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It's time to get technical at the YFi Interactive touch screen. Joining Yahoo Finance's Myles Udland is Jared Blikre to break down the day's price action in stocks, bonds and transports.
Corporate executives have been markedly upbeat about the U.S. economic outlook for 2020, based on management commentary about Q3 2019 earnings.
The financial sector is made up of companies offering services that are broadly aimed at helping individuals, firms, and other organizations to improve their financial returns and manage their money. Well-known companies in the sector include JPMorgan Chase & Co, (JPM), Goldman Sachs Group Inc. (GS), and BlackRock Inc. (BLK). Here are the financial stocks in the S&P 500 with the lowest 12-month trailing P/E ratio in the sector.
These stocks are expected to new release products or services in the next year with massive sales potential, per analysis by Bloomberg Intelligence.
The broader market average all closed at record highs on Friday, as U.S. stocks added to recent gains this week. Financial names led the way higher, while real estate and utility stocks trailed the market.Investors kept a close eye on trade talks between the U.S. and China this week. While a formal resolution has yet to be announced, multiple press reports suggested the two sides could announce a “Phase One” deal before the next set of tariffs are scheduled to take effect, on Dec. 15.Earnings Parade EndingThird-quarter earnings season effectively ended this week, as 446 companies in the S&P 500 index have now announced results. 74% of the names have exceeded expectations, which is above the historical average. On the other hand, aggregate profit is on track to decline 0.5% for the period.Kroger (KR) was the big earnings-related winner this week. The grocery retailer gained 11% a session after providing upbeat profit guidance. On the other hand, online travel names Expedia (EXPE) and TripAdvisor (TRIP) both lost more than 20% a day after disappointing the market with their respective quarterly results.Looking ahead to next week, Cisco Systems (CSCO), Viacom (VIAB) and Wal-Mart (WMT) are scheduled to post quarterly reports. The bond markets are closed on Nov. 9 for the Veterans Day holiday and the economic calendar will be relatively quiet next week. Knowing what and when to buy can be challenging for any investor. However, the fact remains that attractive investments are out there, if you’re willing to dig a little deeper.One such consumer name with strong earnings momentum is worth a closer look and is our Stock of the Week below… Stock of the Week: CVS Health (CVS)The company is probably best known for its portfolio of nearly 10,000 retail pharmacies, but acquisitions over the past several years have broadened its business portfolio.CVS Health provides medical insurance to 38 million users through Aetna and covers pharmacy benefits for 102 million customers, by way of Caremark. In addition, the company treats patients directly through its network of over 1,100 Minute Clinics.The stock gained nearly 8% this week, as management delivered better-than-expected quarterly results on Wednesday.Looking ahead, these gains should keep on coming. Here’s why:The retailer earned $1.84 a share in the third quarter, as revenue increased 36% from the previous year, to $64.81 billion. The sales growth was primarily from the Aetna acquisition, which is approaching its first anniversary. Management said on the conference call that all of the company’s core businesses grew at or above plan in the period.Following the results, 5-stare Cantor analyst Steven Halper raised his price target on the stock to $85, citing:> “In our view, CVS is executing on its strategy to integrate medical and pharmacy offerings to drive differentiation in the marketplace, through efforts such as HealthHUB expansion. Over time, we believe this should drive continued share gains and improvement in operating performance across the company's business units. As the company executes on these initiatives, share valuation should expand from current levels.” CVS Health generates steady cash flow, which it returns to investors. The shares offer a quarterly dividend of $0.25 a share (1.4% yield). Management also paid down $2.9 billion of net debt in the most recent quarter.In the meantime, the company is attractively priced at just 10.1x expected full-year earnings of $7.21 a share. This is an 11% discount to the median industry value and well below the average market multiple.It’s also worth noting that CVS Health carries a Smart Score of 10/10 on TipRanks. This new proprietary metric utilizes Big Data to rank stocks based on 8 key factors that have historically been a precursor of future outperformance.On top of the positive aspects mentioned already, Smart Score says the company has seen positive sentiment from investment bloggers and news.FYI: This is just 1 of the 20+ stocks selected for the Smart Investor portfolio. That’s where we share more detailed insights on our weekly stock picks. You may also want to learn more about how we use TipRanks indicators to find stocks that are primed to outperform. (Discover the Smart Investor portfolio here)
With the broader markets pushing to new records, investors who are looking for cheap opportunities may consider small-capitalization stocks and ETFs. The small-cap play has been underperforming, year-to-date, the iShares Russell 2000 ETF (IWM) , which tracks the widely observed Russell 2000 Index of small-cap names increased 19.6% while the SPDR S&P 500 ETF (SPY) advanced 25.0%.
U.S. markets and stock ETFs paused their record rally on Friday after President Donald Trump stated that he had not agreed to any tariff rollbacks. On Friday, the Invesco QQQ Trust (QQQ) was up 0.1%, SPDR Dow Jones Industrial Average ETF (DIA) fell 0.1%, and SPDR S&P 500 ETF (SPY) was flat. “Until we actually see some type of trade deal, the level of uncertainty—which ultimately will translate into volatility in the market—will persist,” Brian O’Reilly, head of investment strategy at the Dublin-based Mediolanum International Funds, told the Wall Street Journal.
While Wall Street tends to focus almost exclusively on the attitudes and trading patterns of U.S.-based investors, a surge of buying from overseas has been an overlooked source of strength for U.S. stock prices. Holdings of U.S. equities by foreign private investors reached a record high of $7.7 trillion in July, more than double the amount in 2012, according to the most recent data compiled by the U.S. Treasury Department, as cited by The Wall Street Journal in a detailed report summarized below. “What’s happened in the last 10 years is that high returns have also been associated with the safety that comes with the U.S.,” observes Paul Sandhu, head of multi-asset quant solutions for Asia-Pacific at BNP Paribas Asset Management.
The founder of Bloomberg L.P., financial data and media company, would seek a Democratic nomination. "Mike believes that Donald Trump represents an unprecedented threat to our nation,” Wolfson said. "We now need to finish the job and ensure that Trump is defeated,” he wrote.
U.S. markets have been pushing toward new highs as both domestic and international investors flocked to this outperforming area of the globe. According to Treasury Department figures, foreign private holdings of U.S. equities reached a record of $7.7 trillion as of July, the Wall Street Journal reports. The S&P 500 has outperformed the world stock market in nine of the past 10 years, and most investors are betting that U.S. equities can maintain this outperformance.
Disney (DIS) reported fiscal Q4 earnings after markets closed on November 7. Despite increased competition from streaming media networks, revenues rose.
While cannabis companies struggle to generate capital, one marijuana REIT is making money and paying dividends by leasing out real estate.
U.S. markets and stock ETFs rallied Thursday as investors gained confidence on signs of progress in the U.S.-China trade talks. On Thursday, the Invesco QQQ Trust (QQQ) was up 0.7%, SPDR Dow Jones Industrial Average ETF (DIA) gained 1.0%, and SPDR S&P 500 ETF (SPY) rose 0.5%. All three major benchmarks were trading at record highs on a resilient U.S. jobs market, hopes that the U.S.-China trade deal is progressing and upbeat corporate earnings, the Wall Street Journal reports.
The two countries will rollback additional tariffs in stages as they work toward a phase one deal, according to China's Ministry of Commerce spokesperson Gao Feng.