S&P 500 could fall by as much as 20% in the coming weeks, Tim Hayes, senior strategist at Ned Davis Research, told Business Insider. "I would expect a decline of 15-20% and then we get a rally that maybe leaves us back where we are around now." Last week all three major Wall Street indices fell due to a sell-off in big US tech stocks. Hayes said the valuations are very optimistic. But he expects stocks to pick up after November once the US election is over.
France's LVMH faces an uphill battle in walking away from its $16 billion deal to buy U.S. jeweler Tiffany, with legal experts noting most mergers which end up in court are renegotiated rather than dissolved. Fred Katayama reports.
The Trump administration will ban WeChat and video-sharing app TikTok from U.S. app stores starting Sunday night, a move that will block Americans from downloading the Chinese-owned platforms over concerns they pose a national security threat. Fred Katayama reports.
China's ByteDance faces an uphill struggle to convince the White House to allow it to keep majority ownership of its popular short video app TikTok in the United States, according to former national security officials and regulatory lawyers. Fred Katayama reports.
U.S. consumer spending slowed in August, with a key retail sales gauge unexpectedly declining, as extended unemployment benefits were cut for millions of Americans, offering more evidence that the economic recovery from the COVID-19 recession was faltering. Fred Katayama reports.
2020 has been a wild ride for stocks. Business Insider reports that the market continues to face risks stemming from the COVID-19 pandemic. There is also election uncertainty, and the potential for heightened trade tensions with China. BI reports that investors should continue to hold on for the potential of more gains ahead. In a note, investment group LPL raised its year-end S&P 500 fair-value target to a range of 3,450 to 3,500, the note said.
According to Business Insider, JPMorgan expects the S&P 500 to rise another 6% from current levels to a record 3,600 before the year is over. The S&P500's earnings recovery is "ahead of expectation." Tech stocks have done well, boosting the index. The S&P500 will continue to support its recovery while other sectors gain through the second half of the year, they added. JPMorgan expects S&P 500 firms' margins to fully recover from the pandemic by the second half of 2021.
CFRA's Sam Stovall said that the recent S&P 500 pullback may be converted into a "low-level, double-digital correction." According to Business Insider, Stovall said that this will be an opportunity for investors to buy, not "bail." He feels the Fed is likely to keep interest rates low for the next few years. Stovall added that recent S&P 500 sell-off was not surprising. For Stovall, the "extreme" difference between price returns for growth stocks versus value stocks made the market vulnerable.
The cast of Netflix's 'Julie and the Phantoms,' including Madison Reyes, Charlie Gillespie, Jeremy Shada, Owen Joyner, Booboo Stewart and Cheyenne Jackson, as well as director Kenny Ortega, talk about bringing their new Netflix series to life.
Credit: The Hollywood Reporter Duration: 05:49Published
Economists at Bank of America lifted their forecast for third-quarter US GDP growth to 27% from 15% on Friday. Business Insider reports better-than-expected trends in retail sales, the housing market, and hiring. BoA lowered its fourth-quarter projection to 3% from 5%. Failed stimulus negotiations are growing increasingly likely. No new aid could be a speed bump for the American economy. BoA made the adjustment after Senate Democrats blocked Republicans' $500 billion measure on Thursday.
On Friday, Bank of America upgraded Tesla to "neutral" from "underperform." It raised its price target to $1,750 from $800. The firm's new price target implies an 8% upside for Tesla shares over the next year. Business Insider reports that shares of Tesla ticked up as much as 4% on Friday. Morgan Stanley also boosted its price target and rating on the automaker.
Business Insider reports that banks' and tech giants' earnings largely impressed Wall Street. Bank of America says discount stores are set to post similarly positive results, according to Bank of America. BoA analysts expect the sector's second-quarter figures to hold strong thanks to rising food sales and improvement in general merchandise revenue. Thanks to momentum in higher-profit categories and successful online operations Walmart, Target, and Dollar Tree are in good positions.
On Wednesday, Bank of America analysts downgraded Apple, Inc. To BoA, Apple's surging stock price doesn't present the strong risk-reward profile it once did. BoA downgraded Apple to "neutral" in a note. It said Apple's recent rally to record highs faces too many risks to recommend buying more shares. Business Insider said Apple's future performance could slip if 5G iPhones miss expectations or sell worse than estimated. Services may also shrink after several quarters of "unsustainable" growth.
Warren Buffett's investment in Apple has tripled in value to north of $100 billion. Buffett's Berkshire Hathaway spent about $35 billion to build the 5.7% stake in Apple The 10% rise in Apple's stock price on Friday boosted its value to about $104 billion. Business Insider reports that Berkshire's Apple position is now worth more than four times its second-largest holding, Bank of America. Industry analysts call Buffett's investment into Apple "one of the best investments ever."