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Return on Capital Employed Overview: Intuit

After pulling data from Benzinga Pro it seems like during Q3, Intuit (NASDAQ:INTU) earned $1.91 billion, a 7756.0% increase from the preceding quarter. Intuit also posted a total of $4.17 billion in sales, a 164.78% increase since Q2. read more.....»»

Category: blogSource: benzingaMay 25th, 2021

Stocks Rise Over 1% as Banks Spark Late Rally

Stocks Rise Over 1% as Banks Spark Late Rally The major indices recovered a little less than half of yesterday’s sharp selloff on Thursday, thanks to a final-hour rally led by the financials. Banking regulators loosened restrictions in a move to free up billions of dollars in capital for the big banks. The news came shortly before the Fed’s stress test results. It sparked gains for heavy hitters like Wells Fargo (WFC, +4.79%), Bank of America (BAC, +3.82%), Citigroup (C, +3.68%) and JPMorgan (JPM, +3.49%), among others. The market in general also followed the industry’s lead after spending most of the session chopping around. The Dow finished higher by 1.18% (or nearly 300 points) to 25,745.60, while the S&P was up 1.1% to 3083.76. The NASDAQ, which saw its eight-session winning streak end yesterday, came back with an advance of 1.09% (or about 108 points) to 10,017. These performances recovered a good chunk of Wednesday’s losses, which saw each of the major indices slide by more than 2%. Stocks needed some kind of boost today since it continues to fret over a rise in coronavirus cases in certain parts of the country, such as Florida, Arizona, Texas and California. Speaking of Texas, the state said it will pause its reopening plans to deal with the increase. That’s exactly the kind of announcement that the market doesn’t want to hear as we attempt to reopen the economy. Meanwhile, approximately 1.48 million jobless claims were filed last week, which was higher than expectations but continued the downward trajectory. It was the same type of slow improvement as last week’s reading. The market goes into Friday having gained in four of the past five weeks… and it looked like we were well on our way to more success after rising on Monday and Tuesday. However, the Wednesday selloff leaves only the NASDAQ higher over the past four days. But the other indices are less than half a percentage point away from getting back on the plus side, so let’s hope for a strong finish. Today's Portfolio Highlights: Surprise Trader: Despite restaurants and bars not needing as much (or any) alcoholic beverages during this shutdown, analysts are still feeling pretty good about Constellation Brands (STZ). It probably helps that households are buying more beer and spirits as they wait out this pandemic. The company, whose brands include Modelo, Robert Mondavi and SVEDKA Vodka, among others, is scheduled to report before the bell on Wednesday, July 1. STZ has a positive Earnings ESP of 5.96% and beat by more than 27% last time. The stock was added on Wednesday with a 12.5% allocation. Dave also sold the idled Commercial Metals (CMC) for a 5.1% return in a little over two weeks. Read the full write-up for more.  Counterstrike: "There is an interesting disparity between the southern and northern states that is giving investors mixed signals. While NYC and most states in the north open up, the southern states struggle with rising caseloads. While death rates continue to stay low, there is fear that the next couple weeks will bring us death numbers in Houston that we saw in NYC.  "Because of the two different atmospheres, we have two kinds of headlines that come throughout the day. This leads to a violent back and forth algo chop. This action is very similar to the China trade deal headlines from a couple years back. "The 200-day in the S&P held and we have had a positive reaction higher. Technically this is very bullish and because of all the negative headlines we might be in a situation where aggressive shorts are in trouble. Don’t be surprised to see some upwards momentum if there is any little piece of good news out of the southern states or California." -- Jeremy Mullin  Large-Cap Trader: "The new infections in the USA are in more rural areas of the Southeast and Southwest areas of the USA. This is obviously not good news overall for the U.S. economy. But it remains to be seen if this is really a long-term negative.  "Big rushes of infection in most parts of the world seem to peak after a fresh population gets exposed. That may be the case in the Southeast and Southwest too.  "Having written that, though, it should be no surprise to see sideways trading stock markets like this week Nobody is panicking on the buy side of Wall Street. But nobody, en masse, is buying more in the institutional space either (other than perhaps tech stocks).  "The retail traders will keep on supporting stock market volumes in this environment, regardless. The lack of a share transaction fee does appear to be a game changer, along with a lot of restless boredom, and a lack of sports programming to bet on." -- John Blank 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: zacksSep 21st, 2021

Rates Stay Put at Near Zero, but NASDAQ Drops More Than 1.2%

Rates Stay Put at Near Zero, but NASDAQ Drops More Than 1.2% SPECIAL ALERT: Remember, the September episode of the Zacks Ultimate Strategy Session is now available for viewing! Don't miss your chance to hear: • Ben Rains and Dan Laboe Agree to Disagree on market valuation - is it still overvalued after this correction? Or is it harder to compare because of historically high valuations and a different interest rate environment? And does this tech-driven rally play a part? • Kevin Matras answers questions covering what you should do about the recent pullback and what stocks will do ahead of the election in Zacks Mailbag • Sheraz Mian and Dan choose one portfolio to give feedback for improvement • Market conditions from both fundamental and technical views • The full list of top-performing stocks over the past 30 days • New stocks added to the Zacks Ultimate portfolio • And much more Simply log on to Zacks.com and view the September episode here. And please let us know what you think of these monthly episodes. Email all feedback to mailbag@zacks.com. Even though the Fed told the market what it wanted to hear, stocks still moved mostly lower on Wednesday as tech again came under pressure.  It looks like we’re going to have these historically low rates for years to come. The Fed doesn’t expect any hikes until 2023 as it continues to do all it can to keep this economy moving amid unprecedented conditions. Stocks initially moved higher on the news because there are two things the market can’t get enough of right now: vaccine progress and free money. However, the momentum was only temporary as stocks moved sharply lower late in the session. The only index to manage a positive close was the Dow, which inched forward by 0.13% (or nearly 37 points) to 28,032.38 for its fourth straight day of green. But the other major indices saw their first negative closes of the week. The NASDAQ had the sharpest decline of 1.25% (or nearly 140 points) to 11,050.47, while the S&P slipped 0.46% to 3385.49. The FAANGs had a rough time with all the names sliding by more than 1%. Facebook (FB, -3.27%) declined the most with Apple (AAPL,-2.95%) right behind it. So what happened? Stocks have been in a good mood this week and were headed higher again today upon reiteration of this utopian monetary policy. And then it took a header! Well, it’s really no surprise that rates will stay this low for the foreseeable future. Chair Jerome Powell stated many times that he’ll do whatever it takes to keep the economy strong. So today’s news was most likely priced in. And let’s not forget that we’re still waiting for another coronavirus relief package. Mr. Powell certainty hasn’t forgotten. In today’s statement, he mentioned the need for some help out of Capitol Hill to give this economy the best chance to weather this pandemic and bounce back strongly. In other words, the Fed will continue to do all it can in this crazy environment… and now it’s time for Washington to do the same. Today's Portfolio Highlights: Home Run Investor: The chip space should have a strong tailwind moving forward, so that's where Brian went for today's addition to the portfolio. The editor picked up Ultra Clean (UCTT), a developer and supplier of critical subsystems for the semiconductor capital equipment, flat panel, solar and medical device industries. The stock was a winner for this service at about this time last year when it brought a return of 34%. UCTT has a great earnings history with an average surprise of 39% over the past four quarters, while rising earnings estimates have made it a Zacks Rank #1 (Strong Buy). Plus, the valuation is attractive and its margins are moving in the right direction. Read the complete commentary for more about today’s addition. By the way, the portfolio also sold the underperforming Griffon Corp. (GFF) and Healthways (TVTY) positions on Wednesday. Counterstrike: Fed meetings are always a great time to take some risk off the table, especially if you have some nice returns to cash. Jeremy made three moves on Wednesday, including banking a double-digit winner. The editor sold half of Crocs (CROX) for a 21.1% return in about six weeks and all of Williams-Sonoma (WSM) for 9.2% in just under three months. The portfolio also covered Upwork (UPWK) for a slight loss. Stocks Under $10: Just one day in the portfolio and Cornerstone Building Brands (CNR) is already a top performer by gaining 12.1% on Wednesday. However, for the second day in a row, the best result among all ZU names was Digital Turbine (APPS). The stock rose another 12.4% today in addition to yesterday's advance of more than 13%. In other words, this portfolio had the two biggest movers of the session. Until Tomorrow, 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: zacksSep 21st, 2021

Stocks Bounce Back While Waiting for Big Tech Earnings

Stocks Bounce Back While Waiting for Big Tech Earnings We finally got a bounce back from the recent selloffs on Thursday, as the market digested of deluge of (mostly positive) earnings reports and economic data. The NASDAQ jumped 1.64% (or about 180 points) today to 11,185.59. All of the FAANGs were higher in preparation of four reports coming after the bell. Facebook (FB) was up nearly 5%, while Apple (AAPL) and Alphabet (GOOG) each gained more than 3% and Amazon (AMZN) rose 1.5%. Even Netflix (NFLX) moved higher 3.7% after announcing a rise in prices. Meanwhile, the S&P increased 1.19% to 3310.11 and the Dow advanced 0.52% (or around 140 points) to 26,659.11. These indices broke their 3-day and 4-day losing streaks, respectively. Of course, these gains are just a drop in the bucket compared to what the market lost in the previous three days. For example, the Dow was off 1800 points through Wednesday. Nevertheless, the first step is always to stop the bleeding. Economic data provided a bit of a suture on Thursday, especially with third-quarter GDP beating expectations and soaring by 33.1%. Also, jobless claims came in at 751,000, which was the second straight week below 800K and better than expectations. This data, especially the GDP, suggests that the economy responded well to restrictions being eased from the pandemic. At the same time, though, these numbers are rather bittersweet as they come during rising coronavirus cases and the threat of new lockdowns. However, the bigger reason for the bounce may have been excitement over FAANG Day. After the bell, FB, AAPL, AMZN and GOOG all reported their quarterly results. They beat expectations, but there were a few hiccups. The market seems most impressed with GOOG, which is up about 8% after hours. But AAPL is down more than 5% as iPhone sales were lower and AMZN is off 1.5%. FB has slipped less than 1% perhaps due to fewer users in the quarter. (All of these numbers are as of this writing.) As Jeremy said in Counterstrike today: “Tech is looking weak after hours, but we will have to see how things shape up. When you have Facebook, Amazon, Apple and Google all on one day, some weird moves can happen.” Tomorrow will be interesting. Today's Portfolio Highlights: Income Investor: The portfolio added two names on Thursday that are in the middle of extensive capital spending plans that should benefit investors for years to come. Firstly, Duke Energy (DUK) is one of the largest utility companies in the U.S. with plans to eventually become a renewable energy force in the next several years. That should be beneficial to its already impressive dividend growth. DUK has paid a dividend for 94 consecutive years and raised the annual payment for the last 14. It currently yields 4.2%. The other buy is Nucor (NUE), one of the largest and most diversified steel makers in the country. The company plans to spend $1.7 billion in 2020 alone as part of its capital spending plan, which includes expanding its steel mills. Maddy considers NUE to be a play on infrastructure spending, since the company should be a supplier once these large projects are underway. NUE has increased its annual payout for 47 straight years and has a dividend yield of 3.5%. Learn a lot more about these moves in the editor’s complete commentary. Blockchain Innovators: The past two quarters have seen unexpected profits and triple-digit surprises for Brightcove (BCOV), a Zacks Rank #2 (Buy) provider of cloud content services for publishing and distributing professional digital media. That description alone explains the importance of blockchain in this business. But if you want even more proof, the company’s CEO actually owns a blockchain-based bank. The more than 300% earnings growth forecast for this year is nice, but that’s more a result of its low bar. Dave is much more impressed with the 20% growth for next year. Therefore, the editor added BCOV on Thursday and got out of the underperforming Celestica (CLS) position. Read the full write-up for more. Stocks Under $10: Ever since SunOpta (STKL) was added back in early June, this natural & organic food, supplements and health & beauty company has been a strong performer for the portfolio. However, the stock is starting to show some weakness, so Brian decided to sell it on Thursday to secure a nice return of more than 40% in just under five months. He also sold the underperforming Tecnoglass (TGLS) and Costamare (CMRE) positions. The service is now a bit underweight, so the editor may be adding a new one tomorrow. TAZR Trader: There were two big pieces of news for Shopify (SHOP) this week. Earlier today, the cloud-based ecommerce platform reported strong third-quarter results with an earnings beat of 125% and a revenue surprise of 15.7%. The company withdrew its guidance, but that’s rather normal during this pandemic. The other bit of news came earlier this week when SHOP announced a commerce partnership with TikTok that “brings the world’s leading destination for short form video to Shopify’s more than one million merchants”. Kevin thinks analysts will be re-working their models on SHOP after these recent developments. He decided to add a small, 5% allocation in SHOP on Thursday and will pick up more on any volatility moving forward. Read the full write-up for specifics on this new addition, along with insights from a couple of analyst upgrades earlier this month.    Surprise Trader: There are other things happening on November 3 besides the election. For example, steel company Ternium (TX) will be reporting earnings. This Zacks Rank #2 (Buy) has a positive Earnings ESP of 16.91% for the quarter coming after the bell on Tuesday. It had a nice beat of over 230% last time. Dave added TX on Thursday with a 10% allocation, while also selling 1800Flowers.com (FLWS). The full write-up has more on today’s action. Value Investor: We’re having a pretty good earnings season so far, despite the recent selloffs, rising coronavirus cases and election volatility. Case in point, social media staple Pinterest (PINS) reported strong third-quarter results, which included revenue that jumped 58% year over year and earnings of 13 cents that trounced the Zacks Consensus Estimate of a penny. Monthly active users were up 37%. And the company says revenue growth of 60% this quarter is a possibility. Shares of PINS were up nearly 27% on Thursday, which easily made it the top performer of the day among all ZU names. It’s also the #1 stock in this portfolio with a surge of more than 214% since its addition in late May. Until Tomorrow, 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: zacksSep 21st, 2021

S&P Crosses New Milestone With First Close Above 3700

S&P Crosses New Milestone With First Close Above 3700 SPECIAL ALERT: The December episode of the Zacks Ultimate Strategy Session is now available for viewing! Tune in to this “must-see” event when Kevin Matras, Sheraz Mian, Jeremy Mullin, Tracey Ryniec and Madeleine Johnson discuss the investment landscape from several angles.   Don’t miss your chance to hear: ▪ Tracey and Madeleine Agree to Disagree on whether Black Friday, when consumers rush to stores to get deals the day after Thanksgiving, is over in 2020 as online shopping takes precedence ▪ Kevin covers his position on stop-loss orders in Zacks Mailbag   ▪ Sheraz and Jeremy choose one portfolio to give feedback for improvement ▪ And much more Simply log on to Zacks.com and view the December episode here. And please let us know what you think of this format. Email all feedback to mailbag@zacks.com. More records and more milestones were reached on Tuesday as the market cheered news that the U.K. began administering the Pfizer (PFE)/BioNTech coronavirus vaccine. The S&P closed above 3,700 for the first time ever today, which is exactly two weeks after the Dow made history with its first close above 30K. The index rose 0.28% to a new record of 3702.25. Meanwhile, the NASDAQ advanced 0.50% (or about 62 points) to 12,582.77, marking its fourth straight day with a record closing high. The Dow jumped 0.35% (or around 104 points) to 30,173.88. Its just about 45 points away from its own all-time high and remained above 30K for a third consecutive session. The U.K. ordered enough vaccine for 20 million people and started putting it to use today. It’s a big development in the fight against the coronavirus, as was the FDA’s finding here in the U.S. that the vaccine is safe and effective. The news helped the market rebound from a soft open, but the advance wasn’t very dramatic since positive vaccine developments are priced in. It’s been a month now since we first heard about the efficacy of the Pfizer/BioNTech vaccine back on November 9, which sent the Dow higher by more than 800 points. Since then, we’ve enjoyed positive data from a few other companies, leaving investors feeling pretty good that the virus’ days are numbered. But you know what would have a dramatic impact on the market? A stimulus deal! And it feels like Washington may finally be serious about getting something done, following the sharp rise in coronavirus cases and the weak jobs report from last Friday. Senate Majority Leader McConnell and Speaker Pelosi have both talked about the need for a deal before Congress goes home. It would certainly be a nice gift for investors heading into the holidays. Today's Portfolio Highlights: Stocks Under $10: Two double-digit winners were cashed in today, as Avid Bioservices (CDMO) was sold for a 42.6% return in just over a month and Interface (TILE) was let go for a 47.3% profit in about five weeks. Both of these names slipped to a Zacks Rank #4 (Sell) and Brian wanted to hang onto those solid gains. The plan now is to replace one name today and the other name next week. The addition on Tuesday was business process services company Conduent (CDNT). In other words, this is another outsourcing play. It has easily beaten the Zacks Consensus Estimate in the last two quarters, while rising earnings estimates have made the stock a Zacks Rank #2 (Buy). The editor was especially impressed with its “great valuation”, which includes 7x forward earnings and a price-to-book below 1x. Read the full write-up for more specifics on these moves. By the way, this portfolio easily had the best performer of the day among all ZU names as Liquidity Services (LQDT) soared 41.5%. The auction site reported a strong fiscal fourth quarter, which included beats on the top and bottom lines along with an encouraging outlook. The stock is now up more than 72% in the portfolio since being added on October 6. Meanwhile, Eton Pharmaceuticals (ETON) also made the top movers list today with an advance of 5.6%. Options Trader: Whenever a portfolio position doubles its premium, Kevin likes to reposition into a new option with the original investment amount. The editor did it TWICE on Tuesday. He sold to close the March 145.00 Call in Lear (LEA) for a 182.8% return and then immediately re-invested by buying to open a March 170.00 Call. Likewise, the March 120.00 Call in Visteon (VC) was sold to close for a 131.9% profit and replaced by buying to open a March 145.00 Call. Kevin considers such moves to be “free trades”, since they won’t be giving back any principal on a decline. The portfolio also bought to open a February 310.00 Put in S&P Global (SPGI), a provider of ratings, benchmarks, analytics and data to the capital and commodity markets. Kevin noticed “a sloppy bearish head and shoulders pattern in its chart”. And while it could still go higher, he wants to invest on the downside because the stock failed to hold any meaningful gains after its recent positive EPS surprise. Get more specifics about all of today’s action in the full write-up.  Zacks Short Sell List: This week's adjustment included only one change. The portfolio short-covered Incyte (INCY) and replaced it by adding Shift4 Payments (FOUR).  Learn more about this emotion-free portfolio that takes advantage of falling and volatile markets by reading the Short Sell List Trader Guide. Insider Trader: "The bulls found some extra energy in the second half of today's session on positive headlines about the vaccine, including the news out of the "vaccine" summit at the White House. "But it was pictures of the first "civilian" in the UK getting the vaccine, a 90-year old woman who turns 91 next week, which brought the "hope" trade back to life on Wall Street. "In the United States, the FDA approved Pfizer's vaccine so it's rollout to essential medical workers will begin shortly. "The world is on the cusp of getting this virus under control but we still have to get through the next few months." -- Tracey Ryniec, which had a top performer today as Arlo Technologies (ARLO) continues to advance with a 14.5% jump. 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: zacksSep 21st, 2021

NASDAQ, S&P Back at Record Closing Highs

NASDAQ, S&P Back at Record Closing Highs The major indices added another 1% on Thursday and moved into Friday’s session with robust gains for the first week of February… along with a couple new all-time records as well.   The NASDAQ returned to form today by jumping 1.23% (or about 167 points) to 13,777.74. Uncharacteristically, the index slipped 0.02% yesterday while its counterparts continued to advance. But now it’s back at an all-time closing high. The S&P also made history by gaining 1.09% to its own new record of 3871.74. The Dow advanced 1.08% (or around 332 points) to 31,055.86. Both of these indices now have four-day winning streaks. Investors enjoyed another encouraging jobless claims report this week with a tally of 779,000, which was below expectations of well over 800K. Perhaps more importantly, this was the third straight week with a better-than-expected result. As encouraging as that trend is, investors are most interested in the Government Employment Situation report coming tomorrow. Last month’s print was rough with the economy losing 140K jobs in December while a gain of 50K was expected. The expectation is 50K again for January. We’ve enjoyed some good jobs numbers of late. In addition to today’s jobless claims, Wednesday’s ADP employment report crushed expectations with private payrolls adding 174K. However, these reports aren’t necessarily harbingers of the BLS number. But does it really matter to the market? Stocks rose in the same session of that big miss last month because investors saw more proof for stimulus. And the market is just as interested in more stimulus today as it was then. Plus, sentiment is pretty positive right now. Earnings season has been strong and SqueezeMania appears to have simmered down significantly. And now stocks are back at all time highs while we wait for the vaccines to take hold. The NASDAQ is up more than 5% for the week heading into Friday, while the S&P is over 4% and the Dow is over 3%, which means stocks have recovered all of last week’s slide. Let’s see if we can add more tomorrow regardless of what the jobs report says. Today's Portfolio Highlights: Healthcare Innovators: Shares of Anavex Life Sciences (AVXL) have been soaring since the portfolio added this emerging biopharma back in June. Kevin still likes the company, but feels its stock is rising due to the squeeze-a-palooza and not new data or pipeline advances. Therefore he sold AVXL on Thursday for a nice return of at least 300% in less than eight months, while also buying two other names. The editor picked up Dynavax (DVAX), a provider of vaccine adjuvants (molecular aids for immunogenicity). The company has enjoyed a lot of good news lately. For example, DVAX and Clover Biopharmaceuticals announced a global Phase 2/3 efficacy trial of its adjuvanted covid vaccine candidate. The other buy is Arbutus Biopharma (ABUS), a HIGHLY SPECULATIVE small-cap biotech that uses RNA-interference technology to tread chronic hepatitis B infection. The editor has been watching this stock for a while now, and finally made the move after reading one of his favorite analysts. But remember to proceed according to your allocation of risk capital. Read the full write-up for a lot more about today’s moves. Surprise Trader: The past two quarterly surprises have been huge for Bunge Limited (BG). Dave thinks there’s a pretty good chance that this Zacks Rank #2 (Buy) agribusiness and food company manages to top expectations for a third straight quarter. It has an Earnings ESP of 3.09% for the report coming before the bell on Wednesday, February 10. The editor added BG on Thursday with a 12% allocation, while getting out of Evoqua (AQUA) for a slight loss. See the complete commentary for more on today’s moves. Commodity Innovators: We’re getting ready for some frigid temperatures here in the Midwest, which has natural gas bulls buying despite record levels of inventories. Jeremy wants to get involved, so he added ProShares Ultra Bloomberg Natural Gas (BOIL) on Thursday. This investment moves 2X the daily natural gas move. The editor is going to keep a “tight leash” on this one though, since this commodity is known for being volatile. He considers it a short term move. The portfolio also sold the underperforming Direxion Daily Junior Gold Miners Index Bull 2X Shares (JNUG) position. See the complete commentary for more. Blockchain Innovators: This portfolio had the two best performers of the day among all ZU names... and they were both up in the double digits. Those big winners were Digi Int'l (DGII, +15.5%) and Danaos Corp. (DAC, +13.6%). Actually, Dave's service had three of the Top 5 movers on Thursday as A10 Networks (ATEN) also made the list with a more modest 8.6% advance. 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: zacksSep 21st, 2021

NASDAQ Ends Three-Week Skid Despite Rising Yields

NASDAQ Ends Three-Week Skid Despite Rising Yields Soaring bond yields kept the Dow and NASDAQ on separate paths on Friday, but it wasn’t enough to spoil the week. The major indices all finished these five days with solid gains… and even a couple new all-time highs. The Dow rose 0.90% (or about 293 points) today to 32,778.64, while the S&P was up 0.10% to 3943.34. Those are new closing records for both; the third straight for the former index and the second straight for the latter. Unsurprisingly, the Dow had the strongest week with an advance of 4%, as it is benefiting from the recovery rally amid a new, massive stimulus and accelerated vaccine rollout. The S&P was up 2.6% for the week. The NASDAQ slipped 0.59% (or around 78 points) on Friday to 13,319.86. However, the index broke a three-week losing streak by rising 3% over the five days, thanks to sharp rallies of 3.7% on Tuesday and 2.5% yesterday. It’s been a crazy week for the NASDAQ, which began with a 2.4% plunge on Monday that put the index in correction territory. But now it’s down less than 6% from its closing high from mid-February. Tech’s big problem today was the 10-year Treasury yield soaring well past 1.6% on Friday. It moved above that mark on Monday, but pulled back and moderated in the subsequent few sessions. The major news of the week was passage of the $1.9 trillion covid relief package. Talk about warp speed! The plan was approved by the Senate last weekend with the House following on Wednesday. And then the President signed it yesterday with the first $1400 checks probably going out this weekend. The market is very optimistic right now, though rising rates and inflation fears continue to bother many investors. With earnings season pretty much over and little economic data on the schedule, next week’s Fed meeting could move the market. The Committee keeps saying that the economy is still far from the goals that would necessitate a change in policy, but you never know what investors will focus on in the language. Today's Portfolio Highlights: Headline Trader: The biggest story in the market right now is the economic reopening, so you can probably tell what Dan was thinking when he added Home Depot (HD) on Friday with a 6% allocation. This home improvement giant has traded sideways over the past six months, but it might be ready to break out again as Americans get those $1400 checks as part of the $1.9 trillion stimulus plan. HD is a stable cyclical play with secular characteristics and a “reasonable” valuation. The editor considers this cyclical diversification play to be a “no-brainer” in the current environment. Read the full write-up for a lot more on today’s addition. Blockchain Innovators: The semiconductor – general industry space is in the Top 16% of the Zacks Industry Rank, which was where Dave went for today’s addition. He picked up Amtech Systems (ASYS), which makes capital equipment used by customers that manufacturer semiconductors. It’s a hardware play with some pretty impressive growth expectations for both the top and bottom lines. For example, current year EPS growth is set for 157%, while sales growth is seen at 14.5%. Expectations for next year are solid as well. The full write-up has more on this buy. Be on the lookout for another addition early next week. Meanwhile, Camtek (CAMT) made the top movers list today with an advance of 10.6%. Insider Trader: The upcoming economic reopening has invigorated insiders, so Tracey added two new stocks on Friday. S&T Bancorp (STBA) is a community bank that should benefit from a return to normal and the rising 10-year Treasury yield. A director bought 2300 shares earlier this week, while a different director bought 2000 back on February 17. These insider buys are all the more encouraging since STBA shares are up 23.5% over the past month. The other buy today was Carrol’s Restaurant Group (TAST), the largest franchisee of Burger King with 1010 restaurants. The $1400 stimulus checks should really help this company’s stalled out shares. On Monday, a director (and 10% owner) bought 75,000 shares. The editor will be adding these names with allocations of between 6.5% and 7.5% each after splitting the proceeds from selling Conagra Brands (CAG, +9.9%) and Myers Industries (MYE, +8.9%). Read the full write-up for a lot more on today’s action. ETF Investor: Spending on consumer items and services is likely to surge in the weeks ahead as the vaccine rollout continues and the stimulus checks are sent. In order to capitalize on this return to normalcy, Neena added the Invesco DWA Consumer Cyclicals Momentum ETF (PEZ) on Friday. This fund selects and weights US consumer cyclical stocks by price momentum. About a third of its 30 stocks are restaurants, hotels and leisure names, which will be among the biggest beneficiaries of the rebound. PEZ has a “reasonable” expense ratio of 60 basis points and over $97 million in assets. The editor strongly suggests using a limit order. To make room for PEZ, the portfolio sold SPDR Gold MiniShares Trust (GLDM) for a 14.6% return. The full write-up has more on today’s moves. Surprise Trader: The homebuilders have been successful in the portfolio of late, so Dave went “back to the well” on Friday by adding Lennar (LEN). This Zacks Rank #2 (Buy) has beaten earnings expectations for seven straight quarters now and has a positive Earnings ESP of 7.99% for the report coming after the bell on Tuesday March 16. Last time it beat by approximately 18.5%. The editor added LEN today with a 12.5% allocation, while also selling Purple Innovations (PRPL) for a loss. Read the complete commentary for more. In other news, this portfolio had a top performer on Friday as Golden Entertainment (GDEN) rose 11.3%. Value Investor: Even with stocks hitting new highs all over the place, there’s still value out there if you know where to look. Fortunately, Tracey does know where to find them! On Friday, she added Micron (MU), which fulfills this portfolio’s need for some semiconductor exposure. Last week, this Zacks Rank #2 (Buy) raised its EPS and sales guidance during a fiscal second quarter update. The editor thinks this is a sign that a new “up” cycle has begun. Check out the full commentary for all the specifics on the MU addition, including a detailed look at its value characteristics.   Have a Great Weekend! 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: zacksSep 21st, 2021

NASDAQ Plunges 3% as 10-Year Yield Crosses 1.7%

NASDAQ Plunges 3% as 10-Year Yield Crosses 1.7% Just when you thought the Fed had soothed the jittery mind of investors in its recent statement, bond yields surged again on Thursday and kicked the legs out from under the tech space. The NASDAQ plunged 3.02% (or nearly 410 points) to 13,116.17, which snapped a three-day win streak and puts it down 1.6% for the week heading into Friday. The last time this index dipped by more than 3% was February 25 when it plunged over 3.5%. All of the FAANGs were sharply lower (as you’d expect), especially declines of more than 3% each for Netflix (NFLX), Amazon (AMZN) and Apple (AAPL). Furthermore, Tesla (TSLA) dipped 6.9% and Microsoft (MSFT) slumped nearly 2.7%. The S&P was off 1.48% today to 3915.46. The Dow reached an intraday high earlier, but reversed course and ultimately ended lower by 0.46% (or around 150 points) to 32,862.30. Both of these indices are coming down from record highs set on Wednesday. The S&P is now in the red by 0.7% for this week heading into Friday, but the Dow is up 0.3% over the four days. If the market flipped out when the 10-year Treasury yield moved above 1.6% earlier this year, then it’s certainly going to react when it soars to 1.75% like it did today. It pulled back from that high, but still finished over 1.7% on Thursday. The move comes a day after a close-to-perfect Fed statement, in which the Committee sharply raised its growth forecast for 2021 but said there’ll probably be no rate hikes through 2023. And they’re going to give inflation more latitude before making any change to policy. Adding to today’s pressure was a disappointing jobless claims report, which rose to 770,000 last week. The result wasn’t even in the same neighborhood as expectations at only 700K. It was also more than the previous result of 725K, which was revised up from 712K. Today's Portfolio Highlights: Headline Trader: These days, everybody is spending on data center expansion to capitalize on the “4th Industrial Revolution”. And they’re spending BIG money! For example, a large portion of Alphabet’s (GOOG) $7 billion capital expenditures this year will be going to data centers, which is fabulous news for Equinix (EQIX). It’s the world’s largest data center REIT and has the highest-quality portfolio of network-dense assets. Best of all, approximately 45% of Google Cloud’s onramps are already at one of EQIX’s global locations. The stock pulled back recently on a lower-than-expected forward guidance, so Dan sees an amazing opportunity to pick up a name that’s in one of the market’s sweetest spots. This addition is a play on the economic rebound and the necessity to leverage digital technology as the digital office space continues to grow. Read the full write-up for a lot more on this new addition.   Technology Innovators: A dip in shares of Amkor Technology (AMKR) is giving Brian an opportunity to pick up this chip name at a great price. This Zacks Rank #1 (Strong Buy) is a leading provider of semiconductor packaging and test services. The company has beaten the Zacks Consensus Estimate in each of the last four quarters with an impressive average surprise of 359% over that time. Furthermore, the editor considers AMKR to be “a winner based on valuation alone” given its 13x forward PE and price to book of 2.5x. The portfolio also sold the underperforming C3.ai (AI) position. The full write-up has more on today’s moves. Counterstrike: The NASDAQ is certainly “having some issues” today, which prompted Jeremy to put on a hedge and reduce some risk on Thursday. He added a 5% allocation in ProShares UltraPro Short QQQ (SQQQ), while selling Anaplan (PLAN) and Zillow Group (ZG) for losses. Read the full write-up for more on today’s moves, including why the editor thinks a 200-day test might be in the works for the NASDAQ. In other news, this portfolio had a top performer today as its short position in The RealReal (REAL) advanced approximately 6.5%. TAZR Trader: The NASDAQ is struggling with resistance, so Kevin decided to take some big profits off the table in three positions. He sold Novavax (NVAX) for a 37.5% return in just two weeks and Magnite (MGNI) for 24.5% in about the same amount of time. The editor also cut half of Square (SQ) for 17.4% in about four months. Learn more about these moves in the full write-up. Commodity Innovators: Tight supply issues for palladium has Jeremy thinking that this commodity will continue moving higher. Therefore, he added Aberdeen Standard Physical Palladium Shares ETF (PALL) on Thursday, while also selling UFP Industries (UFPI) for a nice 25.9% return. The editor sees PALL as a long-term holding. Read the full write-up for more. Zacks Short Sell List: This portfolio was made for difficult days like this, so it’s no surprise that it had four of the top five winners in a session when the S&P plunged more than 1.4%. Those strong performances on Thursday came from short positions in Ceridian HCM Holding (CDAY, +7.1%), Twitter (TWTR, +4.8%), Teradata (TDC, +4.7%) and Shopify (SHOP, +4.4%). 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: zacksSep 21st, 2021

Concerns Of Higher Taxes Lead to Lower Stocks

Concerns Of Higher Taxes Lead to Lower Stocks Few things can drain the market’s energy quicker than threats of higher taxes, which is exactly what we got in Thursday’s session. The major indices may have been able to finish in the green today after another encouraging jobless claims print, but any upward movement was ruined by reports that President Biden is considering a hike in capital gains taxes. Actually, the reports say that he proposes nearly doubling the rate to 39.6% from 20% for people making $1 million or more. Now, this is probably just the opening move in Congressional negotiations, where the Democrats hold a slim majority over the Republicans. Nevertheless, investors don’t like hearing that taxes may double, especially when they’re already skittish about a frothy market. As a result, the major indices all dropped by nearly 1% on Thursday. The Dow dipped 0.94% (or about 321 points) to 33815.90, while the S&P was off 0.92% to 4134.98. The NASDAQ was also down by 0.94% (or nearly 132 points) to 13818.41. Unfortunately, another fantastic jobless claims report was wasted. The number for last week was 547,000, which beat expectations that were north of 600K. It also marked a new pandemic low after bettering last week’s upwardly revised print of 586K. The big news of the week (at least until today) has been the better-than-expected start to earnings season. However, a good report doesn't always lead to a rise in share price. Take Intel (INTC) as the latest in a long string of examples. The chipmaker beat on both the top and bottom lines after the bell today, and even raised its guidance for the full year. But it wasn't enough for the market, which was concerned with a drop in the data center segment. Shares of INTC are down 2.8% afterhours as of this writing. Stocks have now slipped in three of the past four sessions, leaving the major indices with declines of more than 1% each heading into Friday. The Dow and S&P are on four-week winning streaks, while the NASDAQ has a three-week run. Today's Portfolio Highlights: Surprise Trader: Not only has Avnet (AVT) beaten the Zacks Consensus Estimate for the past four quarters, but it has also amassed an average surprise of 389% in that time. Now it has a positive Earnings ESP for the quarter coming after the bell on Wednesday. AVT is one of the world’s largest distributors of electronic components and computer products, which makes it part of a space in the top 6% of the Zacks Industry Rank. Dave added AVT on Thursday with a 12.5% allocation, while also selling Alcoa (AA) for a 6.6% return in two weeks. Read the full write-up for more. Insider Trader: In October of 2020, this portfolio cashed in two triple-digit profits from Bed Bath & Beyond (BBBY) as the specialty retailer was in the midst of a turnaround. So Tracey certainly paid attention when three insiders picked up shares in recent days. The CFO bought 20,000 shares on April 16, while two directors also got involved. Shares of BBBY are down 16.8% in the past month, but the company should be a big beneficiary of the upcoming economic boom. Therefore, shares look pretty cheap right now. The service had some cash on hand, so the editor added BBBY on Thursday with a 10% allocation. Get more specifics on this new addition in the complete commentary. Counterstrike: "Taxes are a fundamental driver of investment, so a drastic rise like that would really harm the market. While I think some hike was expected, a move this large was not. I don't think this could pass, but we have to realize this will be a big risk until the potential tax structure becomes clear. "That being said we have a new risk. In a market that is approaching bubble territory, just a little prick can cause violent sell offs like we saw today. The S&P stopped short of yesterday's lows so the 4120 will be the one to watch over the next week. "This week really got interesting quickly. More details on this should be out over the next 24 hours. Stay tuned!" -- Jeremy Mullin 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: zacksSep 21st, 2021

Record Closes for NASDAQ, S&P to Begin Big Tech Week

Record Closes for NASDAQ, S&P to Begin Big Tech Week The NASDAQ registered its first closing high in more than two months on Monday, as the market gets ready for an important week that will see four of the five FAANGs and other major tech names report their quarterly results. The tech-heavy index blew the doors off its counterparts with a rise of 0.87% (or nearly 122 points) to 14,138.78. This marks its first closing high since February 12 and its first close above 14,100. All of the FAANGs were higher. The S&P also reached a new record, though this index has accomplished that feat several times over the past two months. It only needed to advance 0.18% to make history at 4187.62. The Dow was left out of the fun by sliding 0.18% (or nearly 62 points) to 33,981.57. Stocks are returning from a slightly negative week, which broke winning streaks for all the major indices. The main problem came last Thursday on news reports that President Biden was thinking about doubling the capital gains tax on people making $1 million or more. However, a rally on Friday significantly narrowed the losses. The crazy week of earnings got started after the bell today when EV pioneer Tesla (TSLA) reported first quarter results that easily beat expectations. As you might expect, the stock is down approximately 1.7% afterhours, as of this writing. Earnings results have been great so far this season, but the response is often negative as the market is looking for perfection. So it’s going to be really interesting to see how investors respond to what one of the editors has called “the most anticipated week of the Q1 earnings season”. The big FAANG report tomorrow comes from Alphabet (GOOG), but we’ll also be watching Microsoft (MSFT). And then on Wednesday we’ve got Apple (AAPL) and Facebook (FB), while Thursday brings Amazon (AMZN). This week also includes a FOMC meeting and hundreds of other earnings reports that might be overshadowed by the big tech deluge. Some of tomorrow’s other reports include Visa (V), Eli Lilly (LLY), Texas Instruments (TXN), UPS (UPS) and Starbucks (SBUX). Today's Portfolio Highlights: Surprise Trader: For more than three years now, Perficient (PRFT) has been beating the Zacks Consensus Estimate. That’s 14 straight positive surprises stretching back to late 2017! Dave thinks that streak will continue when PRFT reports again before the bell on Thursday. This Zacks Rank #2 (Buy) digital transformation consulting firm has a positive Earnings ESP for the upcoming report. The editor added PRFT on Monday with a 12.5% allocation, while also selling SnapOn (SNA) for a breakeven result in one week. Read the full write-up for more on today’s action. Counterstrike: By now you’ve noticed that a strong quarterly report this earnings season does NOT mean a stock is going to move higher. Therefore, Jeremy sold a couple positions on Monday to secure profits before their unpredictable reports, while also raising cash for potential counterstrike opportunities as stocks needlessly sell off. Enphase Energy (ENPH) is a volatile solar stock that reports tomorrow night, so the editor sold it today for a nice 25% return in less than two months. And it doesn’t look like Qorvo (QRVO) will break $200 before earnings next week, so the RF solutions company was sold for more than 19% in less than three months. Meanwhile, online pet retailer Chewy (CHWY) looks secure above its 200-day, so Jeremy added 4% more to the position. It was originally purchased on April 7. Read the full write-up for more on today’s moves. Technology Innovators: It’s not all about growth for this portfolio. Brian also wants to add stocks with a high degree of stability. Upland Software (UPLD) offers both of these attributes. This Zacks Rank #2 (Buy) enterprise software name has beaten the Zacks Consensus Estimate in the past four quarters with an average surprise of 30.4%. The editor likes its valuation when compared to industry averages, along with its topline growth of 18% in the most recent quarter and 31% last year. The addition of UPLD fills one of two open spots in the service, so get ready for another buy in the days ahead. Learn more about this addition in the full write-up. In other news, this portfolio had a top performer today as Clearfield (CLFD) rose 9%. Commodity Innovators: The portfolio needed more exposure to specialty and precious metals, so Jeremy added Sibayne Gold (SBSW) on Monday. Despite its name, this Zacks Rank #1 (Strong Buy) is much more than a gold company. It also has operations in platinum, rhodium and palladium. The editor really appreciates its entry into the lithium market in Finland, which gives them a piece of the burgeoning battery metal space. SBSW offers a 7% dividend payout and has slowly drifted higher by about 15% over the past year. Jeremy thinks it will continue and sees this stock as a long-term holding. Read the complete commentary for more. Healthcare Innovators: One of the main reasons why Kevin added Axsome Therapeutics (AXSM) last week was the likely approval of its AXS-05 treatment for depression. Well, the company took a big step toward that goal when the FDA accepted its New Drug Application for AXS-05, which could be a potential blockbuster moving forward. As a result, AXSM was the best performer of the day among all ZU names by jumping 11%. By the way, this portfolio had three of the top performers of the session as Intellia Therapeutics (NTLA, +8.3%) and uniQure (QURE, +8.3%) also made the list. Black Box Trader: The portfolio replaced four names in this week's adjustment. The positions that were sold today included: • Jefferies Financial Group (JEF, +7.7%) • Olin Corp. (OLN, +5%) • Marathon Petroleum (MPC) • Dow, Inc. (DOW) The new additions that filled these spots were: • Deutsche Bank (DB) • Domtar Corp. (UFS) • Tenet Healthcare (THC) • U.S. Steel (X) Read the Black Box Trader’s Guide to learn more about this computer-driven service. Headline Trader: "Today kicks off the biggest week of this highly anticipated Q1 earnings season, and I am ready to pull the buy trigger on some well-positioned stocks that experience profit pulls on solid results. Any report less than exceptional could catalyze a share price pull back for stocks across the board." -- Dan Laboe Until Tomorrow, 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: zacksSep 21st, 2021

Dow Drops Over 1% on Market"s Second Straight Day of Losses

Dow Drops Over 1% on Market's Second Straight Day of Losses SPECIAL ALERT: The May episode of the Zacks Ultimate Strategy Session is now available for viewing! Tune in to this “must-see” event when Kevin Matras, David Bartosiak, Dr. John Blank, Daniel Laboe and Sheraz Mian discuss the investment landscape from several angles. Don’t miss your chance to hear: ▪ David and John Agree to Disagree on whether Cryptocurrencies remain a key building block in a FinTech future or whether leverage, momentum-buying and other forces distort prices ▪ Kevin answers why some individuals see their portfolios going down while the Dow and S&P 500 make new highs in Zacks Mailbag ▪ Sheraz and Daniel choose one portfolio to give feedback for improvement ▪ And much more Simply log on to Zacks.com and view the May episode here. And please let us know what you think of this format. Email all feedback to mailbag@zacks.com. That makes back-to-back losing sessions for the market on Tuesday, but this time the Dow got the worst of it with a plunge of well over 1%. Tech actually had a late-day rally that nearly brought the beleaguered NASDAQ to breakeven… but not quite. Tech may be out of favor at the moment given concerns of rising inflation and a frothy market, but a lot of the big stocks from the space found some buyers later in the session. Names like Apple (AAPL), Tesla (TSLA) and Amazon (AMZN) bounced after hitting their 200-days. AMZN finished with a gain of more than 1%, as did fellow FAANG Netflix (NFLX, +1.7%). As a result, the NASDAQ plunged over 2% at one point on Tuesday, but rallied in the second half and finished lower by only 0.09% (or about 12 points) to 13,389.43. The index dropped more than 2.5% just yesterday, so it was spared a more than 4% rout in two days. Meanwhile, the S&P slipped another 0.87% to 4152.10, following a 1.04% dip on Monday. The Dow has been the beneficiary of the rotation out of tech, but it just couldn’t get it together today. The index slipped 1.36% (or about 473 points) to 34,269.16, which marked its first drop of more than 400 points since late February. It was up 2.7% last week after hitting record closes in the final three sessions, but it’s been in a sluggish mood of late.    “Rough start to the week. If you’re like me and took a couple hits, its time to get your head right and have a green day tomorrow. Time to tighten things up, stay nimble and not permit draw downs,” said Jeremy Mullin in today’s Counterstrike. Inflation seems to be the market’s favorite topic at the moment, and it will take centerstage tomorrow when the consumer price index for April is released. It’s expected to show a huge gain and could be a factor in tomorrow’s trading. We'll also be getting earnings reports from well over 100 companies on Wednesday. Today's Portfolio Highlights: Stocks Under $10: The market doesn't like technology right now, so Brian decided to take a few of those names off the table on Tuesday and cash in a couple double-digit winners. He sold Himax Technologies (HIMX) for 31.8% in less than four months and Extreme Networks (EXTR) for a 16.8% return in two months. Immersion Corp. (IMMR) was also sold for a loss. The editor immediately filled one of those opened spots today by adding office products company Acco Brands Corp. (ACCO). The company has beaten the Zacks Consensus Estimate in each of the last four quarters and has an “awesome” valuation. Rising earnings estimates for this year and next have made ACCO a Zacks Rank #2 (Buy). Learn a lot more about today’s moves in the complete commentary. In other news, this portfolio has the best performer among all ZU names over the past 30 days as GT Biopharma (GTBP) soared 44.6%. It also has the third biggest mover in that time with Cross Country Healthcare (CCRN, +30.3%).  Surprise Trader: The retailers are coming! Dave might be picking up some big box stores in the days ahead, but he’s going out West for the season’s first pick. Boot Barn (BOOT) is a Zacks Rank #2 (Buy) lifestyle retail chain devoted to western and work-related footwear, apparel and accessories. The company has a positive Earnings ESP of 20.46% for the quarter coming after the bell tomorrow. The editor added BOOT on Tuesday with a 12.5% allocation, while also selling Avnet (AVT) for a small loss. See the complete commentary for more on today’s action. By the way, this portfolio had the best performer of the day as home fitness equipment maker Nautilus Group (NLS) rose 9.9% after a strong quarterly report. TAZR Trader: Amid all the NASDAQ craziness on Monday, Magnite (MGNI) was reporting a solid quarter with the top and bottom lines both improving solidly on a year-over-year basis. This provider of a sell-side advertising platform hasn’t done much since being re-added back in late March, but the portfolio did pull a 25% profit out of this name earlier in the year. Kevin still likes MGNI and used today’s pullback to add more to the position. Read the full write-up to learn what the analysts are saying about MGNI and to get an update on The Trade Desk (TTD). Zacks Short Sell List: Two names were swapped out in this week's adjustment. The portfolio short-covered Southwest Airlines (LUV, +2.05%) and T-Mobile US (TMUS). The new buys that replaced these names were Chegg (CHGG) and China Lodging Group (HTHT). Learn more about this emotion-free portfolio that takes advantage of falling and volatile markets by reading the Short Sell List Trader Guide. Headline Trader: "Investors are doing a quarterly reassessment of their holdings at these frothy levels and are making the proper reallocations. Since November, we have been experiencing this rotation from tech to cyclicals, with growth consolidating and value stocks driving the market higher. "Many analysts and investors are convinced that this trend will continue despite today's minor reversal, but I remain skeptical. Many of these value names already sit at stretched levels. "The price drops we see across the public equity market create a much more attractive setup for fresh capital than what we were looking at a couple of weeks ago. Everyone is hunting for a bottom, and that is what drove the tech bid today. Investors and traders (specifically this new cohort of retail traders) are always looking for a reason to buy up exciting innovation names." -- Dan Laboe 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: zacksSep 21st, 2021

Stocks Drop 2% as Inflation Jumps

Stocks Drop 2% as Inflation Jumps SPECIAL ALERT: Remember, the May episode of the Zacks Ultimate Strategy Session is now  available for viewing! Don’t miss your chance to hear: ▪ David Bartosiak and Dr. John Blank Agree to Disagree on whether Cryptocurrencies remain a key building block in a FinTech future or whether leverage, momentum-buying and other forces distort prices ▪ Kevin Matras answers why some individuals see their portfolios going down while the Dow and S&P 500 make new highs in Zacks Mailbag ▪ Sheraz Mian and Daniel Laboe choose one portfolio to give feedback for improvement ▪ Market conditions from both fundamental and technical views ▪ The full list of top-performing stocks over the past 30 days ▪ New stocks added to the Zacks Ultimate portfolio ▪ And much more Simply log on to Zacks.com and view the May episode here. And please let us know what you think of these monthly episodes. Email all feedback to mailbag@zacks.com. The market had one of its worst sessions of the year on Wednesday as economic data showed inflation is rising faster than expected, which is pretty much the last thing investors wanted to hear even if it isn’t much of a surprise. Couldn’t you just feel that the CPI was going to be a big deal today?  Consumer prices soared 4.2% in April year over year, which jumped past expectations of around 3.5%. Core CPI (which excludes food and energy) rose more than forecasts at 3%. Results on a monthly basis also spiked. Despite the Fed’s numerous reiterations that rates would stay near zero for the foreseeable future, skittish investors have found it hard to believe such dovish talk in this hot market. The NASDAQ plunged 2.67% (or about 357 points) to 13,031.68. This marks the second plunge of more than 2% this week as the market is giving the cold shoulder to growth names like tech.   All of the FAANGs were sharply lower, especially Alphabet (GOOG, -3.02%). Meanwhile, Apple (AAPL), Amazon (AMZN) and Netflix (NFLX) were each down by 2% or more. Microsoft (MSFT) was off by nearly 3%. The S&P slipped 2.14% to 4063.04, while the Dow plunged just under 2% (or about 680 points) to 33,587.66. The last time the index dropped more than 600 points was back in January.   “Inflation is here and it’s not transitory as the Fed suggests. Another print like that and the Fed will have to admit that and look to raise rates,” said Jeremy Mullin in Counterstrike. Tomorrow will likely be the busiest day of this week. We’ll have our fair share of data with PPI and jobless claims being released. But it’ll also be a big earnings day with Alibaba (BABA) coming before the bell and Disney (DIS) releasing after the close. Today's Portfolio Highlights: Home Run Investor: Tech stocks won’t go down forever and the chip shortage will be ending soon, so Brian thought this was a good time to add Ultra Clean Holdings (UCTT) to the portfolio. This Zacks Rank #1 (Strong Buy) develops and supplies critical subsystems for the semiconductor capital equipment, flat panel, solar and medical device industries. The past four quarters have all been beats for UCTT with an average surprise of 26.8% in that time. The editor believes a forward PE of 12x is “super low for a tech name that grew 30% in the most recent quarter”. Looking forward, the topline is expected to grow 42% for the full year. Brian thinks the stock will return to its highs by the end of the year. Read the full write-up for more on this new addition.   TAZR Trader: Growth stocks are in the midst of a “valuation re-set” right now, which means names across the spectrum are getting shellacked. That includes a software-as-a-service company like BigCommerce (BIGC). However, the company’s ARR (annual revenue run-rate) growth continues to escalate, which helped convince two firms to upgrade the stock as part of their re-evaluations. Therefore, Kevin decided to add more to his BIGC position on Wednesday. Read the full write-up for more. Zacks Short Sell List: It's no surprise that this portfolio dominated the top performers on Wednesday. The service was made for selloffs like today! All 10 of the portfolio’s holdings declined in the session, half of them by more than 3% - StoneCo (STNE, +4.87%), Twitter (TWTR, +4.12%), NovoCure (NVCR, +3.66%), China Lodging Group (HTHT, +3.47%) and Chegg Inc (CHGG, +3.27%). By the way, the short in TWTR is now the best performer over the past 30 days with a gain of 28.45%. Learn more about this emotion-free portfolio that takes advantage of falling and volatile markets by reading the Short Sell List Trader Guide. Options Trader: "The catalyst that everyone is pointing to is the inflation report we got this morning. Quite frankly, none of this should come as a surprise. Everyone has been saying we're going to see an uptick in inflation. In fact, it's desired. "However, when you add the CPI report to an already uneasy market given the run-up in gas prices, the rising tensions in the Middle East, and last week's disappointing employment report, the market was ripe for a pullback. And that's what we're seeing now. "These types of pullbacks are never fun. But they are healthy nonetheless. And it will give people a chance to pull profits. And ultimately pick up stocks at cheaper prices to position themselves for the next leg up. "Make sure you keep focused on the big picture. Remember, people are talking about inflation because they are expecting the economy to accelerate. Because they are expecting to see full-year GDP come in at the fastest pace in 36 years or greater. Those things are bullish." -- Kevin Matras Until Tomorrow, 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: zacksSep 21st, 2021

Dow Soars Nearly 600 Points as Stocks Stage Big Comeback

Dow Soars Nearly 600 Points as Stocks Stage Big Comeback The major indices began the week with a sharp rally that recovered Friday’s losses. The Dow was especially impressive by soaring nearly 600 points on Monday as the market calmed down over the weekend from the Fed’s modestly-hawkish announcement in its recent meeting. When last we left you, investors were in a rather sour mood. The Dow just had its worst week of the year by plunging 3.6%. Friday's decline was a delayed reaction to the Fed announcement on Wednesday, in which the Committee raised its inflation projection and opened the possibility of two rate hikes in 2023. Quadruple witching added to the volatility. But on second thought, maybe that selloff was a bit of an overreaction. The Dow returned today and launched 1.76% (or nearly 587 points) to 33,876.97. Therefore, the index recovered all of Friday’s 533-point plunge and then some. Recovery names outperformed tech on Monday, which has been rare over the past few weeks as investors have been fretting over higher inflation. The S&P also got back all of Friday’s losses with a jump of 1.4% to 4224.79. The NASDAQ rose 0.79% (or about 111 points) to 14141.48, which was most of its recent deficit. Both of these indices were at record highs at this time last Monday, but finished that week lower by 1.9% and 0.3%, respectively. “What drove stocks higher? The same thing that’s been driving them higher all year – the improving economy and prospects for even bigger growth ahead,” said Kevin Matras in today’s Options Trader. “With the country opening back up, and life starting to get back to something closer to normal, there’s huge pent-up demand out there that’s fueling growth.” Will the market continue moving higher the rest of this week and set new all-time highs? Or do we need another significant pullback before stocks move higher? It’s tough to tell in the current environment. Let’s see what happens tomorrow. Today's Portfolio Highlights: Home Run Investor: One of the biggest success stories in all ZU services has been Cassava Sciences (SAVA), which is up more than 1,000% in less than six months for Stocks Under $10. There’s a lot of excitement over the company’s Alzheimer’s therapy. Now Brian wants some exposure to that space for this portfolio and found a name that "could do just as well if not better”. Athira Pharma (ATHA) is a late clinical-stage biopharmaceutical company focused on developing small molecules to restore neuronal health and stop neurodegeneration. The company plunged 40% on Friday due to a weird story about its CEO altering images in her doctoral work. She’s been placed on leave. So does this scandal negate the company’s positive developments, which includes moving onto a Phase 2 trial? The editor says ‘NO!’ and capitalized on that plunge by adding ATHA to the portfolio today. He also sold Matson (MATX) and Echo Global (ECHO), which have not performed well as the price of oil increased. Read the full write-up for more on these moves. By the way, Smith & Wesson Brands (SWBI) gained 18.5% today, making this firearms company the best performer among all ZU names for the second straight session. TAZR Trader: Eventually, Kevin believes that Shopify (SHOP) will surpass $1700, but he thinks this market is due for one more big dip before a July-August rally. Therefore, he trimmed some profits from this cloud-based, multi-channel commerce platform and banked a 31% return in a little over three months. The editor also trimmed the BigCommerce Holdings (BIGC) position for 8.1% in four months. Read the full write-up for more specifics. Black Box Trader: More than half of the portfolio was replaced in this week's adjustment. The stocks that were sold today included: • Cornerstone Building Brands (CNR, +3.3%) • Alcoa (AA, +1.7%) • Toll Brothers (TOL) • Dick's Sporting Goods (DKS) • Party City Holdco (PRTY) • CNH Industrial N.V. (CNHI) The new buys that filled these open spots were: • American Axle & Manufacturing (AXL) • Avis Budget Group (CAR) • Build-A-Bear Workshop (BBW) • Realogy Holdings (RLGY) • The Chemours Company (CC) • Tronox Holdings (TROX) Read the Black Box Trader’s Guide to learn more about this computer-driven service. Headline Trader: "I wouldn't be surprised if we saw a market pullback (5-10% pulldown) in the coming months, but there is just too much sidelined cash buying up the dips for a more substantial pulldown. As I have said in many prior commentaries, the equity markets remain the most attractive place to hold your capital. "The credit markets are low-yielding, the retail investor revolution has ignited, and the persistent easy money policy from the Federal Reserve is going to continue to drive capital into the equity markets. Still, fund managers are waiting for a buying catalyst, and the Q2 earnings season, which initiates next month, could be the impetus we need." -- Dan Laboe Until Tomorrow, 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: zacksSep 21st, 2021

Stocks Down Again but Positive Week Still Possible

Stocks Down Again but Positive Week Still Possible SPECIAL ALERT: Remember, the September episode of the Zacks Ultimate Strategy Session is now available for viewing! Don’t miss your chance to hear:   ▪ Kevin Cook and Dr. John Blank Agree to Disagree on where the S&P 500 will end in 2021   ▪ Kevin Matras answers questions covering Breakaway, Runaway and Exhaustion gaps in Zacks Mailbag ▪ Sheraz Mian and Daniel Laboe choose one portfolio to give feedback for improvement ▪ Market conditions from both fundamental and technical views ▪ The full list of top-performing stocks over the past 30 days ▪ New stocks added to the Zacks Ultimate portfolio ▪ And much more Simply log on to Zacks.com and view the September episode here. And please let us know what you think of these monthly episodes. Email all feedback to mailbag@zacks.com. The good thing about this short and boring week is that it’s almost over. All of the major indices declined for a second straight session on Thursday, while two of them now have four-day losing streaks as investors worry about the delta variant impacting growth. The S&P slipped 0.46% today to 4493.28, while the Dow was off 0.43% (or about 151 points) to 34,879.38. These indices haven’t closed in the green since last Thursday just before the disheartening jobs report for August. The NASDAQ held up well under these challenges early on and even reached a new record on Tuesday but has now slumped for two straight sessions. It was off 0.25% (or about 38 points) today to 15,248.25. “The broader public equity market is yet to show any directional impetus since September began,” said Dan Laboe in Headline Trader. “As we all know, September is historically the weakest month for equities, and precariously, market participants are determining whether the recovering economic momentum from the Delta-dent will push the stocks another leg higher or if it's time to start taking some protective measures.” But despite all the declines in recent days, it’s important to note that volume has been very low. Stocks are still in the neighborhood of all-time highs and could possibly finish the week on positive ground with a late rally. The Dow is down by about 1.4% over the past three days heading into Friday, while the other major indices are off by less than 1%. “Right now, the bears are in charge, but they don't have their hands tightly on the reins. The bulls could be back at any time,” said Tracey Ryniec in Insider Trader. We received another encouraging jobless claims report on Thursday, as the print came to only 310,000. The result was better than expectations at 335K and the previous week’s 340K. It also marks another pandemic-era low, which is a welcomed development for an economy that's wondering about the health of this recovery. Well, let’s see if the market can finally pick a direction and rally out this short week on Friday. Maybe we can still finish with gains for these four days. Weirder things have happened… Today's Portfolio Highlights: Insider Trader: Have you experienced any trouble buying clothes recently? Seen a lot of “sold out” signs of late? The problem is that many apparel retailers are suffering from severe supply chain issues that have many investors wondering if there’ll be enough product to match the rising demand. That’s what happened to Abercrombie (ANF), as shares plunged after its second quarter report despite “crushing” expectations and earning more in one quarter than in any year since 2013. Even with these complications though, a director bought 1000 shares on Sept 2. Tracey thinks this insider sees a bargain after the pullback. The editor added ANF on Thursday with a 10% position, though warns this is a “risky addition” that could be very volatile. In other news, Tracey also sold half of Digital Turbine (APPS) for a nice 21% return in less than two weeks and all of Dollar Tree (DLTR) since “it’s not going anywhere”. Read the full write-up for more on all of today’s action. Meanwhile, APPS was also a top performer today by climbing 4.8%, while ONESPAN (OSPN) made the list with a gain of 4.2%. Blockchain Innovators: Simply put, you don’t offer wire transfer and processing services in the 21st century without blockchain. Therefore, International Money Express (IMXI) is a pure play in the field, especially when you consider that the company partners with Ripple to use their On-Demand Liquidity product to send money in real time across international borders. IMXI is a Zacks Rank #2 (Buy) with a strong earnings trend that started back in the second half of 2020. Revenue growth is impressive at 24.72% this year and 12.36% next year. Dave added IMXI to the portfolio on Thursday, while also selling CalAmp (CAMP). Read the full write-up for more on today’s moves. In other news, this portfolio also had the top performer on Thursday as iClick Interactive Asia Group (ICLK) jumped 11.5%.  Headline Trader: "It was another fruitless battle between bulls and bears who have shown progressively less conviction on each side of both sides of the equation. "All the major blue-chip indices oscillated around even for most of the day with no substantial enough catalyst to persuade market-moving institutions to gain any bullish traction, leading to a broad afternoon market spill. "The recent market price action indicates that public equities are fully (if not more than adequately) priced at these levels. I would love to see a broader public equity dip, which would undoubtedly inspire fresh bullish capital to slingshot the markets another level higher." -- Dan Laboe See You Friday, 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: zacksSep 21st, 2021

Taliban Order Kabul Government Female Employees To Leave Workforce, Stay At Home

Taliban Order Kabul Government Female Employees To Leave Workforce, Stay At Home Authored by Isabel van Brugen via The Epoch Times, The Taliban terrorist group has ordered the majority of women employed in Kabul’s city government to exit the workforce and remain at home, the interim mayor of Afghanistan’s capital announced on Sept 19. During his first press briefing since being appointed by the Taliban, interim Kabul Mayor Hamdullah Namony said that women must remain at home regardless of their employment status, pending a further decision. Exceptions may be made for women who can’t be replaced by men, including some in the design and engineering departments, and the attendants of public toilets for women, he said. “There are some areas that men can’t do it; we have to ask our female staff to fulfill their duties, there is no alternative for it,” the interim mayor said. Namony noted that before the Taliban seized control of Kabul on Aug. 15, nearly 1,000 of the roughly 3,000 city employees were women. They were working across all departments. The decision to prevent most female city workers from returning to their jobs is another sign that the terrorist group is enforcing its harsh interpretation of Islam, despite initial promises by those involved in peace talks that they would form a representative government with other Afghan leaders that was more inclusive and respected human rights. In their previous rule in the 1990s, the Taliban had barred girls and women from schools, jobs, and public life. In recent days, the new Taliban government issued several decrees affecting girls and women. It told female middle and high school students that they couldn’t return to school for the time being, while boys in those grades resumed studies this weekend. Female university students were informed that studies would now take place in gender-segregated settings, and that they must abide by a strict Islamic dress code. Under the U.S.-backed government deposed by the Taliban, university studies could be offered as co-ed, for the most part. The anti-Taliban National Resistance Front of Afghanistan (NRF) on Sept. 20 condemned the Taliban regime’s move to ban secondary schools for girls in the country, saying that it has always been separated in the country, and therefore, the question of segregating classrooms “should never arise in the first place.” “The regime’s position as elaborated by its various spokesmen is but a reaffirmation of its long-held retrograde view that women should be consigned to household chores,” the NRF said. “Its utter ignorance of the age-old reality of secondary education system in the country betrays the alien nature of the regime.” Across Afghanistan, women in many areas have been told to stay home from their jobs, both in the public and private sectors. However, the Taliban hasn’t yet announced a uniform policy. The comments by the Kabul mayor were unusually specific and affected a large female workforce that had been involved in running a sprawling city of more than 5 million people. Separately, on Sept. 17, the Taliban replaced the city’s Women’s Affairs Ministry with a new ministry for the “propagation of virtue and the prevention of vice,” forcing out former employees. Tyler Durden Tue, 09/21/2021 - 03:30.....»»

Category: blogSource: zerohedgeSep 21st, 2021

BANK OF AMERICA: Buy these 34 high-returning but lesser-known stocks because economic trends show they"re the best bet for outperformance

Bank of America says small companies with steady earnings and low debt have consistency beaten the market in these kinds of economic conditions. Launch of the Soyuz rocket will send Ford, Novitskiy and Tarelkin on a five-month mission aboard the International Space Station Bill Ingalls/NASA via Getty Images Bank of America says the economy might already be entering the last stage of the post-COVID cycle. Strategist Jill Carey Hall says "quality" small- and mid-cap stocks thrive in late-cycle conditions. Since 1990, they've outperformed 100% of the time during the last phase of an expansion, she says. See more stories on Insider's business page. There's something of a consensus forming on Wall Street that says investors should take a good, long look at "quality" stocks.The market seems to have shaken off its fear that Chinese real estate lender Evergrande was going to be the start of a global debt crisis. But even so, there's been a rising sense of nervousness in the market in recent weeks as experts note how long it's been since stocks sold off in a major way - even though time alone doesn't make those sales happen.Investors' worries about a downturn have prompted them to buy companies that have a history of low debt, financial health, steady earnings, and stable profits on the theory that company performance and stock performance will hold up better if things go south.Goldman Sachs recently pointed out some of its large-cap quality picks, and now Bank of America is doing the same for smaller- and medium-size companies. Equity and quant strategist Jill Carey Hall writes that that call makes sense because of economic conditions as well as that undercurrent of investor nerves."Our team's US Regime Indicator - which has continued advancing through "Mid-Cycle" throughout 2021 - ticked down in August," she wrote on Wednesday. "If it declines again in Sept., this would suggest a shift to Late Cycle."Among those small- and mid-cap companies, Carey Hall says that investing based on quality has an incredible track record."High Quality stocks have outperformed the equal-weighted Russell 2000 index 100% of the time in Late Cycle regimes since 1990," she wrote. The two best quality factors are return on capital and free cash flow return on assets.The stocks below all have "Buy" ratings from Bank of America's analysts, and they're among the top 20% of Russell 2000 stocks in one of those two categories, which suggests they'll do well in the late-cycle environment Carey Hall identified.A select few stocks rank in the top quintile in both factors. Those are Rent-A-Center, RH, Cactus, HealthEquity, TTEC, and Enphase. Fox Factory Fox Factory Markets Insider Ticker: FOXFSector: Consumer discretionaryIndustry: Auto componentsMarket cap: $6.3 billionSource: Bank of America Funko Funko Markets Insider Ticker: FNKOSector: Consumer discretionaryIndustry: DistributorsMarket cap: $715 millionSource: Bank of America Churchill Downs Churchill Downs Markets Insider Ticker: CHDNSector: Consumer discretionaryIndustry: Hotels, restaurants, & leisureMarket cap: $9.0 billionSource: Bank of America Sonos Sonos Markets Insider Ticker: SONOSector: Consumer discretionaryIndustry: Household durablesMarket cap: $4.6 billionSource: Bank of America Shutterstock Shutterstock Markets Insider Ticker: SSTKSector: Consumer discretionaryIndustry: Internet & direct marketing retailMarket cap: $4.3 billionSource: Bank of America PROG Holdings PROG Holdings Markets Insider Ticker: PRGSector: Consumer discretionaryIndustry: Specialty retailMarket cap: $2.8 billionSource: Bank of America America's Car-Mart America's Car-Mart Markets Insider Ticker: CRMTSector: Consumer discretionaryIndustry: Specialty retailMarket cap: $793 millionSource: Bank of America Asbury Automotive Group Asbury Automotive Markets Insider Ticker: ABGSector: Consumer discretionaryIndustry: Specialty retailMarket cap: $3.6 billionSource: Bank of America Bed Bath & Beyond Bed Bath & Beyond Markets Insider Ticker: BBBYSector: Consumer discretionaryIndustry: Specialty retailMarket cap: $2.5 billionSource: Bank of America Hibbett Hibbett Sports Markets Insider Ticker: HIBBSector: Consumer discretionaryIndustry: Specialty retailMarket cap: $1.2 billionSource: Bank of America Lithia Motors Lithia Motors Markets Insider Ticker: LADSector: Consumer discretionaryIndustry: Specialty retail Market cap: $10.2 billionSource: Bank of America Rent-A-Center Rent-A-Center Markets Insider Ticker: RCIISector: Consumer discretionaryIndustry: Specialty retailMarket cap: $4.1 billionSource: Bank of America RH RH Markets Insider Ticker: RHSector: Consumer discretionaryIndustry: Specialty retailMarket cap: $14.4 billionSource: Bank of America BJ's Wholesale Club Holdings BJ's Wholesale Club Markets Insider Ticker: BJSector: Consumer staplesIndustry: Food & staples retailingMarket cap:Source: Bank of America Cactus Cactus Markets Insider Ticker: WHDSector: EnergyIndustry: Energy equipment & servicesMarket cap: $1.9 billionSource: Bank of America Northern Oil and Gas Northern Oil & Gas Markets Insider Ticker: NOGSector: EnergyIndustry: Oil, gas, & consumable fuelsMarket cap: $1.2 billionSource: Bank of America Arena Pharmaceuticals Arena Pharma Markets Insider Ticker: ARNASector: HealthcareIndustry: BiotechnologyMarket cap: $3.7 billionSource: Bank of America MeiraGTx Holdings MeiraGTX Markets Insider Ticker: MGTXSector: HealthcareIndustry: BiotechnologyMarket cap: $592 millionSource: Bank of America Vanda Pharmaceuticals Vanda Pharma Markets Insider Ticker: VNDASector: HealthcareIndustry: BiotechnologyMarket cap: $932 millionSource: Bank of America AMN Healthcare Services AMN Healthcare Markets Insider Ticker: AMNSector: HealthcareIndustry: Healthcare providers & servicesMarket cap: $5.4 billionSource: Bank of America HealthEquity HealthEquity Markets Insider Ticker: HQYSector: HealthcareIndustry: Healthcare providers & servicesMarket cap: $5.2 billionSource: Bank of America R1 RCM R1 RCM Markets Insider Ticker: RCMSector: HealthcareIndustry: Healthcare providers & servicesMarket cap: $6.0 billionSource: Bank of America Allegiant Travel Allegiant Travel Markets Insider Ticker: AGLTSector: IndustrialsIndustry: AirlinesMarket cap: $3.6 billionSource: Bank of America Construction Partners Construction Partners Markets Insider Ticker: ROADSector: IndustrialsIndustry: Construction & engineeringMarket cap: $1.7 billionSource: Bank of America Generac Holdings Generac Markets Insider Ticker: GNRCSector: IndustrialsIndustry: Electrical equipmentMarket cap: $27.9 billionSource: Bank of America Meritor Meritor Markets Insider Ticker: MTORSector: IndustrialsIndustry: MachineryMarket cap: $1.5 billionSource: Bank of America ASGN ASGN Markets Insider Ticker: ASGNSector: IndustrialsIndustry: Professional servicesMarket cap: $6.0 billionSource: Bank of America ArcBest ArcBest Markets Insider Ticker: ARCBSector: IndustrialsIndustry: Road & railMarket cap: $1.9 billionSource: Bank of America Werner Enterprises Werner Enterprises Markets Insider Ticker: WERNSector: IndustrialsIndustry: Road & railMarket cap: $3.2 billionSource: Bank of America Rush Enterprises Rush Enterprises Markets Insider Ticker: RUSHASector: IndustrialsIndustry: Trading companies & distributorsMarket cap: $2.4 billionSource: Bank of America TTEC Holdings TTEC Holdings Markets Insider Ticker: TTECSector: Information technologyIndustry: IT servicesMarket cap: $4.4 billionSource: Bank of America Enphase Energy Enphase Markets Insider Ticker: ENPHSector: Information technologyIndustry: Semiconductors & semiconductor equipmentMarket cap: $21.3 billionSource: Bank of America Louisiana-Pacific Louisiana-Pacific Markets Insider Ticker: LPXSector: MaterialsIndustry: Paper & forest productsMarket cap: $5.7 billionSource: Bank of America Newmark Group Newmark Markets Insider Ticker: NMRKSector: Real estateIndustry: Real estate management & developmentMarket cap: $2.7 billionSource: Bank of America  Read the original article on Business Insider.....»»

Category: worldSource: nyt19 hr. 39 min. ago

A witness said the Taliban hung a body from a crane in a city square in western Afghanistan: report

It's an indication the Taliban plans to resume harsh tactics employed when it previously ruled despite earlier claims for plans to rule moderately. People look up at a dead body hanged by the Taliban from a crane in the main square of Herat city in western Afghanistan, on Saturday, September 29, 2021. AP Photo The Taliban on Saturday hung a dead body from a crane in the town square in the western Afghanistan city of Herat, the Associated Press reported. Four bodies were displayed in the main square while three others were displayed elsewhere in the city, a witness told the AP. The Taliban said the four people displayed in the town square were killed by police because they participated in a kidnapping. See more stories on Insider's business page. The Taliban on Saturday hung a dead body from a crane in the city square in the western Afghanistan city of Herat, a witness to the event told the Associated Press.According to the report, Wazir Ahmad Seddiqi, who owns a pharmacy in the square, said the Taliban brought four bodies to the main square while three others were displayed elsewhere in the city. Seddiqi told the AP that the Taliban said the four people displayed in the town square had participated in a kidnapping and were killed by police, according to the report.According to the AP, a Taliban-appointed police chief said the four men were killed in crossfire when a father and son were abducted by the kidnappers. A civilian and Taliban fighter were wounded while the four kidnappers were killed in the exchange of gunfire, the police chief Ziaulhaq Jalali said, according to the AP.Taliban co-founder Mullah Nooruddin Turabi previously told the Associated Press that it planned to once again carry out executions and amputations of hands as punishment, according to the report, an indication the group plans to resume the harsh tactics it employed when it previously ruled in Afghanistan despite its earlier claims it planned to rule more moderately. "Everyone criticized us for the punishments in the stadium, but we have never said anything about their laws and their punishments," Turabi told the AP earlier this week. "No one will tell us what our laws should be. We will follow Islam and we will make our laws on the Quran."The Taliban took control of Afghanistan in August, seizing city after city with little push back from the Afghanistan military. It took the country's capital city on August 15 as the country's president fled Afghanistan and the US military underwent a rapid withdrawal from the country after a two-decade occupation. The Taliban had been booted from control in Afghanistan in 2001 when the US entered the country. Read the original article on Business Insider.....»»

Category: personnelSource: nytSep 25th, 2021

While world leaders are at the UN talking climate change, their private jets are often forced to fly and park hundreds of miles away

An obscure rule forces aircraft ferrying world leaders to the UN to fly far away to find parking during the UN General Assembly. Boris Johnson speaking at the United Nations General Assembly EDUARDO MUNOZ/POOL/AFP/Getty World leaders from across the globe flew into New York City to attend the United Nations General Assembly. Their aircraft, however, weren't allowed to stay at New York City's airports due to a long-standing rule. Boris Johnson took Amtrak's Acela from New York to Washington, DC while his plane was parked in Virginia. See more stories on Insider's business page. New York City in September is a hotspot for world leaders as the United Nations holds its annual General Assembly. Climate change is a key topic at this year's conference, with leaders including President Joe Biden announcing additional investments in climate finance for developing countries. But while leaders talk about commitments to climate change on the world stage, their government planes are burning extra jet fuel by flying empty to airports across the Northeast just to park during the event. New York's JFK International Airport is the preferred gateway to the UN for many visiting countries due to its proximity to Manhattan. A long-standing rule of the Port Authority of New York and New Jersey, however, restricts those aircraft from staying at JFK while their passengers head to the UN. Foreign military and state aircraft are barred from staying at Port Authority airports overnight due to traffic and space constraints, a spokesperson confirmed to Insider. After they've landed at a Port airport, those aircraft have two hours to depart for another airport where they'll park while in the US.Commercial airports under the Port's purview also include LaGuardia and Newark Liberty International. New York Stewart International Airport in Newburgh, New York, around 60 miles north of the UN, is a popular parking spot for foreign aircraft given its large runway and parking availability for large aircraft. Flight tracking data shows that aircraft staying in Newburgh this year included a Boeing Business Jet 747-8i of the Turkish government, Airbus A319 of the Italian government, and Boeing 787-9 Dreamliner of Biman Bangladesh Airlines, among many others. The Turkish government Boeing Business Jet 747-8i that brought President Recep Tayyip Erdoğan to New York. Metin Aktas/Anadolu Agency/Getty Aircraft will travel as far as Washington, DC, nearly 200 nautical miles south of New York, just for a parking spot. Airports closer to New York including Farmingdale Republic Airport and Long Island MacArthur Airport are favorites of countries with smaller diplomatic aircraft. But larger aircraft, such as a Boeing 747, cannot use them or other nearby airports such as New Jersey's Teterboro Airport and White Plains, New York's Westchester County Airport due to runway constraints. Foreign governments and militaries can request exemptions to the rule outside of UN week, the Port spokesperson told Insider, and an airport's general manager may grant it if traffic levels allow. Newburgh is a Port facility and exemptions are often made because of the airport's low traffic levels. But during UN week, the aviation equivalent of tipping the valet extra to "keep it nearby" is considered bribery. Marlene Mizzi, a former assistant airport deputy supervisor at JFK, pleaded guilty in 2019 to accepting "benefits" for letting aircraft stay overnight during a session of the General Assembly.Mizzi admitted to receiving " free limousine rides, meals, and gifts" in return for letting a Qatar state aircraft stay overnight in 2014, according to New York Attorney General Letitia James.How the rule causes headaches for multi-stop US visitsUK Prime Minister Boris Johnson took to America's high-speed Amtrak Acela train to visit the White House while in the US. But Johnson's plane also made the trip to the nation's capital. The UK version of Air Force One flew from New York to Washington Dulles International Airport in Virginia after dropping off Johnson on September 19. Had Johnson chose to fly between New York and Washington, his plane would have had to fly back to New York to pick him up, then fly back to Virginia to park. And after Johnson's visit, the plane would have had to fly him back to New York, only to fly back to Virginia to park for the rest of the prime minister's UN visit, and then fly back to New York for the return flight to London. Boris Johnson arriving in New York for the United Nations General Assembly. Stefan Rousseau - Pool/Getty A 2018 report from the International Council on Clean Transportation, an independent non-profit organization, found that aviation contributed to 2.4% of global carbon dioxide emissions. Even with the industry working towards a greener future, empty repositioning flights are still incredibly common for all aircraft operates. The COVID-19 pandemic gave New York skies a reprieve as the General Assembly went virtual in 2020. But despite fears of the Delta variant, this year's in-person session pressed on and foreign leaders were ready to adopt "have plane, will travel."Read the original article on Business Insider.....»»

Category: topSource: businessinsiderSep 25th, 2021

What"s Really Going On In China

What's Really Going On In China Authored by Charles Hugh Smith via OfTwoMinds blog, Losses will be taken and sacrifices enforced on those who don't understand the Chinese state will no longer absorb the losses of speculative excess. Let's start by stipulating that no one outside President Xi's inner circle really knows what's going on in China, and so my comments here are systemic observations, not claims of insider knowledge. Many western observers have noted the centrality of Marxist-Leninist-Maoist doctrine in President Xi's writings. This is somewhat akin to invoking America's Founding Fathers to support one's current policies: if you're trying to modify state policy in China, you have to explain it in the context of the Chinese Communist Party's history and doctrines. Never mind if the ideals were not met; what's important is establishing continuity and resonance with the history of China, the core doctrines of Chinese Communism and the CCP's leadership based on those doctrines. That said, we should be careful not to read too much into doctrinal evocations such as common prosperity, which are useful conceptual anchors and slogans but not the full story. What's actually happening in China isn't Marxist or Capitalist--it's plain old non-ideological human greed, hubris and magical thinking manifesting as moral hazard running amok.. Moral hazard-- the separation of risk and consequence, as speculators make increasingly risky bets because they know any losses will be covered by the state--is effectively the new State Religion in China: everyone is absolutely confident that every punter, especially all the rich, powerful, well-connected speculators--will be bailed out by the central government. Greed knows no bounds when a speculator is insulated from risk, for people have an insatiable appetite for risky bets when the gains will be theirs to keep but any losses will be covered by the government. This is the fundamental story of Evergrande: the implicit backstop of the Chinese government enabled near-infinite moral hazard which then fueled an explosion of debt-funded speculation with essentially zero connection to real-world risks, sales, return on capital, etc. Both the U.S. and China have been a utopian Paradises of moral hazard for the past 30 years. In the U.S., the Federal Reserve would bail out any losses / declines in the debt-asset bubble orgy. In China, the implicit policy was that the structural losses in state-owned enterprises (SOEs) and the speculative excesses of rapid development would be tolerated as long as real growth in employment, wages, profits and lifestyles was strong. Creating vast amounts of debt-money was necessary to support growth, and that it also supported speculative excesses was accepted as part of the price of explosive progress, much like environmental damage. After 30 years, the equation in China has changed: debt in the official banking sector and in the informal shadow-banking sector has soared along with purely speculative excesses while "good growth" has stagnated. That's the problem with incentivizing moral hazard: the profits from speculation, corruption and fraud far outweigh the puny profits earned by legitimate enterprises. So where do you put the borrowed billions? In Evergrande and other conglomerates of speculation. Something else changed in 30 years of rapid development: inequality skyrocketed, and since inequality and corruption are mutually-reinforcing, corruption also reached new heights as inequality skyrocketed. A third factor emerged after 30 years of touting technology and speculation: the power of Chinese Big Tech and financiers began encroaching on the control of the Communist Party. All three factors inflated a debt-asset-speculative bubble of profound proportions, and President Xi grasped what the clueless Federal Reserve and other western central banks have not: Either pop the bubble when you still have some control over it or let it expand and pop when you've lost all control. In systems terms, when risk and fragility reach unstable levels in tightly-bound systems, there's no controlling the supernova-like implosion of the system. Xi observed the skyrocketing power of Big Tech, moral-hazard-incentivized financiers and cryptocurrencies and concluded that the state must move decisively to crush these rivals, regardless of cost. This separates China from the American state, which is incapable of enforcing any sacrifices, limits or costs on the parasitic elite which dominates its economy and political order. Xi saw the danger of Big Tech and financiers being able to buy whatever influence they needed from corrupt CCP and state officials, and he realized that this is the crucial moment in history: either crush Big Tech and the financiers / speculators or risk losing control to their interests. Control is something the CCP and Xi want to retain, regardless of the cost to the nouveaux riche, the parasitic elites, the aspirational middle class and even the Party regulars who have supped too often and too gloriously at the corruption / moral hazard trough. Losses will be taken and sacrifices enforced on those who don't understand the Chinese state will no longer absorb the losses of speculative excess. Those who don't understand the reign of parasitic private-sector elites and excessively corrupt party officials in China is over might profitably ponder this Chinese proverb: "Whoever gets mixed up with garbage will be eaten by pigs." *  *  * If you found value in this content, please join me in seeking solutions by becoming a $1/month patron of my work via patreon.com. My recent books: A Hacker's Teleology: Sharing the Wealth of Our Shrinking Planet (Kindle $8.95, print $20, audiobook $17.46) Read the first section for free (PDF). Will You Be Richer or Poorer?: Profit, Power, and AI in a Traumatized World (Kindle $5, print $10, audiobook) Read the first section for free (PDF). Pathfinding our Destiny: Preventing the Final Fall of Our Democratic Republic ($5 (Kindle), $10 (print), ( audiobook): Read the first section for free (PDF). The Adventures of the Consulting Philosopher: The Disappearance of Drake $1.29 (Kindle), $8.95 (print); read the first chapters for free (PDF) Money and Work Unchained $6.95 (Kindle), $15 (print) Read the first section for free (PDF). Tyler Durden Fri, 09/24/2021 - 21:20.....»»

Category: blogSource: zerohedgeSep 24th, 2021

Why The West Can"t Ban Bitcoin The Way China Did

Why The West Can't Ban Bitcoin The Way China Did Authored by Mark Jeftovic via BombThrower.com, Only a complete “dictatorship of the proletariat” can kill Bitcoin Evergrande is being called China’s “Lehman moment” and overnight the PBC closed the loop on their clampdown on crypto with a total ban on virtual currency transactions. For those paying attention, however, China isn’t just moving against crypto, they’ve been bringing their entire technology sector to heel. They also stated that it is time to redistribute wealth from the top tier of the nations wealth holders to the rest of the peasant class. This isn’t a return to their Communist roots as much as it is a move of self-preservation against rising internal powers. In the words of my friend Charles Hugh Smith via some correspondence we’ve been having this week “Xi has set out to crush the Network State”. I said in my earlier Network State Primer about the coming tension between Nation States and Network States: the former will go down swinging. The power structures of the nation states won’t go gently into the dustbin of history. They will go down swinging, over a transitional era that may span decades or longer, similar to the centuries long tensions between monarchs and the Papacy that shaped the transition from the Middle Ages into the Renaissance. China has decided to make their last stand of the Nation State, now. Here at this moment in time. They will not bail out Evergrande, they will allow their side of the Everything Bubble to pop, and they will use the economic crash to make a final sweep of consolidation of their power. They will make sure their Big Tech knows who is in charge and that it is not them. Over here in the West, recent regulatory jabs at crypto seem almost enfeebled by comparison. The SEC forcing Coinbase to cancel a program they hadn’t launched yet (so it makes no difference to their bottom line), while bickering with the CFTA over who gets to regulate crypto. The subtext to all this is we shall now see, and be forced to choose, a path forward in the digital networked age: Behind door #1 we keep the nation state format of centralized, top down control and escalating interference into both the economic and private lives of its subjects. Behind door #2 is the coming tension between nation states, network states and crypto-claves that I outlined previously. Neither path will produce a serene and stable gilded age. They will both be chaotic and volatile, Fourth Turning style transitions. The former in the course of implementing then maintaining a totalitarian dictatorship by force. The latter in the interplay and jockeying between three disparate organizational dynamics, each with it’s own centre of gravity (power), source of wealth and interdependencies with the others. China may be able to make option #1 work there, at least for awhile, but would a China style technocratic dictatorship actually fly and sustain in the West? At first glance one may think so. The zeitgeist today seems to be one clamouring for authoritarianism and collectivism. But upon deeper examination this may only be the vocal minority of academia, media pundits and Social Justice Inc. The majority of the population may just be keeping silent out of pragmatism and sheer exhaustion from the never-ending elitist sanctimony and cultural Marxism. But the pushback against COVID authoritarianism, now made acute by forced vaccinations and the ongoing threats of never-ending lockdowns may finally be getting hints of non-compliance through to policy-makers in the West. Australia has officially abandoned their Zero Covid policy and vaccine passport mandates are incurring revolts and in some places are abandoned. What would it take for Western governments to ban crypto, reign in ascendant tech platforms and more permanently abrogate all property rights? Western governments would have to go “Full China” My worry under lockdowns was that Western governments pined for China-style autocracy. And let’s call it for what it is: for a couple years since all this started, they certainly tried it. To varying degrees they continue to cling to the hope that they can remain relevant in a 21st century world using technocratic methods developed out of 20th century industrialism. Most policy makers are still trapped in a mindset learned from an era of assembly lines and cubicles. They think the only difference is it’s now digitized. But the more I started thinking about this the more I realized how unlikely this is in the realms of erstwhile liberal democracies. For one thing, decentralized crypto currencies have already changed the game  in the West in a way where there is no going back. It is estimated that by 2024, there will one billion Bitcoin HODLers, and that makes them a real constituancy. Another reason is that we are at least nominally democracies, with elections. That means our societal fabric has a particular architecture very different from China’s. While elections have become largely ceremonial ratifications of homogenous policy tracks, contested between insular factions within political monocultures, they at least show the overlords where the boundaries of their powers are. Take for example the recent Canadian election, where Justin Trudeau’s gambit to secure a majority failed and he’s stuck with another minority government. The rising right-wing PPC party won no seats, and yet, secured 5% of the popular vote, up from 1.62% in 2019, the year that party formed. They blew out the Green Party at 2.6% and who has been around for 35 years. Their performance caused much pearl clutching from the MSM and there will be more going forward, especially should the incumbent government continue with its post-national, woke, collectivist aspirations. The Chinese peoples have never been free. There’s never been a liberty inspired revolution there, only a cultural (Marxist) one. People in China have no constitutionally guaranteed rights, they aren’t even citizens. They’re subjects. They will take it, at least for now, because they’ve always taken it. As Charles put it in his emails to me, their history is replete with “one bloody purge after another, of someone consolidating power and then unleashing a Cultural Revolution to eliminate rivals, etc. If crashing China’s bubble is the nuclear option, Xi is quite confident he can push the pain level to 11 and most will accept it, those who don’t will enjoy treatment as an honorary Uyghur.” That’s not the case here in the West where there have been at least two revolutions fuelled directly out of an impulse for liberty: The French and the American. Even though the former went off the rails a lot quicker than the latter did, it still happened and it is a stark reminder of where things go when wealth inequality gets so out of whack and the elites become so detached from reality (Charles thinks this is where things are headed in the US, he may not be wrong). For cryptos to be hit with a China-style ban, in their entirety here in the West, governments would have to go Full China, complete with total control over every aspect of every citizen’s life (China just set limits on how much time you’re allowed to spend on Tik Tok, they have social credit systems which meter your alcohol consumption, the list goes on and is getting longer). How long would that last here in the West? Either the citizenry would move straight into the final hyper-normalization phase seen in the Soviet Union before it collapsed (paraphrasing: “They pretend to govern us and we pretend to obey”), or, the pitchforks and torches come out almost immediately. Countries break up. Secessionists abound. At least a few people face some Mussolini moments if not full on Storming of the Bastille and a French Revolution style purging of perceived elites. It would get ugly. I’m not saying this is what would happen if Western governments banned crypto, I’m saying it could happen in response to the kind of dictatorship that would have to be imposed in order to ban crypto. That also doesn’t mean that cryptos can’t go “risk off” (to use Charles’ description) for awhile, even in lieu of a ban. Especially if China allows the economic chips to fall as they may and that ripples across the global economy (perhaps China is unleashing yet another global contagion…. on purpose). The way I see it, the tension in liberal democracies between nation states and network states will be played out through their respective monetary systems. The nation state’s fiat money will be digitized into CBDCs, which will be specifically constructed to preclude wealth formation or savings and almost certainly be the rails of Westernized social credit systems, The network state stable coins (like Facebook’s Diem), which may endeavour to extend the lifespan of fiat currencies and fuse with CBDCs And crypto currencies founded on hard money principles that catalyzed the entire decentralized revolution. These will exist out of default because in the absence of total dictatorship and owing to the demands of optionality, capital pools will have to go here (among other places) out of self-preservation. *  *  * I cover this dynamic extensively in The Crypto Capitalist Letter, a long with a tactical focus on publicly traded crypto stocks. Get the overall investment / macro thesis free when you subscribe to the Bombthrower mailing list, or try the premium service for a month with our fully refundable trial offer. Tyler Durden Fri, 09/24/2021 - 16:40.....»»

Category: blogSource: zerohedgeSep 24th, 2021

3 Tips To Help Junior Partners Avoid Lifestyle Creep

Lifestyle creep, or lifestyle inflation – when expenses rapidly rise to match newfound income – ensnares countless newly minted partners. Often there are underlying social pressures from peers or colleagues to keep up with new levels of conspicuous consumption. New indulgences and one-time splurges quickly become everyday necessities. It may begin innocently enough with a […] Lifestyle creep, or lifestyle inflation – when expenses rapidly rise to match newfound income – ensnares countless newly minted partners. Often there are underlying social pressures from peers or colleagues to keep up with new levels of conspicuous consumption. New indulgences and one-time splurges quickly become everyday necessities. It may begin innocently enough with a new car, a small remodel to an existing home, or a generous contribution to one’s alma mater, but it can quickly snowball into completely spending bonus checks before they have even been deposited. if (typeof jQuery == 'undefined') { document.write(''); } .first{clear:both;margin-left:0}.one-third{width:31.034482758621%;float:left;margin-left:3.448275862069%}.two-thirds{width:65.51724137931%;float:left}form.ebook-styles .af-element input{border:0;border-radius:0;padding:8px}form.ebook-styles .af-element{width:220px;float:left}form.ebook-styles .af-element.buttonContainer{width:115px;float:left;margin-left: 6px;}form.ebook-styles .af-element.buttonContainer input.submit{width:115px;padding:10px 6px 8px;text-transform:uppercase;border-radius:0;border:0;font-size:15px}form.ebook-styles .af-body.af-standards input.submit{width:115px}form.ebook-styles .af-element.privacyPolicy{width:100%;font-size:12px;margin:10px auto 0}form.ebook-styles .af-element.privacyPolicy p{font-size:11px;margin-bottom:0}form.ebook-styles .af-body input.text{height:40px;padding:2px 10px !important} form.ebook-styles .error, form.ebook-styles #error { color:#d00; } form.ebook-styles .formfields h1, form.ebook-styles .formfields #mg-logo, form.ebook-styles .formfields #mg-footer { display: none; } form.ebook-styles .formfields { font-size: 12px; } form.ebook-styles .formfields p { margin: 4px 0; } Get The Full Henry Singleton Series in PDF Get the entire 4-part series on Henry Singleton in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues (function($) {window.fnames = new Array(); window.ftypes = new Array();fnames[0]='EMAIL';ftypes[0]='email';}(jQuery));var $mcj = jQuery.noConflict(true); Q2 2021 hedge fund letters, conferences and more So, who cares? After all, you have sacrificed a lot to get where you are today and rewarding yourself for a job well done is your right. However, many junior partners have not considered what they are giving up by having their expenses match their income – namely, true financial freedom or the ability to say no. It is difficult to downshift your lifestyle, especially if you have no resources to fall back on other than your future earning potential. Make sure you do not find yourself in this situation by following these tips. Prepare for Lumpy Cash Flow It is important to be fiscally prepared for lumpy cash flow – expenses like estimated tax payments, firm capital commitments, and new firm sponsorship contributions, just to name a few, can potentially catch you off-guard. Without adequate planning and forethought, you can find yourself flat-footed at a very inopportune moment. The first step to addressing lifestyle creep is to be prepared. Create a short-term cash strategy to help you avoid common cashflow missteps. Start by identifying what your major outstanding liabilities will likely be for the next 12 months. After you have identified these cash needs find a ready source of liquidity to cover them. When reviewing your cash strategy look for potential mismatches between liabilities and cash flow, consider all your options. Be prepared to cover an unexpected expense in addition to the ones you identified. Remember alternative sources of potential liquidity that you could use to smooth over any cash crunches, such as: A margin loan against assets held in investment accounts. A cash reserve built up over the course of time specifically for these types of surprise liquidity events. Short term financing solutions offered by the firm. If you do not research your options in advance, it is difficult to know in the moment what your best options is. Sometimes the terms of short-term margin loans are equal or better than terms offered to new partners from other sources sometime not – having options in place and knowing what they are is paramount to helping you address your need when it arises. Preparing a short-term cash strategy will give you a better sense of what to hold in reserves for future expenditures, what you can spend on your current lifestyle needs, and what to invest for long-term growth – allowing you to avoid the trap of lifestyle inflation. Identify Your Goals and Values Making conscious decisions about what is important to you is one of the most crucial steps in combating lifestyle inflation. You may really like the idea of: Having the option to slow down when you want to. Buying a vacation home to spend quality time with family. Providing meaningful philanthropic support to a cause you believe in. Being able to offer monetary support to aging parents. There are no right or wrong choices, but you should make a choice. One of my favorite quotes is, “If you don’t know where you are going, you might wind up someplace else.” Not having your long-term goals well-defined makes it easier to succumb to lifestyle creep, potentially leaving you someplace you didn’t intend to be. Balancing short-term needs with long-term goals is a lifelong pursuit, so it is vital not to focus solely on one or the other at any given time. Clearly outlining your goals and having a financial plan in place to achieve them will help you feel comfortable living the life you want today, knowing you are going to end up where you truly want to be. Create a Financial Roadmap Without knowing what you are aiming at, you can miss your target and let other seemingly pressing things drain your ability to accomplish what you really want. After identifying what matters most to you, the next step is to create a financial roadmap to help guide you to your destination. This is done through a comprehensive financial plan that considers not only your resources and liabilities, but also incorporates an in-depth cash flow and investment return projection as well. Having your plan in place will help guide you towards your goals and remind you to maintain focus on them. To create a financial roadmap, you should gather and review information regarding: Partner Benefits: 401(k), deferred compensations plans, etc. Investment Assets: taxable and retirement accounts, physical assets, etc. Liabilities: existing mortgages, home equity lines of credit (HELOCs), credit cards, student loans, etc. Insurance: personal and group benefits – disability, life, property & casualty, etc. Estate Plan: current wills, Powers of Attorney (POAs), revocable and irrevocable trusts, etc. Tax Returns: recent returns from your accountant for reviewing income, expenses, deductions, etc. These data points allow you to create a more meaningful individual guide to help you stay on track to reach your financial goals. As assets and income projections change, risk profiles are modified, and other aspects of your personal and financial life develop with time, you should revisit and adjust your financial roadmap to reflect your new situation and goals. Your financial roadmap is a living document that will always be there to reorient you, helping to combat lifestyle creep. Conclusion Some level of lifestyle inflation is inevitable and necessary, continuing to live like you are a first-year associate is not the answer to preventing lifestyle creep. As with most things in life, the key is moderation. The transition to partner can be a challenging one – creating a comprehensive financial roadmap that takes your personal and professional situation and goals into consideration is the best way to develop and implement a plan that will help you avoid the kind of overextension that could materially impact your ability to achieve what you really want – whatever you decide that is. About the Author Eric Dostal, J.D., CFP®, Vice President at Wealthspire Advisors, works extensively with clients to help them feel in control of their financial lives. Eric has demonstrated a high degree of skill developing and overseeing the investment, insurance, retirement, tax and estate planning strategies of his clients. He seeks to understand a clients’ unique financial circumstances, get them organized and on the path to financial independence. Wealthspire Advisors LLC is a registered investment adviser and subsidiary company of NFP Corp. Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the certification marks CFP®, Certified Financial Planner, and CFP® (with plaque design) in the United States, which it authorizes use of by individuals who successfully complete CFP Board’s initial and ongoing certification requirements. This information should not be construed as a recommendation, offer to sell, or solicitation of an offer to buy a particular security or investment strategy. The commentary provided is for informational purposes only and should not be relied upon for accounting, legal, or tax advice. While the information is deemed reliable, Wealthspire Advisors cannot guarantee its accuracy, completeness, or suitability for any purpose, and makes no warranties with regard to the results to be obtained from its use. ©2021 Wealthspire Advisors. Updated on Sep 24, 2021, 4:05 pm (function() { var sc = document.createElement("script"); sc.type = "text/javascript"; sc.async = true;sc.src = "//mixi.media/data/js/95481.js"; sc.charset = "utf-8";var s = document.getElementsByTagName("script")[0]; s.parentNode.insertBefore(sc, s); }()); window._F20 = window._F20 || []; _F20.push({container: 'F20WidgetContainer', placement: '', count: 3}); _F20.push({finish: true});.....»»

Category: blogSource: valuewalkSep 24th, 2021