Good MorningEquity markets are bracing for what could be a very frosty winter for the stock market. The lingering rise in inflation coupled with the rise of FOMC interest rates has the outlook for S&P 500 earnings in decline and that is the single most important factor to lead the stock market. In this light, the S&P 500 could be expected to fall back to previous lows near 3,500 sometime early in the New Year. The question is when it will be hit and how low the bottom will be when the market gets there. If the outlook for earnings continues to deteriorate the S&P 500 could easily slip below support at the 3,500 level and continue its plunge deeper into correction territory.
The risk for the market this week is almost entirely in the economic data. There are several important reports due out this week including the ADP and NFP reports on employment. The takeaways will be the level of employment and the pace of wage inflation. If either holds true to trends that include steady job gains and mid-single-digit levels of wage inflation the market will not take the news well. Featured: 3 tickers just showed unusual early patterns. See the Trading Ideas report now. (Ad) 
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Communication Services | |
It's projected to be a rough year for Meta Platforms (NASDAQ: META) this year, according to analysts.
For one, the company's earnings are poised to shrink 10.14 percent. This means its earnings per share (EPS) will go down to $8.06 from $8.97 per share.
However, despite this reduction in... Read the Full Story |
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Technology | |
Solar energy solutions provider First Solar Inc. (NASDAQ: FSLR) stock had an impressive 69% gain in 2022. Shares more than doubled from their July 2022 low of $60.96 to close the year at $149.79. Negative news, downgrades and negative blogs haven’t been able to stop First Solar shares from s... Read the Full Story |
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Finance | |
PayPal Holdings, Inc (NASDAQ: PYPL) has seen better days and better days are on the horizon. The stock is down more than 75% from its recent highs, which is bad news for holders but good news for those looking to get into this still-growing growth story. The takeaway today is that analysts and ins... Read the Full Story |
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Technology | |
In what was a forgettable 2022 for the S&P 500, the information technology sector declined -28%, on par with REITs for the year’s worst economic group.
A surge in interest rates, 40-year high inflation and the Russia-Ukraine conflict, put relentless pressure on technology and other grow... Read the Full Story |
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Consumer Staples | |
Analysts rated shares of Tyson Foods Inc. (NYSE: TSN) a hold, opting for caution throughout 2022. The MarketBeat analyst consensus rating creeped toward a bullish position. We estimate that the stock offers a potential value opportunity at around $60.
Tyson ranks as the fifth largest food and be... Read the Full Story |
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Utilities | |
Diversified energy utility Duke Energy Co. (NYSE: DUK) stock has been resilient throughout 2022 as shares closed out the year virtually flat compared to the (-20%) drop in the S&P 500 (NYSEARCA: SPY). The Company operates three divisions comprised of Electric Utilities and Infrastructure, Gas ... Read the Full Story |
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Consumer Staples | |
Due to the continual interest rate hikes by the Federal Reserve over the last twelve months, it has become increasingly likely that the US will head into a recession, likely sometime within the first quarter of next year.
For this reason, investors are rushing toward defensive safe havens to... Read the Full Story |
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Technology | |
Enterprise data storage solutions provider Pure Storage Inc. (NYSE: PSTG) stock closed out 2022 with a (-16.5%) loss. Much of the selling in the shares was attributed to the weakening demand for storage chips, as warned by DRAM maker Micron Technology Inc. (NASDAQ: MU).
Micron warned of continued... Read the Full Story |
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Consumer Discretionary | |
The second largest U.S. automaker Ford Motor Company (NYSE: F) stock, took a (-46%) plunge in 2022 as normalization kicked in from the post-pandemic demand shock. Ford lost steam after a strong Q2 2022 EPS beat with strong revenues as its Q3 2022 results fell flat, accompanied by lowered guidance.... Read the Full Story |
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Industrials | |
The market was closed on New Year’s Day (observed), but the analysts are still working hard. A string of positive commentaries has come out, and it looks like it will push names like Nike (NYSE: NKE) and FedEx (NYSE: FDX) higher. The key takeaway from the news is that consensus figures are o... Read the Full Story |
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Wednesday's Early Bird Stock Of The Day Apple Inc. designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories worldwide. The company offers iPhone, a line of smartphones; Mac, a line of personal computers; iPad, a line of multi-purpose tablets; and wearables, home, and accessories comprising AirPods, Apple TV, Apple Watch, Beats products, and HomePod. It also provides AppleCare support and cloud services; and operates various platforms, including the App Store that allow customers to discover and download applications and digital content, such as books, music, video, games, and podcasts. In addition, the company offers various services, such as Apple Arcade, a game subscription service; Apple Fitness+, a personalized fitness service; Apple Music, which offers users a curated listening experience with on-demand radio stations; Apple News+, a subscription news and magazine service; Apple TV+, which offers exclusive original content; Apple Card, a co-branded credit card; and Apple Pay, a cashless payment service, as well as licenses its intellectual property. The company serves consumers, and small and mid-sized businesses; and the education, enterprise, and government markets. It distributes third-party applications for its products through the App Store. The company also sells its products through its retail and online stores, and direct sales force; and third-party cellular network carriers, wholesalers, retailers, and resellers. Apple Inc. was founded in 1976 and is headquartered in Cupertino, California. | | View Today's Stock Pick |
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