Even this pessimistic Bank of America strategist says the bear-rally bandwagon has room to charge ahead


A stock market that has seen five consecutive advances for the Dow Jones Industrial Average DJIA,
+ 1.61%
he does not yet have many believers.

After meeting with clients in the UK, Bank of America chief investment strategist Michael Hartnett described the majority in a kind of “short-term gain = long-term pain”. The sale seems too tidy to trust that the minimums have been reached.

According to Hartnett, a super-spike view of oil is gaining ground, which could bring crude oil to $ 150. He also mentioned another risk that is less talked about: a “charter castle” in private capital.

Hartnett is certainly not a long-term believer, and set 4,200 as the point at which the S&P 500 SPX would fade,
+ 1.99%.
“We fade the concentrations (e.g. SPX> 4200), but without haste,” he said.

For now, he writes, the bear rally cart is approaching, in the view that peaks in the CPI, bond yields, the US dollar and the Fed’s shakism have peaked. There is an idea, he writes, of a Federal Reserve pivot at Jackson Hole’s annual address in late August, when the federal funds rate should be between 1.75% and 2 percent. % and a few months of quantitative hardening will be in the books.

The Bank of America’s bullish and bearish indicator is in “extremely bearish” territory, and Hartnett says there are many overdue assets relative to their 200-day averages, making them vulnerable to a negotiable rebound. Among them: the 30-year Treasury, high-yield CCC bonds, Chinese and German equities, US banks and technology stocks, consumer stocks in the US, the European Union and China, and industrial companies in Europe.

The buzz

There’s a lot of economic data out there, as the Fed’s preferred inflation indicator, the PCE price index, is to be released, along with personal income and consumer spending data. The Preliminary Trade Report is also due to be released, and the final reading of the University of Michigan Consumer Sentiment Index will be released after the opening.

GPS Gap,
+ 4.41%
fell 19% after the retailer narrowed its outlook on fighting in its Old Navy division.

Costco Wholesale,
+ 5.65%
it met earnings expectations, but it also marked margin pressure. He also reiterated that he will not increase the prices of hot dogs, although he has succumbed to rising prices for croissants and muffins.

Dell Technologies DELL,
+ 1.45%
shares rose after their earnings exceeded expectations due to corporate demand.

Biotechnology will move after a series of data is released at the annual meeting of the American Society of Clinical Oncology. SpringWorks Therapeutics SWTX,
-5.63%,
Iovance Biotherapeutics IOVA,
+ 2.30%
and Mirati Therapeutics MRTX,
+ 0.76%
– all the main holdings of the Perceptive Advisors hedge fund, according to its last 13-F, each was reduced, while Adicet Bio ACET,
-0.39%
and PMV Pharmaceuticals PMVP,
+ 0.92%
won.

The markets

US ES00 Stock Futures
+ 0.28%

NQ00,
+ 0.48%
noted the continuation of recent gains. 10-year Treasury yield TMUBMUSD10Y,
2.729%
it was 2.74%.

The best tickers

These are the most active stock market tickers from 6:00 AM onwards.

Ticker

Security name

GME,
+ 11.54%

GameStop

TSLA,
+ 7.43%

Tesla

AMC,
+ 2.95%

AMC Entertainment

NIO,
+ 9.49%

Nio

AAPL,
+ 2.32%

apple

NVDA,
+ 5.16%

Nvidia

AMZN,
+ 4.03%

Amazon

BABA,
+ 14.79%

Ali Baba

TWTR,
+ 6.35%

Twitter

AMD,
+ 6.58%

Advanced microdevices

Random readings

The school in Uvalde, Texas, where 19 children and two teachers were shot dead, made great preparations to counter a gunman.

The New York Yankees and Tampa Bay Rays used their social media accounts during Thursday night’s game to tweet facts about armed violence instead of baseball.

Need to Know starts early and updates to the opening bell, but sign up here to receive it once in your inbox. The email version will be sent around 7:30 a.m. East.

Want more for next day? Sign up for The Barron’s Daily, a morning investor briefing that includes exclusive comments from Barron’s and MarketWatch writers.



Source link

Leave a Reply