|Day's Range||2,821.99 - 2,835.41|
|52 Week Range||2,346.58 - 2,940.91|
U.S. equity benchmarks rose at the start of a week filled with potentially significant catalysts -- from central bank meetings, geopolitical developments and economic data. Financials and consumer stocks also advanced, while the Dow Jones Industrial Average fought to stay positive even as Boeing declined on reports that the U.S. Transportation Department was examining the 737 Max’s design certification. Equities have been trending upward, and volatility declining, on expectations the Fed will point the way to just one rate hike in 2019 when it meets this week.
Equity strategist Anthony Golub sees the index heading to 3025, based on expanding valuation multiples. Many fund managers haven’t re-risked their portfolios, he writes.
The Fed has begun a monthslong review of its policy framework to consider alternative approaches to targeting inflation, and Goldman Sachs believes the central bank will decide to allow overshoots of its inflation goal next year. "If implemented ... this change would decrease the likelihood of further near-term policy tightening and lead to a small and gradual increase in both expected and realized price inflation," says Goldman's equity strategist Ben Snider. Since 2012, the Fed has always been attempting to hit a 2 percent target, but inflation has fallen short through much of the recovery.
Berkeley law professor also implied that the indexes on which the funds are based could be subject to manipulation and other abuses. Technically speaking, index funds don't track a nebulous groups of stocks, but rather very specific indexes. For starters, index-based mutual funds and exchange-traded funds get assembled using a particular methodology that determines the specific holdings in that index.
The market has been on fire since it bottomed on Dec. 24, but comparisons to one of the worst declines of the Great Depression appear to be wishful thinking.
Investors were still feeling relatively upbeat as they await news from central banks this week, including the Federal Reserve on Wednesday.
“The flows show confidence in an accommodative Fed is starting to outweigh concerns over the lateness of the cycle for many investors, although some are still choosing to play this a bit more safely with quality and low-volatility ETFs,’’ said Eric Balchunas, senior ETF analyst for Bloomberg Intelligence. This appetite for a broad basket of U.S. equities would stand in stark contrast to many of 2019’s early trends. Quadruple witching -- the expiration of futures and options on indexes and individual stocks that typically spurs a lot of trading activity -- may have contributed to these flows.
The $2.3 billion SPDR S&P Bank ETF, ticker KBE, hadn’t seen a single day of inflows since January, but that changed Friday when investors deposited $38 million into the fund. State Street’s broader sector fund, the Financial Select Sector SPDR Fund, ticker XLF, also caught a bid with its second largest weekly inflow this year. The sudden investor interest comes ahead of this week’s Federal Open Market Committee meeting, in which the Federal Reserve’s so-called dot plot, plans for its balance sheet and economic projections will be in the spotlight.
The chief U.S. equity strategist at Credit Suisse boosted his year-end forecast for the S&P 500 by 100 points to 3,025, a level that represents a 7 percent increase from Friday’s close. Growth in corporate profits is slowing more than expected, but improving sentiment means investors will be willing to pay a higher multiple for stocks, Golub says.
Canada's main stock index gained on Monday, helped by gains in energy shares on the back of higher crude prices. * The energy sector edged up 0.6 percent, as oil gained on the prospect of prolonged OPEC-led ...
"The boost from lower tax rates is likely behind us," Goldman's chief U.S. equity strategist wrote. Stock profits will be harder to come by in 2019 as corporations will no longer get a boost from lower corporate tax rates, according to Goldman Sachs. David Kostin, the bank's chief U.S. equity strategist, said in a note Friday that an increase in the S&P 500's return on equity "appears unlikely" this year.
FEATURE Mixed Monday. Stocks look undecided to start the week, with Dow Jones Industrial Average futures down 0.2%, S&P 500 futures up 0.1%, and the Nasdaq Composite roughly flat ahead of the open. ...
Based on the early price action and the current price at 2830.00, the direction of the June E-mini S&P 500 Index the rest of the session will likely be determined by trader reaction to the October 17 main top at 2836.50.
It’s a “Flo Rida market structure’’ in the eyes of Jefferies Chief Market Strategist David Zervos, who channels the hit to describe the primary features of the current financial and macroeconomic backdrop. “Grinding all these lows even lower over the next few months seems like the most probable path,’’ Zervos wrote. The labor market has been getting ever tighter, wage growth is picking up, and a sustained, broad acceleration in general price pressures has not yet manifested.
Wednesday will mark six months since the S&P 500 reached its last record high at 2,930. Last week's resilient showing nosed the S&P 500 up to a zone that has capped four rallies since October and three between February and June 2018. Wall Street has been helped by the absence of imminent U.S. recession signals, an overt move toward policy patience by the Federal Reserve and sticky-low Treasury yields bolstering equity valuations.
Shares of chip makers are surging toward their best quarter in more than two years as U.S.-China trade tensions have thawed, but they face a critical test as a trade deal is hammered out. Inc., has advanced 20.5% in 2019, topping the S&P 500’s 13% rise this year and heading toward its best three-month period since the third quarter of 2016. Shares of semiconductor companies, which have been caught in the crosshairs of the trade battle, have bounced back as tensions have eased.
Credit Suisse raised its year-end forecast for the S&P 500 to $3,025 from $2,925. The bank's chief U.S. equity strategist Jonathan Golub said the "receding" risks will drive the market higher. "Less hawkish comments from the Fed, declining inflation and recession fears, and the potential for a resolution to China trade issues are the primary forces driving volatility and spreads lower, and stocks higher," Golub said.
Global shares hit their highest levels in five months and the dollar dipped on Monday, as traders began to price in the likelihood of the U.S. Federal Reserve sticking to an accommodative stance at its policy meeting this week. European markets extended a run of gains, helped by a jump in shares in German lenders Deutsche Bank and Commerzbank after they confirmed over the weekend that they were in talks to merge. The pan-European STOXX 600 index was up 0.1 percent by midday in London, also hitting a five-month high.
Equity markets are rising after the recovery of demand for risky assets. S&P 500 closed last week at the highs since October, finally convincing everyone of overcoming an important resistance at 2800 points. Shanghai blue-chip index China A50 rose 2.7% on Monday, closing at the highs area since April last year.
The biggest-ever deal in the payments industry broke at the crack of dawn when Fidelity National Information Services agreed to buy Worldpay for about $34 billion in cash and stock, sending Worldpay’s shares up 10% pre-market. Exxon Mobil may be volatile Monday after America’s third-largest refinery caught fire in Texas. Hedge funds Knighthead Capital Management LLC, Redwood Capital Management and Abrams Capital Management said in a filing late Friday that they united to press PG&E for a leadership change.
Tighter monetary policy by the Federal Reserve that the central bank now worries it may have overdone. At that time, the Fed ended its interest-rate hiking cycle and cut the federal funds rate with no ensuing recession. Policy makers want higher rates in order to have significant room to cut in the next recession, and the current 2.25 percent to 2.50 percent range doesn’t give them much leeway.