Wall St finishes strong month on upbeat company earnings

Wow, it was certainly a seesaw day for all the indexes but a sudden big boost at 3:45 pm shot everyone way up, the Dow from a minus 40 to a plus 100 in just 15 minutes. The last minute boost brought all the indexes into the black and ended a strong July on good earnings and hopes for a soft landing. In fact, Citibank raised its S&P forecast to 5,000 by mid-2024 and the index now stands just 5% short of its high in January 2022 just before the market started its big drawdown, recognizing the higher likelihood of a soft landing. 

6 High-Risk Stocks for Aggressive Investors

Continuing on this weekend's theme of aggressive investing, below are the top 6 picks from this week's U.S. News Invested for risky stocks with the best potential for high profits.  Hope everyone enjoyed this beautiful weekend.  More to come? 

Transformative AI Technology

For the final weekend of this scorching hot July, I offer the latest on that fascinating, terrifying, mysterious world of AI.  Enjoy this beautiful weekend.  

World shares rise, U.S. yields weaken after inflation data, BOJ rate tweak

With today’s assessment by investors that yesterday’s move by the Bank of Japan would not have the feared impact on our markets, Treasury yields fell and all the three indexes jumped. Inflation data was also good showing PCE prices rising by only 3%, the smallest since March 2021.  Volume was in line with recent averages at about 10.3 billion. 

Wall Street closes down, Dow snaps longest winning streak since 1987

It was another day that the indexes were all up in the morning, the Dow up some 120 points, then fell through the floor starting at 1 pm for the whole market to close in the red, the Dow 3-digits in the red. Today’s crash is attributed to the Bank of Japan raising its rates which sent U.S. yields up, which brought the Dow down, smashing 13 straight days of gains, its biggest streak since 1987.  

U.S. stocks close little changed as Fed leaves door open

It was a seesaw day for all the indexes with a brief blip around 2:30 that shot them all up somewhat, the Dow up almost 200 points, then immediately crashed down again, the Nasdaq and S&P closing in slight negative territory but the Dow edging out its 13th consecutive win, its longest streak since 1987.  The Fed gave no new info, just the repeat of closely watching data, making decision meeting by meeting, which probably disappointed some investors who wanted more clarity but pleased other investors for at least no big surprises, the message being that the Fed did not move the needle.  This also explains today’s seesaw action. Big tech had mixed reactions.  Volume remains below average at 9.9 billion. 

AI mania drives Wall Street to higher close ahead of earnings

All the indexes were up until about 2:30 p.m., the Dow up over a hundred points, and then they came barreling down again but still closing with modest gains, the Nasdaq doing better due to AI excitement from Google and Microsoft. Why the decline – never really explained except that all the sectors were subdued, likely waiting for Wednesday’s Fed meeting where it is expected they will announce another ¼ point hike, but hoping for clarity that this is either the last or second to last hike.  The Dow gained for the 13^th day in a row and consumer confidence came in at a 2-year high. Volume was still quite light at 9.75 billion. 

Stocks rise to kick off big week with earnings, Fed decision: Stock market news today

This will be a big week for earnings with over 150 S&P companies reporting. This is also the week for the big Fed policy decision on future rate hikes. The Dow added 175 points for its 11^th straight day of gains. The Nasdaq and S&P had modest gains as investors bide their time for more critical news. Per the CBOE, volume came in quite light at 9.5 billion. (And it’s getting harder and harder to find these daily market summaries!)    

10 of the Best Stocks to Buy for 2023

One more time to close out the weekend, from the latest edition of U.S. News Invested, the best stock picks for 2023.  

MANAGING THE WORLD'S LARGEST MUTUAL FUND

For your weekend viewing pleasure, this latest segment of PBS' WealthTrack presents yet another lucrative investment opportunity.  Enjoy the weekend.  

Stocks end mixed; Dow up for tenth straight day

Investors are still debating the prospects for longer term rate hikes and thus there continues to be a choppy migration from tech to the more traditional Dow. In fact, all the indexes were up all day until about 1:30, the Dow up over a hundred points, before falling with everyone closing near break-even, except for the tech-heavy Nasdaq, which went into the red. The Dow is up for the 10^th straight day, up 6% so far for the year, the S&P up 18%, the Nasdaq 34.  Looking at the bright side as today’s expert put it, “The rally is not just tech heavy anymore.”  Volume was light at 10.4 billion. 

Dollar gains, stocks fall as US data suggests rates to stay higher

Today’s jobs data showed a still very strong and resilient labor market, which sent the market into a tizzy over the expectation of continuing rate hikes through November. The rate sensitive Nasdaq took a particularly big hit dropping nearly 300 while the cyclical Dow picked up the slack with a 163-point boost. As today’s expert put it, “The structural view around inflation has to change. People are assuming the Fed’s done enough.” Below is a chart showing jobless claims vs planning layoffs, the claims being far lower. Volume was not reported but, per the CBOE, 11.2 billion shares were traded, a tad above the average.  

Stocks advance as earnings pick up; Dow notches 8th day of gains

It was a day of choppy trading with all the indexes up substantially mid-day, the Dow up almost 300 by 10:30, only to come down again but still closing with gains, the Dow still up 3-digits with its 8^th straight gain. Again, strong Q2 reporting, especially from the banks, has spurred the buying spree with as today’s expert put it, “Banks are giving you the tenor of what is happening in business.” The logic over Q2 did not rule everybody with Tesla up despite falling gross margins and Netflix down despite handily beating forecasts. Plus, despite the positive reports, Q2 earnings are expected to decline 8.2% vs 8.1% this past week vs 5.7% three weeks ago. Volume was a tad above average at just under 11 billion. 

Bank results lift stocks; Dow up for seventh straight session

It was a shot straight up on all the indexes all day with the Dow and Nasdaq both closing up three digits. The previous skepticism regarding bank performance turned around today with four of the big banks surprising investors with stellar reports, all topping expectations and indicating a resilient economy. Tech was the strongest, the whole sector coming back on the optimism of an end to rate hikes.  Volume was in line with recent averages at 10.5 billion. 

US stocks rise on earnings outlook, global shares dip on China data

It was another shot straight up mostly on a broad consensus that most of Q2 will exceed forecasts. There is also data suggesting that China’s growth is weakening and particularly that its post-COVID boom is over. Inflation is getting tamed and overall the expectation of a soft-landing is getting stronger. A Q2 earnings decline is still forecast at 8.1% vs 5.7% two weeks ago. Retail sales data coming Tuesday is expected to support the soft-landing scenario. Volume was not reported below but per the CBOE, it was below average at 9.6 billion. 

Highest Dividend-Paying Stocks in the S&P 500

Back on the subject of investing for income, here are the latest dividend stock recommendations from U.S. News Invested.  

Climate Change Investments

Who says Wall Street doesn't believe in climate change? So what's wrong with all the climate deniers? This week's edition of WealthTrack explores the opportunities presented by companies with the mission of controlling and mitigating this crisis.  

S&P 500 ends down with banks mostly lower, indexes post weekly gains

The banks easing off after expectations of more positive results, despite the fact that both JP Morgan and Wells Fargo reported higher profits, plus a general “fatigue and lack of conviction that stocks can go materially higher” took the wind out of the sails today after earlier rallies. Tech and financials ended down while the cyclical Dow with a boost from safer healthcare stocks ended up. Overall, though, it was a good week with all the indexes up 2.3 to 3.3%. S&P earnings for Q2 are now projected to decline 8.1% vs Monday’s 6.4%.  Volume was close to average at 10.7 billion. 

Wall St ends up, extends recent gains on cooling US inflation

The PPI data came in at a 0.1% increase, its lowest in three years and about 90% less than last month. This was another good sign for taming inflation and propelled further confidence that the July rate hike would be the last, thereby providing a considerable boost to tech with that index up 2% and the Nasdaq up 219.  And as goes rate-sensitive tech, the cyclical Dow goes the other way which meant for a lot of choppy trading on that index but still closing up 47 points. Q2 reporting starts Friday with JP Morgan reporting before the opening bell and expected to be positive. Positive sentiment is expected to continue through the Q2 reporting season. Volume was close to average at 10.8 billion. 

Nasdaq leads Wall St to higher close as CPI report lifts sentiment

All the indexes were up in the morning, the Dow up some 300, before starting a steady decline even though the Dow took the worst of it with the Nasdaq and S&P still closing in respectably positive territory. The CPI report came in with good news showing prices at their lowest increases in two years. Hopes are now higher that the July rate hike will be the last one or, as the sentiment was stated, “bulls remain firmly in charge.” It’s amusing that “those that have been sitting on the sidelines hoping for a pullback continue to get frustrated.”  That’s the kind of frustration I like. Below is a chart that shows CPI continuing to fall as the banks begin Q2 reporting this Friday. The VIX has eased and volume is finally in line with the 4-week average at 11.2 billion. 

Wall St ends up ahead of CPI; JPMorgan, financial shares gain

With the expectation that Wednesday’s CPI report will bring good news regarding inflation, all the indexes zoomed up, the Dow a whopping 317 points. Adding to the optimism that the first Q2 reports from the big banks would show them alive and well, particularly with JP Morgan being upgraded with a “buy” today, boosted the rally. As today’s expert put it, “It’s nice to see the market broadening out here ahead of earnings.”  Overall, the banks are expected to report higher profits.  The S&P is up 15.6% for the year, the tech index up 40%.  Volume remains below average at just under 10 billion. 

Wall St ends up; investors digest Fed official comments

Though there is more data coming this week, and though Fed officials are mostly sticking to their guns about more rate hikes this year, sentiment nonetheless abounds that the end of rate hikes is close and that sent all the indexes up, the Dow a big 209 points. Investors are getting ready for Q2 reporting which begins later this week with the big banks. There will also be close eyes on Wednesday’s consumer prices report. But the big issue is rate hikes with Q2 earnings expected to decline 6.4% from a year ago. The forecast last Thursday was a 5.7% decline. Volume is still below average at 10.2 billion. 

The State of the U.S. Financial Markets As of Mid-Year

As Q3 begins, this week's AAII makes an assessment of where the markets stand at this half-way point.  Happy reading and hope all enjoyed this great weekend.  

Small Cap Pioneer Perspective

With the Russell going great guns lately and lending assurances to investors that the market is not dangerously dependent on the giant megacaps, this week's edition of WealthTrack is particularly topical in its discussion of all the 2000 smaller stocks that make up the Russell index. Enjoy the beautiful weekend.  

Wall Street ends choppy day lower after jobs data

All three indexes were up considerably in the morning, the Dow up over 100 points by 1 pm, then at 1 pm the whole market came crashing down leaving the Nasdaq and S&P with modest losses but the Dow losing some 300 points from its earlier high. It must have been around 1 pm when the jobs report came in showing weakening jobs growth but still a too tight labor market to beat down inflation. The Fed again opined that there would likely be two more hikes this year. The sell off also demonstrated caution with the beginning of Q2 reporting next week as well as some critical inflation readings. After a strong first half, all three indexes lost between 1 and 2% for this first week of Q3.  Volume was below average at 10.3 billion. 

Wall St logs sharp losses as labor market strength stokes rate-hike fears

It was a red-letter day all around with the Dow sinking about 500 points by 11 a.m. but then starting a modest recovery to close down 366.  This was yet another case of what would ordinarily be considered great news (a big boost in private payrolls) was taken instead as bad news with new fears of more rate hikes.  Until today the consensus was a likely hike in July but then none for the rest of the year.  Today the market now considers a November hike a strong likelihood.  

Wall Street posts modest loss after Fed minutes

The indexes were all well into the red all day, particularly in the morning when the Dow was down almost 200, then zoomed up to within 40 points of breakeven before diving again shortly before noon. That must have been when the Fed minutes were released showing a continued commitment to more hikes and almost certainly another hike this month. Basically it’s wait-and-see as more reports come in, particularly the jobs report on Friday. As today’s expert put it, “Since the Fed is data dependent, so is the market.”  

5 of the Best Stocks to Buy Now

And so for our 247th year of independence, here are 5 more tips for financial independence.  

Wall St ends slightly higher in shortened session, Tesla jumps

All three indexes spent a good part of the day in the red but recovered to close modestly in the black on this first and very shortened day of Q3. After Friday’s good news from the Fed’s annual health check, the banks gained today when they raised their dividends and Tesla jumping 6.9% also helped the markets. After a strong first-half, the perception is a likelihood for a sustained upside move. The bad news is that Monday saw the biggest gap in the notorious Treasury inverted yield curve since 1981.  Due to the short session and holiday, volume was predictably way below average at just 6 billion. 

Should You Invest in Nvidia Stock? 3 Pros, 3 Cons

Continuing on this weekend's theme, and since Nvidia has been so big in the financial news lately, here is a pro vs con analysis of the company and whether or not we should or should not be buying the stock.  It's a short market week ahead.  

7 Undervalued Stocks to Buy Now

For the first day of Q3, how about the latest hot stock picks courtesy of this latest issue of U.S. News Invested.