Stock-market believers are looking past the roughest stretch in months for US equities and clinging to bets on a rally in the back half of the year once the Federal Reserve stops hiking interest rates.
From Home Depot Inc. to Walmart Inc., the biggest US retailers are about to grab the earnings spotlight, providing investors crucial insight into consumer demand, the trajectory of economic growth and Corporate America’s profitability.
Ignoring the Federal Reserve’s determination to keep raising rates and hold them there is a wildly profitable trade on Wall Street right now. It’s trying to swim against the rising market that carries risks.
Some of Wall Street’s biggest banks expect a lengthy period of higher interest rates to further pressure Corporate America’s profit engine, threatening equity gains as companies grapple with elevated financing costs and margin-shredding inflation.
Before investors get too excited about the July surge in stocks, here’s something to keep in mind: August and September are historically the two worst months for the S&P 500 Index.
US stock futures extended gains after markets closed Tuesday as investors appear to be embracing risk, at least for the start of the week, as markets resume trading in full force following America’s long Independence Day holiday weekend.
Wall Street is afraid to buy the dip this time around. Even amid this latest leg of the stock market selloff, equities still aren’t fully reflecting the risks facing corporate earnings...
The S&P 500 Index is coming off its best week since November 2020, having posted four consecutive days of more than 1% gains for just the fifth time in history, according to LPL Financial. Historically, that has been encouraging for the stock market, as each time it’s happened the S&P has climbed more than 20% over the ensuing year, with an average return of 28%.
Wall Street analysts have a spotty history of calculating how geopolitical risks will weigh on the earnings and stock prices of the companies they cover. And that was before Russia invaded Ukraine.
