|Bid||139.7400 x 900|
|Ask||286.2900 x 1200|
|Day's Range||278.0010 - 285.1250|
|52 Week Range||260.0300 - 319.3400|
|PE Ratio (TTM)||28.68|
|Beta (3Y Monthly)||1.20|
|Expense Ratio (net)||0.21%|
Bank of America Merrill Lynch seems unusually bullish these days despite a series of major market sell-offs and mounting uncertainty about economic growth and corporate earnings. The firm's forecast calls for stocks to rally through the end of the year, although the gains may be accompanied by increased volatility.
An oft-repeated maxim is that the stock market hates uncertainty, and a major cause for uncertainty has been resolved, given that the U.S. midterm congressional elections are now behind us. In Tuesday's midterm vote, returns indicate that the Democrats won a majority in the House while the Republicans held their majority in the Senate. But the Yardeni Reseach study—and other studies—show that stocks have risen in the 12 months after every midterm election from 1954 through 2014, a span of six decades, without exception, and regardless of which party posted gains.
While many investors expect, or at least hope, that stocks will rebound from their recent selloffs, Morgan Stanley has a pessimistic view, seeing yet more declines ahead. Their latest Weekly Warm-Up report asserts as much: "we don't think the correction is done yet. "Our view has been that 300-325 [basis points] is a fair level of the ERP given the current level of rates and our views of the cycle," the report asserts.
The stock market has staged a partial rebound from its recent pullback, but Jim Paulsen, chief investment officer (CIO) at The Leuthold Group, sees "overheat pressure" building in the economy that, in turn, poses a severe risk for stock prices. Meanwhile, in a recent report entitled "No Margin For Error," Morgan Stanley indicates that a number of macro forces are exerting downward pressure on corporate profit margins, and this ultimately means downward pressure on stock prices. Among those forces are the two big threats that Paulsen sees, inflation that raises business costs in general and wage growth in particular.
The recent stock market retreat, which has sent the S&P 500 Index (SPX) down by 5.9% from its intraday high on Oct. 3, has intensified the debate between the bulls and the bears. Outspoken economist, hedge fund manager and market analyst John Hussman is renewing his prediction of a severe market crash that would send major U.S. stock market indices plummeting by 60% or more. Putting this in dollar terms, Hussman recently said that the crash will wipe out $20 trillion of stock market value, Business Insider reports.
Blue chip stocks in Dow Jones Industrial Average (DJIA) and S&P 500 (SPX) have become the undisputed winners in the market. They outpaced all other asset classes in the latest quarter and are off to a good start this month, despite a host of trends that may curb future gains including rising interest rates, increasing trade conflicts and slowing global economic growth.
Global asset manager Oppenheimer believes that the turning point has been passed, as they state in a recent report: "Global growth has peaked, and the deceleration in economic activity, while not severe, is broad-based.
Soaring commodity prices are a key indicator that the S&P 500 Index (SPX), which just broke new records, can rise even higher, according to Ari Wald, head of technical analysis at Oppenheimer, in remarks on CNBC. Recent upward moves in oil prices have been driven by concerns over supply, The Wall Street Journal reports.
Many investors think of Fidelity as a giant in the actively managed mutual funds space. That is true, but Fidelity funds run gamut of actively managed mutual funds to passive index funds and exchange-traded funds (ETFs).
The CBOE SKEW Index was developed in the aftermath of the 1987 stock market crash, as a measure of investor unease with the market. It recently registered its highest levels of worry among investors since its inception in 1990, Business Insider reports.
Fidelity Investments® announced today that the Fidelity® Nasdaq Composite Index® Tracking Stock Fund (ONEQ) will pay a quarterly dividend of $0.76 per share from net investment income. Fidelity’s mission is to inspire better futures and deliver better outcomes for the customers and businesses we serve. Privately held for 70 years, Fidelity employs more than 40,000 associates who are focused on the long-term success of our customers.
Other market gurus have been raising alarms this year, warning that wrenching stock market declines are on the horizon. Among the respected long-time market watchers who aren't buying into doom and gloom is Richard Bernstein. After 21 years as a top investment strategist with Merrill Lynch, he founded investment advisory firm Richard Bernstein Advisors in 2009, where he serves as CEO and chief investment officer (CIO).
This is a dramatic step for the largest U.S. bank to take, given that U.S. stocks have more than quadrupled in value since their financial crisis lows in March 2009. U.S. stocks have continued to surge ahead in 2018, rebounding from a sharp correction earlier this year, and thus far have defied ominously bearish warnings from some notable market gurus.
Various market gurus warn that the current bull market is getting rather aged, and that a bear market is long overdue. A noteworthy exception is Jeff Saut, chief investment officer (CIO) at Raymond James Financial. The current bull market is 9 years and 6 months old.
As the U.S. economy continues to grow and the bull market in stocks charges on, investors apparently are underestimating the negative impacts that a trade war between the U.S. and China may unleash. This may be a big mistake, according to analysis by FactSet Research Systems. "In the case of the escalating trade tensions between the U.S. and China, while financial markets still appear to be discounting the global impact of a trade war, our analysis shows that if/when the market does react, the effects will be widespread," writes Ian Hissey, vice president in FactSet's portfolio analytics group, in a report quoted by CNBC. In FactSet's worst-case scenario, economic growth and stock prices would plunge worldwide, with U.S. stocks suffering a bear market decline of nearly 22%.
An ominous anniversary in financial history is drawing near, as Sept. 15 will be 10 years since investment banking powerhouse Lehman Brothers collapsed, a pivotal event in the 2007-08 financial crisis that turned a year-old bear market into a full-fledged panic of selling. Marko Kolanovic, the global head of macro quantitative and derivatives research at the largest U.S.-based bank, JPMorgan Chase & Co., has marked the occasion by issuing a dire scenario of what the next financial crisis is likely to look like, CNBC reports. Meanwhile, the current bull market will have lasted 9 1/2 years as of Sept. 9, delivering spectacular gains during its run so far.
In the previous part of this series, we looked at Qualcomm’s (QCOM) key segments and its geographic revenue exposure. SoCs combine the vital electronic circuits of a smartphone or various computer components into a single, integrated chip. According to Transparency Market Research, the SoC market has been projected to grow to $207 billion at an 11% CAGR (compound annual growth rate) between 2018 and 2026.
Midterm elections to Congress are coming up in November, and a bullish sign last seen 60 years ago is being flashed by the S&P 500 Index (SPX). According to Jeffrey Saut, chief investment strategist at Raymond James, the last time two times that the index posted monthly gains in April, May, June and July during a midterm election year were in 1954 and 1958, and the market was up sharply in the remaining four months of those years, CNBC reports. Saut predicts a new record high of 3,000 for the S&P 500 by year-end, representing a gain of nearly 7% from its current value, and an advance of 12.2% for the year.
Boston-based Fidelity Investments has been a go-to for investors for decades, thanks in large part to stellar performance in its Fidelity Magellan Fund (FMAGX) and its Fidelity Contrafund (FCNTX), among others. It's only in the past 15 years or so, however, that Fidelity has ventured into the exchange-traded fund (ETF) space. With ETFs growing at tremendous rates, it has only made sense for Fidelity to continue to expand its offerings in the area.
Fidelity Investments® announced today that the Fidelity® Nasdaq Composite Index® Tracking Stock Fund (ONEQ) will pay a quarterly dividend of $0.72 per share from net investment income. Fidelity’s mission is to inspire better futures and deliver better outcomes for the customers and businesses we serve. Privately held for 70 years, Fidelity employs more than 40,000 associates who are focused on the long-term success of our customers.
The FAANG stocks need no introduction. Their cumulative market cap forms 27% of the NASDAQ. The Fidelity NASDAQ Composite Index Track (ONEQ) has 44% exposure to technology. It has a PE (price-to-earnings ratio) of 23.9x and a YTD (year-to-date) return of 6.3%. Facebook