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☆ Wall Street luminaries say it's time to get out of the stock market before the Fed crushes the economy
▼ + stars: | 2023-02-15 | by ( Phil Rosen | ) www.businessinsider.com time to read: +6 min

Tuesday's CPI data showed inflation climbed 0.5% in January, slightly higher than expected, and year-over-year it slowed to 6.4%. Prices, it seems, aren't cooling down as smoothly or quickly as anyone wants, especially the Fed. To Kolanovic, a recession is all but guaranteed if the Fed is serious about its 2% inflation target. And like Kolanovic, Morgan Stanley Wealth Management investment chief Lisa Shalett warned that Fed policy is going to pull stocks lower. US stock futures fall early Wednesday, as investors pick over yesterday's CPI inflation report to assess what it means for the Fed.

☆ Wall Street puts Salesforce, Nvidia, Humana under the microscope. Here's our take.
▼ + stars: | 2023-02-14 | by ( Kevin Stankiewicz | ) www.cnbc.com time to read: +7 min

Club holdings Salesforce (CRM), Nvidia (NVDA) and Humana (HUM) are the subjects of fresh Wall Street research. The news: It's all about margins at Salesforce, Wells Fargo analysts wrote in a research note Tuesday. The news: Bank of America raised its price target on Nvidia stock to $255 per share from $215, while reiterating a buy rating. Regardless, the shift to accelerated computing , led by NVDA GPU, and away from conventional CPUs is structural," the analysts wrote. The sector's valuation is starting to "appear increasingly attractive," trading roughly 10% below its five-year-average forward earnings multiple, Oppenheimer analysts wrote in a note Tuesday.

We're buying 50 more shares of Caterpillar (CAT) at roughly $242.28 each and selling 100 shares of Qualcomm (QCOM) at roughly $130.46 each. Shares of machinery giant Caterpillar have underperformed over the past two days after Baird downgraded its rating Monday to neutral. QCOM 1Y mountain Qualcomm (QCOM) 1-year performance To fund this purchase, we are once again trimming our position in semiconductor company Qualcomm . (Jim Cramer's Charitable Trust is long CAT, QCOM. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio.

☆ Evercore ISI downgrades First Solar, says stock's biggest tailwinds may already be fully priced in
▼ + stars: | 2023-02-14 | by ( Alex Harring | ) www.cnbc.com time to read: +1 min

The near-term outlook for First Solar isn't looking too bright, Evercore ISI warned. Analyst Sean Morgan downgraded the solar stock to in line from outperform as he now sees recent tailwinds better reflected in the current price. He raised its price target by $7 to $157, but that new target still implies the stock could drop 6.1% from where it closed Monday. Morgan said First Solar has been a "major beneficiary" from the Inflation Reduction Act , outperforming the residential solar market since July 2022. FSLR 1Y mountain FSLR in past year More broadly, the solar residential market has lagged in the fourth quarter and into 2023 despite the tailwinds expected from the IRA, he said.

☆ Morgan Stanley is bullish on this Chinese tech giant — giving it upside of nearly 20%
▼ + stars: | 2023-02-14 | by ( Zavier Ong | ) www.cnbc.com time to read: +2 min

Chinese tech giant Tencent is ramping up its efforts to monetize its fast-growing short video function, and Morgan Stanley is bullish on that. Other key growth drivers Morgan Stanley said it believes global gaming will be another key growth driver for Tencent, though it will be a "much longer-term growth story." Another longer-term growth driver is Tencent's software-as-a-service products, namely Tencent Meeting, Tencent Docs and Tencent Cloud. "We believe it will take 2-3 more years for Tencent to reach breakeven in cloud businesses and for them to become a long-term growth driver," the bank said. Morgan Stanley has raised its price target on Tencent to 450 Hong Kong dollars ($57.30) from 420 Hong Kong dollars — an implied upside of about 20% to the stock's closing price on Feb. 13.

☆ Analysis: The deep freeze over UK assets is thawing
▼ + stars: | 2023-02-13 | by ( Naomi Rovnick | ) www.reuters.com time to read: +4 min

"This does suggest a possible inflection point in sentiment towards UK assets," said Nick Kissack, a UK portfolio manager at Schroders, which manages roughly $910 billion of client funds. "We saw extreme levels of risk aversion," in September, he added, while "the risk premium for UK assets has come down since." That, in short, is an outlook of higher global interest rates, weak growth and high inflation. Reuters GraphicsHowever, analysts expect the FTSE 100's rise to falter with a stronger global growth outlook combined with waning energy inflation. "The UK is the standout global economy where growth prospects have not improved," said Baylee Wakefield, multi-asset portfolio manager at Aviva Investors, who expects gilts to continue outperforming Treasuries.

☆ A corner of tech is up 50% from its 2022 lows — and strategists recommend these stocks to play it
▼ + stars: | 2023-02-13 | by ( Zavier Ong | ) www.cnbc.com time to read: +4 min

The semiconductor sector has seen quite a turnaround of late. Chip stocks were among the worst performers last year, with the iShares Semiconductor ETF (SOXX) shedding more than 35% of its value. Despite this, chip stocks have flown somewhat under the radar since the beginning of the year as the buzz around artificial intelligence and a recovery in Big Tech dominated investor attention. While the semiconductor sector is notorious for its cyclicality and boom-bust cycles, several Wall Street pros are urging investors to take a longer-term view. Europe stock ideas In Europe, a raft of chip stocks made Bank of America 's list of "2023 European Best Stock Ideas."

☆ BANK OF AMERICA: Buy these 20 European stocks for upside of as much as 208% and the best possible chance of outperforming in a complex environment
▼ + stars: | 2023-02-12 | by ( Marley Jay | ) www.businessinsider.com time to read: +2 min

Bank of America says European stocks should start to outperform in mid-2023. Strategist Jill Carey Hall and her team named 20 stocks as their favorite European small-caps. Even those who have broader concerns about European stocks say there are plenty of opportunities there. "Small caps typically outperform when Euro area growth accelerates (i.e. Euro area PMIs rise) and underperform when Euro area growth slows."

☆ Bank of America downgrades Deutsche Bank as it struggles to improve profitability
▼ + stars: | 2023-02-10 | by ( Sarah Min | ) www.cnbc.com time to read: +1 min

It's time to sell shares of Deutsche Bank , according to Bank of America. Analyst Rohith Chandra-Rajan downgraded shares to underperform from neutral, as the European bank deals with challenges around profitability. "We see Deutsche Bank struggling to improve profitability as growth is heavily volume reliant, consuming cost and capital resources. Deutsche Bank shares are outperforming this year. The European bank stock is up more than 8% in 2023, better than the S & P 500's 6% gain.

☆ Investors turn picky in Asia after easy wins from China’s reopening
▼ + stars: | 2023-02-09 | by ( Ankur Banerjee | ) www.reuters.com time to read: +5 min

Herald van der Linde, HSBC's head of equity strategy for Asia Pacific, points out that travel and gaming stocks have already benefited. That has led investors to hunt for sectors and companies with depressed valuations outside China. Reuters GraphicsMSCI China Vs MSCI Asean vs MSCI Asia excluding JapanGLOBAL PUSH OR CHINA PULL? After a torrid 2022, investors have been betting that a swift recovery in China's economy will somewhat cushion the impact of a global slowdown and possible recession. "China and its reopening trade, on the other hand, are in early stages and may be the additional tailwind for Asian equities later this year."

☆ Biotech stocks that could surge more than 35% include one name targeting treatments for schizophrenia
▼ + stars: | 2023-02-09 | by ( Sarah Min | ) www.cnbc.com time to read: +3 min

Still, the outlook for biotech stocks could improve now , with innovation in new drugs and more merger and acquisition activity driving investor interest. Recently, Wall Street has been zoning in on developments in treatments for Alzheimer's diseases, drugs for weight loss and treatments using gene editing. CNBC Pro screened for biotech stocks that are part of the iShares Biotechnology ETF , searching for names with huge upside from current prices. In January, Piper Sandler initiated research coverage of Karuna with an overweight rating, saying it's "blazing a new trail in Schizophrenia" treatments. The stock was named another top 2023 pick by Piper Sandler, which said Legend has a "best-in-class" treatment for adults with relapsed multiple myeloma, a segment "with demand far outpacing supply."

In the last five years, multi-manager hedge funds averaged returns of 8.3%, outperforming the wider industry's 5.5%, the note seen by Reuters this week said. Hedge funds such as Citadel, Millennium Management and Balyasny Asset Management employ a multi-manager hedge fund model, according to investors and public filings. Barclays tracked 42 multi-manager hedge funds collectively managing over $290 billion in assets, two-thirds of which are in the United States, it added. Costs may run high, but the final amount they see back beats most other hedge funds. Multi-manager hedge funds have doubled assets under management since 2016, said the Barclays note.

☆ Tesla's stock is getting trounced by EV challenger Lucid, which is leading techs' 2023 rally thanks to Saudi takeover rumors
▼ + stars: | 2023-02-08 | by ( George Glover | ) www.businessinsider.com time to read: +3 min

Shares in electric-vehicle manufacturer Lucid Motors have jumped 69% in 2023. Speculation of a takeover by Saudi Arabia's sovereign wealth fund has fueled Lucid's recent rally. Lucid is even beating rival EV manufacturer Tesla, which is up just under 60% so far this year at $196.81, despite analysts' fears. Lucid shares have also risen thanks to rumors of a looming takeover by Saudi Arabia's Public Investment Fund, which invests on behalf of the government and already owns over 60% of the carmaker. The stock jumped 43% on January 27 alone, after the deals website Betaville reported the Saudi PIF could be close to finalizing a full takeover.

☆ Movie theaters get creative with food and drink as they struggle to fill seats
▼ + stars: | 2023-02-08 | by ( Noah Sheidlower | ) www.cnbc.com time to read: +9 min

At many movie theaters, popcorn and soda appear alongside flatbreads, lobster grilled cheese and elaborate cocktails. "It is things like concessions and how that fits into a broader movie theater experience that really are things that movie theaters need to focus on and hammer in," Gallinari said. AMC Entertainment , the world's largest movie theater chain, exited its third quarter with more than $5.3 billion in debt. According to data from research firm EntTelligence, the average medium popcorn at domestic movie theaters is $8.14, while a medium drink runs for $6.20. "With movie theaters and concessions already having a reputation for being overpriced, being subject to the wills of the market in that way can really work against the movie theater's favor," Gallinari said.

☆ Some Goldman Sachs partners want to tell the board about their concerns over CEO David Solomon
▼ + stars: | 2023-02-08 | by ( Dakin Campbell | ) www.businessinsider.com time to read: +15 min

A decline in morale at the Wall Street firm concerns some Goldman partners. Here are their concerns about CEO David Solomon, who addressed the partners in Miami. CEO David Solomon addressed Goldman Sachs' partners today at the firm's annual partners meeting in Miami. There's little history for Goldman partners taking their concerns directly to the board. Since then, according to someone who has spoken to investors, more shareholders have questioned how long Solomon can last as Goldman's CEO.

☆ Warren Buffett's Berkshire has beaten the market in past recessions, making it a 2023 defensive play
▼ + stars: | 2023-02-08 | by ( Yun Li | ) www.cnbc.com time to read: +3 min

With a massive cash pile and diversified businesses, Warren Buffett 's Berkshire Hathaway has a track record of outperforming the market during economic downturns, according to UBS. It showed Berkshire shares outperforming the S & P 500 and other financials. The analyst also called Berkshire "a defensive play in an uncertain economic outlook." Berkshire agreed to buy insurance company Alleghany for $11.6 billion, or $848.02 per share, in cash, inking Buffett's biggest deal since 2016. Berkshire shares are now trading at a 20% discount to the conglomerate's intrinsic value , which may prompt the "Oracle of Omaha" to buy back more of his stock, UBS said.

Global markets revenue jumped by about 24% in October-December, the euro zone's biggest bank said on Tuesday, fuelled by a 45% leap in revenue from trading in commodity derivatives, rates, foreign exchange and emerging markets. BNP's 45% sales growth in FICC trading (fixed income, commodities, currencies) compared with 25% growth at peers, analysts at Barclays said. Shares in BNP Paribas (BNPP.PA) were up as much as 4% by 1432 GMT on Tuesday, outperforming the euro zone bank index (.SX7E) and valuing the group at more than 78 billion euros ($83 billion). "These are upward revisions that are quite significant and not so frequent," Bonnafe told reporters in a call. BNP Paribas' net income fell by 6.7% to 2.15 billion euros.

☆ ChatGPT mania pumps up Chinese AI technology stocks
▼ + stars: | 2023-02-07 | by ( ) www.reuters.com time to read: +3 min

While ChatGPT is not accessible in China, mainland investors are still pumping up the shares of AI technology companies such as Hanwang Technology Co (002362.SZ), TRS Information Technology Co (300229.SZ) and Cloudwalk Technology Co (688327.SS). To be sure, there is no indication that these AI companies are close to pushing out a ChatGPT-like product. Cloudwalk shares have more than doubled in the seven trading days since the Lunar New Year holidays. Other companies that have disclosed their progress in AI technology include TRS Information Technology, and Beijing Haitian Ruisheng Science Technology Ltd (688787.SS). Retail investor Lu Deyong has purchased shares in TRS and iFlytek and is seeking to profit from the ChatGPT hype.

☆ A 'huge pivot' in China is fueling the emerging markets boom, says Jan van Eck
▼ + stars: | 2023-02-06 | by ( Jesse Pound | ) www.cnbc.com time to read: +3 min

They're emphasizing growth right now," van Eck said at the Exchange ETF conference in Miami. The iShares MSCI China ETF (MCHI) had a total return of more than 10% this year, through Feb. 3. MCHI YTD mountain This popular China ETF is outperforming in 2023. Van Eck pointed to the outsized growth of major U.S. tech firms as a key reason for that outperformance, but said that era appears to be over. "We've got a decade where you're really taking a risk if you're under invested overseas," van Eck said.

☆ Bernstein says tech stocks could face another lost decade
▼ + stars: | 2023-02-06 | by ( Tanaya Macheel | ) www.cnbc.com time to read: +2 min

After outperforming by 8.6% on average every year for the previous eight years, tech performance reversed dramatically in 2022. That could mean tech is entering a new period of tepid growth, Toni Sacconaghi, senior research analyst at Bernstein, said in a note Monday. "We worry that relative stock performance for tech over the next several years risks being more muted, akin to the lost decade following the tech bubble bursting," he said. But as in the "lost decade," the market found fresh leaders to drive the next big rally in tech and it may need to do so again in this new period, Sacconaghi said. "And it took time for a new era of tech leaders to emerge."

☆ Here are the big trends to watch at the Exchange ETF conference this week
▼ + stars: | 2023-02-06 | by ( Bob Pisani | ) www.cnbc.com time to read: +5 min

I'm at the ETF Exchange Conference in Miami Beach, where 2,000 registered investment advisors and ETF providers have descended on the city for the industry's largest gathering. Think active, dividend, foreign debt and alternative income ETFs," Tom Lydon, of VettaFi, the conference sponsor, told me. "I believe fixed income ETFs are setup to have a historic year," Nate Geraci from the ETF Store said in January. This year, they're back, but despite the surge in thematic ETF performance to start the year, investors have yet to throw significant sums of money into the game. "Despite the surge in thematic ETF performance to start the year, investors are yet to start allocating again.

☆ Saudi non-oil private sector activity jumps in January on higher output, orders
▼ + stars: | 2023-02-05 | by ( ) www.reuters.com time to read: +1 min

DUBAI, Feb 5 (Reuters) - Growth in Saudi Arabia's non-oil business activity accelerated in January, having hit a three-month low the previous month, a survey showed on Sunday, supported by an increase in new orders and output. The seasonally adjusted Riyad Bank Saudi Arabia Purchasing Managers' Index increased to 58.2 in January, from 56.9 in the previous month and well above the 50 mark separating growth from contraction. "This growth confirms the Saudi position as the fastest-growing economy among the Group of 20 countries despite economic headwinds," said Naif Al-Ghaith, Chief Economist at Riyad Bank. The output sub-index rose to 63.6 in January from 61.0 the previous month, mainly on higher demand, as the new orders sub-index jumped to 65.3 from 62.9 in December, with the strongest increase recorded among service providers. Confidence among private firms in the non-oil sector increased to a two-year high last month with survey participants forecasting a strong year ahead supported by new order inflows, high capacity, and lower expected costs.

☆ From an investment perspective, mass transit is too important to fail: Hilltop's Tom Kozlik
▼ + stars: | 2023-02-03 | 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 EmailFrom an investment perspective, mass transit is too important to fail: Hilltop's Tom KozlikTom Kozlik, Hilltop Securities head of municipal research and analytics, joins 'The Exchange' to discuss concerns around state and local government spending, investment in mass transit outperforming, and future tax environment expectations.

☆ Goldman Sachs says European stocks will continue to outperform the U.S. Here's why
▼ + stars: | 2023-02-03 | by ( Ganesh Rao | ) www.cnbc.com time to read: +2 min

Goldman Sachs has already said that non-U.S. stocks will beat the S & P 500 this year . The Euro Stoxx 50 , an index of 50 stocks in the euro zone area, has underperformed the S & P 500 by more than 115 percentage points over the past decade. It said the region will also benefit from a shift from so-called "growth" stocks (mostly found in the U.S.) to "value" European stocks, with companies on the continent better suited to navigate a higher interest rate environment than their American counterparts. 'Nowhere to hide' However, Goldman Sachs added that if there were a decline in U.S. stocks this year, there would be "nowhere to hide" for investors. Historical data shows that when the S & P 500 falls by 20% or more, other markets usually follow with comparable drops, according to Goldman.

☆ 'Dodged bullet': How 'Fast Money' traders are responding to Thursday's Big Tech earnings
▼ + stars: | 2023-02-02 | by ( Alex Harring | ) www.cnbc.com time to read: +3 min

Big Tech stocks Amazon , Apple and Alphabet reported earnings Thursday night. "Ultimately, I think that this was a dodged bullet," Munster said on CNBC's " Fast Money ." "Apple is probably best positioned of the three to exceed the March quarter," Munster said. The company beat revenue expectations for the quarter , according to Refinitiv, but reported its slowest year of growth in its time as a public company. "When we look at the three tonight, Google was the one that had the highest growth rate relative to expectations," Munster said.

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