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☆ The US housing market faces a 'triple whammy' of threats - and stocks may stage a Santa Claus rally, a top strategist says
▼ + stars: | 2022-12-20 | by ( Theron Mohamed | ) www.businessinsider.com time to read: +3 min

The US housing market has been hit by labor shortages, rising costs, and soaring mortgage rates. Brian Jacobsen, an Allspring strategist, described those three trends as a "triple whammy." On the other hand, the Allspring strategist suggested US stocks could reverse some of their recent declines before the new year. Its policymakers have responded by raising interest rates from almost zero in March to over 4% today. Higher interest rates encourage people to save rather than spend, and they raise the cost of borrowing, relieving upward pressure on prices.

☆ New home building retreated in November
▼ + stars: | 2022-12-20 | by ( Anna Bahney | ) edition.cnn.com time to read: +5 min

Washington CNN —Home building pulled back in November, as buyers faced spiking mortgage rates topping 7% that make homes increasingly unaffordable. Housing starts bounced back a bit in August while mortgage rates briefly retreated. But since that time, mortgage rates have been on the rise, hitting a 20-year high in October. One number that beat estimates was housing starts, he said, but those were weighted to apartments, not single-family homes. “Potential homebuyers should see some relief next year in the form of lower mortgage rates and possibly lower home prices,” said Frick.

☆ U.S. home builder sentiment dives again in December, NAHB says
▼ + stars: | 2022-12-19 | by ( Dan Burns | ) www.reuters.com time to read: +4 min

Moreover, the unbroken string of declines since last December is the longest in a series that dates to the mid-1980s. The housing market has seen the most pronounced effects so far of the aggressive Federal Reserve interest rate hikes that are aimed at quashing inflation that continues to hold at unacceptably high levels. Reuters GraphicsSince March, the U.S. central bank has lifted its benchmark policy rate from near zero to a range of 4.25%-4.50%. NAHB said nearly two-thirds of builders were offering incentives, including mortgage rate buydowns, paying points for buyers and price reductions. Reuters GraphicsMore key housing market data is due this week.

☆ Morning Bid: Yen for change
▼ + stars: | 2022-12-19 | by ( ) www.reuters.com time to read: +4 min

But even though the BoJ is unlikely to change that stance at this week's policy meeting, some change appears to be afoot next year as central bank chief Haruhiko Kuroda ends his second five-year term in April. In numbers due for release on Thursday, Japan's core consumer price inflation rate is expected to have ticked up to 3.7% last month. That said, futures markets still aren't buying Fed policymaker indications that official rates will go above 5% and stay there all next year. After closing at their worst levels in over a month on Friday, U.S. stocks are set for a steadier open today. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

☆ Homebuilder sentiment drops for the 12th straight month, but a bottom may be near
▼ + stars: | 2022-12-19 | by ( Diana Olick | In Dianaolick | ) www.cnbc.com time to read: +1 min

Homebuilders were less confident about their business in December, but they are starting to see potential green shoots. Builder sentiment in the single-family housing market dropped two points to 31 in December on the National Association of Home Builders/Wells Fargo Housing Market Index. This is the 12th straight month of declines and the lowest reading since mid 2012, with the exception of a very brief drop at the start of the Covid pandemic. Regionally, sentiment was strongest in the Northeast and weakest in the West, where prices are highest. The NAHB continues to blame high mortgage rates, which despite the recent drop are still about twice what they were a year ago.

There's a reason investors are warned not to fight the Fed, but sometimes they still need to learn the hard way. When the second most powerful central bank in the world is standing shoulder to shoulder with the Fed too, markets are bound to get a bloody nose. And this is the economy into which central banks around the world are still jacking up interest rates? Annual core CPI inflation is expected to inch up to 3.7% in November from 3.6% in October, marking a fresh 41-year high. Will there be a Santa rally, even a mini one, in the last week before Christmas?

☆ Oppenheimer sees the S&P 500 rallying nearly 12% in 2023 as corporate earnings hold up
▼ + stars: | 2022-12-12 | by ( Jesse Pound | ) www.cnbc.com time to read: +2 min

Wall Street will enjoy a solid rebound in 2023 if the Federal Reserve can get inflation under control without going too far with interest rate hikes, according to Oppenheimer Asset Management. Oppenheimer set a price target of 4,400 for the S & P 500 , which is 11.8% above where the index closed Friday. The better the improvement in the inflation rate when the Fed either takes pause or pivots the less likely a hard landing," Stoltzfus said. While many Wall Street strategists believe that estimates for corporate profits are still too high ahead of a potential recession, Stoltzfus said they may already be close to correct. In fact, the pessimism about earnings from other major strategists and investors could help the stock market rally next year, according to Oppenheimer.

☆ Stock futures are flat as traders look ahead to November wholesale inflation report
▼ + stars: | 2022-12-08 | by ( Carmen Reinicke | ) www.cnbc.com time to read: +1 min

Stock futures were flat Thursday evening as investors look ahead to new inflation data due Friday. S&P 500 futures and Nasdaq 100 futures were down 0.05% and 0.06%, respectively. Earlier in the day, the S&P 500 rallied to break a five-day run of losses — its longest streak since October. The S&P 500 is off by 2.6% for the week, while the Nasdaq is down more than 3%. Next week, more inflation data and a Federal Reserve meeting are top of mind for traders.

☆ The stock market is trapped in a clear downtrend, and the situation could get worse
▼ + stars: | 2022-12-08 | by ( Patti Domm | In | ) www.cnbc.com time to read: +4 min

They are watching the S & P 500 as it trades below its 200-day moving average after lifting above that threshold briefly. The S & P 500 surpassed the average on Nov. 30 and fell below it Monday. The 200-day is now at 4,040 for the broad-market index, and the S & P 500 closed at 3,933.92 on Wednesday. A loss of short-term momentum "I think the real story is within the downturn, we're losing short-term momentum. Stockton said her indicators showed the flip in the S & P 500 Tuesday.

☆ Analysis: Peru markets take in political drama as investors focus on fundamentals
▼ + stars: | 2022-12-07 | by ( Rodrigo Campos | ) www.reuters.com time to read: +3 min

The Peruvian sol currency and dollar bond prices recovered early losses after President Pedro Castillo was removed in an impeachment trial following his attempt to dissolve Congress. The sol remains one of the few emerging market currencies with gains against the U.S. dollar so far this year. "So much political uncertainty is never welcome, yet the reason why markets have historically shrugged off political developments in Peru has to do with the fact that the country's fundamentals are decently strong." The sol fell over 2% against the dollar at its session low of 3.8898 before recovering slightly to trade down 1.4% at 3.8625 per dollar in early afternoon trading. Vice President Dina Boluarte was sworn as president through 2026 and the first woman to lead the Andean nation.

☆ Foreign equity funds pile into Indian financials as credit cycle picks up
▼ + stars: | 2022-12-06 | by ( Anushka Trivedi | ) www.reuters.com time to read: +4 min

MUMBAI, Dec 6 (Reuters) - Foreign investors are buying into Indian financial firms, lured by the prospects of a fresh credit cycle that may boost the stocks of the country's largest lenders. The optimism is reflected in inflows, with foreign investors buying a net of $1.74 billion worth of Indian financial stocks in November, data released by the National Securities Depository Ltd this week showed. Reuters Graphics"PALATABLE" VALUATIONIndian financial stocks are trading at a premium to their historical average, but that is not necessarily the comparison investors are looking at. This has prompted local and foreign investors to pour money into the domestic equity markets, which hit all-time highs last week. The optimism comes despite financial stocks trading at a premium to their two-year historical average on a price-to-book valuation basis.

☆ The rise and fall of Wirecard
▼ + stars: | 2022-12-06 | by ( ) www.reuters.com time to read: +5 min

July 2: The head of Germany's financial watchdog calls the accounting scandal at Wirecard "a massive criminal act". July 6: German prosecutors arrest the head of a Dubai-based subsidiary of Wirecard. 2021Jan. 29: Felix Hufeld, president of German financial watchdog BaFin, steps down. 2022Jan. 14: German prosecutors file first charges in Wirecard fraud, the Financial Times reports. Sept. 21: A Munich district court said it had admitted charges against former Wirecard executives, paving way for a trial.

☆ Brace for a stagflationary crisis that the Fed and other policymakers will be powerless to prevent, Nouriel Roubini warns
▼ + stars: | 2022-12-06 | by ( George Glover | ) www.businessinsider.com time to read: +3 min

The 'Dr Doom' economist warned that 'the mother of all stagflationary debt crises' is coming. "The mother of all stagflationary debt crises can be postponed, not avoided," Roubini wrote in a Project Syndicate op-ed published Friday. But it's no longer possible for the Fed and other policymakers to support those debt-laden entities by slashing interest rates, as inflation remains close to multidecade highs in most developed markets. Read more: Brace for the Fed to steer the US into recession, Nouriel Roubini has warned. Here's where 'Dr Doom', Sam Zell, and 3 other top experts think the economy will suffer.

☆ Oppenheimer upgrades General Electric, says the industrial giant's outlook is improving
▼ + stars: | 2022-12-06 | by ( Sarah Min | ) www.cnbc.com time to read: +1 min

Investors should load up on General Electric heading into 2023, according to Oppenheimer. Analyst Christopher Glynn upgraded the industrial giant to outperform from perform, saying several factors are boosting confidence in the stock next year, including a planned spinoff of its health care division and strong momentum for its aviation business. "Our Outperform rating reflects strong Aviation momentum along industry recovery path, with strong execution amidst widespread industry supply-chain challenges impacting the commercial business and internal production challenges serving military markets," Glynn wrote in a Monday note. General Electric is planning to split into three separate public companies by early 2024, separated into GE Aerospace, GE HealthCare and GE Vernova . General Electric has performed better than the S & P 500 this year, down just 10% compared to the 17% fall in the broader market index.

☆ These are the best-performing stocks over the last 10 Decembers, and analysts love them
▼ + stars: | 2022-11-30 | by ( Tanaya Macheel | ) www.cnbc.com time to read: +2 min

December is typically a strong month for stocks, and there are several good opportunities in the index for investors looking to get ahead. That makes it the third-best month on average for the broader market index over that time period. Here are the 15 stocks: Casino stock Caesars Entertainment stands out as the stock with the highest median gain at 8.7%. Payments technology provider Global Payments, a financial stock, is also on the list with a 1% median gain from the last 10 Decembers. The stock has buy ratings from 80% of analysts covering them.

Garcia split her savings into index funds, I bonds, and a high-yield savings account. Index funds are passively-managed investment vehicles that track a particular market index. A high-yield savings account is a savings account with interest rates up to 3.8%, which is higher than a regular savings account's average interest rate of 0.16%. "I've been doing this all year, just putting some money away in the stock market. I have about $8,500 in my savings account right now, and I do plan on deploying another $5,000 of that."

☆ Fed offers more rate hike clues
▼ + stars: | 2022-11-23 | by ( Paul R. La Monica | ) edition.cnn.com time to read: +3 min

At its November 2 meeting the Fed raised rates by three-quarters of a percentage point — its fourth straight hike of such a large magnitude. But Fed chair Jerome Powell suggested at a press conference that the Fed may soon begin to slow the pace of hikes. The minutes from that meeting showed that several other Fed policymakers agreed with Powell’s assessment. The job market remains relatively healthy as well, although the most recent jobless claims figures ticked up from a week ago. But as long as the labor market remains firm and inflation pressures continue to ebb, the Fed will likely pull back on the magnitude of its rate hikes.

☆ Bank stock Comerica can jump more than 20% from current levels, Raymond James says in upgrade
▼ + stars: | 2022-11-21 | by ( Sarah Min | ) www.cnbc.com time to read: +2 min

It may be time to buy Comerica after its recent stock underperformance, according to Raymond James. Analyst Michael Rose upgraded shares to outperform from market perform. Shares of Comerica outperformed in 2021, and started underperforming the S & P 500 when the Federal Reserve kicked off its rate hiking cycle this year. The stock also dropped 9% on Oct. 19, after the company posted its third-quarter results and when management suggested a sooner-than-expected peak in net interest income and net interest margins (NII/NIM). Net interest income is the difference a bank earns between its income from lending activities and the interest it pays customers.

☆ S&P 500 futures fall slightly ahead of more retail earnings before the Thanksgiving holiday
▼ + stars: | 2022-11-20 | by ( Tanaya Macheel | ) www.cnbc.com time to read: +1 min

S&P 500 futures fell slightly Sunday evening ahead of another batch of retail earnings to kick off a shortened week for the Thanksgiving holiday. Futures tied to the broad market index were lower by 0.1%. Nasdaq 100 futures hovered at the flat line. The S&P climbed 0.5% and the Nasdaq Composite finished just 0.01% above the flat line. "Everyone's been debating whether we're going to have a soft landing or a hard landing – meanwhile, there's no landing whatsoever.

☆ U.S. housing starts tumble in October amid soaring mortgage rates
▼ + stars: | 2022-11-17 | by ( ) www.reuters.com time to read: +2 min

Housing starts decreased 4.2% to a seasonally adjusted annual rate of 1.425 million units last month, the Commerce Department reported on Thursday. Data for September was revised higher to a rate of 1.488 million units from the previously reported 1.439 million units. Multi-family housing construction has fared better as the soaring mortgage rates force many potential home buyers to remain renters. Mortgage rates have jumped in response to rampant inflation, which has compelled the Federal Reserve to unleash the fastest interest rate-hiking cycle since the 1980s. The 30-year fixed mortgage rate is averaging above 7%, the highest since 2002, according to data from mortgage finance agency Freddie Mac.

☆ Morning Bid: Shot across the bow
▼ + stars: | 2022-11-16 | by ( ) www.reuters.com time to read: +5 min

The euro lost 1.5 cents as the news from Poland unfolded but has regained all of that since. European bourses have been less quick to rebound and remain in the red, with aerospace and defence stock outperforming. "Tighter money has not yet constrained business activity enough to seriously dent inflation," Bostic wrote on the Atlanta Fed's website. U.S. attention will turn to retail sales on Wednesday as October data is due for release alongside industry readings. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

☆ Buy these 10 extremely undervalued stocks with strong dividend growth as recession fears linger, Morningstar analyst says
▼ + stars: | 2022-11-16 | by ( Morgan Chittum | ) www.businessinsider.com time to read: +3 min

Dividend stocks have held up far better than growth stocks this year, per Morningstar. The firm's Dividend Yield Focus Index is up 4%, whereas the overall US Market Index is down 20%. The firm shares 10 "undervalued" stocks, all of which have a dividend yield of 3.2% or higher. Dividend stocks from financially healthy companies may be the best way to hunker down and earn passive income. Morningstar shared these 10 "undervalued" stocks, all of which have a forward dividend yield of 3.2% or higher.

☆ The fund manager who's in the green this year by not playing 'the relative game'
▼ + stars: | 2022-11-14 | by ( Alex Harring | ) www.cnbc.com time to read: +7 min

J. Dale Harvey, founder and chief investment officer at Poplar Forest, manages a fund that's beating the S & P 500 this year. Harvey has led the Poplar Forest Partners Fund (PFPFX) since it was established on Dec. 31, 2009 with a "contrarian" mindset. "People can get sucked into the sort of the relative game, which which we don't play," he said. The fund took a dip with the rest of the market in September before marching back up in the following weeks. He noted value stocks, where he mainly looks, were "in the doghouse" for much of the 2010s as technology and other growth stocks drove the market.

☆ This week's best performers include one telecom stock expected to nearly double from current levels
▼ + stars: | 2022-11-11 | by ( Alex Harring | ) www.cnbc.com time to read: +2 min

The latest U.S. inflation data has sparked a massive rally, putting the S & P 500 on track for a strong weekly performance. The S & P 500 is up about 5.1% week to date. That report sparked a 5.5% rally in the S & P 500, its biggest one-day gain since 2020. Given these moves, CNBC Pro screened the S & P 500 for this week's best performers. On average, analysts see Dish shares rallying 97% over the next 12 months.

☆ Premarket stocks: Wall Street picks hope over reality after inflation report
▼ + stars: | 2022-11-11 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

New York CNN Business —Stocks surged on Thursday in their best day since 2020 after a key inflation indicator came in softer than expected. Investors broke out their party hats as they interpreted the report to mean that peak inflation may finally be behind us. Crypto-advocates were hoping that rising interest and inflation rates would drive investors away from the dollar and into alternative assets like gold and Bitcoin. Then, central banks started raising rates to fight inflation, and the dollar strengthened significantly, seducing investors as the ultimate safe haven. Mortgage rates have risen throughout most of 2022, spurred by the Federal Reserve’s regime of interest rate hikes.

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