- A + A NEW YORK (Jan 25): Wall Street plunged in a broad-based sell-off on Monday, and the S&P 500 came within a hair's breadth of a correction as investors faced an increasingly hawkish Federal Reserve, growing geopolitical tension and persistent headwinds from the pandemic. The major U.S. stock indexes pared their losses in mid-afternoon trading with the S&P 500 hovering around a 10% drop from its record closing high on Jan 3, a move that would confirm the index is in correction. This came on the heels last week of the S&P 500 and the Nasdaq suffering their largest weekly percentage plunge since March 2020, when shutdowns to contain the pandemic sent the economy spiraling into its steepest and most abrupt recession on record. "From the financial market’s standpoint, 2022 is a disaster so far," said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder in New York. "It's a continuation of the same issues - uncertainty about the … [Read more...] about Stocks extend sell-off as Fed, geopolitical fears loom
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Share to Twitter Share to Linkedin Big data and analytics player Palantir’s stock (NYSE: PLTR) has already lost about 21% of its value year-to-date in 2022, underperforming the S&P 500 which is down by about 6%. The stock also remains down by almost 45% from its November 2021 highs. While high-growth software stocks have seen a sell-off, due to the prospect of rising interest rates and the broader market rotation out of pandemic winners into real economy sectors, there are some stock-specific factors that are impacting Palantir, as well. For example, investors are likely a bit concerned about the slower growth at the company’s government business over Q3 2021 and also due to its growing dependence on the U.S. market for commercial revenue growth. However, we think that Palantir stock looks like a good pick at its current market price of about $15 per share. Despite the recent concerns, Palantir’s overall growth rate is likely to remain solid. Sales are on … [Read more...] about Down 45% Since November, Is Palantir Stock A Buy?
Share to Twitter Share to Linkedin What a difference a month makes as in a year-end survey of market strategists from CNBC revealed that the median yearly target for the S&P 500 was 5100 with the most bullish targets at 5500. The lowest target was 4400 but on Friday the S&P 500 closed at 4397.9. So what has happened? Has there been an economic collapse, political scandal, war? Fortunately, none of the above but this month’s action in the stock market, especially last week, has caused many to question their outlook for the stock market in 2022. The weekly performance numbers tell the story as the losses were recorded in just four days of trading. The iShares Russell 2000 was the weakest down 8.1% as it was only slightly worse than the 7.5% decline in the growth dominated Nasdaq 100 Index. The prospect that the Nasdaq 100 could record its worst month since 2008 is unlikely to improve investor sentiment. The 5.7% loss in the S&P 500 was the … [Read more...] about What Happened To Last Years’ Stock Market Bulls?
Share to Twitter Share to Linkedin Key Takeaways: Equity Index Futures Bounce Back From an Overnight Selloff as Investors Try to Hang on to the Gains Stocks Fell on Tuesday as Interest Rates and Oil Prices as well as a Rare Miss by Goldman Sachs Investors Are Forced to Re-Evaluate Valuations When Interest Rates Rise Stocks are looking to rebound on Wednesday from Tuesday’s selloff as equity index futures are pointing higher. Futures fell overnight but rebounded with European markets. London’s FTSE 100, Germany’s DAX, the French CAC 40, and the Stoxx 600 traded higher. However, there’s a number of earnings announcements for investors to sort through on Wednesday. Financial companies continue to dominate the reports, but there are other companies of note. Starting with the financials, Morgan Stanley MS (MS) and Bank of America BAC (BAC) both beat on earnings estimates despite missing on revenues while U.S. Bancorp TBBK (USB) missed on top … [Read more...] about Rising Interest Rates May Be Leading To Revaluations In Stock, Bond, And Housing Markets
Share to Twitter Share to Linkedin Shares of 1Life Healthcare — parent company of One Medical, a San Francisco-based provider of healthcare membership services — has taken investors on a bumpy ride since it went public two years ago next week. How so? Investors who bought in at its IPO watched the stock rise 173% to peak at about $60 last February, only to lose 84% of that value to open January 24 at $9.70 — about 56% below its IPO price. Does One Medical’s loss of stock market value make its shares a buy? Despite some positive aspects to the story — notably a large market and rapid top-line growth, I am siding with those who are betting that its shares will keep going down. (I have no financial interest in the securities mentioned in this post). One Medical’s Big Market Opportunity and Rapid Growth One Medical provides healthcare membership services — including “walk-in immunizations and lab services, behavioral health, women's health, men’s health, … [Read more...] about 1LifeHealthcare Stock Is Plunging. That Does Not Make It Cheap
It's a remarkable time to be an investor. Over the past year, the market has not only recovered its losses from the coronavirus crash, but marked multiple days of new thrilling highs. The stock market has shown increased volatility in recent weeks. But for the time being, optimism about the U.S. economy's ongoing recovery is outweighing investor concern about the rising rate of inflation. Even so, it's more vital now than ever that investors focus their portfolios on resilient stocks that can continue providing growth and generating consistent returns in a variety of market scenarios. Are you ready to fortify your portfolio in the month of April with some winning stock buys? Let's take a look at two red-hot stocks that fit the bill and can easily stimulate optimal portfolio growth for decades to come. Image source: Getty Images. 1. Zoom Zoom Video Communications ( NASDAQ:ZM ) has by far been one of the most popular stocks among investors since the pandemic began. … [Read more...] about Got $1,000? 2 of Today’s Hot Stocks You Can Buy and Hold for a Lifetime
Share to Twitter Share to Linkedin The Federal Reserve is planning to raise interest rates (the Federal Funds rate) earlier than expected to cool down the hot economy. The stock market is reacting swiftly: the Nasdaq 100 is in correction territory. What can investors expect from the stock market when interest rates rise? Interest rates are going up Super-easy pandemic monetary policy gave strong support to asset prices. The prices of bonds in the secondary markets increased as new bonds could be issued at lower rates (and thus lower current yields - see example on how interest rates affect bonds). Historically low bond yields and massive fiscal stimulus drove investors into riskier assets including stocks, which was a major contributor of the outperformance of the S&P 500 in 2020 and 2021. When there's an alternative to equities for yield again, investors recalculate the equity risk premium. High-flying equity valuations are getting a … [Read more...] about How Do Stocks Perform When Interest Rates Rise?
Share to Twitter Share to Linkedin Topline The stock market plunged again on Monday—continuing a brutal streak of losses—with the S&P 500 falling into correction territory as investors worry about rising interest rates and await a key policy meeting from the Federal Reserve later this week. Key Facts The Dow Jones Industrial Average fell 1%, nearly 500 points, while the S&P 500 plunged 1.2% and the tech-heavy Nasdaq Composite 1%. The benchmark S&P 500 index, which is on track for its worst January performance ever, at one point hit correction territory, down more than 10% from its record high at the start of 2022. The CBOE Volatility Index (VIX), which measures market volatility, hit its highest level in nearly 12 months, surging over 37 on Monday morning. Investors continue to remain concerned about surging interest rates and are now looking ahead to the Federal Reserve’s upcoming policy meeting, which wraps up on Wednesday. … [Read more...] about Stock Market ‘Panic Is Setting In’ As S&P 500 Briefly Enters Correction Territory
Share to Twitter Share to Linkedin We believe that Microsoft stock (NASDAQ: MSFT) currently appears to be an attractive pick over its industry peer Electronic Arts stock (NASDAQ: EA) , despite its comparatively higher valuation. MSFT stock trades at 13.4x trailing revenues, compared to 5.7x for EA stock. Although both the companies saw a rise in revenue over the recent quarters, the growth has been better for Microsoft, aided by robust demand for its cloud offerings, including Azure. Looking at stock returns, MSFT, with 7% returns over the last six months, has outperformed EA, which is down around 1%, and it has also outperformed the broader markets, with only a 3% rise for the S&P500 index. However, there is more to the comparison, and we believe that Microsoft stands out with higher expected returns compared to Electronic Arts, as we discuss in the sections below. We compare a slew of factors such as historical revenue growth, returns, and … [Read more...] about This Tech Giant Appears To Be A Better Pick Over Electronic Arts Stock
Representative Image Stocks are sliding at the open on Wall Street Monday, extending a recent run of losses that have left the S&P 500 at 6-month lows. The benchmark index is down 1.5% in the opening minutes of trading, while the Nasdaq Composite is down 1.7% and the Dow Jones Industrial Average lost 1%. The energy and raw materials sectors are leading the decline. Mining concern Freeport McMoRan is down 4.6% and General Motors is down almost 4%. Investors have been growing increasingly worried about how aggressively the Federal Reserve, which holds a policy meeting this week, might act to cool rising inflation. Shares were mostly lower in Europe and Asia on Monday after Wall Street logged its worst week since the pandemic began in 2020. Shares fell in Paris, London and Frankfurt but rose in Tokyo. Shanghai was little changed. Close Investors have been growing increasingly worried about how aggressively the Federal Reserve, which holds a policy meeting … [Read more...] about Stocks slide at open on Wall Street; S&P 500 at 6-month low