The Fed should cut rates next week, but it won’t, Wharton’s Jeremy Siegel warns. Here’s why.

Stocks have rallied within range of records on high hopes for a rate cut, possibly as soon as next week. “They should cut rates, but they won’t — not quite yet,” Siegel told CNBC’s “Trading Nation ” on Wednesday. Siegel says the Fed will first want to lay the groundwork for a rate cut before it takes action, a process requiring a longer time frame beyond next week’s meeting. Even when the Fed cuts rates next, Spiegel says it might be too little to spur the kind of economic growth anticipated. So


Stocks have rallied within range of records on high hopes for a rate cut, possibly as soon as next week. “They should cut rates, but they won’t — not quite yet,” Siegel told CNBC’s “Trading Nation ” on Wednesday. Siegel says the Fed will first want to lay the groundwork for a rate cut before it takes action, a process requiring a longer time frame beyond next week’s meeting. Even when the Fed cuts rates next, Spiegel says it might be too little to spur the kind of economic growth anticipated. So
The Fed should cut rates next week, but it won’t, Wharton’s Jeremy Siegel warns. Here’s why. Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-13  Authors: keris lahiff
Keywords: news, cnbc, companies, rate, wont, cut, week, little, growth, fed, really, whartons, jeremy, meeting, heres, market, siegel, think, warns, rates


The Fed should cut rates next week, but it won't, Wharton's Jeremy Siegel warns. Here's why.

Stocks have rallied within range of records on high hopes for a rate cut, possibly as soon as next week.

Investors could be waiting a little longer, warns Wharton professor of finance Jeremy Siegel.

“They should cut rates, but they won’t — not quite yet,” Siegel told CNBC’s “Trading Nation ” on Wednesday. “I think they’re going to put out a directive that says in their next meeting which will be July 31st after the June meeting that they’re very likely to cut rates and I think the market will be satisfied with that. ”

The Federal Open Market Committee is set to meet Tuesday, culminating with a decision on Wednesday afternoon. Markets are pricing in a 20% chance of a 25-basis-point cut at the June meeting, according to CME fed funds futures, with those odds jumping to 66% at the July meeting.

Siegel says the Fed will first want to lay the groundwork for a rate cut before it takes action, a process requiring a longer time frame beyond next week’s meeting.

“The Fed is very deliberate. Before they move, they like to make announcements and speeches. They haven’t really had a chance to really prepare those. We still could get a cut. There may be some dissents among the Fed officials saying I want to cut now, but I say the odds are a setup for a cut that will come at the end of July,” he said.

Even when the Fed cuts rates next, Spiegel says it might be too little to spur the kind of economic growth anticipated.

“The Fed is a little bit too slow,” he said. “There should be a 50-basis-point cut. Given where the 10-year [Treasury note] is right now, we should be below on the funds rate than the 10-year, and even 25 basis points won’t really put us below. So I really think there should be more.”

The 10-year has come back from the year’s lows last week, though still trades at its lowest level in nearly two years. Yields fall when bond prices rise, an indication that investors are flocking to safe-haven assets such as Treasurys. The effective fed funds rate guides banks on the interest rate at which they lend excess reserves. A lower rate encourages more lending and borrowing.

Beyond the Fed, investors also need a resolution on the trade war before the stock market can make larger strides higher, says Siegel.

“Right now projections are Q2 growth is 1.5%. That would be the slowest during the Trump presidency. … If the tariff clouds continue to gather in second half of the year, we may barely reach 2%,” he said. “Short term, it’s going to be hard to make big gains with the trade clouds and the interest rate clouds hanging over the market.”

The U.S. economy ended 2018 with economic growth at 2.9%. A slowdown to sub-2% would mark its lowest level since 2016.


Company: cnbc, Activity: cnbc, Date: 2019-06-13  Authors: keris lahiff
Keywords: news, cnbc, companies, rate, wont, cut, week, little, growth, fed, really, whartons, jeremy, meeting, heres, market, siegel, think, warns, rates


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Lululemon rallies but another athleisure stock is racing ahead of the pack

Lululemon worked up a sweat Thursday, rallying more than 5% after topping quarterly estimates and upping its outlook. But, another athleisure stock is besting Lululemon and the rest of the competition: Under Armour. The workout gear stock has surged 49% this year, tracking for its best annual performance in five years. “This stock has been making a base for more than a year and it has finally just broken out of this base,” Johnson said Wednesday on CNBC’s “Trading Nation. ” “There still is room


Lululemon worked up a sweat Thursday, rallying more than 5% after topping quarterly estimates and upping its outlook. But, another athleisure stock is besting Lululemon and the rest of the competition: Under Armour. The workout gear stock has surged 49% this year, tracking for its best annual performance in five years. “This stock has been making a base for more than a year and it has finally just broken out of this base,” Johnson said Wednesday on CNBC’s “Trading Nation. ” “There still is room
Lululemon rallies but another athleisure stock is racing ahead of the pack Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-13  Authors: keris lahiff
Keywords: news, cnbc, companies, stock, pack, lululemon, trading, ahead, growth, rallies, athleisure, armour, bapis, valuation, racing, wear, times, base, johnson


Lululemon rallies but another athleisure stock is racing ahead of the pack

Lululemon worked up a sweat Thursday, rallying more than 5% after topping quarterly estimates and upping its outlook.

But, another athleisure stock is besting Lululemon and the rest of the competition: Under Armour. The workout gear stock has surged 49% this year, tracking for its best annual performance in five years.

It’s about to sprint even higher, said Craig Johnson, chief market technician at Piper Jaffray.

“This stock has been making a base for more than a year and it has finally just broken out of this base,” Johnson said Wednesday on CNBC’s “Trading Nation. ”

“We can kind of measure the height of this base and make a suggested move based upon the chart that would potentially put us back into the mid-$30s so it still seems like a very good risk-reward in here,” he said.

A rally back to the mid-$30s marks 33% upside and would take the stock back to levels not seen since October 2016.

“There still is room for this stock to continue to move higher here and we would be buying this breakout,” Johnson said.

Under Armour is also a buy based on a broader bullish case for the entire industry, said Michael Bapis, managing director of FX strategy at BK Asset Management.

“Athleisure has completely revolutionized all of fashion,” Bapis said during the same “Trading Nation” segment. “This is a growth story. This is going to grow probably 5% over the next few years. It’s a matter of who can capture that growth because there are so many different lines of business within it. It’s footwear, it’s leisure wear, it’s athletic wear, and the list goes on and on.”

On Under Armour, specifically, even though it has had a massive run this year, Bapis said it’s still worth the high price.

“It’s trading at a super-high valuation but you have to consider, it’s a growth space and in growth spaces in high-growth times, valuations really kind of go out the window,” Bapis said. “We’re long this space, we’re long those companies and I think we’re going to continue to grow there.”

Under Armour trades at 63 times forward earnings, an expensive valuation compared with the broader XLY consumer discretionary ETF which trades with a 20 times multiple.

Disclosure: Vios Advisors owns Under Armour.

Disclaimer


Company: cnbc, Activity: cnbc, Date: 2019-06-13  Authors: keris lahiff
Keywords: news, cnbc, companies, stock, pack, lululemon, trading, ahead, growth, rallies, athleisure, armour, bapis, valuation, racing, wear, times, base, johnson


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FANG stocks just lost nearly $130 billion in market cap, and chart points to more pain

Facebook, Amazon, Netflix and Alphabet tanked Monday, shedding nearly $130 billion in market cap collectively. Those losses sent Facebook, Netflix and Alphabet into a bear market, having dropped at least 20% from recent records. The NYSE Fang+ index, which tracks the big tech companies and a handful of other stocks, could be in for more pain, says Ari Wald, head of technical analysis at Oppenheimer. The NYSE Fang+ index tumbled 4% on Monday, and remains just 1% higher for the year. “They could a


Facebook, Amazon, Netflix and Alphabet tanked Monday, shedding nearly $130 billion in market cap collectively. Those losses sent Facebook, Netflix and Alphabet into a bear market, having dropped at least 20% from recent records. The NYSE Fang+ index, which tracks the big tech companies and a handful of other stocks, could be in for more pain, says Ari Wald, head of technical analysis at Oppenheimer. The NYSE Fang+ index tumbled 4% on Monday, and remains just 1% higher for the year. “They could a
FANG stocks just lost nearly $130 billion in market cap, and chart points to more pain Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-04  Authors: keris lahiff
Keywords: news, cnbc, companies, companies, growth, chart, stocks, market, nearly, index, trading, fang, billion, antitrust, pain, sanchez, cap, lost, points, microsoft, nyse


FANG stocks just lost nearly $130 billion in market cap, and chart points to more pain

Fears of increased government scrutiny just crushed FANG stocks.

Facebook, Amazon, Netflix and Alphabet tanked Monday, shedding nearly $130 billion in market cap collectively. Those losses sent Facebook, Netflix and Alphabet into a bear market, having dropped at least 20% from recent records.

The drop came on the first trading day after The Wall Street Journal reported that the Justice Department is readying an antitrust investigation against Google over its search practices and other issues. Alphabet declined to comment.

The NYSE Fang+ index, which tracks the big tech companies and a handful of other stocks, could be in for more pain, says Ari Wald, head of technical analysis at Oppenheimer.

“As a group, this particular index has not fared well. If you look at the NYSE Fang+ index — it’s an equal weighted composite of 10 related names, it’s the four we know plus stocks like Tesla and Alibaba are in there as well — it’s trading at the same level it first traded at back in December of 2017, ” Wald said on CNBC’s “Trading Nation ” on Monday. “It’s been a very tough market for this index in what’s really been a better environment for high growth in general.”

The NYSE Fang+ index tumbled 4% on Monday, and remains just 1% higher for the year. By comparison, high-growth sectors including software, consumer discretionary and communication services have rallied by at least 10%.

“For this particular index, I can say that there’s really no signs that this underperformance is abating, and for exposure we prefer software and services. We think that’s going to be the part of high growth that outperforms,” said Wald.

Gina Sanchez, CEO of Chantico Global, says just the threat of increased regulatory oversight could stymie the FANG trade for some time.

“These companies will be very, very mired in the process of being scrutinized,” Sanchez said during the same segment. “They could actually keep these companies so involved in this process over the next two years that they won’t be able to effectively run and do the things that growth companies do.”

The degree of oversight could mirror the intense antitrust scrutiny given to Microsoft during the 1990s, says Sanchez. The U.S. government accused Microsoft of illegally maintaining a monopoly, a case it won in a 2000 ruling.

“The market response is appropriate given the fact that everybody saw what happened to Microsoft, they had to take their eye off the ball, and so this could be one of those moments,” said Sanchez.

Microsoft’s stock price was largely unaffected over the course of the case. From the point at which the Department of Justice filed antitrust charges in May 1998 to the April 2000 ruling, Microsoft shares more than doubled.


Company: cnbc, Activity: cnbc, Date: 2019-06-04  Authors: keris lahiff
Keywords: news, cnbc, companies, companies, growth, chart, stocks, market, nearly, index, trading, fang, billion, antitrust, pain, sanchez, cap, lost, points, microsoft, nyse


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Bitcoin’s resurgence could help fuel the next rally in chip stock Advanced Micro

The semis have been crushed this month, but one stock remains in the green: Advanced Micro. AMD has risen more than 1% in May, shaking off the SMH semiconductor ETF’s 14% slump. Schlossberg sees another catalyst driving the AMD rally: bitcoin’s resurgence. The SMH ETF’s relative strength index is trading at 33, while Intel’s RSI is 35. On a weekly basis, the SMH ETF’s RSI sits at 42, above the threshold suggesting oversold conditions.


The semis have been crushed this month, but one stock remains in the green: Advanced Micro. AMD has risen more than 1% in May, shaking off the SMH semiconductor ETF’s 14% slump. Schlossberg sees another catalyst driving the AMD rally: bitcoin’s resurgence. The SMH ETF’s relative strength index is trading at 33, while Intel’s RSI is 35. On a weekly basis, the SMH ETF’s RSI sits at 42, above the threshold suggesting oversold conditions.
Bitcoin’s resurgence could help fuel the next rally in chip stock Advanced Micro Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-31  Authors: keris lahiff
Keywords: news, cnbc, companies, resurgence, etfs, bitcoin, chip, stock, bitcoins, smh, oversold, fuel, advanced, weighting, semis, theyre, help, rally, rsi, micro, amd


Bitcoin's resurgence could help fuel the next rally in chip stock Advanced Micro

The semis have been crushed this month, but one stock remains in the green: Advanced Micro.

AMD has risen more than 1% in May, shaking off the SMH semiconductor ETF’s 14% slump. It’s also up 102% over the past 12 months, while the SMH ETF has fallen 8%.

“AMD is definitely the star that shines within the SMH group,” Boris Schlossberg, managing director of FX strategy at BK Asset Management, said Thursday on CNBC’s “Trading Nation. ” “Analysts are saying they have a better product for the first time in 50 years than Intel does, and they’re getting a tremendous amount of love as a result.”

Schlossberg sees another catalyst driving the AMD rally: bitcoin’s resurgence.

“We’ve had a very strong rally in bitcoin. Bitcoin was a big driver of the semi rally when it rallied the first time, so if we get bitcoin over $10,000, we can get it back to that mania of mining again, and that should be an additional tailwind for AMD. So I think AMD is very well positioned,” said Schlossberg.

AMD’s graphics chips have the capacity to power bitcoin mining, which requires fast processors, so as bitcoin demand grows, the need for AMD chips also climbs. The cryptocurrency has rallied 126% in the past three months, to above $8,000, a gain of more than $4,000.

Matt Maley, equity strategist at Miller Tabak, says the rest of the semis space could see a rebound, though it may prove short-lived.

“The semis have sold off very hard this month. They’re getting oversold. They’re just below their 200-day moving average but not enough to really cause a major problem,” said Maley during the same segment. “They could see a little bit of a bounce here in the near term, especially since Intel, which is by far the biggest weighting in the SMH with a 12% weighting, it’s incredibly oversold.”

The SMH ETF’s relative strength index is trading at 33, while Intel’s RSI is 35. Any level approaching 30 or below is considered oversold.

“However, on a longer-term basis, you look at its weekly RSI, the SMH is not very oversold, so I think it’s going to have some more downside here over time and, therefore, if you want to look at the group overall you’re really going to have to pick your individual stocks,” said Maley.

On a weekly basis, the SMH ETF’s RSI sits at 42, above the threshold suggesting oversold conditions. It traded with a lower RSI at the beginning of the year.


Company: cnbc, Activity: cnbc, Date: 2019-05-31  Authors: keris lahiff
Keywords: news, cnbc, companies, resurgence, etfs, bitcoin, chip, stock, bitcoins, smh, oversold, fuel, advanced, weighting, semis, theyre, help, rally, rsi, micro, amd


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Watch out below as Tesla breaks key support, MKM analyst says

“Any time you have major support that breaks, the next key is you have to look for where’s the next downside level,” O’Hara said Thursday on CNBC’s “Trading Nation. ” “We see some support at $215, but there’s really not major support until $185, so that’s some big downside right here.” “We think the downside risks far outweigh any sort of oversold bounce because, again, broken support turns to new resistance. So we have major resistance at $250 now, with the next support on the downside at $185,


“Any time you have major support that breaks, the next key is you have to look for where’s the next downside level,” O’Hara said Thursday on CNBC’s “Trading Nation. ” “We see some support at $215, but there’s really not major support until $185, so that’s some big downside right here.” “We think the downside risks far outweigh any sort of oversold bounce because, again, broken support turns to new resistance. So we have major resistance at $250 now, with the next support on the downside at $185,
Watch out below as Tesla breaks key support, MKM analyst says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-17  Authors: keris lahiff
Keywords: news, cnbc, companies, 185, target, analyst, mkm, resistance, stock, think, downside, breaks, major, watch, tesla, ohara, support, key


Watch out below as Tesla breaks key support, MKM analyst says

Tesla is swerving lower again Friday.

Its stock is falling and now down 8% this week after a third fatal crash involving its autopilot function embroiled the electric carmaker in bad press. Those losses added to a 34% slump in 2019, putting it on track to post its worst annual drop ever.

Wall Street is turning on the stock too. Just this month, Tesla has received 12 analyst price target cuts. Evercore, for example, reduced its price target to $200 “on valuation and lower delivery estimates across all models.”

MKM Partners’ JC O’Hara agrees that the stock could have further to fall.

“Any time you have major support that breaks, the next key is you have to look for where’s the next downside level,” O’Hara said Thursday on CNBC’s “Trading Nation. ” “We see some support at $215, but there’s really not major support until $185, so that’s some big downside right here.”

Tesla is less than 2% from that $215 level. A decline to $185 would mark a 15% drop.

“We think the downside risks far outweigh any sort of oversold bounce because, again, broken support turns to new resistance. So we have major resistance at $250 now, with the next support on the downside at $185,” said O’Hara. “This is a chart we just want to avoid altogether.”

Tesla broke and closed below $250 in late April for the first time since March 2017.

John Petrides of Point View Wealth Management says while the stock is coming down from “ridiculously high” levels, operational headwinds remain for the company.

“The company has been unable to show sustainable cash-flow generation. They have balance-sheet issues. You have board members that are not seeking reelection, key members of the team are leaving, [CEO] Elon Musk is a wildcard, competition in the e-car market is coming on board,” he said during the same segment. “The stock and the company is a mess, and I think this stock could fall lower.”

Tesla had not responded to a request for comment by time of publication.


Company: cnbc, Activity: cnbc, Date: 2019-05-17  Authors: keris lahiff
Keywords: news, cnbc, companies, 185, target, analyst, mkm, resistance, stock, think, downside, breaks, major, watch, tesla, ohara, support, key


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S&P 500’s best-performing stock this year is also the most heavily shorted

However, it is also the most shorted stock of the S&P 500 at 50% of its float. High short interest could squeeze out more gains in this rally over the short term, says one technical analyst. “Near term the stock is still quite bullish,” Mark Newton, founder of Newton Advisors, said Wednesday on CNBC’s “Trading Nation. ” I see the stock going to $14.50 to $15 near term.” Tepper instead prefers another beauty stock over Coty.


However, it is also the most shorted stock of the S&P 500 at 50% of its float. High short interest could squeeze out more gains in this rally over the short term, says one technical analyst. “Near term the stock is still quite bullish,” Mark Newton, founder of Newton Advisors, said Wednesday on CNBC’s “Trading Nation. ” I see the stock going to $14.50 to $15 near term.” Tepper instead prefers another beauty stock over Coty.
S&P 500’s best-performing stock this year is also the most heavily shorted Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-16  Authors: keris lahiff
Keywords: news, cnbc, companies, beauty, sp, term, 15, stock, short, shorted, tepper, heavily, bestperforming, near, newton, quite, 500s


S&P 500's best-performing stock this year is also the most heavily shorted

One stock has been a surprise winner on the S&P 500 this year: Coty.

The beauty retailer has exploded 102% in 2019, by far the best performer of the benchmark index.

However, it is also the most shorted stock of the S&P 500 at 50% of its float.

High short interest could squeeze out more gains in this rally over the short term, says one technical analyst.

“Near term the stock is still quite bullish,” Mark Newton, founder of Newton Advisors, said Wednesday on CNBC’s “Trading Nation. ” “Technically the stock has started to act quite well, breaking out on very heavy volume, almost three or four times average of late. I see the stock going to $14.50 to $15 near term.”

Anything past that critical level looks like a tougher ask, though, says Newton.

“You do see some headwinds right near $15. The stock did come down from a high of over $30 back in 2015,” said Newton. It’s “still coming down off a big, long decline in the stock … For investors, it needs to clear $15 to really be out of the woods.”

Mark Tepper, president of Strategic Wealth Partners, says fundamentals also don’t support a long-term breakout.

“Their overall strategy, in my opinion, is still flawed,” Tepper said during the same segment. “With their acquisition from P&G, they’ve basically doubled down on mass consumer, but consumer buying trends have changed. Consumers now want experience, they want prestige, they want boutique, not CoverGirl. And [Coty’s] debt levels are sky high.”

Tepper instead prefers another beauty stock over Coty.

“If you’re going to be in this space I’d rather own Ulta. It’s a better company, no debt, and it gives you exposure to whichever brands are in favor at that given time, ” said Tepper.

Ulta Beauty has also had an impressive year, rallying 41% since January. That puts it on track for its best year since 2015 when it went public.


Company: cnbc, Activity: cnbc, Date: 2019-05-16  Authors: keris lahiff
Keywords: news, cnbc, companies, beauty, sp, term, 15, stock, short, shorted, tepper, heavily, bestperforming, near, newton, quite, 500s


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One ‘catch-the-falling-knife’ sector play could be a buying opportunity, Wells Fargo strategist says

The sharp sell-off has one strategist changing his tune on the sector. “We had, for a multiyear period, been underweight energy and that worked out really well,” Wells Fargo senior global equity strategist Scott Wren said Thursday on CNBC’s “Trading Nation ” show. Wells Fargo changed its sector allocation on energy to favorable from unfavorable on April 24. Since then, the XLE energy ETF has fallen 7%. Aside from energy, Wren favors financials, industrials, tech and consumer discretionary.


The sharp sell-off has one strategist changing his tune on the sector. “We had, for a multiyear period, been underweight energy and that worked out really well,” Wells Fargo senior global equity strategist Scott Wren said Thursday on CNBC’s “Trading Nation ” show. Wells Fargo changed its sector allocation on energy to favorable from unfavorable on April 24. Since then, the XLE energy ETF has fallen 7%. Aside from energy, Wren favors financials, industrials, tech and consumer discretionary.
One ‘catch-the-falling-knife’ sector play could be a buying opportunity, Wells Fargo strategist says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-03  Authors: keris lahiff
Keywords: news, cnbc, companies, earnings, catchthefallingknife, wells, wren, strategist, sp, fargo, opportunity, sector, really, xle, underweight, market, analysts, play, buying, energy


One 'catch-the-falling-knife' sector play could be a buying opportunity, Wells Fargo strategist says

Energy stocks are at the bottom of the barrel.

The sector has slipped 4% in the past month, the worst performer of the S&P 500, shut out of the broad market rally that pushed the index to new highs.

The sharp sell-off has one strategist changing his tune on the sector.

“We had, for a multiyear period, been underweight energy and that worked out really well,” Wells Fargo senior global equity strategist Scott Wren said Thursday on CNBC’s “Trading Nation ” show. “But recently here, if you look at things like return on equity, … if you look at things like the energy sector dropped to being only 5% of the total market cap of the S&P 500 which is really a multidecade low, we had felt that our underweight position was no longer warranted.”

Wells Fargo changed its sector allocation on energy to favorable from unfavorable on April 24. Since then, the XLE energy ETF has fallen 7%.

However, Wren says investors and analysts have been too pessimistic on energy stocks, and expectations need to be recalibrated.

“When oil came off and dropped down into the mid-$40s [a barrel] last fall we thought that analysts reduced their earnings estimates way too much. They really haven’t boosted them back to reflect this close to $60+ level,” said Wren.

At the end of December, analysts surveyed by FactSet estimated full-year 2019 earnings growth on the XLE of 7%. By the beginning of May, full-year earnings estimates had been slashed to forecast a decline of 9%.

“You could make the argument that this was kind of a catch-the-falling-knife sort of call, but it looked cheap and we wanted to stick our toe in the water. So that’s what we did,” said Wren.

Aside from energy, Wren favors financials, industrials, tech and consumer discretionary. The financials, technology and discretionary sectors have outperformed the market over the past month with a gain of more than 3% compared with the S&P 500’s 2% increase; the industrials have slightly lagged overall gains with a 1% advance.


Company: cnbc, Activity: cnbc, Date: 2019-05-03  Authors: keris lahiff
Keywords: news, cnbc, companies, earnings, catchthefallingknife, wells, wren, strategist, sp, fargo, opportunity, sector, really, xle, underweight, market, analysts, play, buying, energy


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As S&P 500 sits at a record, nearly a quarter of stocks are still stuck in a bear market

“I would advise investors not to dive into the bargain bin at this point in the market cycle with valuations where they are and with the S&P 500 hitting higher highs,” Morganlander said Wednesday on CNBC’s “Trading Nation. ” The S&P 500 has surged 25% off a late December bottom and scored its best start to a year since 1987. “That’s trading at a steeper discount in relationship to the S&P 500. You get consistent cash flow companies in that index, companies that have very little debt and also the


“I would advise investors not to dive into the bargain bin at this point in the market cycle with valuations where they are and with the S&P 500 hitting higher highs,” Morganlander said Wednesday on CNBC’s “Trading Nation. ” The S&P 500 has surged 25% off a late December bottom and scored its best start to a year since 1987. “That’s trading at a steeper discount in relationship to the S&P 500. You get consistent cash flow companies in that index, companies that have very little debt and also the
As S&P 500 sits at a record, nearly a quarter of stocks are still stuck in a bear market Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-02  Authors: keris lahiff
Keywords: news, cnbc, companies, nearly, sits, trading, quarter, stuck, index, 500, market, line, morganlander, companies, baruch, sp, etf, highs, record, stocks, bear


As S&P 500 sits at a record, nearly a quarter of stocks are still stuck in a bear market

Not all stocks have joined in on the S&P 500’s move back to records.

Nearly one-quarter of its components are still at least 20% from 52-week highs even as the underlying index has hit fresh all-time peaks. Stocks like Macy’s, Activision, Nvidia and FedEx are performing even worse, tumbling 30% or more from 52-week highs.

Chad Morganlander, portfolio manager at Washington Crossing Advisors, warns not to get lured in by what appears like a discount.

“I would advise investors not to dive into the bargain bin at this point in the market cycle with valuations where they are and with the S&P 500 hitting higher highs,” Morganlander said Wednesday on CNBC’s “Trading Nation. ”

The S&P 500 has surged 25% off a late December bottom and scored its best start to a year since 1987. It now trades at nearly 17 times forward earnings, up from a 14 times multiple at the beginning of the year.

“What I would suggest investors do is broaden out their investment thematic. Look at the dividend aristocrats index, for example,” said Morganlander. “That’s trading at a steeper discount in relationship to the S&P 500. You get consistent cash flow companies in that index, companies that have very little debt and also there’s a chance for having income growth there.”

The S&P dividend aristocrat ETF is up 12% this year, underperforming the S&P 500’s 16% increase. The ETF’s top components include high-dividend payers such as 3M, Coca-Cola, Colgate-Palmolive, Dover and Procter & Gamble.

“We think overall, over the next 12 to 18 months those types of companies, that type of thematic will perform well in relationship to the broader market indices,” said Morganlander.

Some of the worst performers have held up in the face of sharp downturns, though, according to Bill Baruch, president of Blue Line Futures. Macy’s, for example, has stayed above a support line more than a decade old.

“If you look at a trend line going back to 2008, it’s been constructive and it’s held it so on a longer-term basis there is value in the mid-$20s,” Baruch said Wednesday on “Trading Nation.” “But ultimately if you are buying down here, your time frame has to be long term because there is some very strong overhead resistance from the high of the year.”

“I also want to focus on Nvidia which is well off its highs and really hasn’t participated in a broader rally,” said Baruch. “There is a gap from the Nov. 15 earnings and that right there is going to provide strong overhead resistance. It’s had a good trend up until where it stalled near this gap.”

Instead, Baruch said it’s better to hedge your bets and spread risk across the semis space by looking to the SOXX semiconductor ETF. He sees more upside after the ETF broke above $200 in early April.


Company: cnbc, Activity: cnbc, Date: 2019-05-02  Authors: keris lahiff
Keywords: news, cnbc, companies, nearly, sits, trading, quarter, stuck, index, 500, market, line, morganlander, companies, baruch, sp, etf, highs, record, stocks, bear


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One 130-year-old Dow stock is having a record-making year

The Dow stock is within range of notching a 27th record high so far this year, a new peak in its nearly 130 years as a public company. P&G has broken out above $107 on a monthly basis, a critical resistance level identified from an upward trendline that stretches back to a January 2000 peak. The stock could also be helped along by Baruch’s expected push upward for the consumer staples sector. “We would be overweight the consumer staples sector at this inflection point,” said Morganlander. “You’r


The Dow stock is within range of notching a 27th record high so far this year, a new peak in its nearly 130 years as a public company. P&G has broken out above $107 on a monthly basis, a critical resistance level identified from an upward trendline that stretches back to a January 2000 peak. The stock could also be helped along by Baruch’s expected push upward for the consumer staples sector. “We would be overweight the consumer staples sector at this inflection point,” said Morganlander. “You’r
One 130-year-old Dow stock is having a record-making year Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-01  Authors: keris lahiff
Keywords: news, cnbc, companies, consumer, having, youre, growth, recordmaking, staples, morganlander, washington, upward, trend, stock, dow, trendline, 130yearold


One 130-year-old Dow stock is having a record-making year

It’s been a record-making year for Procter & Gamble.

The Dow stock is within range of notching a 27th record high so far this year, a new peak in its nearly 130 years as a public company. At 26 all-time highs this year, that marks its most over the January-to-April period since at least 1972.

That’s not the only thing impressive about P&G, says Bill Baruch, president of Blue Line Futures.

“Right now it is breaking out above a trendline, believe it or not, going all the way back to 2000,” Baruch said on CNBC’s “Trading Nation ” on Wednesday. “It closed out above there, so the path of least resistance is higher.”

P&G has broken out above $107 on a monthly basis, a critical resistance level identified from an upward trendline that stretches back to a January 2000 peak.

The stock could also be helped along by Baruch’s expected push upward for the consumer staples sector.

“If you look at the consumer staples ETF, XLP, overall it’s breaking out too from those highs last year, and the trend is just very strong right now, so I like it. I think these all head higher, ” he said.

Chad Morganlander, portfolio manager at Washington Crossing Advisors, agrees that the broad sector trend is up.

“This year what you’re seeing within the consumer staples market and what we believe will continue into 2020 is an improvement within operating margins, pricing that has been increased for these big bulge bracket consumer staples and you’re starting to see that in the bottom line as well as the topline,” Morganlander said on Wednesday’s “Trading Nation.”

Analysts expect consumer staples stocks to post an average 1% earnings growth this year, accelerating to 7% in 2020 and 6% in 2021, according to FactSet.

“We would be overweight the consumer staples sector at this inflection point,” said Morganlander. “You’re getting consistent growth, consistent dividend growth, as well as you’re getting companies that have very little leverage.”

Disclosure: Washington Crossing Advisors holds P&G stock.


Company: cnbc, Activity: cnbc, Date: 2019-05-01  Authors: keris lahiff
Keywords: news, cnbc, companies, consumer, having, youre, growth, recordmaking, staples, morganlander, washington, upward, trend, stock, dow, trendline, 130yearold


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Twitter could surge 20% to head back to multiyear highs, technician bets

Twitter ended April as one of the best performers in the S&P 500. “Twitter is a very good-looking chart post earnings. We saw some pretty impressive data following those earnings. Given the strong fundamental case, Gordon sees Twitter clawing back from the losses suffered through the last half of 2018. A move back to its 52-week high at $47.79 represents 20% upside from Tuesday’s close.


Twitter ended April as one of the best performers in the S&P 500. “Twitter is a very good-looking chart post earnings. We saw some pretty impressive data following those earnings. Given the strong fundamental case, Gordon sees Twitter clawing back from the losses suffered through the last half of 2018. A move back to its 52-week high at $47.79 represents 20% upside from Tuesday’s close.
Twitter could surge 20% to head back to multiyear highs, technician bets Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-30  Authors: keris lahiff
Keywords: news, cnbc, companies, saw, pretty, head, multiyear, surge, highs, right, high, twitter, earnings, 20, gap, close, gordon, bets, technician


Twitter could surge 20% to head back to multiyear highs, technician bets

Twitter ended April as one of the best performers in the S&P 500.

Todd Gordon, founder of TradingAnalysis.com, says the rally is just getting started.

“Twitter is a very good-looking chart post earnings. We saw some pretty impressive data following those earnings. Revenues were up 18% year over year and active users saw a pretty good increase, particularly in the U.S.,” Gordon said Tuesday on CNBC’s “Trading Nation. ”

Given the strong fundamental case, Gordon sees Twitter clawing back from the losses suffered through the last half of 2018.

“As we take a look at the charts here, you can see that there’s a significant gap right here from $44 down into below $40, so on the back of this earnings report,” he said. “They’re trying to close that gap, which is a technical phenomenon that does often happen, so the gap closure will take place right around the $42.50 mark.”

Twitter gapped down below $40 in a sell-off in late July. It has not closed above that level in nine months.

“As I see this gap close happen, I think provided the overall market can maintain its current trend, which is up as we’re pressing or at new highs in the indexes, we should be able to 1) close that gap and 2) retest these old highs right around the $48 mark,” said Gordon.

A move back to its 52-week high at $47.79 represents 20% upside from Tuesday’s close. It has fallen 16% since hitting a multiyear high last June.

Gordon is buying the June 21 expiration 42/47 call spread for around $1.30. This is a bullish play that Twitter heads back above $47 by expiration.


Company: cnbc, Activity: cnbc, Date: 2019-04-30  Authors: keris lahiff
Keywords: news, cnbc, companies, saw, pretty, head, multiyear, surge, highs, right, high, twitter, earnings, 20, gap, close, gordon, bets, technician


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