Inflation surge cools in July. Should stock-market investors still play defense?

Inflation surge cools in July.  Should stock-market investors still play defense?

The latest surge in stocks helped lift the Nasdaq Composite COMP, +2.09% out of bear-market territory on Wednesday and the Dow Jones Industrial Average DJIA, +1.27% to exit correction territory. But the sharp upswing also prompted debate about whether investors should adjust their portfolios, pivoting away from defense plays. For the past month, growth stocks … Read more

Inflation surge cools in July. Should stock-market investors still play defense?

Inflation surge cools in July.  Should stock-market investors still play defense?

The latest surge in stocks helped lift the Nasdaq Composite COMP, +2.09% out of bear-market territory on Wednesday and the Dow Jones Industrial Average DJIA, +1.27% to exit correction territory. But the sharp upswing also prompted debate about whether investors should adjust their portfolios, pivoting away from defense plays. For the past month, growth stocks … Read more

JP Morgan quant who called summer rebound in stocks says rally could continue even if corporate profits decline

JP Morgan quant who called summer rebound in stocks says rally could continue even if corporate profits decline

Investors worried about the next pullback for stocks might want to pause and consider this: the decline in equity valuations since the start of the year has already exceeded the average pullback of other recessionary periods since the early 1990s, according to JPMorgan Chase & Co.’ s equity quant Marko Kolanovic. While more Wall Street … Read more

Will the stock-market rally turn into a selloff? This bond-market gauge could tip investors off

Will the stock-market rally turn into a selloff?  This bond-market gauge could tip investors off

Now that the Federal Reserve appears to have abandoned its forward guidance tool in favor of being “data dependent” to help inform its future path for rates, investors should keep an eye on this gauge of inflation expectations for signs of a shift in the market’s mood . Watch the five-year break-even inflation rate, one … Read more

Weekend reads: Prepare for a big week — a crucial Federal Reserve decision, tech-company earnings and a GDP report

Weekend reads: Prepare for a big week — a crucial Federal Reserve decision, tech-company earnings and a GDP report

It was mostly a week for stocks, particularly a rebound in the tech-heavy Nasdaq Composite Index, as companies topped expectations on second-quarter earnings. The coming week brings a heavy dose of tech-company earnings, the Federal Reserve’s meeting on Tuesday and Wednesday, and the first reading on second-quarter GDP on Thursday. Fed officials are expected to … Read more

Will the Federal Reserve kill the stock-market bounce?

Will the Federal Reserve kill the stock-market bounce?

A summer rebound is stirring hopes the bear market in US stocks has seen its lows, but a meeting of Federal Reserve policy makers this coming week might test the nerves of would-be bulls. “I expect we will continue to see market volatility until investors have seen more convincing evidence that this period of Fed … Read more

Investors are obsessed with the size of the Fed’s next rate hike. Here’s what they’re missing.

Will the Federal Reserve kill the stock-market bounce?

Debate has been simmering over whether Federal Reserve policy makers will raise the fed-funds rate by three-quarters of a percentage point later this month, as they did in June, or step up their inflation-fighting campaign with a full point hike —- something that hasn’t been seen in the past 40 years. Friday’s economic data, which … Read more

Two pieces of good news for investors and three moves to make now in the wake of surging CPI, from UBS

Two pieces of good news for investors and three moves to make now in the wake of surging CPI, from UBS

While stocks didn’t completely roll over following that ugly consumer price index print, futures indicate they may take another whack at it on Thursday. That’s thanks in part to a miss from JPMorgan, which is helping kick off earnings season. (Read more below). How high will inflation reach and what lengths will the Federal Reserve … Read more

Stock market faces inflation test Wednesday: Here are ‘good, bad and ugly’ scenarios

Stock market faces inflation test Wednesday: Here are ‘good, bad and ugly’ scenarios

Expectation for US inflation have fallen over the past month thanks largely to the drop in industrial and agricultural commodity prices. This trend has shown up in the Federal Reserve Bank of New York’s Survey of Consumer Expectations, which saw expectations for inflation both three years and five years from now both decline in June. … Read more

4 big risks facing the stock market as earnings season kicks off

4 big risks facing the stock market as earnings season kicks off

As investors ‘concerns about slowing US economic growth manifested in the form of falling commodity prices, while the strong US dollar weighs on American multinationals’ international earnings, analysts with Bank of America Global Research BAC, -1.04% and other sell-side research shops have highlighted the following paradox: expectations for corporate earnings growth remain relatively robust, even … Read more