U.S. stocks were higher on Tuesday morning following a number of positive earnings reports. On the housing front, new home sales for March rose to a seasonally adjusted rate of 693,000, above expectations for 669,000. Spotify Technology (SPOT) is up 14% after reporting above-consensus results and gross margin improvement. The Dow was up 0.5%, the S&P 500 rose 0.96% and the Nasdaq gained 1.4%. Crude oil is trading above $82 per barrel and gold fell $11 to $2334 per ounce.

Stocks were slightly down on Tuesday morning following Monday's record highs. Investors are looking to new earnings report. The Dow was down 0.5%, the S&P 500 fell 0.1% and the Nasdaq was down less than 0.1%. Crude Oil traded near $75 per barrel while gold rose to $2025 per ounce.

Stocks fell on Tuesday morning as strong retail sales data again raised the likelihood of a Fed rate hike in December. The Commerce Department said that U.S. retail sales rose 0.7% from the prior month in September, down slightly from 0.8% in August but well above the Reuters consensus forecast of 0.3% growth. Core retail sales, excluding automobiles, gasoline, building materials, and food services, rose 0.6%, up from 0.2% in August. Manufacturing data for September was also stronger than expected. The Federal Reserve said that U.S. manufacturing output rose 0.4% last month, above the consensus of 0.1% growth. On the earnings front, Bank of America posted 10% profit growth in 3Q, helped by higher net interest income, while Goldman Sachs reported a sharp decline in earnings, hurt by write-downs in its consumer lending and real estate businesses. The Dow fell 0.1%, the S&P 0.2%, and the Nasdaq 0.4%. Crude oil rose to $87 per barrel, while gold traded near $1940 per ounce.

Monday Tee Up: Earnings and an Eye on Next Week

Stocks fell on Tuesday morning following more earnings reports from major banks. Bank of America posted strong 1Q revenue and earnings that topped consensus forecasts, while Goldman Sachs reported sharply lower earnings, hurt by weakness in investment banking and lower advisory fees. Elsewhere, Lockheed Martin rose after reporting above-consensus earnings, while Johnson & Johnson shares fell despite strong first-quarter results and higher full-year earnings guidance. The Dow fell 0.4%, the S&P 0.2%, and the Nasdaq 0.1%. Crude oil traded near $81 per barrel, while gold rose $14 to $2021 per ounce.

Global stocks are on a run. While the S&P 500 has jumped almost 8% year-to-date, The EAFA Index of large- and mid-cap stocks based in countries other than the U.S. and Canada has risen 9%. Over the past six months, foreign stocks also have outperformed, climbing 11% versus a 1% decline by the U.S. market. The story is different over the past five years, as the S&P 500 has risen 50% and global stocks have fallen 1%. Even so, the long outperformance has given global stocks a valuation advantage, particularly in the area of dividends. The EAFE dividend yield of 2.7% is 100 basis points higher than the comparable S&P 500 dividend yield. We think global dividend stocks now offer opportunity, particularly given the endless speculation over the direction of interest rates in the U.S., which has created market-timing headaches for equity income investors - who have endured recent wide swings in prices for rate-sensitive equity sectors such as utilities, REITs and MLPs. In our view, investing in international income stocks is one way to increase portfolio diversification while reducing sensitivity to volatile U.S. interest rates. Investing in overseas stocks carries its own set of risks, including the impact of currency exchange and geopolitical turmoil. But there are also a number of positives in this asset class for U.S. investors, including a wide selection, robust industry diversification, and, as we have mentioned, higher yields and lower valuations. Argus recently boosted its global coverage, and recommends the following international dividend stocks, each of which has at least a long-term BUY rating from an Argus analyst. This list of approximately 25 companies offers exposure to eight of the 11 major industrial sectors. The list includes companies from 10 countries.

Monday Tee Up: Earnings, Inflation Data, and GDP

Dividends are supposed to lend stability to a portfolio. However, U.S.-based income investors have experienced a high degree of volatility in recent years, as the Federal Reserve since 2018 has embarked on two campaigns to raise interest rates, sandwiched around a desperate program that lowered the federal funds rate to zero in order to help the economy recover from the pandemic. The endless speculation over the direction of rates has created market-timing headaches for equity income investors. They have endured wide swings in prices for rate-sensitive equity sectors such as Utilities, REITs and MLPs. In our view, investing in international income stocks is one way to increase portfolio diversification while reducing sensitivity to volatile U.S interest rates. Investing in overseas stocks carries its own set of risks, including the impact of currency exchange and geopolitical turmoil. But there are also a number of positives in this asset class for U.S. investors, including a wide selection, robust industry diversification, higher yields, and lower valuations. Argus has recently boosted its global coverage, and recommends the following international dividend stocks. Note this list of 25 companies offers exposure to eight of the 11 major sectors. The list includes companies from 10 countries.

Stocks rallied on Friday morning, helped by strong retail sales data and a positive earnings report from Citigroup. The Commerce Department said that U.S. retail sales rose 1.0% in June after a 0.1% decline in May. The reading exceeded the Reuters consensus forecast of 0.8% growth. Citigroup shares jumped more than 10% after the company reported stronger-than-expected sales and earnings. The Dow rose 1.9%, the S&P 1.7%, and the Nasdaq 1.3%. Crude oil rose more than 2% to $98 per barrel, while gold fell $2 to $1704 per ounce.

Stocks swung between gains and losses on Monday morning as investors awaited earnings from a range of major companies. Bank of America rose more than 3% after posting stronger-than-expected first-quarter earnings, helped by growth in consumer lending. However, earnings were still down 13% from the prior year. The Dow fell 0.2%, the S&P 0.2%, and the Nasdaq 0.4%. Crude oil rose 1% to $108 per barrel, while gold traded near $1991 per ounce.

We recently lowered our intermediate-term technical outlook to bearish from bullish. The major indices have been cutting through important support levels. The condition of most individual stock charts is ugly, with many losing their 50-day averages and then cratering through their 200-day averages. This is definitely a change of character: absent the pandemic, it is something we have not seen since September 2018 (and 2015 and 2016 for some of the higher-beta indices). We have not had a decent-sized correction since the pandemic swoon, so we are certainly overdue.

Stocks rose on Tuesday morning as investors weighed earnings reports from Johnson & Johnson and Procter & Gamble, and new housing market data. Johnson & Johnson shares rose more than 2% following mixed 3Q results and higher full-year earnings guidance. P&G shares fell after the company topped fiscal 1Q consensus estimates but maintained its full-year guidance to reflect the impact of rising costs. Housing starts fell a greater-than-expected 1.6% in September to an annualized 1.555 million units. Building permits dropped a sharper 7.7%, compared to the consensus call for a 2.4% decline. The Dow rose 0.4%, the S&P 0.5%, and the Nasdaq 0.5%. Crude oil traded near $82.50 per barrel, while gold rose $7 to $1772 per ounce.

The stock market moved lower last week as inflation concerns spread from Wall Street to Main Street. Blue chips relatively outperformed as earnings season kicked off. During Friday's session, the Dow Jones Industrial Average fell 299 points, or 0.86%. The S&P 500 was down 0.75%, and the Nasdaq Composite was down 0.80%. For the week, the DJIA was down 182 points, or 0.52%, the S&P 500 was down 0.97%, and the Nasdaq Composite was down 1.87%. Year-to-date, the DJIA is up 13.33%, the S&P 500 is up 15.20%, and the Nasdaq Composite is up 11.94%.

Dividends are supposed to lend stability to a portfolio. However, U.S.-based equity income investors have experienced a high degree of volatility in recent years as the endless speculation over the direction of rates has created market-timing headaches. Investors have endured wide swings in prices for rate-sensitive equity sectors such as utilities, REITs and MLPs. In our view, investing in international income stocks is one way to increase portfolio diversification while reducing sensitivity to volatile U.S interest rates. Investing in overseas stocks carries its own set of risks, including the impact of currency exchange and geopolitical turmoil. But there are also a number of positives in this segment for U.S. investors.

Sector Rotation Showing Signs of Reverting

Just before the 2020 holiday season, we started commenting on insider sentiment that was trending in a bearish direction. Two weeks ago, we started to pound the table a bit, as the broadest sell/buy ratio from Vickers Stock Research (the Total Eight-Week Sell/Buy Ratio, which includes all insider transactions that meet the criteria for inclusion in the Weekly Insider Report) started to reach worrisome levels. By the numbers, the ratio was 8.63 last week (with anything over 2.50 bearish) and included a Nasdaq component reading of 10.63.

Stocks fluctuated on Thursday morning amid mixed earnings reports, new weekly employment data, and diminishing prospects for a pre-election stimulus deal. Tesla shares rose after the company posted stronger-than-expected 3Q earnings and reiterated its full-year forecast of 500,000 vehicle deliveries. Coca-Cola shares also rose following above-consensus results, reflecting strength in at-home sales. On the employment front, the Labor Department said that initial claims for state unemployment benefits fell to 787,000 for the week ended October 17, down from 842,000 a week earlier and below the Bloomberg consensus forecast of 870,000. The Dow rose 0.1%, the S&P rose 0.1%, and the Nasdaq fell 0.2%. Crude oil traded near $41 per barrel, while gold fell $29 to $1900 per ounce.

Dividends are supposed to lend stability to a portfolio. However, U.S.-based equity income investors have experienced a high degree of volatility in recent years. In our view, investing in international income stocks is one way to increase portfolio diversification while reducing sensitivity to volatile U.S interest rates. Investing in overseas stocks carries its own set of risks, including the impact of currency exchange and geopolitical turmoil. But there are also a number of positives in this segment for U.S. investors. One is a more robust selection of high-quality names. Yields also tend to be higher in overseas markets in general. And finally, valuations can be more attractive.

July more than lived up to its reputation as the best summer stock month, delivering capital appreciation of 5.5%. End of story: nothing to see here, move along.

July more than lived up to its reputation as the best summer stock month, delivering capital appreciation of 5.5%. End of story: nothing to see here, move along.

Stocks were mixed on Friday, echoing an unsettled week in which blue chip indexes rose but formerly hot growth stocks cooled off. Stocks were volatile all week as investors weighed steadily rising new COVID-19 case numbers and deaths against surprisingly strong economic data including retail sales, housing starts and permits, and industrial production. On Friday, The Dow Jones Industrial Average fell 63 points, or 0.2%. The S&P 500 and the Nasdaq Composite both increased 0.3%. For the full week, the Dow increased 2.3%. The S&P 500 was up 1.3%, and the Nasdaq fell 1.1%. Year-to-date, losses are now 6.5% for the Dow and 0.2% for the S&P 500, while the Nasdaq is up 17.1%. Over the past 52 weeks, the Dow is down 1.8%, while the S&P 500 is up 8.3%, and the Nasdaq is up 28.9%.

Stocks were mixed on Friday, echoing an unsettled week in which blue chip indexes rose but formerly hot growth stocks cooled off. Stocks were volatile all week as investors weighed steadily rising new COVID-19 case numbers and deaths against surprisingly strong economic data including retail sales, housing starts and permits, and industrial production. On Friday, The Dow Jones Industrial Average fell 63 points, or 0.2%. The S&P 500 and the Nasdaq Composite both increased 0.3%. For the full week, the Dow increased 2.3%. The S&P 500 was up 1.3%, and the Nasdaq fell 1.1%. Year-to-date, losses are now 6.5% for the Dow and 0.2% for the S&P 500, while the Nasdaq is up 17.1%. Over the past 52 weeks, the Dow is down 1.8%, while the S&P 500 is up 8.3%, and the Nasdaq is up 28.9%.

Charting the Path Forward

Charting the Path Forward

Ericsson is leading supplier within the telecommunications equipment sector. The company's three major operating segments are networks, digital services, and managed services. Ericsson sells hardware, software, and services primarily to communication service providers while licensing patents to handset manufacturers. The Stockholm, Sweden-based company derives sales worldwide and had 95,000 employees as of June.

Dividends are supposed to lend stability to a portfolio. However, U.S.-based equity income investors have experienced a high degree of volatility in recent years. In 2018, the Federal Reserve embarked on an aggressive campaign to raise interest rates -- causing Treasury yields to swoop and dive, resulting in a wild ride for supposedly stable U.S. high-income equities. In 2019, the Fed lowered rates, in order to restore a normal upward slope in the yield curve. And in 2020, global investors, fearing the spread of the coronavirus, have pushed rates lower still. The endless speculation over the direction of rates has created market-timing headaches for equity income investors. They have endured wide swings in prices for rate-sensitive equity classes such as utilities, REITs and MLPs -- even as generally positive industry fundamentals remained largely intact. In our view, investing in international income stocks is one way to increase portfolio diversification while reducing sensitivity to U.S interest rates. Investing in overseas stocks carries its own set of risks, including the impact of currency exchange and geopolitical turmoil. But there are also many positives in this asset class for U.S. investors.

Dividends are supposed to lend stability to a portfolio. However, U.S.-based equity income investors have experienced a high degree of volatility in recent years. In 2018, the Federal Reserve embarked on an aggressive campaign to raise interest rates -- causing Treasury yields to swoop and dive, resulting in a wild ride for supposedly stable U.S. high-income equities. In 2019, the Fed lowered rates, in order to restore a normal upward slope in the yield curve. And in 2020, global investors, fearing the spread of the coronavirus, have pushed rates lower still. The endless speculation over the direction of rates has created market-timing headaches for equity income investors. They have endured wide swings in prices for rate-sensitive equity classes such as utilities, REITs and MLPs -- even as generally positive industry fundamentals remained largely intact. In our view, investing in international income stocks is one way to increase portfolio diversification while reducing sensitivity to U.S interest rates. Investing in overseas stocks carries its own set of risks, including the impact of currency exchange and geopolitical turmoil. But there are also many positives in this asset class for U.S. investors.

The major indices rose on Tuesday morning, led by the Technology and Financial sectors, partly recovering from Monday's sharp selloff. On the earnings front, 3M and Harley-Davidson both posted disappointing fourth-quarter results. The Commerce Department reported weaker-than-expected capital goods orders for December. Orders for nondefense capital goods excluding aircraft fell 0.9% last month, down from 0.1% growth in November and the largest decrease since April. The Reuters consensus estimate had called for flat capital goods orders last month. The Dow rose 0.8%, the S&P 1.0%, and the Nasdaq 1.2%. Crude oil traded near $54 per barrel, while gold fell $9 to $1567 per ounce.

The major indices rose on Tuesday morning, led by the Technology and Financial sectors, partly recovering from Monday's sharp selloff. On the earnings front, 3M and Harley-Davidson both posted disappointing fourth-quarter results. The Commerce Department reported weaker-than-expected capital goods orders for December. Orders for nondefense capital goods excluding aircraft fell 0.9% last month, down from 0.1% growth in November and the largest decrease since April. The Reuters consensus estimate had called for flat capital goods orders last month. The Dow rose 0.8%, the S&P 1.0%, and the Nasdaq 1.2%. Crude oil traded near $54 per barrel, while gold fell $9 to $1567 per ounce.

July more than lived up to its reputation as the best summer stock month, delivering capital appreciation of 5.5%. End of story: nothing to see here, move along.

Stocks were mixed on Friday, echoing an unsettled week in which blue chip indexes rose but formerly hot growth stocks cooled off. Stocks were volatile all week as investors weighed steadily rising new COVID-19 case numbers and deaths against surprisingly strong economic data including retail sales, housing starts and permits, and industrial production. On Friday, The Dow Jones Industrial Average fell 63 points, or 0.2%. The S&P 500 and the Nasdaq Composite both increased 0.3%. For the full week, the Dow increased 2.3%. The S&P 500 was up 1.3%, and the Nasdaq fell 1.1%. Year-to-date, losses are now 6.5% for the Dow and 0.2% for the S&P 500, while the Nasdaq is up 17.1%. Over the past 52 weeks, the Dow is down 1.8%, while the S&P 500 is up 8.3%, and the Nasdaq is up 28.9%.

Charting the Path Forward

Dividends are supposed to lend stability to a portfolio. However, U.S.-based equity income investors have experienced a high degree of volatility in recent years. In 2018, the Federal Reserve embarked on an aggressive campaign to raise interest rates -- causing Treasury yields to swoop and dive, resulting in a wild ride for supposedly stable U.S. high-income equities. In 2019, the Fed lowered rates, in order to restore a normal upward slope in the yield curve. And in 2020, global investors, fearing the spread of the coronavirus, have pushed rates lower still. The endless speculation over the direction of rates has created market-timing headaches for equity income investors. They have endured wide swings in prices for rate-sensitive equity classes such as utilities, REITs and MLPs -- even as generally positive industry fundamentals remained largely intact. In our view, investing in international income stocks is one way to increase portfolio diversification while reducing sensitivity to U.S interest rates. Investing in overseas stocks carries its own set of risks, including the impact of currency exchange and geopolitical turmoil. But there are also many positives in this asset class for U.S. investors.

The major indices rose on Tuesday morning, led by the Technology and Financial sectors, partly recovering from Monday's sharp selloff. On the earnings front, 3M and Harley-Davidson both posted disappointing fourth-quarter results. The Commerce Department reported weaker-than-expected capital goods orders for December. Orders for nondefense capital goods excluding aircraft fell 0.9% last month, down from 0.1% growth in November and the largest decrease since April. The Reuters consensus estimate had called for flat capital goods orders last month. The Dow rose 0.8%, the S&P 1.0%, and the Nasdaq 1.2%. Crude oil traded near $54 per barrel, while gold fell $9 to $1567 per ounce.

Dividends are supposed to lend stability to a portfolio. However, U.S.-based equity income investors have experienced a high degree of volatility in recent years. In our view, investing in international income stocks is one way to increase portfolio diversification while reducing sensitivity to volatile U.S interest rates. Investing in overseas stocks carries its own set of risks, including the impact of currency exchange and geopolitical turmoil. But there are also a number of positives in this segment for U.S. investors. One is a more robust selection of high-quality names. Yields also tend to be higher in overseas markets in general. And finally, valuations can be more attractive.

Stocks rose modestly on Thursday amid mixed earnings reports and new housing market and employment data. Investors also weighed the last-minute Brexit deal between the UK and the EU. However, the deal must still be approved by the British Parliament, which is by no means certain. On the housing front, the Commerce Department reported that U.S. housing starts fell 9.4% in September to an annualized 1.256 million, driven by a decline in the multifamily segment. The results were below the Reuters consensus forecast of 1.32 million. Building permits also fell 2.7% to an annualized 1.387 million. Meanwhile, the Labor Department said that first-time unemployment benefit claims rose by 4,000 to a seasonally adjusted 214,000 for the week ended October 12, slightly below the Reuters consensus forecast. The Dow rose 0.09%, the S&P 0.28%, and the Nasdaq 0.40%. Crude oil rose to about $54 per barrel, while gold rose slightly to $1495 per ounce.

The Portfolio Selector features the Argus Focus List, a group of 30 "best idea" stocks generated and regularly updated by Argus' analysts and investment policy committee. It also includes the director of research’s monthly investment strategy column, stock recommendations and sector picks, economic forecasts, and an asset allocation model. This month, the Focus List additions are Yum Brands Inc. (YUM); Oneok Inc. (OKE); Western Digital Corp. (WDC); Equity Residential Properties (EQR) and the Focus List deletions are Equinix Inc (EQIX); Ericsson (ERIC); Lowe`s Cos., Inc. (LOW); Marathon Oil Corporation (MRO).

The Portfolio Selector features the Argus Focus List, a group of 30 "best idea" stocks generated and regularly updated by Argus' analysts and investment policy committee. It also includes the director of research’s monthly investment strategy column, stock recommendations and sector picks, economic forecasts, and an asset allocation model. This month, the Focus List additions are Yum Brands Inc. (YUM); Oneok Inc. (OKE); Western Digital Corp. (WDC); Equity Residential Properties (EQR) and the Focus List deletions are Equinix Inc (EQIX); Ericsson (ERIC); Lowe`s Cos., Inc. (LOW); Marathon Oil Corporation (MRO).

Argus Market Outlook for the Second Half of 2019

Argus Market Outlook for the Second Half of 2019

Argus Market Outlook for the Second Half of 2019