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How the corporate America is handling sticky inflation and the prospect of higher interest rates will be top of mind for investors in the week ahead, after this week's choppy moves. The first-quarter earnings season, which kicked off Friday, will give Wall Street insight into how businesses expect to weather an environment of elevated interest rates. More macro data, such as U.S. retail sales, will give insight into how the consumer is handling higher pricing pressures. First-quarter earnings season underway The corporate earnings season kicks into high gear in the week ahead. This week, the small cap Russell 2000 is on track for a losing week, down by more than 1%.
Persons: Bob Doll, CNBC's, Wolfe, Rob Ginsberg, Ginsberg, Goldman Sachs, Morgan Stanley, FactSet, Robert Haworth, Haworth, Charles Schwab, Johnson, D.R, KeyCorp Organizations: Dow Jones Industrial, Exxon Mobil, Costco, Apple, Crossmark, Investments, Investors, Bank of America, Consumer, U.S . Bank, Index, Retail, T Bank, Housing, Manufacturing, Hunt Transport Services, United Airlines, Johnson, Bank of New York Mellon, UnitedHealth Group, Northern Trust, CSX, Discover Financial Services, Prologis, U.S . Bancorp, Philadelphia Fed, American Express, Procter, Gamble, Fifth Third Bancorp, Schlumberger Locations: America, China, NAHB, Vegas Sands, U.S, Horton
CFRA's Sam Stovall anticipates the stock market can go higher even without rate cuts, but has the playbook to navigate a possible correction if one develops. The chief investment strategist expects the S & P 500 still has further upside. But he sees a bumpy road ahead, anticipating a consolidation of about 8% to 10% after the market's recent gains. "As a result, I think there is, after we get through this much-anticipated correction that history says is overdue, I think we do end up being higher by year-end," Stovall said. After such a pullback, however, the best-performing assets were in communication services, financials and technology, Stovall said.
Persons: CFRA's Sam Stovall, Stovall, CNBC's Organizations: Federal Reserve, NextEra Energy, Procter, Gamble
Two months ago, I wrote a story entitled, "The IPO market is looking very shaky and facing challenges galore." Two months later, the IPO market is still shaky, but there are definite signs of improvement. Second, three $100 million IPOs have filed to go public in the past week, including Viking (the cruise line operator) and Rubrik, a data management platform. Greg Martin at Rainmaker Securities told me that the recent performance of Reddit and Astera Labs, "Were nice shots in the arm for the IPO market. Even with markets at new highs, the specter of interest rates creeping up is still hanging over the IPO market.
Persons: Matt Kennedy, Reddit, Greg Martin, Ibotta, Ingram, Del, Viking, Howe Ng, I'm, Martin, Rainmaker, Santosh Rao Organizations: IPOs, Viking, Renaissance Capital, Astera Labs, Rainmaker Securities, NYSE, UL Solutions, Underwriters Laboratories, Nursing, Centuri Holdings, Labs, Companies, Ingram Micro, Epic, Manhattan Venture Partners Locations: IPOs, Del Monte
RBC Capital Markets has refreshed its top stock picks for the second quarter, adding a few new names that could be poised to rise. To that end, RBC made updates for the second quarter to its list of top 30 global ideas, which includes "high-conviction, long-term" stock picks. Fintech firm PayPal is a new addition to the RBC list for 2024. GFL Environmental is also a new addition to the RBC list, and the waste management stock has climbed 2.5% in 2024. GFL YTD mountain GFL Environmental stock.
Persons: Graeme Pearson, Daniel R, Perlin, GFL, Sabahat Khan, Khan Organizations: RBC Capital Markets, RBC, PayPal, Mastercard
And growth in the percentage of women in senior corporate leadership roles overall barely budged from 2022 to 2023. In 2023, women held just 11.8% of the roughly 15,000 C-suite roles assessed, down from 12.2% the year before, the study found. Gender parity goal imperiledNone of this is to say that there hasn’t been real progress in narrowing the gender gap since 2005. “Across all [senior] roles, women held less than 8% of seats as recently as 2005; versus 22.3% in 2023. If the growth rate remains below average going forward, the goal of reaching gender parity will be much farther out of reach.
Persons: , hasn’t, Organizations: New, New York CNN, P Global Market Intelligence Locations: New York
"I think inflation is reaccelerating. I think there's a lot of indication of that," the famed investor said during the Sohn Investment Conference in New York. As a defense play against a potential market downturn, Einhorn also said he is loading up on his gold position . We own physical bars as well, so gold is a very large position for us," Einhorn said. Value investing opportunities Despite his concerns, Einhorn said opportunities are emerging in value stocks, which he thinks are misunderstood nowadays.
Persons: David Einhorn, Einhorn, CNBC's Scott Wapner, there's Organizations: Greenlight, Federal Reserve, Sohn Investment, Greenlight Capital, Trust, Solvay Locations: New York, Belgium
Greenlight's David Einhorn said Wednesday at the Sohn Investment Conference in New York he has bought shares of European chemicals company Solvay . "Solvay is an essential chemical company that holds the number one position across all of its markets" Einhorn said. "While all of these are thought of as commodity businesses, they are higher margin and much more stable than most commodity chemical businesses." "All told, Solvay is a commodity chemical company with relatively high and stable margin, a higher return on capital." "At 3.7 times targeted 2028 earnings per share with almost a double-digit dividend yield, it seems too cheap," Einhorn added.
Persons: Greenlight's David Einhorn, Solvay, Einhorn, CNBC's Scott Wapner, Yun Li Organizations: Sohn Investment, Solvay, Wall, Greenlight Locations: New York, U.S, Brussels, Belgium
It is time for investors to buckle up as a strong first quarter could be followed by a frightful year, according to CFRA's Sam Stovall. .SPX 1D mountain S & P 500 History shows investors should expect volatility can continue, according to Stovall. A strong first quarter typically suggests a good second quarter, the strategist found. After 13 of those 15 strongest first quarters, the S & P 500 registered "intrayear" declines of 5% or more. "So, in other words, this strong start implies a frightful yet fulfilling full-year performance for the S & P 500," he said.
Persons: Sam Stovall, Stocks, Stovall, CNBC's, Organizations: Fed
As the market begins a new quarter, Bank of America refreshed its list of top picks for the coming months. Here are some of the firm's top picks for the second quarter: Big Tech underperformer Alphabet is one of Bank of America's top 10 picks for the new quarter. The stock added just 8% in the first quarter of 2024 as a series of AI-related blunders bruised investor sentiment. SPOT YTD mountain Spotify shares in 2024 One of the financial stocks featured in Bank of America's top picks list was Citigroup . "A positive inflection in volumes should support low valuation and potentially drive rotation from other consumer staples sub-sectors (Beverages/Household Personal Care) as investors chase underperforming food names," wrote analyst Bryan Spillane.
Persons: Justin Post, Jessica Reif Ehrlich, Ebrahim Poonawala, Kraft Heinz, Bryan Spillane Organizations: Bank of America, Nasdaq, Bank of America's, Microsoft, Google, 2Q, Spotify, Citigroup, Assistance Locations: Thursday's
Traders work on the floor of the New York Stock Exchange on April 1, 2024. Futures tied to the S&P 500 were little changed Monday night after the broad market index and the Dow Jones Industrial Average slipped to begin April. S&P 500 futures and Nasdaq 100 futures each dipped lower by less than 0.1%. Futures tied to the 30-stock Dow slipped 118 points, or 0.3%, as shares of UnitedHealth fell. To conclude Monday's session, the Dow fell nearly 241 points, or 0.6%, while the S&P 500 slid 0.2%.
Persons: Dow, UnitedHealth, David Miller, Organizations: New York Stock Exchange, Dow Jones, Nasdaq, Medicare, Services, Humana, CVS Health, Federal Reserve, Catalyst Capital Advisors, CNBC, Labor, Survey Locations: UnitedHealth
In fact, a stock market sentiment model from the firm called the Levkovich Index has now reached euphoria levels, which typically heralds a fall in equities, the firm's U.S. equity strategist Scott Chronert wrote in a Thursday note. On a median basis, that gauge suggests equities could decline 8.9% over the next 12 months, a drop that would put the S & P 500 around 4,780. The broad market index was last above the 5,200 level, having already breached Chronert's 5,100 year-end target. .SPX YTD mountain S & P 500 Chronert is not the only one concerned about a stock market pullback from current levels. Last week, the S & P 500 information technology sector was down 1.26%.
Persons: Scott Chronert, Chronert, CNBC's, turing, BTIG's Jonathan Krinsky, Krinsky, Citigroup's Chronert Organizations: Citigroup, NYSE
There's a rotation happening in the market that investors can take advantage of by investing in cyclical stocks, according to Morgan Stanley Investment Management's Andrew Slimmon. He recommended investors to have a more cyclical bias to their portfolio, pointing out that the best-performing sectors in the last month are energy, materials and industrials. He also thinks there's still room to run in semiconductor stocks — even if the overbought group sees a near-term pullback. " Slimmon named Applied Materials , Ameriprise Financial and Valero Energy as some of the stocks he likes right now. Regarding energy, Slimmon said the space could continue to show strength if the economy begins to weaken.
Persons: Morgan Stanley, Andrew Slimmon, Stocks, Slimmon, there's, Slimmon's, that's Organizations: Morgan, Morgan Stanley Investment, Dow Jones Industrial, Nasdaq, Ameriprise Financial, Valero Energy, Infrastructure Investment, Jobs, United Rentals, Applied Materials, Ameriprise, U.S Locations: U.S, financials, That's
The S & P 500 has more room for upside in 2024, according to RBC Capital Markets head of U.S. equity strategy Lori Calvasina. The upgrade comes as the S & P 500 wraps up a monster start to the year. The strategist also expanded her 2024 earnings forecast to $237 from $234, which underpins her overall higher outlook for the S & P 500. Calvasina also laid out her bull case, which has the S & P 500 soaring to 5,400, nearly 3% above Wednesday's close. The current signal is little changed from her January S & P 500 forecast, where she also said U.S. equities appeared to be overbought.
Persons: Lori Calvasina, Calvasina Organizations: RBC Capital Markets, CNBC's Market, Survey
Wall Street could be in for another solid quarter as stocks have embarked on a strong start to the year. Specifically, in the second quarter, the S & P 500 was higher 9 out of 11 times, averaging a 2.7% gain. Significantly, two occurrences of those 10% first-quarter gains Detrick reviewed took place during election years, with the S & P 500 ending higher on the year. In 1976, the S & P 500 went on to register a 1.5% increase in the second quarter, and a 4.6% jump for the rest of the year. The Wall Street firm maintained its year-end S & P 500 target of 5,050, representing a 3.8% slide from Wednesday's close.
Persons: Ryan Detrick, We've, there'd, Detrick, CNBC's, Research's Sam Stovall, Stovall, Piper Sandler, Craig Johnson, Brian Nick, Nick, John Stoltzfus, Ayako Yoshioka, Yoshioka, CFRA's Stovall, FactSet Organizations: Nvidia, VanEck Semiconductor, Dow Jones, Carson Group, Macro, PMI, Manufacturing, ADP, Survey, Services PMI, Weston Holdings, Conagra Brands, Consumer Credit Locations: U.S
This technical indicator is known as a "golden cross," when a stock's 50-day moving average (DMA) crosses over its 200-day moving average. Investors view a golden cross as a bullish indicator of positive momentum continuing into the longer term. Two of the following three names in the S & P 500 about to form a golden cross pattern are oil companies. The other oil company close to forming a golden cross is Occidental Petroleum . Two-thirds of those covering the company rate it a hold, and the average price target implies upside potential of about 4%.
Organizations: Energy, Exxon Mobil, Exxon, Chevron, Occidental Petroleum, Occidental Locations: Guyana, Occidental
The market may see a new wave of stock splits, creating another growth catalyst for a market that wants to keep rallying, according to Strategas. The median gain of a stock 65 days post-split is 4.1%, compared to the S & P 500's median 2.7% gain during the same period. Stock splits do not change anything fundamentally about the company, but they generally make shares more attractive to the retail trader because of lower prices. Here are the highest-priced stocks in the S & P 500 that Strategas thinks investors could benefit from if they split. Another name on the list, pharmaceutical giant Eli Lilly , last announced a 2-for-1 stock split in September 1997.
Persons: Jason Trennert, Trennert, Strategas, Jensen Huang, CNBC's Jim Cramer, Eli Lilly Organizations: Micro Computer, Nvidia, Broadcom, Costco Wholesale
Traders work on the floor of the New York Stock Exchange (NYSE) on March 20, 2024 in New York City. U.S. stock futures traded near the flatline Monday night, after the major averages took a breather from their rally. Month to date, the major U.S. stock benchmarks are on pace for their fifth straight month of gains. Despite some concerns that the market rally has crossed into overbought territory, investors still can't be underweight on equities as of now, according to 3Fourteen Research cofounder Warren Pies. Durable goods orders and the Richmond Fed's manufacturing survey will also provide insight on the health of the manufacturing sector.
Persons: Dow, Warren Pies, CNBC's Organizations: New York Stock Exchange, Dow Jones Industrial, Nasdaq, Richmond Locations: New York City . U.S, U.S, overbought
And perhaps best of all, money — from selling the electricity generated by the wind turbines studding the flat green fields stretching out to the North Sea. A slice of the cash goes to the villagers themselves, with the local buy-in making this windy farming enclave near the border with Denmark a showcase for ways to push ahead with renewable energy projects. The S&P Global Clean Energy Index of shares in companies with clean energy-related businesses has fallen 26% over the past year, even as broader market indexes have surged to records. In sub-Saharan Africa, where half the population lacks access to electricity, renewable projects face even steeper challenges with financing. In Nigeria, where blackouts are an everyday event for about half of the country’s 213 million people, some 14 solar projects have stalled because the finances don’t add up.
Persons: , Astrid Nissen, moos, , Mackenzie, it's, Nissen, Christian Andresen, Andresen, Orsted, Vattenfall, David Shepheard, Edu Okeke, Taiwo Organizations: U.S . Federal Reserve, European Central Bank, University College London, Solar, Energie Andresen GmbH, Energy, logjams, World Bank Locations: SPRAKEBUELL, Germany, Denmark, village's, Spain, Italy, Africa, Flensburg, Sprakebuell's, German, Danish, New Jersey, Swedish, North American, Saharan Africa, Nigeria, Katsina, Abuja
Homebuilder sentiment rose 3 points in March to 51 on the National Association of Home Builders/Wells Fargo Housing Market Index. Sentiment also moved into positive territory for the first time since July. Fifty is the line between positive and negative sentiment. "But even though there is strong pent-up demand, builders continue to face several supply-side challenges, including a scarcity of buildable lots and skilled labor, and new restrictive codes that continue to increase the cost of building homes." Regionally, on a three-month moving average, sentiment rose most in the Midwest and West.
Persons: Carl Harris, Robert Dietz Organizations: National Association of Home Builders, West, Builders, Federal Reserve Locations: Wells Fargo, Wichita , Kansas, Midwest
Stock futures were little changed on Monday after a bounce back in tech shares ahead of Nvidia's inaugural artificial intelligence conference. Heading into Tuesday, Nvidia shares showed signs of cooling as investors shift their focus to the Federal Reserve's two-day policy meeting. Futures tied to the S&P 500 slipped 0.12%, while Dow Jones Industrial Average futures slid 8 points, or 0.02%. AI leader Nvidia pulled back roughly 1% in extended trading, as investors evaluate the news from its first-ever GTC Conference. Wall Street is awaiting guidance on the path forward for monetary policy as the Federal Reserve begins its two-day policy meeting on Tuesday.
Persons: Jensen Huang, Blackwell, iPhones, Sam Millete Organizations: Nvidia, Federal, Dow Jones Industrial, Nasdaq, Conference, Tech, Google, Apple, Bloomberg, stoke, Federal Reserve, Commonwealth Financial Network
For many people, investing is a necessity to grow one's savings and provide financial security in retirement. A 'fabulous, simple solution' for beginnersTarget-date funds, known as TDFs, are the simplest entry point to investing for the long term, according to financial pros. TDFs are based on age: Investors choose a fund based on the year in which they aim to retire. Other 'solid choices' for novice investorsInvestors who want to be a bit more hands-on relative to TDF investors have other simple options, experts said. Investing is not a game where the guy with the 160 IQ beats the guy with 130 IQ.
Persons: Warren Buffett, Berkshire Hathaway, Christine Benz, Lee Baker, Baker, Carolyn McClanahan, Benz, Charles Schwab, Rowe Price, it's, McClanahan Organizations: Getty, Berkshire, Fidelity Investments, Morningstar, Apex Financial Services, Investors, Benz, Planning Partners, Fidelity, Vanguard Group, BlackRock, Finance, Young Locations: Atlanta, Jacksonville , Florida, U.S
Fed officials have said they will begin to cut rates whenever they have “gained enough confidence” that inflation is under control. The Bank of Japan announces its latest interest rate decision. The Reserve Bank of Australia announces its latest interest rate decision. The Federal Reserve announces its latest interest rate decision and releases a fresh set of economic projections, followed by a news conference featuring Chair Jerome Powell. The Bank of England announces its latest interest rate decision.
Persons: Wall Street’s, , ” Kathy Bostjancic, , Jerome Powell, ” Powell, Fed hasn’t, Nathaniel Beck, Elizabeth Warren of, Powell, lambasting, Donald Trump, reappoint Powell, ” Kayla Bruun, David Goldman, Anna Bahney, Cowen, Lennar, Mills Organizations: CNN Business, Bell, Washington CNN, Federal Reserve, Fed, Nationwide, CNN, Elizabeth Warren of Massachusetts, Democratic, Republican, Morning, National Association of Realtors, NAR, Realtors, Toll Brothers, National Association of Home Builders, Bank of Japan, Reserve Bank of Australia, US Commerce Department, Micron Technology, Prudential, Accenture, Nike, FedEx, lululemon, Darden, Academy Sports, Bank of England, US Labor Department, Global Locations: Washington, Wells Fargo
New York CNN —The average federal tax refund is more than $3,000, according to the latest data from the IRS. … They don’t understand how much interest they’re paying,” Russ said. Create or add to an emergency fundYou can use your refund to start or bolster an emergency fund. If you have high-rate debt and you’re lacking emergency savings, Russ suggested you might use a portion of your refund to attack your debt and the other portion to create an emergency fund. If you need the money within three years, you might consider putting your refund in certificates of deposits and US Treasury bonds.
Persons: you’re, , Eric Bronnenkant, Keyana Russ, ” Russ, Russ, Bronnenkant, Roth,  Bronnenkant, Charles Schwab, ” Bronnenkant Organizations: New, New York CNN, Ponds Financial, Invest, Roth IRA, Treasury Locations: New York, Ponds
The S&P 500 declined 0.7% and the Nasdaq Composite fell 1%. Turbulence for airline stocksAirline stocks have also been pummeled this week, as years of safety issues at Boeing continue to plague the industry. The NYSE Arca Global Airline index, which tracks the performance of major American and overseas airlines, is on track to end the week 2.2% lower. But Liz Young, head of investment strategy at SoFi, notes that the S&P 500 hasn’t seen a one-day decline of 2% or more since last February. AI up-and-comer Super Micro Computer will join the benchmark S&P 500 index on Monday.
Persons: New York CNN — Stocks, shrugged, Gold, Bitcoin, Dow, Price, , Ken Tjonasam, Max, Robert Jordan, Liz Young, Young, “ It’s, What’s, Jensen Huang Organizations: New, New York CNN —, Federal Reserve, Nasdaq, Dow, Global, Airline, Boeing, Latam, Wall, Southwest Airlines, Airbus, “ Boeing, , JPMorgan Chase, NYSE Arca, Nvidia, Computer, Investors, Federal, Market Committee, Fed, National Association of Home Builders, Census Bureau, National Association of Realtors Locations: New York, Australia, New Zealand, Wells Fargo
How the Federal Reserve plans to proceed with interest rates will be in focus next week after some recent signs of hotter inflation muddied the outlook. In December, policymakers had penciled in at least three quarter percentage point rate cuts in 2024. On Friday, stocks were headed for a losing week even after the S & P 500, for example, notched a fresh closing record just this week. The chipmaker will be under increased scrutiny next week as CEO Jensen Huang takes the stage for the company's annual AI conference. TD Wealth's Vaidya anticipates four rate cuts coming in the third and fourth quarters, though he said that outlook will remain data dependent.
Persons: Sid Vaidya, Jensen Huang, Lorie Logan, Molly McGown, McGown, Brian Nick, Wealth's Vaidya, Nick, Mills, , Samantha Subin Organizations: Federal Reserve, Fed, Nvidia, Dallas, TD Securities, Securities, McGown, Bank of America, Housing, Micron Technology, Philadelphia Fed, PMI, PMI Manufacturing, PMI Services SA, Nike, FedEx, Darden Locations: U.S, NAHB
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