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☆ Retail investors in AI stocks may get burned like they did in past bubbles, says Bank of America
▼ + stars: | 2024-07-17 | by ( Samantha Subin | ) www.cnbc.com time to read: +2 min

Investors may want to exercise some caution with this year's leading artificial intelligence stocks, according to Bank of America. The investing and ETF strategist anticipates some profit-taking in megacap technology stocks during the second half as investors become "impatient for an AI killer app" or more revenues. Stocks have rallied this year as investors mount bets on popular AI names such as Nvidia and megacap technology. "No one denies the computing power," Woodard wrote. This includes small-cap value stocks, utilities, energy and banks.

Persons: Jared Woodard, Stocks, Woodard Organizations: Bank of America, Nvidia Locations: India, Latin America

Stock price information reflected on a window at the Euronext NV stock exchange in Paris, France, on Monday, March 13, 2023. LONDON — European stocks closed lower Wednesday, continuing negative sentiment seen in the previous two trading sessions as technology stocks plummeted. The regional Stoxx 600 index provisionally closed 0.43% lower, with most major bourses in the region falling and sectors trading mixed. European tech stocks plunged 4.4%, mirroring a sell-off seen across the Atlantic, where the Nasdaq Composite retreated 2% in early deals. U.S. stocks were broadly lower as investors continued to rotate out of megacap tech stocks into the broader market.

Organizations: LONDON, Nasdaq Locations: Paris, France, U.S

☆ Small caps are the hottest trade going in the stock market right now and they're up again Tuesday
▼ + stars: | 2024-07-16 | by ( Yun Li | ) www.cnbc.com time to read: +1 min

Traders work on the floor of the New York Stock Exchange (NYSE) on July 11, 2024 in New York City. The Russell 2000 index , the benchmark for the group, hit its highest level since January 2022 on Monday. The iShares Russell 2000 ETF, which tracks the index, was up about 1% in premarket trading Tuesday. The ETF is up 9% over the last one month, nearly triple the gains in the S&P 500. Stock Chart Icon Stock chart icon Russell 2000Fundstrat's Tom Lee, who's been correctly calling the stock market for the past few years, said the rally in small caps could last for more than two months, seeing dramatic gains for this cohort.

Persons: Spencer Platt, Russell, Tom Lee, who's, Lee Organizations: New York Stock Exchange, Getty, Investment Locations: New York City

But Mizuho expects things will play out differently, and instead raises its price target on the electric vehicle maker, citing challenges with its robotaxis. Morgan Stanley stands by Starbucks, keeping it at an overweight, but lowering its price target. Fong's $155 price target suggests shares can jump another 19.3% over Thursday's closing level, building on a year of monster gains. Analyst Doug Anmuth hiked the mega-cap technology stock's price target by $100 to $750, now implying 14.9% upside from Thursday's close. While he upped his price target by $50 to $197, that fresh target reflects a drop of 18.3%.

Persons: Morgan Stanley, Cody Acree, Acree, — Alex Harring, Jon Tower, Chipotle, Alex Harring, BTIG, Marvin Fong, Fong, Carvana, CarMax, Doug Anmuth, Anmuth, Anmuth's, that's, he's, Christina Cheddar Berk, Vijay Rakesh, Rakesh, Joseph Spak, Spak Organizations: CNBC, UBS, Starbucks, JPMorgan, Netflix, Nvidia, Citi, Harbour, Tesla, robotaxis, Bloomberg Locations: Thursday's, premarket, China

☆ This week's most overbought stocks include several real estate names and a regional bank
▼ + stars: | 2024-07-12 | by ( Hakyung Kim | ) www.cnbc.com time to read: +3 min

Take a look at this week's overbought names. Pittsburgh-based regional bank PNC Financial is among the week's most overbought names with an RSI of around 73. PNC YTD mountain PNC in 2024 Several real estate investment trusts, or REITs, are also at risk of a slide following this week's rally. American Tower , Alexandria Real Estate Equities and BXP are this week's three most overbought stocks. Shares of American Tower and Alexandria Real Estate Equities gained 5.9% and 6.9%, while BXP climbed more than 8%.

Persons: BXP, Corning Organizations: Big Tech, Federal Reserve, Dow Jones, Depot, Caterpillar, CNBC Pro, Pittsburgh, PNC Financial, CPI, PNC, Alexandria Real, American, Management, Corning Locations: Big, Alexandria

☆ Upcoming earnings will determine whether the stock market rotation is here to stay or a one-day wonder
▼ + stars: | 2024-07-12 | by ( Bob Pisani | ) www.cnbc.com time to read: +3 min

Certainly lower interest rates are a huge help, particularly for small-cap companies that are generally more sensitive to interest rate changes. There must be a belief that earnings will broaden out beyond a small group of megacap tech stocks. The root source of the long tech rally is the superior earnings growth of technology. Two questions follow: with the massive rise in tech prices, is most or all of that earnings growth now priced in, and what are the prospects for earnings growth in other sectors? The problem is identifying where this additional earnings growth is coming from, and how robust it might be.

Persons: it's, Supriya Menon, America's Savita Subramanian, Bryan Spillane, Subramanian Organizations: New York Stock Exchange, Federal Reserve, Nvidia, Wellington Management, Bloomberg, Bank, America's Locations: cyclicals

☆ Ed Yardeni raises S&P forecast, says 'Roaring 2020s' happening even faster than he expected
▼ + stars: | 2024-07-11 | by ( Jesse Pound | In Jesse-Pound | ) www.cnbc.com time to read: +2 min

The stock market's steady rally is forcing even bullish market forecasters to play catch-up and raise their targets. Ed Yardeni of Yardeni Research late Wednesday hiked his year-end target for the S & P 500 to 5,800 from 5,400. This week's report repeated Yardeni's forecast that the S & P 500 can reach 8,000 by the end of the decade. According to the CNBC Market Strategist Survey , the average year-end target from major banks is 5,464, with a median forecast of 5,600. The S & P 500 is higher by 18% year to date, and nearly 28% over the past 12 months.

Persons: Ed Yardeni, We've, Yardeni, CJ Lawrence, EF Hutton Organizations: Yardeni Research, CNBC Market, Survey, yearend, Nvidia, Prudential Equity Group, Deutsche Bank's, Prudential, Bache Securities, EF

☆ How Apple could double its revenue growth, according to top analyst Laura Martin
▼ + stars: | 2024-07-10 | by ( Alex Harring | ) www.cnbc.com time to read: +2 min

Needham sees Apple doubling its revenue growth by building out an advertising business. Analyst Laura Martin said the big technology company's single-digit revenue growth rate feels "increasingly at risk" over a three-year time horizon. Martin pointed to eMarketer data showing worldwide ad revenue should come in at just about $9.3 billion for Apple in the 2024 fiscal year. Selling connected TV ads on AppleTV+ could alone double the company's expected revenue growth rate of just 1% this year, Martin said. More broadly, she said advertising could help "reinvigorate" Apple's "anemic" revenue growth rate, while also accelerating free cash flow growth and upside to return on invested capital.

Persons: Needham, Laura Martin, Martin, LSEG Organizations: Apple, Amazon, Big Tech Locations: U.S

☆ Don't chase new highs, wait for a market pullback, advises Canaccord Genuity
▼ + stars: | 2024-07-09 | by ( Michelle Fox | ) www.cnbc.com time to read: +1 min

Investors eager to buy into the stock market rally may want to hold off, according to an analyst for Canadian investment bank Canaccord Genuity. The S & P 500 and Nasdaq Composite closed at all-time highs on Monday, adding to strong gains in the first half of the year. The tech-heavy Nasdaq ended the first half up 18.1%, while the S & P rose 14.5% and the Dow Jones Industrial Average gained 3.8%. In fact, the top 10 stocks in the S & P now account for more than 38% of the index's total capitalization, a new high, Welch said. Meanwhile, the S & P 500 is trading at a rich multiple of 24 times trailing 12-month profits, and expectations are for 10.1% earnings growth in the second quarter, he said.

Persons: Canaccord Genuity's Michael Welch, Welch, Russell Organizations: Nasdaq, Dow Jones Industrial

☆ These types of ETFs could prove winners in the second half
▼ + stars: | 2024-07-08 | by ( Jesse Pound | In Jesse-Pound | ) www.cnbc.com time to read: +6 min

The best-performing exchange-traded funds in the second half will likely be decided by broader shifts in the markets and economy. Even with mounting uncertainty, however, there are some types of ETFs that could emerge as winners. Equities A handful of stocks were big winners in the first half, and some narrowly focused ETFs were able to ride that wave. Single-stock funds tied to Nvidia have also seen heavy interest, including the GraniteShares 2x Long Nvidia ETF (NVDL) . However, Hougan said he didn't think that omission would be a big hurdle for ETF investors.

Persons: Michael Arone, Arone, Jay Jacobs, Jacobs, Todd Sohn, bullish, we're, Sohn, Matt Hougan, Hougan Organizations: Federal Reserve, U.S, SPDR, State Street Global Advisors, Nvidia, Microsoft, NYSE Technology, iShares, Digital Infrastructure, Real, U.S . Tech, Blackstone Senior Loan, Loan Fund, New, Bitwise Asset Management, ETH Locations: U.S

☆ CNBC Daily Open: Tesla powers S&P 500, Nasdaq to record highs
▼ + stars: | 2024-07-04 | by ( Abid Ali | ) www.cnbc.com time to read: +3 min

CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Record highsThe S&P 500 and the tech-heavy Nasdaq Composite closed at record highs in a shortened session ahead of the July 4 Independence Day holiday. The yield on the 10-year Treasury fell as the latest economic data indicated the jobs market was cooling. Despite some officials advocating for potential rate hikes, the Federal Open Market Committee ultimately decided to hold rates steady. [PRO] Tesla bull caseWedbush analyst Dan Ives raised his Tesla price target to $300 from $275, with a bull case of $400 by 2025.

Persons: Nela Richardson, Elliott Management's, Elliott, Bob Jordan, Gary Kelly, JPMorgan's Kolanovic, Marko Kolanovic, Kolanovic, Dubravko, Dan Ives Organizations: CNBC, Nasdaq, Nvidia, Dow Jones, Treasury, Federal Reserve, Federal, Market Committee, ADP, Southwest Airlines Locations: U.S

☆ Small-cap stocks are lagging in 2024, but investors shouldn’t avoid them, says portfolio manager
▼ + stars: | 2024-07-03 | by ( Hakyung Kim | ) www.cnbc.com time to read: +2 min

In a year when the S & P 500 is touting a 15.5% advance, small-cap stocks look underwhelming – but investors shouldn't shy away from them, said Julie Biel, chief market strategist at Kayne Anderson Rudnick. "I don't think you want to avoid them — they're part of a balanced diet," said Biel, who is also a portfolio manager at the firm. The benchmark small-cap index Russell 2000 is up roughly 1% year to date, whereas the S & P 500 has rallied almost 16%, largely thanks to the strength of Nvidia and other megacap tech stocks. The S & P 400 mid-cap index has also fallen short of its large-cap counterpart, up a modest 5% in 2024. Biel herself manages a small- and mid-cap growth portfolio and takes a long-term investment approach.

Persons: Julie Biel, Kayne Anderson, Biel, Russell, Ryan Organizations: Nvidia, Russell, Isaac, Ryan Specialty, IFS, West Pharmaceutical Services Locations: Biel

☆ RBC raises S&P 500 year-end target, but strategist says she's nervous about it
▼ + stars: | 2024-07-02 | by ( Hakyung Kim | ) www.cnbc.com time to read: +1 min

RBC Capital Markets increased its 2024 year-end target for the S & P 500, but the bank is taking a cautious stance on its market outlook. Head of global equity strategy Lori Calvasina now sees the broad market index ending the year at 5,700, up from her previous target of 5,300. .SPX YTD mountain S & P 500 in 2024 While she does see more upside ahead for the benchmark, Calvasina noted that valuations suggest the market is a bit overbought. There is also the risk that another short-term pullback — similar to what the market experienced in April — will take place, the strategist said. The S & P 500 has climbed nearly 15% year to date, with gains driven largely by chipmaker Nvidia and a small group of other megacap tech stocks.

Persons: Lori Calvasina, Calvasina, ”, We've, ” Calvasina, —, chipmaker Organizations: RBC Capital Markets, chipmaker Nvidia

☆ Stock futures are little changed after S&P 500 rises to kick off back half of 2024: Live updates
▼ + stars: | 2024-07-01 | by ( Sarah Min | ) www.cnbc.com time to read: +2 min

U.S. stock futures are little changed Monday night after the major averages closed higher to start the second half of 2024, as tech stocks outperformed. Dow Jones Industrial Average futures fell 26 points, or 0.07%. S&P 500 futures and Nasdaq 100 futures dipped 0.06% and 0.1%, respectively. The central bank leader will be part of a panel discussion and will not be issuing prepared remarks beforehand. He will join ECB President Christine Lagarde and Roberto Campos Neto, governor of Brazil's central bank.

Persons: Kevin Gordon, Charles Schwab, Gordon, Jerome Powell, Christine Lagarde, Roberto Campos Neto, Sara Eisen, Dow Jones Organizations: New York Stock Exchange, Dow Jones Industrial, Nasdaq, Dow Jones, European Central Bank Forum, ECB Locations: Brazil's

☆ Here’s what typically happens to the stock market next after such a strong first half
▼ + stars: | 2024-06-28 | by ( Alex Harring | ) www.cnbc.com time to read: +2 min

Even better: The fact that the S & P 500 has performed so well this year makes the outlook sweeter. In years with the S & P 500 climbing more than 10% in the first six months, it jumped 7.9% in the typical second half. Presidential election years also typically bring returns in the second half of the year, according to Stovall's data. For the entire second half, the S & P 500 has climbed 3.5% on average. Some investors are wondering how much farther the S & P 500 can run up after notching all-time highs this year.

Persons: CFRA Research's Sam Stovall Organizations: Federal Reserve, CNBC

☆ CNBC Daily Open: Micron slides, Amazon's $2 trillion
▼ + stars: | 2024-06-27 | by ( Abid Ali | ) www.cnbc.com time to read: +3 min

A trader works on the floor of the New York Stock Exchange (NYSE) during morning trading on March 4, 2024 in New York City. This report is from today's CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Micron slidesShares of Micron fell almost 8% in extended trading on Wednesday as its revenue forecast failed to top analysts' expectations. The stock rose 3.9% on Wednesday.

Persons: Sanjay Mehrotra, Annie Palmer, Elliott Management, Shunichi Suzuki, Australia's, Arjun Jayaraman Organizations: New York Stock Exchange, CNBC, Dow Jones, Nasdaq, Nvidia, Micron, Apple, Microsoft, Southwest Airlines, Delta, U.S ., Finance, CSI Locations: New York City, Shein, Asia, Pacific, India

☆ Chart analysts say 'something is not right' with stock market, grow increasingly worried
▼ + stars: | 2024-06-27 | by ( Jesse Pound | In Jesse-Pound | ) www.cnbc.com time to read: +2 min

The S & P 500 and Nasdaq Composite have rallied during the second quarter and are currently within 1% of their record highs. "It's great to see S & P and Nasdaq make new highs, but clearly something is not right if key barometers for risk are rolling over," Ginsberg wrote. There doesn't even seem to be a consensus among the biggest names in the stock market. These latest signs of weakness are part of the long-standing worry about the lack of market breadth . RSP YTD mountain The equal-weight S & P 500 is headed for a losing second quarter.

Persons: Wolfe, Rob Ginsberg, Russell, Ginsberg, Jonathan Krinsky, Krinsky, — CNBC's Michael Bloom Organizations: Nasdaq, Wolfe Research, Nvidia, Microsoft, Apple, Big Tech, RSP, Bears

☆ CNBC Daily Open: Amazon enters $2 trillion club
▼ + stars: | 2024-06-27 | by ( Abid Ali | ) www.cnbc.com time to read: +3 min

This report is from today's CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. The yield on the 10-year Treasury rose as investors parse comments from Fed officials and await key inflation data due Friday. $2,000,000,000,000Amazon's market capitalization surpassed $2 trillion for the first time on Wednesday, joining the ranks of tech giants like Apple and Microsoft. YouTube dominanceAlphabet's YouTube, the pioneer of user-generated content, continues to dominate media consumption, now accounting for nearly 10% of all TV viewership in the U.S.

Persons: Annie Palmer, Elliott Management, Sanjay Mehrotra, Rich Greenfield, Piper Organizations: CNBC, Dow Jones, Nasdaq, Nvidia, Apple, Microsoft, Southwest Airlines, Delta, Micron, YouTube, Nielsen, Netflix, Media, Disney, Warner Bros Locations: Shein, U.S

☆ Retail traders came out in force to buy the recent dip in AI darling Nvidia
▼ + stars: | 2024-06-27 | by ( Yun Li | ) www.cnbc.com time to read: +1 min

Retailer traders took Nvidia' s recent sell-off as a buying opportunity, snapping up shares of the dominant artificial intelligence chipmaker amid the volatility. The cohort bought $1.8 billion worth of Nvidia shares over the past week as the Jensen Huang-led company suffered a quick pullback, according to JPMorgan data. JPMorgan estimated that retail investors are up 179% trading Nvidia this year, topping the stock's year-to-date performance. Meanwhile, other megacap tech stocks fared poorly among individual investors last week, JPMorgan said. Advanced Micro Devices saw net sales of $163 million, Microsoft had a net drawdown of $158 million and Tesla $122 million.

Persons: Jensen Huang, Nvidia's Organizations: Nvidia, JPMorgan, Microsoft, Google, Oracle, Meta Locations: U.S

☆ Investor Neil Hennessy says megacap tech trade is 'over' and to buy these two stocks instead
▼ + stars: | 2024-06-26 | by ( Alex Harring | ) www.cnbc.com time to read: +2 min

Neil Hennessy said investors need to look at value stocks that offer attractive price-to-sales multiples and avoid what he sees as a dying "Magnificent Seven" trade. While Hennessy admitted that the Magnificent 7 stocks have performed well, he said their average price-to-earnings multiple sits at around 47 while their price-to-sales multiple is above 12. "The reality of our world is money is shifting over to value," said the University of San Diego alum. But Hennessy said the stock is attractively priced, with a price-to-sales multiple of 0.9 and P/E ratio of just 7. But the average price target implies the stock can turn around and surge more than 27% over the coming year.

Persons: Neil Hennessy, Hennessy, I'm, SPX Organizations: Oshkosh Corp, University of San Diego, Oshkosh, LSEG

☆ S&P 500 futures fall slightly after the broader index rises for a second day: Live updates
▼ + stars: | 2024-06-26 | by ( Sarah Min | ) www.cnbc.com time to read: +2 min

U.S. S&P 500 futures fell slightly Wednesday night after the S&P 500 rose for a second day. S&P 500 futures and Nasdaq 100 futures dipped 0.19% and 0.32%, respectively. Goldman Sachs shares slid 1.7%, while JPMorgan Chase shares rose slightly. During the regular session Wednesday, the S&P 500 closed up 0.2%, while the Nasdaq Composite added 0.5%. Strategists surveyed by CNBC Pro anticipate the S&P 500 will likely end the year not even 1% higher from current levels.

Persons: Levi Strauss, Goldman Sachs, Brian Levitt, CNBC's Organizations: New York Stock Exchange, Nasdaq, Dow Jones Industrial, Micron, Bank, Federal Reserve, U.S, JPMorgan Chase, Dow Jones, Amazon, CNBC Pro, Walgreens Boots Alliance, Nike

☆ This 28-year-old fund consistently beats the S&P 500 — without megacap tech stocks. Here's its strategy
▼ + stars: | 2024-06-26 | by ( Weizhen Tan | ) www.cnbc.com time to read: +6 min

One fund has a formula that has enabled it to consistently beat the S & P 500 : the Hennessy Cornerstone Growth Fund. The fund uses a formula-based strategy for investing, according to its portfolio managers Neil Hennessy, Ryan Kelley, and Joshua Wein. "We're trying to combine value with momentum and some growth," Kelley said. Stocks the fund owns Most of the stocks in the outperforming fund aren't actually in tech but in the industrials, consumer, financials and health-care sectors — because of the formula they use. It is the only name which survived in the recent rebalancing to the current batch of 50 stocks, said Wein.

Persons: Neil Hennessy, Ryan Kelley, Joshua Wein, Kelley, Wein, They've, We're, aren't Organizations: Cornerstone Growth Fund, CNBC Pro, Micro Computer, Urban Outfitters Locations: United States

☆ Citi strategist says stocks may be due for pullback because of too-high earnings expectations
▼ + stars: | 2024-06-26 | by ( Sarah Min | ) www.cnbc.com time to read: +1 min

Stocks could be due for a pullback this summer given high second-quarter earnings growth expectations, according to Citi. In the second quarter, S & P 500 companies are expected to post a year-over-year earnings growth rate of 8.8%, according to a FactSet estimate. That is a forecast Chronert said is "probably a reach," especially for the 493 S & P 500 companies outside of Nvidia and the megacaps. .SPX YTD mountain S & P 500 Last week, Chronert was among several strategists on the Street to hike their S & P 500 year-end target on the strength of a handful of megacap tech stocks that have carried the broader index to all-time highs. According to a CNBC Pro survey , strategists on a median basis anticipate the S & P 500 will rise to just 5,500 by the end of the year.

Persons: Scott Chronert, Chronert, CNBC's, Goldman Sachs Organizations: Citi, Nvidia, ISI, CNBC

☆ Stocks making the biggest moves before the bell: Nvidia, Ferrari, Planet Fitness, Cinemark and more
▼ + stars: | 2024-06-24 | by ( Alex Harring | ) www.cnbc.com time to read: +2 min

UPS shares were unchanged in premarket trading. Planet Fitness — The budget-friendly gym chain climbed 3.1% after TD Cowen named the stock a top pick and raised its rating to buy from hold. Affirm — The buy-now-pay-later stock jumped 3.2% on the heels of Goldman Sachs' initiation at a buy rating. IBM — The legacy tech giant moved 1.4% higher after Goldman Sachs initiated coverage with a buy rating. Cinemark — Shares popped 3.3% after Roth MKM upgraded the American movie theater chain to buy from neutral, citing "meaningful box office improvement."

Persons: Eli Lilly — ResMed, Eli Lilly's, Eli Lilly, Jefferies, TD Cowen, Goldman Sachs, Goldman, Roth MKM, —, Michelle Fox, Sarah Min, Jesse Pound Organizations: Coyote Logistics, UPS, RXO, Coyote, Nvidia, Carrier, Citi, Ferrari —, UBS, Anheuser, Busch InBev —, IBM

☆ Morgan Stanley says economic growth is bigger risk than inflation, gives quality stocks to own in a slowdown
▼ + stars: | 2024-06-24 | by ( Sarah Min | ) www.cnbc.com time to read: +3 min

The risk of an economic slowdown now outweighs the risk of inflation, according to Morgan Stanley. But Morgan Stanley worries that the poor breadth of the market , measuring the number of advancing stocks against those declining, is a sign that slowing economic growth is becoming a bigger risk than stubbornly high inflation. To be sure, the Morgan Stanley strategist does not expect weak breadth to herald weak returns. Here are some of the quality large-cap and defensive stocks with strong upward earnings revisions that can outperform, according to Morgan Stanley. Burlington shares are higher by 25% this year, and the stock is overweight-rated by Morgan Stanley.

Persons: Morgan Stanley, Mike Wilson, Wilson, Russell, Bernstein, BURL, Aneesha Sherman, Morgan, Jefferies, HubSpot Organizations: Wall, Nasdaq, Dow Jones, Monster Beverage, Beverage, Nvidia Locations: Burlington

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