Current S&P 500 rally is 'far more similar' to dotcom bubble than people think - JPM

Market leadership is becoming increasingly unhealthy - JPMorgan

January 30, 2024 1:35 PM EST

According to JPMorgan analyst Dubravko Lakos-Bujas, market leadership is becoming increasingly unhealthy, with a further rise in stock concentration this January compared to last year.

In a note to clients Tuesday, the analyst explained that while the weight of the top 50 stocks within the S&P 500 remains roughly unchanged, the largest ten... More

Nassim Taleb warns rising US debt could turn into 'death spiral'

January 30, 2024 9:48 AM EST

Black Swan author Nassim Nicholas Taleb warned that "a debt spiral is like a death spiral," and the US deficit is increasing to a point where it would take a miracle to reverse the damage.

In an article, Bloomberg reported that Taleb spoke at an event for Universa Investments on Monday night, the hedge fund he... More

Institutional traders were big sellers last week, BofA's client data shows

January 30, 2024 9:12 AM EST

The recent trading week saw a notable shift with institutional clients engaging in significant selling, marking the first outflow from single stocks in eight weeks, according to Bank of Americas analysis of client data.

Despite the S&P 500 gaining 1.1%, the brokers clients were net sellers of US equities, totaling outflows of $0.7 billion, the first such instance in three weeks. Contrasting this, there was an inclination... More

Fed meeting likely to see start of debate over ending balance sheet contraction

January 30, 2024 6:06 AM EST

By Michael S. Derby

(Reuters) - Decision time is close at hand for the Federal Reserve to plan the mechanics of how it ends the winddown of a balance sheet that remains swollen by historic standards.

A readout of the U.S. central bank's final meeting of 2023 showed "several" policymakers were ready to kick off discussion about how to stop the quantitative tightening (QT) process that has seen roughly $1.3 trillion of bonds roll off a balance sheet that topped out at around $9 trillion in mid-2022.

Moreover, market participants reckon a swift removal of cash from a... More

What earnings are saying about current economic growth

January 29, 2024 6:00 PM EST

In its recent report released Friday, financial research firm Sevens Report shared its views on what the ongoing earnings season tells us about the current state of the U.S. economy.

Benchmark U.S. equity indexes continued their march this week, with the S&P 500 rising 0.3% Monday, climbing back above the 4,900 mark once again. The recent rally has been driven in part by positive economic and strong corporate earnings.

Notably, Q4 GDP surpassed expectations at 3.3%, with most inflation indicators meeting or falling below the Fed's 2% target last quarter.

Despite a... More

JPMorgan's Kolanovic: Valuations continue to be stretched

January 29, 2024 2:23 PM EST

This week is crucial for assessing the sustainability of mega-cap US tech stock valuations, according to JPMorgans top strategist Marko Kolanovic.

Investors expect significant earnings growth, anticipating earlier interest-rate cuts than Federal Reserve projections.

Kolanovic notes that as long as the market remains narrow and tech-driven, the US will likely outperform the Eurozone. He... More

Strong US economic outlook buffers stocks against rising yields -Goldman

January 29, 2024 1:47 PM EST

By Lewis Krauskopf

NEW YORK (Reuters) - A strong economic outlook is helping U.S. stocks weather a rise in Treasury yields, though that could change if factors such as tighter monetary policy drive yields higher or if they move up too fast, Goldman Sachs strategists said.

The S&P 500 and 10-year Treasury yield had been negatively correlated - meaning they have moved in opposite directions - since long-term yields began rising last July, Goldman equity strategists led by David Kostin said in... More

Analyst explains why 'this could be the greatest week for event risk in many years'

January 29, 2024 12:00 PM EST

(Updated - January 29, 2024 12:05 PM EST)

This could be the greatest week for event risk in many years, analysts at Argus argued in a research note to clients on Monday.

The firm explained that to start, MSFT and GOOGL report after Tuesdays close, while AAPL, AMZN, and META report after Thursdays close, with the companies representing almost 23% of the S&P 500 and 32% of the Nasdaq 100.

In addition, the Fed... More