Share to Twitter Share to Linkedin Topline The stock market rebounded for a second day in a row on Thursday, on track to snap a seven-week losing streak, as recession fears cooled amid a slew of strong quarterly earnings reports that boosted investor sentiment. Key Facts Stocks moved higher as investors continued to assess the minutes from the Federal Reserve’s latest policy meeting: The Dow Jones Industrial Average rose 1.6%, over 500 points, while the S&P 500 gained 2% and the Nasdaq Composite 2.7%. Despite seven straight weeks of losses pushing the S&P 500 briefly into bear market territory last Friday, stocks are on track to post a strong rebound this week: The Dow and S&P 500 are up over 4% and the Nasdaq more than 3%. “Last week’s doom and gloom about the all-important U.S. consumer may have been overdone, along with the dire recession headlines,” says Quincy Krosby, chief equity strategist for LPL Financial, about the … [Read more...] about Dow Jumps 500 Points, Market Rebounds As Strong Earnings Alleviate ‘Dire Recession Headlines’
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The Best Dividend Stocks, Bull Or Bear
Share to Twitter Share to Linkedin I remain a big fan of cash right now. I know, I know. I’m not supposed to say this in a stock -focused column like this. “But Brett,” I can hear the rebuttal. “We’ve been smartly selling the rips . My cash is burning a hole in my pocket.” “And I’m here for the income. Shouldn’t I buy something ?” Not yet. We contrarians shouldn’t be in a hurry to time the bottom of the market. There will be free and fast money on the other side of this bearish storm. Every correction eventually ends. For now, we buy lightly. And enjoy our comfortable seat. This is what I call the “no beta” portfolio. It’s a pile of cash that we deploy when we “back up the truck” at major market bottoms. In the spring of 2020 , we went on a dividend shopping spree. We bought stocks like energy toll bridge ONE ONE ONEO NEO OK (OKE) for a song—and we’re now sitting on 148% gains. Later that year, we identified … [Read more...] about The Best Dividend Stocks, Bull Or Bear
Bear Markets & Market Bottoms
Share to Twitter Share to Linkedin 2022 has been a brutal year for investors. Presently, the S&P 500 is down over 16% Year-To-Date (YTD), the Dow is down 12% YTD, the NASDAQ is down an astounding 25% and the Russell 2000 small capitalization index is down 19%. The devastation has been widespread, with a high number of stocks down over 50%. Due to this, the Nasdaq Composite, S&P 500 Growth (SPYG) and Russell 2000 (All and Growth) segments of the market have confirmed their bear market status. The O’Neil methodology tends to use -25% from highs as the threshold for a bear market. Taking the commonly used -20% from highs, the S&P 500 and Russell 2000 Value have also reached the threshold. Only S&P 500 Value and Dow Industrials have not. In our January 28, 2022 Forbes article, we noted that after two consecutive failed Follow-Through Days (FTDs)*, triggered by an undercut of prior established lows, historically (using the S&P 500 since … [Read more...] about Bear Markets & Market Bottoms
Merck Stock Bounces Back Thanks to a ‘Golden Cross’
Merck & Co., Inc. ( MRK ) reported better-then-expected earnings on April 30, and the stock responded with an upside move. This rebound was helped by a "golden cross" on its daily chart, while the weekly chart is neutral. Merck is a component of the Dow Jones Industrial Average and was a member of the " Dogs of the Dow " in 2018. The company did not qualify in 2019, as it has a P/E ratio of 17.45 with a dividend yield of 2.79%, according to Macrotrends. To qualify as a member of the dog pound, the dividend must be above 3.00%. Merck stock closed Wednesday, May 1, at $78.72, up 3.00% year to date and up by a bull market 39.9% from its low of $56.26 posted on May 9, 2018. The stock is 6.1% below its high of $83.85 set on April 1, 2019. The daily chart for Merck The daily chart for Merck shows that a "golden cross" has been in play since June 12, when the 50-day simple moving average rose above the 200-day simple moving average, indicating that higher prices lie … [Read more...] about Merck Stock Bounces Back Thanks to a ‘Golden Cross’
Trade Spotlight | What should you do with InterGlobe Aviation, Dr Lal PathLabs, M&M Financial on Friday?
Trade Watchlist Portfolio Message Set Alert live bse live nse live Volume Todays L/H More × The market gained strength for the first time in last four consecutive sessions and climbed nearly 1 percent on May 26 as buying interest and short-covering were seen in banking and financial services, IT, metal, and select auto stocks on the F&O contracts expiry day. Positive global cues also supported the market. The BSE Sensex rallied more than 500 points to 54,253, and the Nifty50 rose more than 140 points to 16,170, while the broader markets also participated in the momentum with the Nifty Midcap 100 and Smallcap 100 indices rising 1.35 percent and 0.77 percent. The market breadth was in favour of bulls as about five shares advanced for every four declining shares on the NSE. India VIX fell by 10.14 percent to 22.72 levels, supporting bulls to get back in strength. Experts feel if … [Read more...] about Trade Spotlight | What should you do with InterGlobe Aviation, Dr Lal PathLabs, M&M Financial on Friday?
Do Annuities Make Sense For Anyone?
Share to Twitter Share to Linkedin There seems to be a lot of confusion about whether annuities are good or bad. Some of it stems from viewing the product as complex and too time-consuming to study and understand. But I don’t see annuities being any more complicated than other financial products. For example, one type of annuity is simply like a pension, and there’s almost no one who thinks a pension is bad. Annuities are a type of insurance product. By purchasing one, you’re transferring risk to the insurance company just as you do with home, auto, or life insurance coverage. With annuity products, the insurer is assuming some, if not all, of the longevity or market risk and charging a fee doing so. Risk mitigation is common to all types of annuity products, yet they differ markedly in other ways. Variable Annuities When people talk about contract complexity and high fees, they’re usually referring to variable annuities. I find these products are … [Read more...] about Do Annuities Make Sense For Anyone?
Junk Bonds Keep Dropping as Oil Spikes
Major Moves Stocks were mixed today as investors prepared for the busiest week of first quarter earnings season . By the end of the week, more than 45% of the S&P 500 will have reported their earnings and we will have a good idea for the trend of corporate performance. Risks were somewhat compounded today following news that President Trump will make another move to curtail oil exports from Iran. Currently, some oil importers like China, South Korea and Turkey have a "waiver" from the U.S. that they will not face negative consequences for doing business with Iran. President Trump plans not to renew these waivers that expire on May 2. The administration has assumed that Iran's market share can be consolidated by Saudi Arabia and other Organization of Petroleum Exporting Countries (OPEC) nations who will increase production. Clearly, the U.S. cannot dictate production levels to OPEC, but it is reasonable to assume that if Iranian exports are reduced, Saudi Arabia will want … [Read more...] about Junk Bonds Keep Dropping as Oil Spikes
Inverse China ETFs Stage Breakout After Tariff Threat Tweet
Hopes of a trade deal breakthrough between Washington and Beijing have played a major part in driving China's benchmark stock index, the SSE Composite (000001.SS), up over 17% year to date (YTD). Therefore, it's not surprising to see the key Asian index suffer its largest one-day drop since February 2016 on Monday – a fall of 5.6% – after U.S. President Donald Trump fired off a Sunday tweet indicating that he plans to raise tariffs on $200 billion of Chinese goods to 25% on Friday because trade talks are moving too slowly. "We felt we were on track to get somewhere. Over the course of last week, we have seen an erosion of commitments by China. That in our view is unacceptable," said U.S. Trade Representative Robert Lighthizer, elaborating further on the president's social media threat, per Bloomberg . Fears across financial markets were somewhat alleviated later in the global trading day when it emerged that a Chinese delegation still planned to visit Washington on Thursday … [Read more...] about Inverse China ETFs Stage Breakout After Tariff Threat Tweet
SPACs Look Like a Bubble Within a Bubble
While we have talked about the general froth in the initial public offering (IPO) market, it is time to focus on one of the major drivers – special-purpose acquisition companies (SPACs). SPAC IPOs accounted for over half of all IPOs in 2020 and are already set to make up a majority in quarter one of 2021. This is a cause for worry in the market and, more importantly, for investors who may get caught bearing the real costs of a SPAC. We'll look at the why and how of SPACs, as well as why the odds seem tilted against individual investors realizing a good return. Key Takeaways The IPO market has been frothy of late, with tech offerings seeing huge jumps in first-day trading. Within this IPO market, SPACs are making up a larger share of new offerings. This means that more and more money is hitting the market with a plan to find something to buy. SPACs give creators and sponsors structural advantages that later investors don't have, making the decision for retail … [Read more...] about SPACs Look Like a Bubble Within a Bubble
Wall Street surges on upbeat forecasts from retailers, Fed relief
- A + A NEW YORK/BENGALURU (May 26): US stock indexes climbed in a broad-based rally on Thursday after upbeat annual forecasts from several retailers, while data confirmed the US economy contracted in the first quarter, easing concerns about aggressive interest rate hikes. All of the 11 major S&P sectors advanced, with consumer discretionaryup 4.1%, followed by a 1.9% rise in the financials sector. The small-cap Russell 200 index added 2.1%. Macy's Inc surged 16.2% after the department store raised its annual profit forecast, as party-wear demand rebounds. Dollar General Corp and Dollar Tree gained 11.7% and 18.4% respectively, after lifting their annual sales forecasts, as more Americans turn to discount store shopping with inflation at a four-decade high. Meanwhile, the Commerce Department's report showed US GDP fell at a 1.5% annualized rate last quarter, amid a record trade deficit and a sequential decline in the pace of inventory accumulation. The … [Read more...] about Wall Street surges on upbeat forecasts from retailers, Fed relief