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Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailOrton: The market has been preoccupied with a Fed pivot, but the terminal rate hasn't changedMatt Orton of Raymond James Investment Management discusses what a potential downshift from the Fed to a 50 basis point hike really means, and where investors should target for opportunities right now.
With inflation cooling considerably in October, economists estimate real retail sales increased 0.9% last month. Sales at food services and drinking places, the only services category in the retail sales report, increased 1.6%. Excluding automobiles, gasoline, building materials and food services, retail sales increased 0.7% last month. Data for September was revised higher to show these so-called core retail sales rising 0.6% instead of 0.4% as previously reported. Core retail salesCore retail sales correspond most closely with the consumer spending component of gross domestic product.
Target on Wednesday reported that its profit fell by 50% as it tried to clear out excess inventory in the third quarter. To find a list of top-ranked retail stocks, CNBC Pro searched Tipranks for names in the sector rated at least a "strong buy" and with a more than 20% upside to the consensus price target. Callaway Golf has the largest upside to its consensus price target, with analysts saying it could surge more than 79% from where it currently trades. Jefferies boosted its price target on the name after its third-quarter earnings beat expectations and it raised its guidance for the fourth quarter. The company is strongly backed by Wall Street and has a more than 43% upside to its consensus price target as it's been beaten up this year.
Hold off on Home Depot for now, according to Raymond James. Analyst Bobby Griffin downgraded shares of Home Depot to market perform from outperform, foreseeing challenges next year for the housing sector. Home Depot posted on Tuesday better-than-expected results for the third quarter , while reaffirming its full-year outlook. "[Any] potential decrease in home prices ... could hinder consumer's perceived return on investment in their homes following several years of record spend in the category," Griffin wrote. Still, Griffin said the long-term investment case for Home Depot remains intact, as he expects that the retailer will continue to take market share from here.
Revenue: $26.52 billion versus $26.38 billion expected. Revenue: $23.48 billion versus $23.13 billion expected. Oppenheimer raises Club holding Estee Lauder (EL) price target to $245 per share $230. Bofa also likes the deal and thinks it will give Estee Lauder $800 million to $1 billion in sales. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade.
Here are Wednesday's biggest calls on Wall Street: UBS reiterates Apple as buy UBS said wait times for Apple's iPhone are hitting "extreme levels." Bank of America reiterates Amazon as buy Bank of America said Amazon is a key beneficiary of automation. UBS downgrades Advance Auto Parts to neutral from buy UBS said in its downgrade of Advance Auto Parts that it's losing share. UBS reiterates Walmart as buy UBS said the stocks is undervalued after the company's earnings report on Tuesday. Credit Suisse reiterates Nvidia as outperform After a change in analyst coverage, Credit Suisse named the tech company as a top pick. "
Home Depot downgraded at Raymond James
  + stars: | 2022-11-16 | by ( ) www.cnbc.com   time to read: 1 min
In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailHome Depot downgraded at Raymond JamesThe "Halftime Report" traders debate the biggest analyst calls of the day.
Estee Lauder to buy fashion label Tom Ford in $2.8 billion deal
  + stars: | 2022-11-15 | by ( ) www.reuters.com   time to read: +2 min
Nov 15 (Reuters) - Estee Lauder Cos Inc (EL.N) said on Tuesday it agreed to buy U.S. fashion label Tom Ford for $2.8 billion, its biggest deal yet, adding a line of beauty products and apparel to the Clinique brand owner's portfolio. While Estee Lauder already sells Tom Ford beauty products and fragrances, the deal has raised some eyebrows on Wall Street. (https://reut.rs/3tqhWrK)As of Tuesday's close, Estee's stock fell 17% since the deal talks with Tom Ford were reported by the media in August. Tom Ford had entered into exclusive negotiations with Estee Lauder last week, beating competing bids from companies including Gucci owner Kering SA (PRTP.PA), the Financial Times reported on Friday. Chief Executive Officer Tom Ford will continue to serve as the brand's creative visionary.
Here are Tuesday's biggest calls on Wall Street: Loop reiterates Apple as buy Loop said it sees macro headwinds building for Apple. Morgan Stanley reiterates Tesla as overweight Morgan Stanley said investors should buy the dip in shares of Tesla. Morgan Stanley names CBOE a top pick Morgan Stanley said the global markets company has a compelling entry point. Barclays reiterates Amazon as overweight Barclays said it sees a favorable risk/reward for Amazon shares right now. " AMZN shares remain out of favor heading into peak holiday season owing to its sub-seasonal revenue guide and AWS deceleration."
Baird upgrades Advance Micro Devices (AMD) to outperform from neutral (buy from hold) and raises price target to $100 per share from $65. UBS goes to a buy from neutral as well and raises price target to $95 from $75. Oppenheimer cuts price target on Club holding Nvidia (NVDA) to $225 per share from $250. Credit Suisse analyst Scott Deuschle assumes coverage on Honeywell (HON) with a neutral rating and a $202-per-share price target. Good for Club holding Eli Lily (LLY) and Biogen (BIIB), which are each working on separate experiment treatments for the disease.
Gary McCullough/AP Green Bay Packers wide receiver Samori Toure is tackled by Detroit Lions safety Will Harris. Norm Hall/Getty Images Buffalo Bills quarterback Josh Allen hurdles Kansas City Chiefs safety Justin Reid as he scrambles for a first down. Allen's fourth quarter touchdown throw to Dawson Knox capped off a 24-20 victory against the Chiefs. Marcio Jose Sanchez/AP Minnesota wide receiver Justin Jefferson dives for a two-point conversion during the Vikings' 29-22 victory over the Chicago Bears. Gary A. Vasquez/USA Today Sports/Reuters New Orleans Saints wide receiver Michael Thomas makes a reception against Atlanta Falcons cornerback A.J.
The flow of capital motivated more investors to split from established firms and raise their own funds, but it hasn't always been easy. For years they've gone abroad to raise capital from limited partners, mostly wealthy individuals and family offices. This isn't new territory for international investors. He continues to use his personal wealth to back startups and venture funds mostly stateside, including Sequoia Capital, Andreessen Horowitz, and Brianne Kimmel's Worklife Ventures. Even those with ties to international investors may struggle to raise funds as fears of a global recession escalate.
UBS upgrades Werner to buy from neutral UBS said it sees upside for several trucking company names. "We are upgrading three truckload names to Buy from Neutral including HTLD, WERN , and SNDR and reiterating our Buy on KNX. Bank of America reiterates Amazon as buy Bank of America said reports of a cost cutting review at Amazon are a "positive." JPMorgan reiterates Silvergate as overweight JPMorgan said the crypto company's exposure to FTX is overblown. JPMorgan reiterates Netflix as overweight JPMorgan said it has "increased conviction" in shares of the streaming giant.
The electric-vehicle startups Rivian, Lucid, and Canoo released third-quarter results this week. Rivian and Lucid each made progress toward their production goals for the year and steadily increased customer deliveries. Canoo has yet to make any production vehicles. After it closed the gap in the second quarter, Rivian's pace of deliveries again fell behind production by 779 vehicles. Lucid underwent some changes in the third quarter following a rough second quarter.
Here are Thursday's biggest calls on Wall Street: JPMorgan downgrades Roblox to neutral from overweight JPMorgan downgraded the stock after Roblox's earnings report, noting it now sees "modest" sales growth. Bank of America downgrades Silvergate to neutral from buy Bank of America said that Silvergate is losing it's first mover advantage. Bank of America downgrades Upstart to underperform from neutral Bank of America downgraded the consumer lending company and cited a tough macro environment. JPMorgan downgrades Vacasa to neutral from overweight JPMorgan said in its downgrade of the vacation booking company that trends appear soft. Bank of America reiterates Meta as neutral Bank of America said it's encouraged by the new "cost focus" at Meta as the company cuts jobs.
That would be viewed as a positive by markets, which generally view gridlock in Washington as a good thing and clearly prefer divided government to the current Democrat-controlled Congress. Therefore, there is no declaration yet of victory for either party in the House or Senate. "We think Republicans will have the [House] majority, but it's going to be a very narrow majority," said Ed Mills, Washington policy analyst at Raymond James. "The more you can keep the fight between the House and Senate, that slightly reduces some of the brinksmanship out there." "Sector-focused policy changes would be even more limited under a divided Congress than under Republican control," the Goldman analysts note.
Evercore ISI upgrades Kroger to outperform from in line Evercore said in its upgrade of the stock that it sees "high teen upside." Wedbush reiterates Tesla as outperform Wedbush says it's concerned about company founder Elon Musk selling shares of Tesla. "For Musk who multiple times over the past year has said he is 'done selling Tesla stock' yet again loses more credibility with investors and his loyalists in a boy who cried wolf moment. Musk is the most important part of the Tesla story by a wide margin and every move he makes has a major impact on Tesla stock." Morgan Stanley reiterates Disney as outperform Morgan Stanley says it's standing by shares of Disney after the company's disappointing earnings report on Tuesday.
Energy has been a key political topic this year, with soaring oil prices leading to discussions about how to boost U.S. energy production. "Sector-focused policy changes would be even more limited under a divided Congress than under Republican control. That could be good news for the clean energy policies pushed in the Inflation Reduction Act, which included several provisions to boost green energy that some Republicans opposed. Some progressive lawmakers had resisted the idea, which could ease the process for approving new oil pipelines and green energy projects. Pipeline funds Tortoise North American Pipeline fund (TPYP) and Global X MPL & Energy Infrastructure ETF (MLPX) were outperforming traditional energy funds on Wednesday, but still lower as oil prices declined.
Lyft (LYFT) downgraded to in line from outperform (hold from buy) at Evercore, one of many negative Wall Street notes. Price target cuts: Credit Suisse to $122 per share from $137 and Baird to $120 from $140. Raymond James cuts price target on Palantir (PLTR) to $15 per share from $20 but has strong buy. Meanwhile, multiple price cuts on Celanese. Mizuho cut price target on cloud data provider Snowflake (SNOW) to $185 per share from $225 but keeps buy rating.
Congress last raised the debt ceiling by $2.5 trillion December, 2021, providing enough borrowing capacity to get past the midterm elections. "Since 2011, the market really hasn't reacted too much to the debt ceiling fights. That would pit the White House against congressional Republicans, who see raising the debt ceiling as an opportunity to cut and redirect spending. President Joe Biden, in a tweet, last weekend talked about the pending debt ceiling battle. He said that even before the debt ceiling, Congress needs to pass a continuing resolution in December to temporarily fund the government.
There will be things about gridlock the market doesn't like," said Ed Mills, Washington policy analyst at Raymond James. Meanwhile, under a Republican president, the stock market on average gains 4.9% when Democrats control Congress, and the market gains 7.3% with a split Congress. Strategas Research says the stock market is signaling that Republicans may sweep the election . There are clear stock market winners from a Republican victory, at least in the House. Laperriere, in a note, wrote that tech, small cap and financial firms are most vulnerable to higher taxes and tougher regulations, and they could benefit from a Republican Congress.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailMills: The most important thing for the market is that the midterms will be overRaymond James' Ed Mills discusses how the midterm elections may break out, and what issues are most important to voters and the markets.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailThis election is really close, says Raymond James' Ed Mills, but we think Republicans have the advantageRaymond James' Ed Mills joins 'The Exchange' to discuss potential outcomes for the midterm election, the top policy issues facing the country and how each party could influence congressional activity.
Raymond James: Aggressive Fed poses risk to credit and liquidity
  + stars: | 2022-11-04 | 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 EmailRaymond James: Aggressive Fed poses risk to credit and liquiditySunaina Sinha Haldea, global head of private capital advisory at Raymond James, discusses the impact of central bank action on equities and the bond market.
There are two big hurdles for markets in the week ahead - another potentially hot consumer inflation report and the Congressional midterm elections. "100% of the time, the S & P 500 has been up 12 months after the midterm election." Midterm rallies Stocks tend to gain in the final months of midterm election years, and strategists have been expecting the market to move higher. CFRA Chief Market Strategist Sam Stovall said even when interest rates are climbing, the midterm election has been a catalyst for stocks. He examined market performance in other midterm election years when interest rates were going up.
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