U.S. Markets closed

Ally Invest Quarterly Market Outlook Survey: Investors Remain Bullish As Long As Interest Rates Hold Steady

Excitement Grows for AI, Cannabis & Robotics

CHARLOTTE, N.C., April 15, 2019 /PRNewswire/ -- 

Ally Invest Quarterly Survey Highlights:

  • Bearish sentiment drops to only 20% of respondents, down sharply from 47% last quarter
  • Optimism is tied to two potential market drivers for 2019:
  • Brexit is a non-issue per 75% of respondents
  • Interest in the FAANG stocks has dropped to only 35% of respondents, down from 44% last quarter and 41% a year ago
  • Interest in AI, Cannabis and Robotics surges

In the latest quarterly investor survey from Ally Invest, the online trading and investing arm of Ally Financial Inc., independent investors expressed a more positive outlook on stocks leading into the second quarter than they did in the first quarter. For Q2, those respondents that described themselves as bullish doubled to 35% as compared to the start of Q1.

The results of the in-house survey, conducted March 27 through April 3, 2019, are based on responses from approximately 300 independent investors. 

The Key Market Drivers

The bullish sentiment by investors appears, in part, supported by the majority of respondents' belief that interest rates will remain unchanged this year (67%) and the government will sign economic trade agreements that will help drive the markets higher (61%). 

Other major market drivers cited by respondents include positive year-over-year earnings (26%), low unemployment rate (24%), lack of inflation (18%), and tax reform (15%).  

The top market concerns for investors include a potential recession (62%), the possibility of negative international trade news (52%), the current domestic political environment (50%), and the potential for slowing economic growth (46%). Interestingly, Brexit did not appear to be a major issue for the majority of investors with 75% stating they believed it would have little to no impact on the U.S. market for the quarter ahead. 

"The results of our Q2 outlook survey indicate that many investors view a few major issues, such as Brexit and slowing corporate growth, as either already built into the market or not threatening enough to limit their opportunities," said Lule Demmissie, president of Ally Invest. "Their eyes are much more trained on what the Federal Reserve will do with interest rates and whether there will be any meaningful progress made on trade." 

Interest in FAANGs Declines Despite Brightened Sentiment

The number of respondents who said they invest in FAANG stocks (i.e. Facebook, Amazon, Apple, Netflix & Google) declined by 9 points from last quarter and 6 points from Q2 2018. For those who do, however, confidence in those stocks either meeting or exceeding market expectations has increased over last quarter.  

  • Facebook: 33% believe the company will meet or exceed expectations vs 26% last quarter
  • Apple: 53% "meet or exceed expectations" vs 45% last quarter
  • Amazon: 65% "meet or exceed expectations" vs 62% last quarter
  • Netflix: 53% "meet or exceed expectations" vs 48% last quarter
  • Google: 57% "meet or exceed expectations" vs 55% last quarter

Other Tech Stocks to Watch

Beyond FAANG stocks, respondents were asked to identify other technology stocks they believe will perform well this year. Those top stocks included NVIDIA (33%), Microsoft (30%), and AMD (22%).  

Interest in AI, Cannabis & Robotics Stocks Grows

When asked what other industries will perform well in 2019, respondents felt artificial intelligence (64%, up from 61% in Q1), cannabis (63%, up from 59% in Q1) and robotics (60%, up from 54% in Q1) are the top industries to watch. 

Results of the survey are for informational purposes only and not intended as investment advice. Investing involves risk. Thus, before investing you should consider what is suitable given your particular circumstances or seek professional advice.  

Ally Invest is the brokerage and wealth management offering from Ally that exists alongside the firm's award-winning online banking products. Ally Invest offerings consist of a low-cost trading platform for self-directed investors, as well as a suite of affordable, automatically-managed investment portfolios, both delivered through a fully-transparent online process. The combination of low-cost investing with Ally's competitive deposit products gives customers a powerful value proposition for managing their financial well-being. 

About Ally Financial Inc.
Ally Financial Inc. (ALLY) is a leading digital financial-services company with $178.9 billion in assets as of December 31, 2018. As a customer-centric company with passionate customer service and innovative financial solutions, we are relentlessly focused on "Doing It Right" and being a trusted financial-services provider to our consumer, commercial, and corporate customers. We are one of the largest full-service automotive-finance operations in the country and offer a wide range of financial services and insurance products to automotive dealerships and consumers. Our award-winning online bank (Ally Bank, Member FDIC and Equal Housing Lender) offers mortgage-lending services and a variety of deposit and other banking products, including savings, money-market, and checking accounts, certificates of deposit (CDs), and individual retirement accounts (IRAs). We also support the Ally CashBack Credit Card. Additionally, we offer securities-brokerage and investment-advisory services through Ally Invest. Our robust corporate finance business offers capital for equity sponsors and middle-market companies. 

For more information and disclosures about Ally, visit https://www.ally.com/#disclosures

Media Contacts: 
Andrea Puchalsky at Ally
313-656-3798
Andrea.Puchalsky@ally.com 

Sue Parente at Tier One Partners
781-642-7788
sparente@tieronepr.com

Cision

View original content:http://www.prnewswire.com/news-releases/ally-invest-quarterly-market-outlook-survey-investors-remain-bullish-as-long-as-interest-rates-hold-steady-300831782.html

  • Will Mattel (MAT) Report Negative Earnings Next Week? What You Should Know
    Business
    Zacks

    Will Mattel (MAT) Report Negative Earnings Next Week? What You Should Know

    Mattel (MAT) is expected to deliver a year-over-year increase in earnings on lower revenues when it reports results for the quarter ended March 2019. The earnings report, which is expected to be released on April 25, 2019, might help the stock move higher if these key numbers are better than expectations. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

  • Despite Its High P/E Ratio, Is Nordson Corporation (NASDAQ:NDSN) Still Undervalued?
    Business
    Simply Wall St.

    Despite Its High P/E Ratio, Is Nordson Corporation (NASDAQ:NDSN) Still Undervalued?

    A higher P/E ratio means that buyers have to pay a higher price for each $1 the company has earned over the last year. That isn't a good or a bad thing on its own, but a high P/E means that buyers have a higher opinion of the business's prospects, relative to stocks with a lower P/E. How Growth Rates Impact P/E Ratios Probably the most important factor in determining what P/E a company trades on is the earnings growth. Earnings growth means that in the future the 'E' will be higher.

  • WSFS Financial (WSFS) Earnings Expected to Grow: Should You Buy?
    Business
    Zacks

    WSFS Financial (WSFS) Earnings Expected to Grow: Should You Buy?

    Wall Street expects a year-over-year increase in earnings on higher revenues when WSFS Financial (WSFS) reports results for the quarter ended March 2019. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on April 25. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

  • World
    Oilprice.com

    China's Newest Oil Hotspot Is In America's Backyard

    Chinese state-run news agency Xinhua said on Tuesday that an affiliate of Chinese oil major CNPC, Great Wall Drilling, was drilling for oil off Cuba's coast as part of a joint venture with state-owned oil firm Cuba Petroleum Company (CUPET). "Our deposits extend out to sea, so increasingly, wells are longer and to reach them we need cutting-edge technology that we have accessed through the Great Wall Company," Julio Jimenez, CUPET's director of drilling, told Xinhua. The site of the drilling operation is reportedly near the coastal town of Boca de Camarioca, about 75 miles east of Havana, and is a 1,475-meter-deep well extending some 4,692 meters out to sea.

  • Easy Come, Easy Go: How Carrizo Oil & Gas (NASDAQ:CRZO) Shareholders Got Unlucky And Saw 78% Of Their Cash Evaporate
    Business
    Simply Wall St.

    Easy Come, Easy Go: How Carrizo Oil & Gas (NASDAQ:CRZO) Shareholders Got Unlucky And Saw 78% Of Their Cash Evaporate

    Long term investing is the way to go, but that doesn't mean you should hold every stock forever. Anyone who held Carrizo Oil & Gas, Inc. (NASDAQ:CRZO) for five years would be nursing their metaphorical wounds since the share price dropped 78% in that time. The last week also saw the share price slip down another 5.2%.

  • Wealth manager: Buying a home is usually a terrible investment
    Business
    CNBC Videos

    Wealth manager: Buying a home is usually a terrible investment

    "A lot of people will tell you that buying a home is a good investment and that couldn't be further from the truth," says certified financial planner Peter Mallouk.

  • Have Insiders Been Selling HollyFrontier Corporation (NYSE:HFC) Shares This Year?
    Business
    Simply Wall St.

    Have Insiders Been Selling HollyFrontier Corporation (NYSE:HFC) Shares This Year?

    It is not uncommon to see companies perform well in the years after insiders buy shares. It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. We don't think shareholders should simply follow insider transactions.

  • 92% of Older Americans Are Making This Major Retirement Mistake
    News
    Motley Fool

    92% of Older Americans Are Making This Major Retirement Mistake

    As such, a large number of seniors could inevitably be forced to bear that expense without any help -- and put their long-term financial security on the line as a result. Hope for the best, prepare for the worst Although most seniors end up needing some type of long-term care, the cost of it can vary. Having a home health aide for a few months, for example, is a far less expensive prospect than having to move into a nursing home for several years.

  • Business
    Benzinga

    The Daily Biotech Pulse: Hookipa To Debut, Mustang Bio Skyrockets, AngioDynamics Sheds Portfolio

    Here's a roundup of top developments in the biotech space over the last 24 hours: ABIOMED, Inc. NASDAQ: ABMD) Aclaris Therapeutics Inc (NASDAQ: ACRS) Acorda Therapeutics Inc (NASDAQ: ACOR) Aimmune Therapeutics Inc (NASDAQ: AIMT) Aptinyx Inc (NASDAQ: APTX) CELLECT BIOTECH/S ADR (NASDAQ: APOP) Conatus Pharmaceuticals Inc (NASDAQ: CNAT) Dynavax Technologies Corporation (NASDAQ: DVAX) Equillium Inc (NASDAQ: EQ) Meridian Bioscience, Inc. NASDAQ: VIVO) Novan Inc (NASDAQ: NOVN) Nuvectra Corp (NASDAQ: NVTR) Revance Therapeutics Inc (NASDAQ: RVN) Sensus Healthcare Inc (NASDAQ: SRTS) SI-Bone Inc (NASDAQ: SIBN) Unum Therapeutics Inc (NASDAQ: UMRX) Verastem Inc (NASDAQ: VSTM) Teva Pharmaceutical Industr...

  • 3 Top Dividend Stocks to Buy Right Now
    Business
    Motley Fool

    3 Top Dividend Stocks to Buy Right Now

    If you're in search of dividend stocks to buy today, then look no further than global drug giant Novartis (NYSE: NVS), U.S. telecom leader Verizon (NYSE: VZ), and packaged food icon General Mills (NYSE: GIS). Although these dividend stocks' stories are different, the end of each tale is roughly the same: They seem to be stocks that income investors should buy right now. All systems are go George Budwell (Novartis): Swiss pharmaceutical titan Novartis is arguably one of the best dividend stocks to buy right now.

  • What Can We Expect From Stryker Corporation's (NYSE:SYK) Earnings In The Year Ahead?
    Business
    Simply Wall St.

    What Can We Expect From Stryker Corporation's (NYSE:SYK) Earnings In The Year Ahead?

    Looking at Stryker Corporation's (NYSE:SYK) earnings update in December 2018, analyst consensus outlook appear pessimistic, with profits predicted to drop by -24% next year relative to the past 5-year average growth rate of 20%. Currently with a trailing-twelve-month profit of US$3.6b, the consensus growth rate suggests that earnings will drop to US$2.7b by 2020. I will provide a brief commentary around the figures and analyst expectations in the near term.

  • Here is What Hedge Funds Think About Sarepta Therapeutics Inc (SRPT)
    Business
    Insider Monkey

    Here is What Hedge Funds Think About Sarepta Therapeutics Inc (SRPT)

    In this article we look at what those investors think of Sarepta Therapeutics Inc (NASDAQ:SRPT). Is Sarepta Therapeutics Inc (NASDAQ:SRPT) a buy right now? The number of bullish hedge fund bets fell by 2 lately.

  • Why the health-care stock selloff may actually be a good thing
    Business
    MarketWatch

    Why the health-care stock selloff may actually be a good thing

    If there are any investors still wondering how vicious the selloff in health care stocks has been over the past couple of weeks, the charts below are worth 1,000 words. The SPDR Health Care Select Sector exchange-traded fund (XLV) closed Thursday, after swinging from an intraday loss of as much as 1.3% to a gain of as much as 0.8%. The ETF (XLV) has lost 0.7% year to date, making it the only SPDR ETF tracking the S&P 500's 11 sectors to be down this year, amid increased political rhetoric regarding “Medicare for All” plans and lower drug prices.

  • 5 Top Biotech Stocks to Buy in 2019
    Business
    Motley Fool

    5 Top Biotech Stocks to Buy in 2019

    What to look for in biotech stocks Investors considering buying a biotech stock need to evaluate the potential of its current products and its pipeline -- the portfolio of the biotech's experimental drugs in development. Evaluating the former is significantly easier to do than the latter. For already-approved products, you'll definitely want to look at sales growth.

  • Which Zoom? Mistaken-Identity Trades Send Tiny Stock Up 70,000%
    Business
    Bloomberg

    Which Zoom? Mistaken-Identity Trades Send Tiny Stock Up 70,000%

    Zoom Technologies Inc., a Beijing-based maker of mobile phone components whose shares traded for less than 1 cent each just two months ago, has soared more than 70,000 percent since March 12. Trading in Zoom Technologies picked up in mid-March, right about the time Zoom Video, a software company that reportedly drew interest from Microsoft Corp., filed its registration for a public offering. Average trading volume in the past month has surged to nearly 75,000 shares, or 24 times the average of 3,000 shares that were traded in 2018.

  • Dow, S&P 500 and Nasdaq near records but stock-market volumes are the lowest in months — Here's why
    Business
    MarketWatch

    Dow, S&P 500 and Nasdaq near records but stock-market volumes are the lowest in months — Here's why

    “It's been a bit of a rocking-chair market, in that we've been doing a lot but haven't been going anywhere,” Matthew Bartolini, head of SPDR Americas research at State Street Global Advisors, told MarketWatch in an interview earlier in the week. Indeed, Monday's action marked the lowest full-day, total composite trading volume (representing trading on the New York Stock Exchange and its main affiliates and on the Nasdaq)—roughly 5.7 billion shares—since Sept. 10, according to Dow Jones Market Data. The average volume for April, if it holds, would represent the worst April since 2013, according to Dow Jones Market Data.

  • Jet Airways shares plunge, rivals race to grab grounded carrier's slots
    Business
    Reuters

    Jet Airways shares plunge, rivals race to grab grounded carrier's slots

    MUMBAI/NEW DELHI (Reuters) - Jet Airways Ltd shares plunged on Thursday, battered by fears about whether the grounded Indian airline would fly again, even as carriers like rival SpiceJet rushed in to plug a supply gap in the wake of their rival's demise. Once India's largest private airline, Jet halted all flight operations indefinitely on Wednesday evening after lenders led by State Bank of India declined to extend more funds to keep the carrier going. Investors punished Jet shares on Thursday, driving them down 34 percent in their biggest intraday fall.

  • Union Pacific Breaks Out After Issuing Results
    Business
    Investor's Business Daily Video

    Union Pacific Breaks Out After Issuing Results

    Union Pacific Breaks Out After Issuing Results

  • Robotic Surgery Giant Intuitive Surgical Crashes On First-Quarter Miss
    Business
    Investor's Business Daily

    Robotic Surgery Giant Intuitive Surgical Crashes On First-Quarter Miss

    Intuitive Surgical stock crashed Thursday after the robotic surgery outlet reported lagging first-quarter sales and earnings that also decelerated. Shares of Intuitive Surgical plummeted 6.2%, near 495, in after-hours trading on the stock market today. Intuitive Surgical stock ended the regular session 0.6% higher, at 528.06, during the regular session.

  • These 15 Pot Stocks Will Generate the Highest Sales in 2020
    Business
    Motley Fool

    These 15 Pot Stocks Will Generate the Highest Sales in 2020

    There are a number of surprises with Wall Street's data, but perhaps the one thing that isn't a surprise is seeing Aurora Cannabis atop the pack in the revenue column. Aurora is outpacing the field right now in terms of annual run-rate production (north of 150,000 kilos a year), and it recently announced an additional expansion of its largest facility, Aurora Sun. While management has been conservative with its peak production forecast, I believe the company to be on track for more than 780,000 kilos a year by 2022. Based on sheer volume alone, Aurora will remain at or near the top of the list in terms of annual sales.

  • Business
    MarketWatch

    DowDuPont issues profit warning for agriculture business as severe weather hurt seed deliveries

    DowDuPont Inc. (dwdp) said Thursday it expects its agriculture business to fall short of guidance for the first quarter after severe weather delayed seed deliveries into early April. "Less than 50% of planned seed deliveries in the last 5 days of the quarter occurred, resulting in a greater than anticipated impact on first quarter performance," the company said in a statement. "In this peak delivery period, under normal circumstances and based on history, the division would expect one day of U.S. seed sales to generate about $25 to $35 million in operating EBITDA." The division is now expected to record sales of $3.4 billion and operating EBITDA of about $665 million, down 11% and 25% versus the year-ago period, respectively.

  • Investors Who Bought 22nd Century Group (NYSEMKT:XXII) Shares Three Years Ago Are Now Up 120%
    Business
    Simply Wall St.

    Investors Who Bought 22nd Century Group (NYSEMKT:XXII) Shares Three Years Ago Are Now Up 120%

    22nd Century Group, Inc. (NYSEMKT:XXII) shareholders might be concerned after seeing the share price drop 21% in the last quarter. The share price marched upwards over that time, and is now 120% higher than it was. Only time will tell if there is still too much optimism currently reflected in the share price.

  • Skechers Faces Challenging Conditions to Start the Year
    Business
    Motley Fool

    Skechers Faces Challenging Conditions to Start the Year

    Shares of footwear company Skechers (NYSE: SKX) slumped on Thursday following a first-quarter report that left investors wanting more. A combination of unfavorable currency translation effects, the timing of the Easter holiday, and what CFO John Vandemore called "challenging conditions" led to weak revenue growth that missed expectations. Adjusted earnings per share adds back $0.02 of one-time charges.

  • Corona and Canopy: A mix of beer and pot that could juice your stock portfolio
    Business
    MarketWatch

    Corona and Canopy: A mix of beer and pot that could juice your stock portfolio

    Randy Hare, the director of equity research at Huntington Private Bank in Cincinnati, said Constellation Brands is setting itself apart in the U.S. beer industry by spending money wisely, with long-term returns for shareholders in mind. Constellation Brands (STZ) produces beer, wine and liquor in several countries, and its Corona and Modelo beer brands are growing in the U.S., while competitors are suffering. Constellation, based in Victor, N.Y., agreed earlier this month to sell about 30 of its lower-priced wine and spirits brands to E. & J. Gallo Winery for $1.7 billion.

  • Is Intuitive Surgical, Inc. (NASDAQ:ISRG) Worth US$528 Based On Its Intrinsic Value?
    Business
    Simply Wall St.

    Is Intuitive Surgical, Inc. (NASDAQ:ISRG) Worth US$528 Based On Its Intrinsic Value?

    Using the most recent financial data, we'll take a look at whether the stock is fairly priced by projecting its future cash flows and then discounting them to today's value. This is done using the Discounted Cash Flow (DCF) model. Don't get put off by the jargon, the math behind it is actually quite straightforward.