Market selloff's sequel is moment of truth for summer stock enthusiasts - BNN Bloomberg

  • 📰 BNNBloomberg
  • ⏱ Reading Time:
  • 69 sec. here
  • 3 min. at publisher
  • 📊 Quality Score:
  • News: 31%
  • Publisher: 50%

Brasil Notícia Notícia

Brasil Últimas Notícias,Brasil Manchetes

It’s easy to be an optimist when sailing is smooth. The real test comes when things get rough.

That’s where true-believer bulls find themselves as momentum reverses in equity markets, with pro-stock arguments based on everything from valuations to financial conditions suddenly in question as Federal Reserve hawkishness revives. Early returns aren’t great. The S&P 500 is down 5 per cent in three days.

Valuation has been a central plank in arguments that the worst has passed for bulls in 2022. The S&P 500 is trading around 16.4 times next year’s earnings estimates, around the level where it bottomed versus 2022 forecasts 13 weeks ago. The problem with the model is its reliance on analyst predictions. Nobody is quite sure where earnings will land in 2023, and any evidence they’re crumbling would be unwelcome in this nervous market.

Stocks dropped for the third straight day on Tuesday as traders recalibrated expectations in response to the Fed indicating it will keep raising interest rates to damp inflation. The S&P 500 fell more than 1 per cent and the rate on 10-year Treasuries hovered around 3.10 per cent. At the same time, second-quarter earnings held up much better than expected, adding credence to the argument that the current selloff might not mean a full retracement of gains, said Victoria Greene, founding partner and chief investment officer at G Squared Private Wealth.

“If things get bad enough as the Fed slows down, that’s not good for earnings,” she said. “You’ve got to find that balance of we need the world to get bad enough that the Fed slow down, but we need the world to stay good enough that everybody still is profitable. And that’s the whole threading of the needle and avoiding the hard landing.”

 

Obrigado pelo seu comentário. Seu comentário será publicado após ser revisado.
Resumimos esta notícia para que você possa lê-la rapidamente. Se você se interessou pela notícia, pode ler o texto completo aqui. Consulte Mais informação:

 /  🏆 83. in BR

Brasil Últimas Notícias, Brasil Manchetes

Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.

The Daily Chase: Powell's wake-up call for markets; 'Frenzy' in plastic surgery market - BNN BloombergIt looks like there will be more selling at the start of trading today, extending losses after U.S. Federal Reserve Chair Jerome Powell’s pledge to “keep at it” served as a wake-up call to anyone doubting the central bank’s determination to combat inflation.
Fonte: BNNBloomberg - 🏆 83. / 50 Consulte Mais informação »

Economic gloom, market woes cast pall on Canadian bank earnings - BNN BloombergA slump in capital-markets activity and expectations that the economy may take a turn for the worse are casting a pall over a Canadian bank earnings season that showed the lenders’ core businesses in otherwise solid shape. higher rates will result in a protracted downturn
Fonte: BNNBloomberg - 🏆 83. / 50 Consulte Mais informação »

Stocks, futures up as post-Powell slide subsides - BNN BloombergStocks rose on Tuesday as investor sentiment stabilized following a rout sparked by the Federal Reserve’s signal of a sustained period of restrictive monetary policy to quell inflation. Treasury yields and the dollar declined.
Fonte: BNNBloomberg - 🏆 83. / 50 Consulte Mais informação »

​BMO misses Q3 expectations as capital markets earnings sink 53% - BNN BloombergBank of Montreal closed out earnings season for the Big Six with a profit miss as the lender set aside more funds for loans that could sour and saw earnings in its capital markets division tumble.
Fonte: BNNBloomberg - 🏆 83. / 50 Consulte Mais informação »

​BMO misses Q3 expectations as capital markets earnings sink 53% - BNN BloombergBank of Montreal closed out earnings season for the Big Six with a profit miss as the lender set aside more funds for loans that could sour and saw earnings in its capital markets division tumble.
Fonte: BNNBloomberg - 🏆 83. / 50 Consulte Mais informação »