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Stocks in the firm's coverage universe have "significantly front-loaded expected rate cut benefits, well in excess of prior fed cycles," he said. The chances of a smaller 25 basis point cut have fallen to a 41% chance. Barclays analyst Matthew Bouley is watching the data very closely as well and said a lot will depend on how consumers react as mortgage rates fall. Bouley said this is one of the clearest signs yet that a recent decline in mortgage rates is bringing buyers into the market. Slightly more than half the analysts who cover the stock rate it a buy or overweight, it said.
Persons: Mike Dahl, Dahl, Toll, Taylor Morrison, Matthew Bouley, Bouley, Horton Organizations: Federal Reserve, RBC Capital Markets, Tri, Tri Pointe Homes, Toll, RBC, KB, Barclays Locations: Tri Pointe, staving, Horton
CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. CNBC's Sarah Min breaks down how a rate cut could affect the S&P 500 . Welcome to U.S. rate cut week! But given that the rate cut has been so clearly telegraphed by the Fed, it's hard to imagine it not happening. This cut might not be big in terms of basis points, but it will be big in what it signals to markets.
Persons: It's, Sarah Min, Biden, Donald Trump, Rafael Barros, Cat Stevens, Aditya Bhave, CNBC's Pia Singh, Hakyung Kim, Brian Evans Organizations: Eccles Federal Reserve, CNBC, U.S . Federal Reserve, Discount, China's National Bureau, Statistics, Republican, Federal Bureau of Investigation, Secret Service, U.S, Federal, Fed, Bank of America U.S Locations: Washington , DC, Florida, U.S
CNBC's Sarah Min breaks down how a rate cut could affect the S&P 500 . Welcome to U.S. rate cut week! Furthermore, jumbo hikes of 75 basis points were enacted between June 2022 to November 2022. But given that the rate cut has been so clearly telegraphed by the Fed, it's hard to imagine it not happening. This cut might not be big in terms of basis points, but it will be big in what it signals to markets.
Persons: It's, Sarah Min, Donald Trump, Rafael Barros, Cat Stevens, Aditya Bhave, CNBC's Pia Singh, Hakyung Kim, Brian Evans Organizations: Eccles Federal Reserve, CNBC, U.S . Federal Reserve, China's National Bureau, Statistics, Republican, Federal Bureau of Investigation, Secret Service, U.S, Federal, Fed, Bank of America U.S Locations: Washington , DC, Florida, U.S
Wall Street is growing more divided on how much the Federal Reserve will move interest rates next week. In fact, the market's mixed outlook ahead of the central bank decision is more unsettled than any time since the Fed started pushing borrowing costs higher in early 2022. Investors are certain that the Fed will begin reducing interest rates next week from their current 5.25% to 5.50% range, but a sense of uncertainty lingers. We do not anticipate any dissents" from voting members of the central bank's Federal Open Market Committee next week, Bank of America's Bhave added. "So if pricing stays where it is currently, it would be the first meeting in years where there's serious uncertainty about the rates decision."
Persons: Henry Allen, Aditya Bhave, Bhave, America's Bhave Organizations: Federal Reserve, Fed, Deutsche Bank, Bank of America, Committee, Bank, America's
From e-commerce firm Amazon to pharmaceutical giant Eli Lilly , Morgan Stanley's top stocks to own for the next 12 months spans a wide array of sectors. The majority of Morgan Stanley's picks are tilted toward growth, with 67% of the picks meeting that classification. Here's a look at some of the stocks that Morgan Stanley says are worth owning over the next year. Amazon stock has added 23% in 2024. LLY YTD mountain Eli Lilly stock.
Persons: Eli Lilly, Morgan, Morgan Stanley's, Morgan Stanley, Brian Nowak's, Nowak, Terence Flynn's, Eli Lilly's, LLY, Flynn Organizations: Nasdaq, Dow Jones, Amazon, Pharma
Oracle — The stock rose nearly 2% after the database software company raised its fiscal 2026 revenue outlook . Uber — Shares of the ride-sharing company advanced more than 5% following news that it plans to expand its partnership with Alphabet's Waymo . Adobe — Shares tumbled 9% after the software company issued weaker-than-expected guidance for the current quarter. Unity Software — Shares of the game engine company added nearly 7%. Discovery — Shares advanced about 9% after the media conglomerate entered an early renewal agreement with Charter Communications.
Persons: Kevin Clark, RH —, Gary Friedman, Alphabet's Waymo, Uber, Stifel, Biden, David Zaslav, , Jesse Pound, Sean Conlon, Samantha Subin, Hakyung Kim Organizations: JPMorgan, Oracle, Aptiv, — Stock, Adobe, Boeing, Unity, Holdings, PDD Holdings, Redfin Corporation, Federal Reserve, U.S, Home, Warner Bros, , Charter Communications, Discovery Locations: U.S, Austin , Texas, Atlanta, China
JPMorgan thinks Viking Therapeutics could be the next big name in the GLP-1 boom. Investors are awaiting more details about the oral version, expected in early November, as a possible catalyst for the stock. VKTX YTD mountain Viking Therapeutics stock. Some patients who take these popular obesity drugs suffer nausea and gastrointensinal effects that force them to stop treatment. Oral drugs also tend to be cheaper and easier to manufacture.
Persons: GLP, Eli Lilly, Viking, Hardik Parikh, Parikh, Wegovy, Eli Lilly's Zepbound Organizations: JPMorgan, Viking, Therapeutics, Novo Nordisk, Investors, Viking Therapeutics
6:59 a.m.: Citi raises AT & T price target A wave of improving outlook for telecommunications could benefit shares of AT & T , according to Citi. The firm upgraded the telecommunications company to neutral from sell and left its $350 per share price target unchanged. "Although our 2028 EPS is still c16% ahead of consensus, we now see less scope for earnings outperformance 2024/2025," the analyst added. The firm upgraded the home furnishings stock to buy from hold and increased its price target to $156 per share to $148. His price target of $105, down from $122, implies upside of just 8.7% from Tuesday's close.
Persons: Goldman Sachs, Morgan Stanley, Jefferies, Michael Rollins, Rollins, — Brian Evans, Graham Parry, Parry, Sonoma Jefferies, William, Jonathan Matuszewski, Matuszewski, Brian Evans, Goldman Sachs downgrades Morgan Stanley, Richard Ramsden, Ramsden, Fred Imbert Organizations: CNBC, Williams, Citi, AT, JV, Apple, Communications Citi, Communications, Charter Communications, Bank of America downgrades Novartis Bank of America, Novartis, William, Elm, Brands, WSM, Goldman Sachs downgrades Morgan Stanley Investors Locations: U.S, Sonoma, Swiss, William, Tuesday's
Financials have been on a tear lately, and some stocks in the space could break out. The S & P 500 financial sector has advanced more than 16% this year and nearly 4% over the past month. It's also jumped 7% during the third quarter, outperforming the S & P 500's 0.3% increase. The S & P 500 and the Nasdaq Composite are both down more than 2% in September. KKR YTD mountain KKR stock.
Persons: It's, Wells Fargo, Nicholas Watts, there's, Matt O'Connor Organizations: Nasdaq, CNBC, Stock, KKR, Atlantic, Global, LSEG, Deutsche Bank, Bank of America, Deutsche, Berkshire Hathaway Locations: U.S, financials, Wells Fargo, Berkshire
Mission Produce , Calavo Growers — Shares gained 20% after the avocado producer reported a year-over-year revenue increase of 24% for the fiscal third quarter. Calavo Growers advanced around 12% after the rival producer reported adjusted earnings of 57 cents per share in its fiscal third quarter. That is more than the 43 cents per share that analysts were expecting, according to FactSet. Oracle — Shares of the database software company surged more than 11% after a fiscal first-quarter beat on the top and bottom lines. For the fiscal second quarter, the company saw growth of 4% in preliminary consolidated same-store sales.
Persons: Russell Hutchinson, LSEG, Piper Sandler, Hewlett Packard, Rubrik, FactSet, Patterson, Gary Kelly, Bob Jordan, Alibaba, Daniel Pinto, — CNBC's Brian Evans, Samantha Subin, Lisa Kailai Han, Jesse Pound, Michelle Fox Organizations: Ally, Mission, Calavo, Calavo Growers, Oracle —, Oracle, Amazon Web Services, Hewlett Packard Enterprise, Hewlett, Juniper Networks, UTI, Southwest Airlines —, Elliott Investment Management, Hong, Reuters, JPMorgan Locations: U.S, Alibaba —, China, Hong Kong, Shanghai, Shenzhen
Traders work on the New York Stock Exchange (NYSE) floor on September 09, 2024 in New York City. Stock futures dipped on Tuesday morning after the major averages rebounded from their worst week in 2024. Futures tied to the S&P 500 declined 0.12%, while Nasdaq 100 futures fell 0.28%. On Monday, the three major averages made a sharp comeback after posting their worst week this year as investors bought the dip. The S&P 500 popped 1.16% to snap a four-day run of losses and post its first winning day in September.
Persons: Dow Organizations: New York Stock Exchange, Stock, Nasdaq, Dow Jones Industrial, Oracle, Amazon Web Services, Nvidia Locations: New York City
A handful of stocks could prove to be smooth sailing for investors looking to ride out a historically volatile September. Stocks got off to a shaky start this month, with last week marking the worst performance since March 2023 for the S & P 500. Shares have advanced about 55% in 2024, and analysts polled by LSEG forecast nearly 11% upside ahead for the pharmaceutical stock. TJX YTD mountain TJX Companies stock. Analysts polled by LSEG forecast more than 12% upside ahead for TJX stock.
Persons: Stocks, Eli Lilly, TJX Organizations: CNBC Pro, CNBC, LSEG, Wall, Marshalls, Brands, Companies, Omnicom, Kroger Locations: Maxx
The Invesco S & P 500 Low Volatility ETF (SPLV) has advanced close to 13% in 2024, while the Nasdaq Composite is up 13.8%. SPLV follows the S & P 500 Low Volatility Index, which is based on 100 stocks within the broad market index with the lowest realized volatility over the past 12 months. SPLV YTD mountain Invesco's S & P 500 Low Volatility ETF (SPLV). On Tuesday, the S & P 500, Nasdaq and Dow Jones Industrial Average posted their worst session since the early-August slide as a batch of weak manufacturing data spurred investors' worries over the economy. Elsewhere, the ‎CBOE Volatility Index has ticked up above 20 since September has started, and it surged over 65 during the early-August rout, which was its highest level since 2020.
Persons: SPLV, Warren Buffett's Berkshire, Morgan Stanley, Charles Schwab Organizations: Nasdaq, Warren Buffett's Berkshire Hathaway, Mobile, Dow Jones Locations: Warren
Dollar Tree — Shares plunged nearly 11% after the dollar store missed second-quarter revenue estimates and trimmed its full-year forecast. Zscaler — Shares of the cloud security company slipped nearly 17% after its fiscal first-quarter earnings forecast missed Wall Street estimates. GitLab — Shares of the software developer surged 11% after its third-quarter earnings forecast surpassed Wall Street estimates. GitLab expects to earn 15 cents to 16 cents per share, while analysts polled by LSEG were calling for 11 cents. The company's full-year revenue forecast of $742 million to $744 million also came in above a forecast $737 million.
Persons: Dick's, Sweetgreen, Cowen, LSEG, PagerDuty, Nordstrom, , Alex Harring, Jesse Pound Organizations: Nvidia, Bloomberg, U.S . Department of Justice, Dick's, , Wall, FactSet, AMD —
Check out the companies making headlines in midday trading: Cava Group — Shares of the fast-casual restaurant chain popped more than 21% on stronger-than-expected quarterly results . Cava posted earnings of 17 cents per share on $233 million in revenue in the fiscal second quarter. That topped LSEG estimates calling for earnings per share of 13 cents and revenue of $220 million. Ross Stores — The off-price retailer's stock price added 1.4% after the company beat earnings estimates by 9 cents a share in the second quarter. Ross matched revenue estimates of $5.25 billion, per LSEG.
Persons: Cava, Warby Parker, Nicholas Jones, Goldman Sachs, Bill.com, Ross, Tesla, Jerome Powell's, Piper Sandler, — CNBC's Hakyung Kim, Jesse Pound, Brian Evans, Samantha Subin, Lisa Kailai Han, Michelle Fox Organizations: Intuit —, Intuit, FactSet, JMP Securities, Warby's, UBS, Ross Stores, LSEG, Nvidia, Federal, Investors, VanEck Semiconductor Locations: Cava, Vegas, Macau
A collection of stocks on Wall Street may have recently gotten ahead of themselves. Shares of aerospace and defense contractor Northrop Grumman have advanced roughly 9% in 2024 and 5% in August alone. The company's second-quarter results in July surpassed Wall Street estimates on the top and bottom lines, while Northrop's full-year revenue outlook also beat analysts' expectations. UBS analyst Gavin Parsons recently highlighted Northrop as the bank's top pick among aerospace and defense stocks, citing awards of two of the Pentagon's top three "priority programs" as well as higher defense spending. The deal, at a planned $83.50 per share, is the largest acquisition on Wall Street in 2024 so far.
Persons: Jerome Powell, Northrop Grumman, Gavin Parsons, Kellanova Organizations: Dow Jones Industrial, Nasdaq, FactSet, UBS, Northrop, Mars, Aflac, Edison International Locations: California
CNBC Daily Open: Wall Street surges; Starbucks ousts CEO
  + stars: | 2024-08-14 | by ( Abid Ali | ) www.cnbc.com   time to read: +4 min
CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Economic uncertainty Home Depot exceeded quarterly expectations but lowered its full-year sales outlook , citing weak demand due to high interest rates and consumer uncertainty. Get the CNBC Daily Open report in your inbox every morning and keep up to date with the markets wherever you are. The baristas have to be energised, clearly they've had some union problems, clearly they've had a lot of new products that haven't worked," Palmer told CNBC "Squawk on the Street." Chief Financial Officer Richard McPhail told CNBC, "Customers aren't just deferring because of higher financing costs.
Persons: Richard McPhail, Laxman Narasimhan, Brian Niccol, Narasimhan, Mellody Hobson, Narasimhan —, Niccol, David Palmer, they've, haven't, Palmer, Sarat Sethi, CNBC's, Sethi, , Sarah Min, Amelia Lucas, Brian Evans, Samantha Subin, Jennifer Elias, Jeff Cox, Spencer Kimball Organizations: New York Stock Exchange, CNBC, Jefferies, Google, Apple, Gemini, Evercore ISI, Depot, Douglas, Lane & Associates, McDonald's, Starbucks, Walmart Locations: New York City, China
Don't get too excited about this latest inflation report
  + stars: | 2024-08-13 | by ( Brian Evans | ) www.cnbc.com   time to read: +1 min
Stocks had a strong showing Tuesday after the latest U.S. wholesale inflation report came out. In other words, just because PPI rose less than expected, it doesn't mean investors should expect a tame CPI report on Wednesday. "Financial markets seem to react too much every month to PPI," said Stanley, the bank's chief economist. " The S & P 500 closed Tuesday's session nearly 2% higher, while the Nasdaq Composite climbed 2.4%. The major averages are now well above the lows seen in Aug. 5, when the Dow and S & P 500 suffered their biggest one-day pullbacks since 2022.
Persons: Stocks, Stephen Stanley, Stanley, Dow, David Russell, We're Organizations: ISI, PPI, Santander U.S, CPI, Federal Reserve, Nasdaq, Dow Jones Industrial
Recent market turbulence has unearthed some bargain prices for momentum stocks, according to Wells Fargo. He suggests that investors "buy stocks, not the stock market." Here's a closer look at stocks Wells Fargo is eyeing in light of the recent market volatility. Shares of the Facebook parent have gained roughly 45% in 2024, but have slumped 3% over the past month. Eli Lilly has climbed 53% in 2024, but is down roughly 8% over the past month.
Persons: Wells, Christopher Harvey, Harvey, Harvey isn't, Blayne Curtis, Eli Lilly, Lilly, Zepbound Organizations: Services, Nvidia, Jefferies, Facebook, Meta, LSEG, Netflix Locations: Wells Fargo, U.S, Wells
The recent unwinding of the yen "carry trade" could remain a long-term headwind amid already turbulent markets. JPY= YTD mountain The Japanese yen's appreciation against the U.S. dollar marked the unwinding of the so-called carry trade. "There's still quite a significant yen short position out there," Osborne said. He estimates that there is still a roughly $15 billion yen short position through July 30, still to be covered. In other words, that short position could drive more strength in the yen as that position is covered.
Persons: , Shaun Osborne, Osborne, Everyone's, Rob Ginsberg, Ginsberg, FedWatch, Ben Emons Organizations: Bank of, U.S, Scotiabank, U.S . Federal Reserve, Bloomberg, Wolfe Research, Swiss Locations: Bank of Japan, Japan
Monday's global markets sell-off saw Wall Street's "fear gauge" spike to its highest level since 2020, but there are a few stocks that may help investors stabilize their portfolios in these volatile times. Coterra has a beta of 0.23, the lowest on the list of stocks assembled for this screen. While the company's second-quarter adjusted earnings missed Wall Street's estimates, Coterra's production for the period came in ahead of analysts' expectations. Coterra shares also offer investors income, paying a dividend yield of 3.4%. Major Wall Street firms said a recent pullback in shares — which are off 4% in the past week — presented a buying opportunity for investors.
Persons: Coterra, Organizations: Dow Jones, CNBC Pro, CNBC, Energy, Microsoft, LSEG, Wall, Deere, Omnicom Locations: U.S
The global sell-off in equities could end up being a mere "growth scare," according to Fundstrat managing partner and head of research Tom Lee. The index, known as Wall Street's "fear gauge," has more than doubled to above 50 since Friday, when it stood at roughly 23. For his part, Lee has been one of Wall Street's more bullish market commentators . But Lee opined that the sharp spike in Wall Street's fear gauge may suggest that a return to investor confidence could be over the horizon. "We have over three days where suddenly markets reversed, [and] declines like that are generally symmetric but you have to watch the VIX," Lee said.
Persons: Tom Lee, Lee, CNBC's, Russell Organizations: Nasdaq, Federal Reserve, Bank of, greenback Locations: U.S, Asia, Japan
Palantir posted adjusted earnings of 9 cents per share on $678 million in revenue. Lucid Group — Shares surged 6% after second-quarter estimates surpassed Wall Street estimates. The electric vehicle company reported revenue of $200.6 million , while analysts polled by LSEG forecast $192 million. CSX notched earnings of 49 cents per share in the second quarter, while analysts polled by LSEG expected 48 cents a share. Simon Property Group topped second-quarter revenue estimates, but posted in-line earnings.
Persons: Palantir, LSEG, AeroSystems, CNBC's Brian Evans, Sarah Min Organizations: Palantir Technologies, Wall, LSEG, CSX Corp, CSX, Semiconductor, Nvidia, Computer, Broadcom, Arm Holdings, Intel, Boeing, Avis Budget, Technologies, ZoomInfo Technologies, Simon Property, Simon Property Group Locations: LSEG .
Check out the companies making headlines before the bell: Chip stocks — Nvidia shares fell roughly 12.5% in premarket trading as the artificial intelligence trade continues to unwind, dragging down once-hot semiconductor plays. Apple — Apple shares sank more than 6% after Warren Buffett's Berkshire Hathaway revealed it sold nearly half its stake in the iPhone maker. Tech stocks — Major tech stocks were among the biggest losers of Monday's global market sell-off. Analysts polled by FactSet forecast a loss of 27 cents per share for the second quarter on $190.3 million in revenue. Crypto — Stocks tied to the price of bitcoin were among the hardest hit in premarket trading as the flagship cryptocurrency dropped below $50,000 for the first time this year.
Persons: Warren Buffett's Berkshire Hathaway, Tesla, Crypto, Stocks, Coinbase, MicroStrategy, Palantir, Macheel, Samantha Subin, Jesse Pound, Brian Evans Organizations: Nvidia, Broadcom, Computer, Arm Holdings, Apple, Tech, Facebook, Microsoft, FactSet, Reuters, Street Journal, Marathon
McDonald's stock made the list. Despite weaker-than-expected second-quarter results , Morgan Stanley Wealth Management added McDonald's stock to its dividend equity portfolio in a Friday note, citing its attractive valuation as the company pushes to revamp its menu pricing. MCD YTD mountain McDonald's stock. EQIX YTD mountain Equinix stock. "With sentiment / expectations relatively low, we like the set-up, as we suspect EQIX can maintain constant-currency revenue guide and accelerate revenue growth in 2H'24," the analyst added.
Persons: Stocks, Morgan, Daniel Skelly, Skelly, Equinix, Wells, Eric Luebchow Organizations: Dow Jones, Nasdaq, Federal, CNBC Pro, CNBC, Stock, Morgan Stanley Wealth Management, CVS Health, 2H, L3Harris Technologies, Omnicom
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