persons: Eric Cohn, Cheney Orr, Goldman Sachs, —, Baird, Colin Sebastian, Scott Devitt, Justin Post, Piper Sandler, Alexander Potter, Savyata Mishra, Shilpi Majumdar Organizations: Safeway, REUTERS, J.P.Morgan, underwriters, Walmart, Wedbush, BofA Global Research, Thomson Locations: Tucson , Arizona, U.S, Instacart, Bengaluru

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., September 28, 2023. A Labor Department report showed U.S. job openings unexpectedly increased in August, pointing to tight labor market conditions. Traders' bets on at least another 25-basis-point rate hike stood in November and December at 30% and 48%, respectively, according to CME's FedWatch tool. The CBOE volatility index (.VIX), known as Wall Street's "fear gauge", touched a more than four-month high, reflecting heightened investor anxiety. Declining issues outnumbered advancers for a 5.99-to-1 ratio on the NYSE and a 3.50-to-1 ratio on the Nasdaq.

Persons: Brendan McDermid, Loretta Mester, Raphael Bostic, Jason Pride, KeyBanc, McCormick, advancers, Ankika Biswas, Shashwat Chauhan, Vinay Dwivedi, Maju Samuel Organizations: New York Stock Exchange, REUTERS, Microsoft, Dow, Nasdaq, Labor Department, Cleveland Fed, Atlanta, Traders, Apple, Reuters, Ofcom, Dow Jones, ADP, HP, BofA Global Research, Boeing, United Airlines, NYSE, Thomson Locations: New York City, U.S, Glenmede, Philadelphia, Bengaluru

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., September 28, 2023. Consumer discretionary (.SPLRCD) led declines in the major S&P 500 sectors, falling 2.2%, while beaten-down utilities (.SPLRCU) dropped 1.8%. Declining issues outnumbered advancers by a 4.74-to-1 ratio on the NYSE and by a 3.17-to-1 ratio on the Nasdaq. The S&P index recorded one new 52-week high and 48 new lows, while the Nasdaq recorded 11 new highs and 225 new lows. Reporting by Ankika Biswas and Shashwat Chauhan in Bengaluru Editing by Vinay DwivediOur Standards: The Thomson Reuters Trust Principles.

Persons: Brendan McDermid, Eli Lilly, we're, David Russell, Raphael Bostic, Keybanc, McCormick, Ankika Biswas, Shashwat Chauhan, Vinay Dwivedi Organizations: New York Stock Exchange, REUTERS, Dow, Nasdaq, Apple, Microsoft, Artificial Intelligence, Treasury, Boeing, Reuters, United Airlines, Labor Department, Investor, ADP, Atlanta Fed, Fed, Dow Jones, HP, BofA Global Research, Biopharma, NYSE, Thomson Locations: New York City, U.S, Bengaluru

☆ Strong earnings will reverse decline in megacap tech stocks: Goldman Sachs
▼ + stars: | 2023-10-02 | by ( David Randall | ) www.reuters.com time to read: +2 min

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., August 15, 2023. REUTERS/Brendan McDermid/File Photo Acquire Licensing RightsNEW YORK, Oct 2 (Reuters) - Strong upcoming earnings results could reverse the decline in mega-cap technology and growth stocks, which have been hammered by the rise in Treasury yields and are trading at their cheapest levels in six years by one measure, according to Goldman Sachs strategists. At the same time, the group is expected to post sales growth of 11% in the third quarter, compared with a 1% improvement for the S&P 500, the firm noted. The S&P 500 has dropped nearly 5% over the last 10 trading days but remains slightly more than 11% up since the start of the year. "We expect the S&P 500 to rally into year-end, with more upside in the equal-weighted index," Subramanian wrote.

Persons: Brendan McDermid, Goldman Sachs, Savita Subramanian, Subramanian, David Randall, Ira Iosebashvili, Mark Potter Organizations: New York Stock Exchange, REUTERS, Apple, Microsoft, Nvidia, Tesla, BofA Global Research, Thomson Locations: New York City, U.S

NEW YORK, Sept 27 (Reuters) - As the Federal Reserve’s hawkish stance boosts Treasury yields and slams stocks, some investors are preparing for more pain ahead. AQR's analysis showed that trend-following hedge funds tend to outperform when rates are elevated, as they hold large cash positions that benefit from higher rates. Of course, plenty of investors believe the Fed will cut rates as soon as economic growth starts to wobble. Futures tied to the Fed’s key policy rate show investors pricing in the first rate cut in July 2024. Still, he has been holding off on adding to the firm’s holdings of small-cap consumer stocks, wary there may be more market volatility ahead as investors digest higher rates and other factors, including elevated energy prices.

Persons: ”, Jake Schurmeier, Dan Villalon, Keith Lerner, Lerner, Robert Pavlik, Schurmeier, he’s, Eric Kuby, Lewis Krauskopf, David Randall, Carolina, Ira Iosebashvili, Leslie Adler Organizations: Fed, Apple, Nvidia, Treasury, U.S ., Harbor Capital Advisors, AQR Capital Management, Advisory Services, Reuters, Dakota Wealth Management, BofA Global Research, Nasdaq, North Star Investment Management Corp, Thomson Locations: Harbor

☆ We've been big believers in the secular bull market, says BofA's Stephen Suttmeier
▼ + stars: | 2023-09-26 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWe've been big believers in the secular bull market, says BofA's Stephen SuttmeierStephen Suttmeier, BofA Global Research chief equity technical strategist, joins 'Squawk Box' to discuss the latest technical analysis, overall market trends and forecast, and more.

Persons: Stephen Suttmeier Stephen Suttmeier Organizations: Global Research

☆ Wall St Week Ahead Fed-wary investors eye mounting risks to US stock rally
▼ + stars: | 2023-09-22 | by ( David Randall | ) www.reuters.com time to read: +4 min

The S&P 500 (.SPX) tumbled 2.9% this week, its biggest weekly decline since March. High Treasury yields dull the allure of stocks by offering investors an attractive payout on an investment seen as virtually risk free. The S&P 500 entered what has historically been its weakest 10-day stretch of the year on Sept. 18, according to BofA Global Research. Meanwhile, a drawn out government shutdown could aggravate concerns over U.S. government gridlock and send Treasury yields even higher. He noted that the S&P 500 remains above its 200-day moving average and there have been few signs of investors fleeing to safety.

Persons: Charlie Ripley, Brian Jacobsen, “, ”, Fitch, Keith Lerner, Adam Turnquist, David Randall, Ira Iosebashvili, David Gregorio Our Organizations: Federal Reserve, Fed, Investors, BoFA, Allianz Investment Management, Treasury, Annex Wealth Management, BofA Global Research, Societe Generale, LPL Financial, Thomson

☆ Dollar higher as Fed skips rate hike but stiffens hawkish stance
▼ + stars: | 2023-09-20 | by ( Saqib Iqbal Ahmed | ) www.reuters.com time to read: +4 min

As they did in June, Fed policymakers at the median still see the central bank's benchmark overnight interest rate peaking this year in the 5.50%-5.75% range, just a quarter of a percentage point above the current range. But from there, the Fed's updated quarterly projections show rates falling only half a percentage point in 2024 compared with the full percentage point of cuts anticipated at the meeting in June. Interest rate sensitive two-year Treasury yields hit 17-year highs on Wednesday after the Fed decision. "It looks as though the Fed is trying to send as hawkish a signal as it possibly can," said Gennadiny Goldberg, interest rate strategist at TD Securities. The yen was down 0.13% versus the greenback at 148.05 per dollar after the Fed decision.

Persons: Dado Ruvic, Karl Schamotta, Schamotta, Jerome Powell, Gennadiny Goldberg, Dominic Bunning, BoE, Masato Kanda, Janet Yellen, bitcoin, Saqib Iqbal Ahmed, Herbert, Joice Alves, Brigid Riley, Marguerita Choy, Jonathan Oatis Organizations: REUTERS, U.S, Federal Reserve, TD Securities, Bank of England, Reuters, FX Research, HSBC, Washington, Treasury, Thomson Locations: Toronto, Japan, U.S, New York, London, Tokyo

☆ BofA lifts S&P 500 2023-end target by 7%, led by "old economy" stocks
▼ + stars: | 2023-09-20 | by ( ) www.reuters.com time to read: +3 min

The S&P 500 is up 15.7% so far this year, largely driven by a rally in a handful of mega-cap growth stocks such as Nvidia (NVDA.O) and Meta (META.O) that have ridden the artificial intelligence (AI) boom. While the rally has been moderating, BofA remains in "neutral" to "positive" territory on U.S. stocks, with a bias towards equal-weighted stocks, strategists led by Savita Subramanian said. An equal-weight index assigns uniform weights to each constituent, unlike a market capitalization-based index, like the S&P 500, where bigger companies tend to have an outsized influence. Equal-weighted stocks have less volatile earnings, smaller differences in analysts' estimates, and are cheaper and less crowded than growth stocks, Subramanian said. While a "fresh wave of bear narratives around equities have emerged", BofA says the "old economy", which includes value stocks - more prevalent in the equal-weighted S&P 500 - could benefit as much as tech and growth.

Persons: Andrew Kelly, Savita Subramanian, Subramanian, BofA, Morgan Stanley, Susan Mathew, Savio D'Souza Organizations: Dow Jones, New York Stock Exchange, REUTERS, Street, Nvidia, Tech, Thomson Locations: Manhattan , New York City, U.S, Bengaluru

A customer hands Indian currency notes to an attendant at a fuel station in Mumbai, India, August 13, 2018. REUTERS/Francis Mascarenhas Acquire Licensing RightsMUMBAI, Sept 20 (Reuters) - The Indian rupee, hovering near a record low, is expected to remain under pressure amid focus on crude oil prices and the U.S. Federal Reserve's policy decision. Non-deliverable forwards (NDF) indicate rupee will open at around 83.25-83.29 to the U.S. dollar compared with 83.2675 in the previous session. The Fed on Wednesday is widely expected to keep the policy rate unchanged with futures assigning a near zero percent probability of a rate hike. "We expect the 2023 median policy rate forecast to show one more 25bps hike, for a terminal rate of 5.5-5.75%," BofA Global Research said in a note.

Persons: Francis Mascarenhas, Brent, Nimesh Vora, Mrigank Organizations: REUTERS, Rights, U.S, Reserve Bank of, Fed, Research, Brent, Thomson Locations: Mumbai, India, Rights MUMBAI, U.S . Federal, Reserve Bank of India, Asia

☆ What industry experts, leaders say about the autoworkers' strike
▼ + stars: | 2023-09-15 | by ( ) www.reuters.com time to read: +7 min

SAM FIORANI, PRODUCTION FORECASTER AT AUTO FORECAST SOLUTIONS:"This is more of a symbolic strike than an actual damaging one ... DEMOCRATIC U.S. REPRESENTATIVE ELISSA SLOTKIN OF MICHIGAN:"I'm looking forward to joining our auto workers on the picket line this weekend. DONALD TRUMP, FORMER U.S. PRESIDENT:"The all Electric (car) is a disaster for both the United Auto Workers and the American Consumer. The targeted strike is intended to give UAW flexibility strike fund duration." SUZANNE CLARK, CEO OF US CHAMBER OF COMMERCE"The UAW strike and indeed the 'summer of strikes' is the natural result of the Biden administration's 'whole of government' approach to promoting unionization at all costs."

Persons: MARY BARRA, who's, we've, Shawn, Fain, DAN IVES, KOJI ENDO, LEE JAE, ARTHUR WHEATON, It's, ELISSA SLOTKIN, JAY TIMMONS, MONICA BOSIO, Stellantis, MARTINO, AMBROGGI, DONALD TRUMP, CHRIS MCNALLY, COLIN LANGAN, AT WELLS, PATRICK ANDERSON, JOHN MURPHY, Ford, ROBERT STREDA, DBRS, SUZANNE CLARK, Biden, Joseph White, David Shepardson, Trevor Hunnicutt, Peter Henderson, Heekyong Yang, Daniel Leussink, Giulio Piovaccari, Mehr Bedi, Medha Singh, Anne Marie Roantree, Jamie Freed, Savio D'Souza, Arun Koyyur Organizations: United Auto Workers, UAW, General Motors, Ford, Chrysler, Ford Bronco, Chevrolet, CNBC, GM, SBI, EUGENE, South, CORNELL SCHOOL, Company, DEMOCRATIC U.S, ELISSA SLOTKIN OF, NATIONAL ASSOCIATION, American Consumer, ISI, AT, Detroit, Thomson Locations: Chevrolet Colorado, Detroit, United States, ELISSA SLOTKIN OF MICHIGAN, China, Washington, San Francisco, Seoul, Tokyo, Milan, Bengaluru

Sino-U.S. friction has worsened in recent years as Washington tries to restrict China's access to key technologies including cutting-edge chip technology, and Beijing looks to reduce its reliance on American tech. A customer talks to sales assistants in an Apple store as Apple Inc's new iPhone 14 models go on sale in Beijing, China, September 16, 2022. "This is textbook Chinese Communist Party behavior - promote PRC (People's Republic of China) national champions in telecommunications, and slowly squeeze Western companies' market access," Gallagher, a Republican, told Reuters. The drop in the technology sector weighed on the three main U.S. stock indexes, particularly the tech-heavy Nasdaq Composite, which closed down 0.9%. IPHONE SLOWDOWNChina has been a bright spot for Apple in an otherwise tough period for iPhone sales.

Persons: chipmaker SMIC, Jake Sullivan, Sullivan, Thomas Peter, Biden, Mike Gallagher, Gallagher, Mark Warner, Rick Meckler, Susannah Streeter, Hargreaves Lansdown, Streeter, Aditya Soni, Jaspreet Singh, Shristi Achar, Diane Bartz, David Gaffen, Shounak Dasgupta, Devika Organizations: Apple, Street, Washington, Huawei, HK, U.S . Commerce Department, National, Air Force, BofA Global Research, Qualcomm, REUTERS, Beijing, Communist Party, People's, Republican, Reuters, U.S, Senate Intelligence Committee, planemaker Boeing, Micron, Broadcom, Texas, Nasdaq, Cherry Lane Investments, Hargreaves, Thomson Locations: Beijing, US, China, U.S, Kirin, People's Republic of China, Bengaluru

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