Advertisements



: Inflation is turning into a headwind for these five publicly traded companies, analysis shows

Glyn Kirk/Agence France-Presse/Getty ImagesSophisticated algorithms, based on 25 macro-economic drivers used to calculate appropriate fair values for asset prices, have identified the top five publicly traded companies for which inflation is turning into a significant headwind. The companies are Regeneron Pharmaceuticals Inc. REGN; Centerspace CSR; SBA Communications Corp. SBAC; ResMed Inc. RMD; and DexCom Inc. DXCM, according to Colin Stewart, head of Americas for Quant Insight in New York, citing data as of Wednesday.The data incorporates moves in 2- to 10-year U.S. inflation expectations, using inflation swaps, to determine which companies stand the best chance of weathering a period of higher prices, by being able to pass that on to consumers. The five companies seen as getting helped the most by higher inflation acting as a tailwind are Endo International PLC ENDP; Boston Beer Co. SAM; Calavo Growers Inc. CVGW; Discovery Inc. DISCA; and SelectQuote Inc. SLQT, according to Quant Insight’s data.Higher inflation tends to provide a positive lift to stocks, until either it compresses profit margins and a company lacks the pricing power to make up for it, or markets expect interest-rate rises to put the brakes on economic growth. Bond markets worldwide are now factoring in the potential for a global rate-hiking cycle beginning next year, as evidenced by the pronounced flattening of curves across countries.“Markets, we feel, are hampered by the inability to mark to macro,” or trade at levels that accurately reflect the state of the economy, Stewart said by phone. “We put eyes on this very big blind spot for investors, by calculating all the factors that drive up asset prices across equities, ETFs, rates, commodities and crypto currencies.”A recent explosion of alternative data sources like Quant Insight, based in London and New York, is giving investors access to tools previously reserved for only hedge funds, with traditional money managers scouring the world for information that can give them an edge. Read: The explosion of ‘alternative’ data gives regular investors access to tools previously employed only by hedge fundsQuant Insight serves portfolio managers, traders, insurers and corporations. It was co-founded by former hedge-fund manager Mahmood Noorani and has a team of academic advisors that include astrophysics professor Michael Hobson of the University of Cambridge in the U.K. In March 2020, at the onset of the pandemic in the U.S., the firm predicted the S&P 500 Index SPX would bottom out on the 15th of that month — roughly a week sooner than the index actually did. Quant Insight isn’t currently giving a forecast for the S&P 500, saying the index is now trading “out of regime,” or for reasons that are outside of economic fundamentals, Stewart says. On Wednesday, the S&P 500 edged higher along with the Nasdaq Composite Index COMP as investors weighed earnings from tech stocks. Meanwhile, Dow industrials DJIA were under modest pressure in afternoon trade. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news......»»

Category: topSource: marketwatch2 hr. 34 min. ago Related News

Dow closes 266 points lower, halts string of gains as Nasdaq ekes out 3rd straight rise and Treasurys log steepest yield slide in 3 months

The Dow and S&P 500 closed lower Wednesday, ending a string of gains for the equity benchmarks that have been mostly rising to all-time highs on the back of upbeat quarterly results from American corporations. The Dow Jones Industrial Average closed down 266 points, or 0.7%, at about 35,491, the S&P 500 index closed 0.5% lower at 4,552. The Nasdaq Composite Index finished the session nearly unchanged at 15,236, as a retreat in yields for the 10-year Treasury note and the 30-year Treasury bond hit lows not seen since July 19, according to Dow Jones Market Data. Lower yields can buoy yield-sensitive sectors like information technology and investment factors like growth. In corporate results, Microsoft Corp. reported quarterly earnings that shot over $20 billion for the first time, late Tuesday, which helped to limit declines in the broader market and supported the tech sector on Wednesday. Microsoft shares rose 4.2% to $323.17, notching a record close, according to Dow Jones Market Data. Meanwhile, in a surprise move Wednesday, the Bank of Canada said it would abruptly end its bond-buying program and warned of prolonged inflation through 2023, while also signaling it may hike interest rates sooner than expected, the second quarter of 2022. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news......»»

Category: topSource: marketwatch2 hr. 34 min. ago Related News

Can You Get Rich Off Basic Stock Index ETFs?

Investing in the stock indexes may sound boring, but it could be a winning ticket in a bull market. (1:00) - Are You Better Off Buying Index Funds vs. Individual Stocks?(7:20) - Breaking Down The Performance of Index ETFs: Which One Is Right For You?(17:10) - Episode Roundup: AMZN, AAPL, CMG, LULU, W, VOO, QQQ, QQQM                Podcast@Zacks.com Welcome to Episode #290 of the Zacks Market Edge Podcast.Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.This week, Tracey is going to solo to talk about investing in the basic stock index ETFs.Many investors get frustrated by their lack of investing choices in their 401ks, where there are usually basic stock index funds and ETFs. For some, investing in individual stocks are the only way to build wealth quickly.But can you get rich off of owning the basic stock index ETFs?Are You Beating the S&P 500? Over the last year, the S&P 500 has hit new highs and has gained 32%.That’s a pretty hefty return, for any investment. Are you sure your favorite growth stocks are out performing it?Amazon AMZN is up just 5.4% over the last year, even though it soared during the initial months of the pandemic.Even mighty Chipotle CMG, which has busted out to new all-time highs this year, is up “just” 31% in the last year.Similarly, one of the hottest retailers on the Street, Lululemon LULU has gained “only” 28.9% over the last year.Other hot stocks have certainly outperformed, including Tesla and Shopify, but it may not be as easy to “beat” the index as you think, especially when the index is seeing big gains.The S&P 500 and the Nasdaq-100 ETFs: Boring? Investing in the S&P 500 may seem “boring” but during bull markets it can be anything but.The Vanguard S&P 500 ETF VOO has a 10-year annualized return of 16.5%. $10,000 invested in Sep 2011 was $46,426 by Sep 2021.But the INVESCO QQQ ETF QQQ, which tracks the Nasdaq 100, is even hotter. This “boring” index ETF has a 10-year annualized return of 21.25%.$10,000 invested in Sep 2011 in the QQQ was $66,107 by Sep 2021.What else do you need to know about using the stock index ETFs to grow your wealth?Tune into this podcast to find out. Breakout Biotech Stocks with Triple-Digit Profit Potential The biotech sector is projected to surge beyond $2.4 trillion by 2028 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases. Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Recommendations from previous editions of this report have produced gains of +205%, +258% and +477%. The stocks in this report could perform even better.See these 7 breakthrough stocks now>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amazon.com, Inc. (AMZN): Free Stock Analysis Report Chipotle Mexican Grill, Inc. (CMG): Free Stock Analysis Report lululemon athletica inc. (LULU): Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard S&P 500 ETF (VOO): ETF Research Reports To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacks4 hr. 21 min. ago Related News

Market Snapshot: Dow snaps 3-session win streak as stock indexes slip from records while bond yields slide

The Dow and S&P 500 close lower Wednesday, pulling back from records, as investors sift through a heavy slate of corporate results and monitor global central bank policy......»»

Category: topSource: marketwatch4 hr. 34 min. ago Related News

US stocks mixed with Nasdaq near record highs as Big Tech earnings roll in

Microsoft and Alphabet hit record highs on Wednesday after earnings results easily beat analyst's revenue and profit estimates. Investors have become more cautious about US stocks in recent weeks. Johannes Eisele/Getty Images US stocks were mixed on Wednesday following earnings results from mega-cap tech.Microsoft and Alphabet reported third-quarter earnings that beat analyst expectations.Robinhood missed sales estimates and saw a considerable slowdown in trading activity.US stocks were mixed on Wednesday, with the Nasdaq 100 hitting record highs on an intraday basis while the S&P 500 and Dow Jones traded lower.Tech stocks were driven mostly higher by better-than-expected earnings results from Alphabet and Microsoft, which both jumped more than 5% and hit record highs. Both companies saw strong growth in their cloud units, and forward guidance remained on track for continued business growth.Apple will look to keep the streak going when it reports earnings Thursday after the close. The iPhone maker is neck and neck with Microsoft as the most valuable company in the world. Here's where US indexes stood at the 4:00 p.m. ET close on Wednesday:S&P 500: 4,551.69, down 0.5%Dow Jones Industrial Average: 35,490.69, down 0.74% (266.19 points)Nasdaq Composite: 15,235.84, up 0.01%One earnings report that disappointed investors was Robinhood, which missed sales estimates and saw a considerable slowdown in trading activity relative to prior quarters when meme-stocks and cryptocurrencies were extremely volatile. The stock fell 11% on Wednesday.A likely accidental trade in class A shares of Berkshire Hathaway sent the stock soaring 51% in extended hours trading on Tuesday. The gains were short lived, as only three shares traded at those levels. Shiba inu coin continued its record run on Wednesday, surging as much as 38% to a record high and continuing its trek to become the 10th most valuable cryptocurrency in the world. Concerns about rising inflation continue be top of mind for many investors, including Tesla CEO Elon Musk, who noted in a tweet that he is concerned about the short-term rise in prices.Wall Street was impressed with Microsoft's earnings results, and three analysts gave their outlook on why the cloud provider could continue to surge higher. West Texas Intermediate crude oil fell 2.89%, to $82.20 per barrel. Brent crude, oil's international benchmark, dropped 2.50%, to $84.24 per barrel.Gold jumped as much as 0.22%, to $1,797.70 per ounce.Read the original article on Business Insider.....»»

Category: topSource: businessinsider5 hr. 6 min. ago Related News

Dow Jones, S&P 500 slip off record highs

U.S. stock indexes slid off record highs Wednesday as investors sifted through numerous corporate earnings reports......»»

Category: topSource: foxnews5 hr. 6 min. ago Related News

How Long Until Supply Chains Finally Normalize: Three Things To Watch

How Long Until Supply Chains Finally Normalize: Three Things To Watch Earlier today, Morgan Stanley showed that more than inflation, more than concerns about the historic labor crisis, definitely more than covid, one thing has preoccupied the minds of most management teams this quarter: "supply chain issues", a topic which has seen an explosion of mentions on Q3 earnings calls. But while by now everyone is aware that the global supply-chain shock is truly historic and getting worse by the day, with used car prices rising sharply again and over 30 million tons of cargo waiting outside US ports ahead of the holiday season, few have considered what realistically could normalize these frayed supply chains. To address this topic, in a research report published overnight, Goldman's economists assessed the three key drivers of supply chain normalization and their most likely timing: improved chip supply driven by post-Delta factory restarts (4Q21) and eventually by expanded production capacity (2H22 and 2023); improved US labor supply (4Q21 and 1H22); and the wind-down of US port congestion (2H22). And speaking of used car prices, in the first 15 days of October, the Manheim used vehicle index surged 8.3% due to yet another global supply shock: this time due to Delta-variant factory shutdowns in Southeast Asia and elsewhere. Here, in a rare mea culpa, the Goldman economists admit that while previously they had expected improved microchip availability by 1H22 on the back of normalizing Japanese automotive shipments (post-factory fire) and a US supply response, with these catalysts now behind us — the Naka factory in Japan resumed normal shipments activity in July and US semiconductor plant hours jumped to 73 hours per week in the first half of the year vs. 46 in 2019 — Goldman now expects a "more extended timeline." So with that demonstration of how thoroughly unpredictable the non-linear cascading consequences of such s diffuse, global phenomenon as international production pathways and supply chains are, Goldman proceeds to assess the three key drivers of supply chain normalization listed above, their likely timing, and the key indicators to track progress. We start by reviewing one unique aspect of the global semiconductor industry that sets it apart from most other manufacturing and services industries of today’s economy: outside of Southeast Asian plant shutdowns, both output and capacity utilization have already returned to quite elevated levels. So while the supply of dress shirts and haircuts is likely to rise sharply if demand returns, higher utilization of existing semiconductor capacity is not a viable path toward resolving the chip shortage. Additionally, much needed moderation in US and global goods demand has alleviated (and will continue to alleviate) goods-sector imbalances. As shown in the left panel of the next chart, real retail spending has already normalized in major foreign economies. And while it picked back up domestically in August and September, US goods consumption has nonetheless declined by 5% since March. That said, from the perspective of the key bottlenecks contributing to inflation, demand for consumer electronics, business tech, and other semiconductor-intensive products has remained elevated—both globally and in the US (right chart above). Furthermore, one should hardly expect the increased digitization of society and consumer preferences to reverse post-pandemic: Goldman's equity analysts forecast demand for semiconductor-intensive consumer goods to remain strong in 2022 (smartphones +4% after +12% in 2021, autos +5% after +6%, PCs -12% after +28% cumulatively in 2020 and 2021). So returning to supply constraints, here is a summary of the three key resolution channels in turn (global chip production, US labor supply, reduced port congestion). Channel 1, Step 1: Improved Chip Supply from East Asia Reboot Goldman's expected timeline: 4Q21 Key indicators to watch: Effective Lockdown Indices (ELI) particularly in Malaysia, Vietnam, Mainland China, and Taiwan East Asian industrial production and exports of semiconductors, electrical components, and consumer electronics Automaker commentary on near-term chip availability China industrial policy, with respect to power cuts and the Delta variant Early- and mid-month trade reports (Japan, Taiwan, and Korea) As shown in the next chart, three supply shocks weighed heavily on auto production this year, starting in February with severe winter storms and power outages in the southern United States and followed by a March fire at the Renesas automotive chip factory in Naka, Japan. While the plant was fully rebuilt in Q2 and auto production was set to return to near-normal levels in Q3, the arrival of the Delta variant and “zero covid” policies in some East Asian economies combined to produce another sharp drop in US semiconductor supply. The red line in the same exhibit shows the mid-year stepdown in automotive semiconductor units imported from key East Asian suppliers (data derived from granular Census trade records that include unit counts). Looking ahead, there are several key drivers for optimism, starting with the vaccination-led drop in infection rates (chart below, left and center). As a result, lockdown severity is also now approaching pre-Delta levels in both Malaysia and Vietnam (right panel). Going forward, it's important to track the semiconductor output and trade statistics of these key suppliers, as well as closely watch Chinese output and export data to monitor possible disruptions to chip or consumer goods supplies, for example related to power cuts or covid restrictions. For example, imports of integrated circuits from Vietnam and semiconductor devices and diodes from Malaysia declined 34% year-on-year in August, but Chinese production has so far remained firm. These developments coupled with better near-term production commentary from General Motors and Toyota, would argue for some microchip relief in Q4, and Goldman estimates the removal of this supply bottleneck could return US auto production to or near the 10-11mn SAAR range achieved in late 2020 (vs. 7.8mn in September and 8.6mn in Q3). Increases beyond that pace would likely require additional supply improvements, in part because today’s smart cars utilize more and more automotive systems with microchips and in part because of the continued mix shift towards SUVs and electric vehicles (EVs), both of which are relatively chip-intensive. The next chart plots the ratio of global automotive semiconductor shipments to global vehicle production (both on a unit basis.) The secular increase in chip intensity continued in 2021 and suggests demand for automotive semiconductors will continue to rise even with flattish unit vehicle demand. Channel 1, Step 2: Improved Chip Supply from New Capacity Goldman's expected timeline: 2H22, with a more normal environment in 2023 Key indicators to watch: Global semiconductor shipments, particularly automotive: Microcontroller Units (MCUs), power semiconductor, analog devices GS equity research forecasts for semiconductor capacity growth 2022 auto production forecasts (GS equity research, IHS) US industrial production of computers, communication equipment, and semiconductors Foreign production and US imports of auto and consumer electronics A key step towards easing supply constraints and lowering core goods prices is the build out of global microchip production capacity. But despite the dramatic impact of the chip shortages on US economic output and consumer prices, automotive semiconductor capex only rose back above the 2019 pace in Q3 And with 2-3 quarter lags between equipment capex and chip production—and several-year lead times for new foundries—the rise in capex to above-normal levels in Q4 may not meaningfully boost chip supply until the second half of next year. Reasons for the slow and restrained capex response include the long lead times and high fixed costs of new foundries and the likelihood that downstream industries will shift production away from the semis currently in short supply—many of which are older generation products to begin with. High industry concentration is another factor contributing to restrained capital deployment in the face of very strong near-term demand. With Goldman analysts tracking capacity growth of just 5-10% per year in 2021-22 among the semiconductor industries that supply the auto and consumer electronics sectors, and with consumer demand for these products also likely growing at that horizon and given the rising semiconductor content of motor vehicles, Goldman expects chip supply to remain constrained through at least mid-2022. This reduces the scope for automakers to sustain above-normal production, and restock heavily depleted vehicle inventories. Accordingly, Goldman also expects auto dealer inventories to remain very low through mid-2022. Channel 2: Improved US Labor Supply Goldman's expected timeline: Q421 and 1H22 Key indicators to watch: Payrolls, particularly manufacturing and transportation JOLTS, particularly manufacturing and transportation Industrial production of consumer goods, excluding autos and high tech Supplier deliveries components of ISMs and regional Fed surveys Labor force participation rate Labor shortages are another important bottleneck, but labor supply constraints are expected to ease substantially in coming months for several reasons. First, the September expiration of unemployment insurance benefits will boost Q4 job growth by around 1.0 million according to Goldman economists. Second, workers who have left their jobs because of child care concerns to return to work now that schools have reopened. Third, virus concerns will continue to fade as vaccinations increase further and infection rates fall—this would encourage some of the 2-3 million individuals staying away from the workplace because of health concerns to return to the job market. Taken together, Goldman expects total employment to increase by about 4mn workers by end-2022, a 2.7% boost to non-farm payroll employment. As shown in Exhibit 11, labor demand in these industries is 5.1% and 0.9% above pre-pandemic levels in transportation and manufacturing, respectively. With job openings and wages at new highs for factory and transportation jobs, these labor shortages should ease gradually as the sectors draw workers from lower-paid services industries Channel 3: Unwind of Port Congestion Expected timeline: 1H22 Key indicators to watch: Transportation payrolls, particularly in the marine cargo handling, support activities for transportation, couriers and messengers, and warehousing and storage sectors Ships at anchor and inbound container traffic at US ports Shipments component of the Cass Freight Index US ex-auto manufacturing production US imports of cars and consumer goods Real retail inventories, excluding autos Shipping delays and port congestion are also important bottlenecks for seaborne consumer products like furniture and sporting goods—semiconductors and high-value electronics generally arrive via airfreight. Stranded cargo at the Port of Los Angeles has surged to record highs (left panel of Exhibit 12) due to elevated trade volume—container inflows into US ports are 25% above pre-pandemic levels (see right panel)—and ongoing shortages of transportation-sector labor. We don’t expect significant near-term capacity growth in the goods shipping sector because bottlenecks currently constrain multiple modes of transportation. For example, if ports increased their capacity but the truck-driver shortage is not resolved, total shipping times could remain little changed. Moreover, to the extent transportation companies view shipping demand as temporarily elevated, they are unlikely to boost capacity meaningfully in the near-term. We instead see two other drivers behind an expected easing in shipping and transportation constraints in the first half of 2022. First, demand is seasonally weaker in the fall and winter, bottoming out in February after the Chinese New Year when it is typically about 15-20% below August levels. If port throughput maintains the August not-seasonally-adjusted pace, the seasonal moderation in demand would help clear the backlog. Second, and as discussed in more detail here and in Exhibit 3, we expect US import volumes to normalize somewhat due to waning fiscal stimulus and a consumer rotation back toward services consumption. Inflation and Fed Implications As an aside, since any delays in supply chain normalization means higher prices, Goldman has once again boosted its sequential inflation assumptions for Q4 and early 2022 to reflect these continued upward price pressures, having done so already every month since April. The bank now forecasts year-on-year core PCE inflation of 4.3% at year-end, 3.0% in June 2022, and 2.15% in December 2022 (vs. 4.25%, 2.7% and 2.0% previously). This slower resolution of supply constraints means that year-on-year inflation will be higher in the immediate aftermath of tapering than we had previously expected. While we expect inflation to be on a sharp downward trajectory at that point and to continue falling through the end of the year, this higher-for-longer path increases the risk of an earlier hike in 2022. Tyler Durden Wed, 10/27/2021 - 15:27.....»»

Category: blogSource: zerohedge5 hr. 49 min. ago Related News

U.S. Home Prices in August Were Up 1%

Nationwide, home prices increased in August by 1% compared to July. According the latest Federal Housing Finance Agency House Price Index (FHFA HPI®), year-over-year, home prices increased 18.5%. “Annual house price gains remained extremely high in August but the pace of month-over-month gains continues to decelerate,” said Dr. Lynn Fisher, FHFA’s deputy director of the […] The post U.S. Home Prices in August Were Up 1% appeared first on RISMedia. Nationwide, home prices increased in August by 1% compared to July. According the latest Federal Housing Finance Agency House Price Index (FHFA HPI®), year-over-year, home prices increased 18.5%. “Annual house price gains remained extremely high in August but the pace of month-over-month gains continues to decelerate,” said Dr. Lynn Fisher, FHFA’s deputy director of the Division of Research and Statistics, in a statement. “This does not mean house prices are at risk of declining—far from it, they continue to climb at a double-digit pace in all regions—but it does suggest we may have seen the peak in annual gains for the time being.” For the nine census divisions, seasonally adjusted monthly house price changes ranged from -0.1% in the New England division to +1.9% in the South Atlantic division. On a yearly basis, changes ranged from +14.9%in the West North Central division to +25.8% in the Mountain division. According to FHFA, their HPI is the nation’s only collection of public, freely available house price indexes that measure changes in single-family home values based on data from all 50 states and over 400 American cities that extend back to the mid-1970s. The FHFA HPI incorporates tens of millions of home sales and offers insights about house price fluctuations at the national, census division, state, metro area, county, ZIP code, and census tract levels. The post U.S. Home Prices in August Were Up 1% appeared first on RISMedia......»»

Category: realestateSource: rismedia6 hr. 5 min. ago Related News

The Tell: Tesla drives up S&P 500’s disruptive tech exposure as the index rides to record highs in October

Tesla is driving up the S&P 500’s exposure to disruptive technology, with Big Tech helping to lift the U.S. stock-market benchmark to new peaks this month......»»

Category: topSource: marketwatch6 hr. 6 min. ago Related News

Make the Most of This Historic Market

Sheraz Mian goes over the bullish and bearish arguments for how investors should respond to an economy that's rapidly recovering from the pandemic and hitting new highs. The stock market’s recent behavior has been nothing less than spectacular and one for the record books.The market rebound that got underway in March last year still continues, with the major indexes at or near record levels. Helping the stock market’s momentum is optimism about the economy, with the U.S. economy expected to achieve a growth pace of close to +6% this year, despite the growth pace moderating in Q3.But there are those with less optimism about the outlook given the ongoing resurgence in infection levels and slow-moving vaccination efforts in many parts of the world that are allowing new strains of the virus to take hold. There are worries about inflation as well, with a vocal segment of the market disagreeing with the Fed’s ‘inflation-pressures-are-transitory’ outlook.The interplay of these competing views will determine how the market performs in the coming months and quarters. To that end, let’s examine the landscape of bullish and bearish arguments to help you make up your own mind.Let's talk about the Bull case first.A Strong Economic Rebound: The Q3 GDP growth deceleration from the first half’s pace is only temporary and reflective of transitory factors like supply-chain bottlenecks and the Delta variant. The overall growth backdrop remains very strong, with the U.S. economy expected to expand by close to +6% this year and more than +4% next year.Driving this favorable growth outlook is the U.S. household sector that remains in excellent financial health. The unprecedented fiscal support was instrumental in helping keep household finances in good shape through the pandemic, with labor market gains expected to sustain the momentum going forward. In addition to the elevated consumer spending outlook, adding depth to the economic rebound is a strong housing sector and continued factory sector momentum.These positive growth projections do not include contribution from the new infrastructure plan and other spending measures currently being considered in Congress.  All in all, the growth outlook hasn’t looked this good in a long while.Continued . . .------------------------------------------------------------------------------------------------------Notification of Release: 5 Stocks Set to Double Five Zacks' experts each revealed their single favorite stock with the best chance to gain +100% and more in the months ahead. One tech stock has skyrocketed +1,200% since late 2017 and experts predict more stratospheric gains.¹Today, you are invited to download the just-released Special Report that names these stocks and spotlights why their gain potential is so exceptional.See Stocks Now >>------------------------------------------------------------------------------------------------------Expansive Fiscal Measures: The Biden administration’s ambitious spending plan has not been passed yet, but it is in-line with the extraordinary fiscal measures that have been in place since the start of the pandemic.Beyond the visible fiscal relief measures, the government’s proactive vaccine investments, under the current and previous administrations, allowed the economy to reopen and successfully handle the Delta variant that remains a problem in many parts of the world. The current U.S. debate about booster shots and children’s vaccines spotlight the vaccine supply abundance in the country that even many rich countries don’t enjoy.These policy measures helped replace lost wages for workers, assisted small businesses in staying open and staved off solvency issues in industries hit hard by the pandemic. Importantly, these and the coming measures will ensure an extended period of above-trend growth for the U.S. economy for the next few years.Supportive Fed: While there is some uncertainty in the market about the timing of the central bank’s tactical decisions as it initiates ‘tapering’ the current QE program, the market has a roadmap in the way the Fed concluded its last bond-purchase program in 2014.Importantly, the Fed’s ‘transitory’ inflation explanation assures that it will be deliberate and patient as it handles this key part of its mandate.The Fed’s hard-won credibility on the inflation question is one of the biggest tools in its arsenal as it leads the market in the current environment of evolving inflation expectations. What this means is that the central bank will continue to keep interest rates and overall financial conditions supportive of stocks for the foreseeable future.Let's see what the Bears have to say in response.Market Complacency about Economic Growth: The U.S. economy has been unable to sustain the first half’s strong growth momentum, as this week’s Q3 GDP report will show. The market appears too sanguine about the growth deceleration, seeing the trend as resulting from temporary factors like Delta that will reverse from Q4 onwards.While Covid infection rates have thankfully come down, some of the other headwinds like supply-chain challenges that weighed on the economy in Q3 are still with us. As such, the growth deceleration in Q3 could very well continue in Q4 and beyond. This will be in contrast to current consensus estimates that suggest growth rebounding in the current period (2021 Q4) after losing steam in Q3.Tied to the growth question is the issue of inflation, which the market appears comfortable seeing from the Fed’s standpoint as ‘transitory’ in nature. The consensus view on growth and inflation could very well be on target, but it would nevertheless pay to be prepared for the dreaded scenario of low growth and high inflation as well.A Durable Hit to Confidence? The risk to human life, a function of the highly contagious pathogen, has been a unique aspect of this economic downturn. As a result, previously benign activities like eating out or taking a flight or any activity that involved physical interaction with others got weaponized.Public health officials keep emphasizing that the Covid vaccines provide sufficient immunity against Delta and other variants. This should help sustain the momentum towards increased reopening and social interactions that became the norm in the U.S. since the Summer.That said, the pathogen has a wide pool of unvaccinated population globally where it can thrive and morph into even deadlier variants. With the new vaccine technology, one would expect a quicker turnaround from the industry to counter any new strain that offers significant challenges to the existing vaccines. But the emergence of any such new strains will nevertheless be a hit to confidence that will have consequences for the markets. The Market’s Fed Addiction: The market’s Fed dependence has only increased as a result of this pandemic. The central bank not only cut interest rates to near-zero, but has been playing an active role in ensuring market liquidity and backstopping corporate balance sheets.In an ideal world, the central bank will gradually remove the market’s ‘training wheels’ without creating uncertainty and volatility. But we know that we don’t live in an ideal world, which guarantees the coming period of monetary policy transition to generate uncertainty.The markets responded calmly to the Fed announcement in July that opened the door for a ‘taper’ decision in one of the coming meetings this year. It is possible that the Fed seamlessly executes this policy change without any disturbance, but the more likely outcome is at least some level of uncertainty that disturbs the markets.Where Do I Stand? I don’t dismiss the bearish arguments entirely, but I don’t see them adding up to coming in the way of the U.S. economy’s rebound or reversing the spectacular rally in the market.With most of the U.S. at-risk population already vaccinated, the risks posed by the Delta variant should be manageable and offer no durable hindrance to economic reopening.The issue is with regions beyond the U.S. that have far smaller proportions of their populations immunized and are forced to institute fresh restrictions in the face of this outbreak. That said, the worst of the pandemic’s economic and corporate earnings impact is now behind us, with the picture getting clearer as we move forward.As regular readers of my earnings commentary know, the earnings picture has not been this good in a long time, with estimates for the current and coming quarters steadily going up. This is a trend that I strongly feel will only accelerate in the coming months as we put the pandemic behind us.Markets are forward-looking pricing mechanisms; they have already discounted the economic rebound and are looking forward to the aforementioned turnaround in earnings outlook. Continued confirmation of this favorable trend will further strengthen bullish sentiment in the market.These are historic times for the economy and the market. And historic times create historic opportunities.All in all, this is the best time to be fully invested in the market, particularly if you are investing for the long haul.And I would definitely be a buyer on any dip because with economic growth this year and next to be the strongest in years, it looks like there's a lot more upside to go. How to Make This Historic Growth Work for You  Today is the perfect time to take advantage of the current strength of our economic recovery. That's why I'm inviting you to look into our unique arrangement called Zacks Investor Collection.It gives you access to the picks and commentary from all our long-term portfolios in real time for the next 30 days. Plus, it includes Zacks Premium research so you can find winning stocks, ETFs and mutual funds on your own.In 2020, these portfolios closed 67 double- and triple-digit gains and there have already been 48 more in 2021. The gains reached as high as +251.1%, +386.8% and even +995.2%.¹Here's a Head Start To put the odds of success even more in your favor, you are also invited to download our just-released Special Report, 5 Stocks Set to Double. Each stock was handpicked by a Zacks expert as their personal favorite to have the best chance of gaining +100% and more in the months ahead:Previous editions of this report have racked up some huge gains. Examples include Boston Beer Co. +143.0%, NVIDIA +175.9%, Weight Watchers +498.3% and Tesla +673.0%.¹Stock #1: Earnings Jumping by 10,050%??? That’s what analysts are predicting through year’s end for this well-run oil mid-cap! It has one of the best balance sheets in the industry and is positioned to take advantage of high demand and rising prices.Stock #2: Profiting from Modern Medicine’s Great Discovery Gene editing aims to cure a multitude of diseases, and Zacks names one company to gain the most in months to come. Its upcoming data release and superior patent profile offers a huge opportunity for investors.Stock #3: Stunning Gap Between Earnings and Stock Price This divergence always presents an opportunity, and a small pop culture consumer company plans to “completely disrupt its space.” Already, over the past year, its earnings beats are averaging 160% per quarter.  Stock #4: Unheard of Record for New Product Launch   Audiophiles love this consumer electronics company that blasted past forecasts for 15 years straight. Now it’s coming off a patent win over a tech giant and a record week for new product registrations.Stock #5: Riding Not 1 but 2 Booming Industries An ascending star in streaming TV and digital advertising, this tech stock has skyrocketed +1,200% since late 2017. Experts believe that some recent profit taking has set the stage for more stratospheric gains.  The earlier you get into these stocks the higher their profit potential. Also, the opportunity to download this just-released Special Report, 5 Stocks Set to Double, ends on Saturday, October 30th.Look into Zacks Investor Collection and 5 Stocks Set to Double now >>Thanks and good trading,SherazSheraz Mian serves as the Director of Research and manages the entire research department. He also manages the Zacks Focus List and Zacks Top 10 Stocks portfolios. He invites you to access Zacks Investor Collection.¹ The results listed above are not (or may not be) representative of the performance of all selections made by Zacks Investment Research's newsletter editors and may represent the partial close of a position.  Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacks6 hr. 21 min. ago Related News

Dow transports fall for first time in 10 trading days

The Dow Jones Transportation Average slumped 116 points, or 0.7%, with 16 of 20 components losing ground, to put the index on track for the first decline in 10 trading sessions. The nine-day win streak that is set to snap was the longest since the 11-day stretch of gains that ended on Aug. 12, 2020. The Dow transports' biggest decliner was Ryder System Inc.'s stock , which slumped 5.1%, the biggest one-day drop in eight months, even after the truck rental company beat third-quarter profit and revenue expectations and raised its full-year outlook. The biggest gainer was Norfolk Southern Corp.'s stock , which rose 1.1% after the railroad operator reported better-than-expected third-quarter earnings. The other three Dow transport gainers were shares of other railroad components, those of CSX Corp. , Kansas City Southern and Union Pacific Corp. . While the Dow transports dropped, the Dow Jones Industrial Average fell 72 points, or 0.2%, while the S&P 500 gained 0.2%.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news......»»

Category: topSource: marketwatch6 hr. 34 min. ago Related News

Plunge In Export Shipments Sparks US GDP Downgrades, Economy On Verge Of Contraction

Plunge In Export Shipments Sparks US GDP Downgrades, Economy On Verge Of Contraction US economic data took a double hit this morning with a contraction in durable goods orders and perhaps even more notably, the US merchandise-trade deficit widened to a fresh record in September as exports retreated for the first time in seven months. The goods trade deficit increased by $8.1bn in September (mom sa), much more than expected, to $96.3 billion. Source: Bloomberg It appears the container ship crisis is starting to blowback into the economy as the value of imports rose 0.5% to $238.4 billion, spurred by a 3.6% increase in the value of capital-goods shipments, while exports fell 4.7% from a record high in August to $142.2 billion, driven by a 9.9% decline in the value of outward shipments of industrial supplies and a 3.6% drop in capital goods. Source: Bloomberg This prompted Goldman Sachs to reduce their Q3 GDP tracking estimate by 0.5pp to 2.75% (qoq ar) ahead of tomorrow's advance release. But, at a time when the Wall Street banks are scratching their heads for credible explanations why they are keeping (or raising) their year-end S&P targets at a time when economic growth is in freefall and inflation is soaring (read: stagflation), an unexpected source of honesty has emerged - the Atlanta Fed, which now sees the US on the verge of contraction. In its latest GDPNow forecast published moments ago, the Atlanta Fed slashed its estimate for real GDP growth in the third quarter of 2021 to just 0.2%, down from 1.2% on October 15, from 6% about two months ago, and down from 14% back in May. Remarkably, the GDPNow tracker is about to turn negative even as the average "blue chip" Wall Street bank has a Q3 GDP forecast of just below 4%... The collapse in the Atlanta Fed tracker has correlated almost tick for tick with Citi's US macro surprise index which has also plunged in recent months... ... which in turn is the inverse of Citi's inflation surprise index: According to the Atlanta Fed economists, after releases from the US Census Bureau, the National Association of Realtors, and the US Department of the Treasury’s Bureau of the Fiscal Service, a decrease in the nowcast of third-quarter real government spending growth from 2.1 percent to 0.8 percent was slightly offset by an increase in the nowcast of third-quarter real gross private domestic investment growth from 9.0 percent to 9.3 percent. Also, the nowcast of the contribution of the change in real net exports to third-quarter real GDP growth decreased from -1.56 percentage points to -1.81 percentage points. In short, everything is slowing and it is the consumer - that 70% driver of GDP growth - that may be about to hit reverse. Tyler Durden Wed, 10/27/2021 - 11:45.....»»

Category: blogSource: zerohedge7 hr. 50 min. ago Related News

Cboe is launching small-sized S&P 500 options to pull in retail traders

Cboe is planning to launch the Nanos S&P 500 micro-options contracts in the first quarter of 2022. Getty Images Cboe said Wednesday it is preparing to launch micro-options contracts for the S&P 500 index. The Nanos S&P 500 contracts will be one-hundredth the size of S&P 500 index mini-options contracts. Cboe said the Nanos contracts are aimed at helping retail investors build their trading confidence. Retail traders are the focus of an upcoming options product from Cboe Global Markets, with the exchange operator set to launch micro-options contracts for the benchmark S&P 500 index. "Nanos" will be one-hundredth the size of S&P 500 index mini-options contracts, which are already one-tenth of the S&P 500's value. Nanos are designed to help retail traders "start small" as they build their confidence in trading, Cboe said in a statement Wednesday. The Nanos S&P 500 contracts will be rolled out in the first quarter of 2022, trading under the ticker symbol "NANOS". With the S&P 500 hovering around 4,580 on Wednesday, a Nanos contract would price at $4.58. "We believe Nanos are more appropriately sized for retail traders and enable traders to better express their opinions on market movements at a comparatively lower premium price," Ed Tilly, chief executive of Cboe Global Markets, said in the statement.The options contracts would allow day traders access to trading strategies such as hedging and asset allocation, the company said. There's been rapid growth in individuals taking up trading in stocks and other assets, particularly during the height of COVID-19 lockdowns. Retail traders made up 10% of stock trading volume on the Russell 3000, a broad benchmark of US stocks, according to a Morgan Stanley note published in June. A survey from online broker Charles Schwab published in April indicated that roughly 15% of retail investors in the US began investing in 2020.Read the original article on Business Insider.....»»

Category: topSource: businessinsider8 hr. 34 min. ago Related News

Enphase Energy jumps more than 25% after Q3 earnings, microgrid news

Enphase Energy Inc. stock rallied more than 25% on Wednesday, poised for its highest close since Jan. 7 and its largest one-day percent increase since March 2020. The stock was the best performing in the S&P 500 index on Wednesday. The energy management technology company late Tuesday reported third-quarter earnings well above Wall Street expectations, saying it earned an adjusted 60 cents a share on sales of $352 million in the quarter, compared with forecasts for adjusted earnings of 49 cents a share on sales of $345 million. Enphase earlier this week announced a new solar microinverter for its customers in North America, saying the device was capable of forming a microgrid during a power outage using only solar power and providing backup power without a battery.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news......»»

Category: topSource: marketwatch8 hr. 50 min. ago Related News

US stocks retreat from record highs even as mega-cap tech earnings impress

Microsoft and Alphabet traded higher in Wednesday trades after their Q3 earnings results easily beat analyst's revenue and profit estimates. Xinhua/Wang Ying/Getty Images US stocks were mixed on Wednesday following earnings results from mega-cap tech.Microsoft and Alphabet reported third-quarter earnings that beat analyst expectations.But Robinhood missed sales estimates and saw a considerable slowdown in trading activity.US stocks traded mixed on Wednesday, after hitting record highs reached in Tuesday's trading session as mega-cap tech companies reported strong earnings results.Microsoft and Alphabet rose in Wednesday trades after their third-quarter earnings results easily beat analysts' revenue and profit estimates. Both companies saw strong growth in their cloud units, and forward guidance remained on track for continued gains.Here's where US indexes stood shortly after the 9:30 a.m. ET open on Wednesday:S&P 500: 4,571.59, down 0.07%Dow Jones Industrial Average: 35,718.30, down 0.11%Nasdaq Composite: 15,268.90, up 0.22%One earnings report that disappointed investors was Robinhood, which missed sales estimates and saw a considerable slowdown in trading activity relative to prior quarters when meme-stocks and cryptocurrencies were extremely volatile. The stock fell 11% on Wednesday.Shiba inu coin continued its record run on Wednesday, surging as much as 38% to a record high and continuing its trek to become the 10th most valuable cryptocurrency in the world. Concerns about rising inflation continue be top of mind for many investors, including Tesla CEO Elon Musk, who noted in a tweet that he is concerned about the short-term rise in prices.West Texas Intermediate crude oil fell 1.98%, to $82.97 per barrel. Brent crude, oil's international benchmark, dropped 1.78%, to $84.86 per barrel.Gold jumped as much as 0.15%, to $1,796.10 per ounce.Read the original article on Business Insider.....»»

Category: topSource: businessinsider10 hr. 5 min. ago Related News

Stocks flirt with records as earnings season rolls on

U.S. stock indexes ticked higher Wednesday as investors sifted through numerous corporate earnings reports......»»

Category: topSource: foxnews10 hr. 6 min. ago Related News

U.S. Consumer Confidence Rebounds in October: 4 Fund Picks

Decline in new coronavirus cases and a healthy labor market boosted consumer confidence in October. Americans are regaining confidence in the economy after concerns regarding the spread of the Delta variant of coronavirus eased in October. On Oct 26, the Conference Board reported that its Consumer Confidence Index increased in October to 113.8, surpassing the consensus estimate of 107.5. Consumer confidence had been declining in the past three months after hitting 128.9 in June.The steep decline in the past months was due to a rise in new coronavirus cases from the rapid spreading Delta variant and rising inflation that became a hurdle for shoppers. However, in October, the healthy labor market and rising wages helped consumers regain confidence in the economy.The sub-index that measures consumers’ feelings regarding the current economic conditions rose to 147.4 in October from 144.3 last month. Similarly, the sub-index tracking next six months’ expectation also rose to 91.3 from 86.7 in September. Talking about the labor market, consumers remain positive on that front. Notably, 10.6% of consumers said jobs are “hard to get,” down from 13.0% in September, while 55.6% said jobs are “plentiful.”With consumers optimistic about the economy, 47.6% of the respondents said that they intend to take a vacation within the next six months. The conference board reported that it is the “highest level since the pandemic hit in early 2020.”Earlier this month, the U.S. Census Bureau had also reported that retail and food services sales rose 0.7% in September, outpacing the consensus estimate of a 0.1% decline. Hence, we can say that the consumers’ assessment of the current conditions and the short-term outlook have increased, raising hopes of faster-than-expected economic recovery. Thus, a rise in consumer confidence will boost spending on luxury, leisure goods, new appliances and cars.4 Mutual Fund PicksGiven such a rebound in consumer confidence, we have shortlisted four funds that carry a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy) and are poised to grow. In addition, the minimum initial investment for these funds is within $5,000.We expect these funds to outperform peers in the future. Remember, the goal of the Zacks Mutual Fund Rank is to guide investors to identify the potential winners and losers. Unlike most fund-rating systems, the Zacks Mutual Fund Rank is focused on the fund’s past performance and its likely future success.The question here is why should investors consider mutual funds? Reduced transaction costs and portfolio diversification without several commission charges associated with stock purchases are primarily the reasons for parking money in mutual funds (read more: Mutual Funds: Advantages, Disadvantages and How They Make Investors Money).Fidelity Select Retailing Portfolio FSRPX fund aims for capital appreciation. This non-diversified fund invests a large portion of its assets in the common stock of companies engaged in merchandising finished goods and services, primarily to individual consumers.This Sector - Other product has a history of positive total returns for more than 10 years. Specifically, FSRPX has returned 18.4% and 21.6% over the past three and five years, respectively. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.FSRPX has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.73%, which is below the category average of 0.79%.Fidelity Select Leisure Portfolio FDLSX fund aims at capital appreciation. This non-diversified fund normally invests a majority of assets in the common stocks of companies that are mostly engaged in the design, production or distribution of goods or services in the leisure industries.This Zacks Sector – Other product has a history of positive total returns for more than 10 years. Specifically, FDLSX has returned 16.6% and 17.1% over the past three and five years, respectively. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.FDLSX has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.77%, below the category average of 0.79%.Fidelity Select Consumer Discretionary Portfolio FSCPX fund aims for capital appreciation. This non-diversified fund invests the majority of assets in the common stocks of companies engaged in manufacturing and distributing consumer discretionary products and services.This Zacks Sector – Other product has a history of positive total returns for more than 10 years. Specifically, FSCPX has returned 16.7% and 18% over the past three and five years, respectively. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.FSCPX has a Zacks Mutual Fund Rank #2 and an annual expense ratio of 0.76%, which is below the category average of 0.79%.Fidelity Select Consumer Staples Portfolio FDFAX fund aims for capital growth. It invests a majority of assets in securities of companies primarily engaged in manufacturing, marketing or distribution of consumer staples products. The non-diversified fund invests in both U.S. and non-U.S. issuers.This Zacks sector – Other product has a history of positive total returns for more than 10 years. Specifically, FDFAX has returned 11.1% and 7.1% over the past three and five years, respectively. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.FDFAX has a Zacks Mutual Fund Rank #2 and an annual expense ratio of 0.75% versus the category average of 0.76%.Want key mutual fund info delivered straight to your inbox?Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >> Breakout Biotech Stocks with Triple-Digit Profit Potential The biotech sector is projected to surge beyond $2.4 trillion by 2028 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases. Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Recommendations from previous editions of this report have produced gains of +205%, +258% and +477%. The stocks in this report could perform even better.See these 7 breakthrough stocks now>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Get Your Free (FSRPX): Fund Analysis Report Get Your Free (FDFAX): Fund Analysis Report Get Your Free (FDLSX): Fund Analysis Report Get Your Free (FSCPX): Fund Analysis Report To read this article on Zacks.com click here. Zacks Investment Research Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report.....»»

Category: topSource: zacks10 hr. 33 min. ago Related News

4 High Alpha Mutual Funds That You Must Add to Your Portfolio

A positive Jensen's alpha indicates that managers of the fund have been able to extract higher returns than the market. Jensen’s alpha, also referred to as ex-post alpha, essentially measures how much extra a portfolio has earned above the return predicted by the capital asset pricing model (CAPM). This ratio was developed by American economist Michael Jensen in 1968. Mathematically, the Jensen’s alpha is calculated as follows:Jensen’s alpha = R(i) - (R(f) + B x (R(m) - R(f)))WhereR(i) = the realized return of the portfolio or investmentR(m) = the realized return of the appropriate market indexR(f) = the risk-free rate of return for the time periodB = the beta of the portfolio of investment with respect to the chosen market indexA positive Jensen’s alpha indicates that managers of the fund, through careful stock selection, have been able to extract higher returns than the market. Moreover, an investor should also look at the return a fund has generated compared to the risk involved. This is because investors need to be aware of a properly calculated measure of total return from an investment against the inherent risks involved.4 Best ChoicesAlso known as the Jensen's Performance Index, Jensen’s alpha measures the return of an investment compared to its expected risk-adjusted return. We have, thus, selected four mutual funds carrying a Zacks Mutual Fund Rank #1 (Strong Buy) that are poised to gain from such factors. Moreover, these funds have encouraging three and five-year returns.Additionally, the minimum initial investment is within $5000 and each of these funds has a high three-year alpha. A positive alpha indicates that the portfolio manager was able to earn substantial returns compared to the additional risk taken over the entire period of investment.We expect these funds to outperform their peers in the future. Remember, the goal of the Zacks Mutual Fund Rank is to guide investors to identify potential winners and losers. Unlike most of the fund-rating systems, the Zacks Mutual Fund Rank is not just focused on past performance but also on the likely future success of the fund.The question here is: why should investors consider mutual funds? Reduced transaction costs and diversification of portfolio without several commission charges that are associated with stock purchases are primarily why one should be parking money in mutual funds (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).PGIM Jennison International Opportunities Fund- Class Z PWJZX aims for capital appreciation in the long term. This fund invests primarily in equity and equity-related securities of domestic as well as foreign companies, including those located in the emerging markets.This Zacks Non-US Equity product has a history of positive total returns for more than 10 years. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.PWJZX has an annual expense ratio of 0.90%, which is below the category average of 1.05%. It has three and one-year returns of 26.3% and 30.4%, respectively. PGTAXhad an alpha of 11.26 in the last three years.Fidelity Select Semiconductors Portfolio FSELX seeks appreciation of capital. The fund invests primarily in the common stocks of engaged in the design, manufacture, or sale of semiconductors and semiconductor equipment. The fund invests in U.S. as well as non-U.S. issuers.This Zacks Sector-Tech product has a history of positive total returns for more than 10 years. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.FSELX has an annual expense ratio of 0.70%, which is below the category average of 1.05%. The fund has three and one-year returns of 34.5% and 52%, respectively. FSELX had an alpha of 13.8 in the last three years.Fidelity Select Technology Portfolio FSPTX fund aims for capital appreciation. The fund invests primarily in equity securities, especially common stocks of companies engaged in offering, using, or developing products, processes, or services that will provide or benefit significantly from technological advances and improvements.This Zacks Sector – Tech product has a history of positive total returns for more than 10 years. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.FSPTX has an annual expense ratio of 0.69%, which is below the category average of 1.05%. The fund has three and one-year returns of 28.5% and 28.6%, respectively. FSPTXhad an alpha of 10.04 in the last three years.Fidelity Series Blue Chip Growth Fund FSBDX seeks long-term appreciation of capital. The fund invests primarily in blue chip companies that generally have large or medium market capitalizations.This Large Cap Growth product has a history of positive total returns for more than 10 years. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.FSBDX has an annual expense ratio of 0.00%, which is below the category average of 0.99%. The fund has three and one-year returns of 29.1% and 35.5%, respectively. FSBDXhad an alpha of 10.4 in the last three years.Want key mutual fund info delivered straight to your inbox?Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Get Your Free (FSPTX): Fund Analysis Report Get Your Free (FSELX): Fund Analysis Report Get Your Free (PWJZX): Fund Analysis Report Get Your Free (FSBDX): Fund Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacks10 hr. 49 min. ago Related News

Stock Market News for Oct 27, 2021

U.S. stocks continued their winning streak on Tuesday, with the Dow and the S&P 500 closing at record highs for the second straight day as investors digested a slew of earnings reports from some of biggest American corporations. U.S. stocks continued their winning streak on Tuesday, with the Dow and the S&P 500 closing at record highs for the second straight day as investors digested a slew of earnings reports from some of biggest American corporations. All the three major indexes ended in positive territory.How Did The Benchmarks Perform?The Dow Jones Industrial Average (DJI) climbed less than 0.1% or 15.73 points to finish at a new record high of 35,756.88 points. The blue-chip index earlier hit an intraday high of 35,892.92 but couldn’t hold on to the gains.The S&P 500 gained 0.2% or 8.31 points to close at a fresh record high of 4,574.79 points, after hitting an intraday high of 4,598.53 points.Energy and utilities stocks were once again the best performers, while communications services were once again a drag. The Communication Services Select Sector SPDR (XLC) fell 0.9%, while the Energy Select Sector SPDR (XLE) advanced 0.6%. The Utilities Select Sector SPDR (XLU) gained 0.5%. Nine the 11 sectors of the benchmark index ended in positive territory.The tech-heavy Nasdaq rose 0.1% or 9.01 points to finish at 15,235.71 points. The index almost touched it Sep 7 record closing high of 15,374.33 points after hitting 15,384 points at one point of the day. Shares of Facebook, Inc. FB declined 3.9. Facebook has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.The fear-gauge CBOE Volatility Index (VIX) was up 4.86% to 15.98. A total of 12.34 billion shares were traded on Tuesday, higher than the last 20-session average of 10.41 billion. Decliners outnumbered advancers on the NYSE by a 1.13-to-1 ratio. On Nasdaq, a 1.23-to-1 ratio favored declining issues.Investors’ Digest Quarterly ResultsMarkets started on a high on Tuesday following the earlier session’s rally. A slew of big tech names announced robust third-quarter earnings reports that helped investor sentiment get a boost. Investors now seem less worried about inflation and are focusing more on the quarterly results. This has seen the S&P 500 clocked gains in nine of the last 10 sessions.Among the big names that reported their quarterly results on Tuesday were Lockheed Martin Corporation LMT and Eli Lilly and Company LLY. Lockheed Martin reported adjusted earnings of $6.66 per share, which surpassed the Zacks Consensus Estimate of $1.96. Eli Lilly reported adjusted earnings of $1.94 per share, which missed the Zacks Consensus Estimate of $1.98 per share.However, it was Facebook, which reported its third-quarter results on Monday, which weighed on all the major indexes on Tuesday around midday. The social media giant’s shares traded higher and flat at one time but then hit a low. At one point it dropped as low as 5%.Facebook missed analysts’ expectations for revenues and monthly active users despite surpassing earnings expectations. It reported quarterly earnings of $3.22 per share, beating the Zacks Consensus Estimate $3.20 per share. Revenues of $29.01 billion missed the Zacks Consensus Estimate of $29.55 billion.A number of big names will be reporting their quarterly results over the next few days of the week and investors are anxiously waiting.  Economic DataIn economic data released on Tuesday, Case-Shiller Home Price Index showed that home priced jumped 19.8% in August on a year-over-year basis. However, it came in line with the prior month’s increase.Separately, the Commerce Department said that new home sales rose 14% in September to a seasonally adjusted annual rate of 800,000 units. Analysts had expected new home sales to rise to 760,000 units. This is also the highest level attained since March. August sales were revised down to 702,000 units from the initially reported 740,000 units.In other economic data, the Conference Board reported that U.S. consumer confidence index jumped to 113.8 in October from a revised 109.8 in September. October’s jump comes after three straight months of decline.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Lockheed Martin Corporation (LMT): Free Stock Analysis Report Eli Lilly and Company (LLY): Free Stock Analysis Report Facebook, Inc. (FB): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacks10 hr. 49 min. ago Related News

New Highs Again for S&P and Dow as Earnings Continue

New Highs Again for S&P and Dow as Earnings Continue SPECIAL ALERT: We’ve just released our new 5 Stocks Set to Double Special Report which includes five stocks our team believes have the potential to grow +100% in the next 12 months. This latest report features favorite stocks from Kevin Cook, Ben Rains, Tracey Ryniec, Madeleine Johnson and David Bartosiak. Log on to Zacks.com to see these stocks today. Even a sharp mid-day drop couldn’t keep this market down! Stocks managed to stay on their feet in all the Tuesday turbulence and remain on their record-setting pace. Meanwhile, the biggest week of earnings season continued with two more tech giants scheduled to report after the bell. The S&P increased 0.18% today to 4574.79 and the Dow advanced 0.04% (or nearly 16 points) to 35,756.88. These gains came well off the highs of the session, but were enough for a second straight record for the S&P and a third straight for the Dow. The NASDAQ is now within 1% of a new closing high, which was last set on September 7. However, it didn’t make up much ground today with an advance of only 0.06% (or 9 points) to 15,235.71. Shares of Facebook (FB) dipped nearly 4% in its first day of trading after a mixed third quarter report last night. The social media giant slightly beat earnings estimates but missed on revenue. Elsewhere, Tesla (TSLA) experienced its first decline in five sessions, but only slipped by 0.63%. The EV pioneer joined the $1 Trillion club yesterday and received a 100K vehicle order from Hertz (HTZ). It’s also coming off a strong quarterly report from last week that included a positive EPS surprise of 34%. As far as economic data is concerned, consumer confidence in October turned out better than expected. The Conference Board’s index rose to 113.8, which topped forecasts and the September result of just under 110. The advance ends a three-month downtrend in this category and provides more proof that consumers are dealing with the rising inflation and supply chain issues for now. But let’s get back to earnings since two more powerhouses reported after the bell on Tuesday. Microsoft (MSFT) and Alphabet (GOOG) both beat on the top and bottom lines in their quarterly reports. MSFT reported an EPS surprise of more than 10% and is currently flat afterhours, as of this writing, while GOOG topped by 21% but is off around 0.6% afterhours. We get a break from the FAANGs in tomorrow's earnings schedule, but we’ll still be receiving reports from heavy hitters like Coca-Cola (KO), McDonald’s (MCD), Sony (SONY), Bristol Myers (BMY) and Boeing (BA), among hundreds of other names. Today's Portfolio Highlights: Stocks Under $10: Soaring oil prices make energy alternatives even more attractive, so Brian thought this was a good time to add ReneSola (SOL). This Zacks Rank #1 (Strong Buy) solar stock beat the Zacks Consensus Estimate for four straight quarters with an average surprise of 242%! Looking forward, revenue growth is expected at 25% for this year and 38% for next. Given its strong earnings history and rising margins, the editor thinks SOL is set to move sharply higher in the future. Meanwhile, the service also sold the underperforming VirTra (VTSI) position. See the full write-up for more on today’s action.   Options Trader: The portfolio's sights are set on Cognex (CGNX), a leader in the machine vision industry. In other words, the company makes computers that can ‘see’. This Zacks Rank #2 (Buy) has a projected sales growth rate of 27.35%, which is 67% better than the industry and 140% better than the S&P. Kevin also likes the bullish symmetrical triangle pattern in its chart. He expects a breakout soon, so the service bought to open two Feb22 90.00 Calls in CGNX on Tuesday. Read the full write-up for more on today’s move.   Surprise Trader: Rising energy prices pushed the Oil & Gas – E&P space into the Top 2% of the Zacks Industry Rank, so that's where Dave went for today’s addition. The editor picked up SM Energy (SM), which beat the Zacks Consensus Estimate by 105% in its last quarter while also posting a surprise profit. And now it has a positive Earnings ESP of 34% for its upcoming report on Thursday, October 28 after the bell. Earnings estimates for this Zacks Rank #1 (Strong Buy) are up to 33 cents for this year and $3.09 for next, suggesting a year-over-year surge of 840%! The portfolio added SM on Tuesday with a 12.5% allocation, while also selling Tractor Supply (TSCO) for a “small victory” of just under 5% in less than two weeks. Learn more about these plays in the complete write-up. In other news, this portfolio easily had the best performer among all ZU names on Tuesday as Perion Network (PERI) soared over 31%. This provider of online advertising solutions beat the Zacks Consensus Estimate for a 12th straight quarter. The earnings surprise was over 55%, while revenue eclipsed our expectation by more than 12%. Most importantly though, PERI raised its outlook for 2021 and 2022.   Zacks Short Sell List: Only two stocks were swapped in this week's adjustment. The positions that were short-covered included AppLovin (APP) and JD.com (JD), while the new buys that filled these spots were SunPower (SPWR) and Zurn Water Solutions (ZWS). Learn more about this emotion-free portfolio that takes advantage of falling and volatile markets by reading the Short Sell List Trader Guide. All the Best, Jim Giaquinto Recommendations from Zacks' Private Portfolios: Believe it or not, this article is not available on the Zacks.com website. The commentary is a partial overview of the daily activity from Zacks' private recommendation services. If you would like to follow our Buy and Sell signals in real time, we've made a special arrangement for readers of this website. Starting today you can see all the recommendations from all of Zacks' portfolios absolutely free for 7 days. Our services cover everything from value stocks and momentum trades to insider buying and positive earnings surprises (which we've predicted with an astonishing 80%+ accuracy). Click here to "test drive" Zacks Ultimate for FREE >>  Zacks Investment Research.....»»

Category: topSource: zacks10 hr. 49 min. ago Related News