As we watch for further developments on the U.S.-Iran conflict that jolted investors awake a few days into 2020, it’s worth remembering that during this lengthy bull market, geopolitical worries have not pulled stocks off their upward path for too long.
That brings us to our call of the day, from strategists at investment bank Jefferies who are bullish on certain consumer discretionary companies this year. As a reminder, those companies produce goods and services purchased if households have extra income. So, what are the companies with scale that they like? In beauty products, they are fans of Ulta ULTA, +0.31% ; for consumer packaged goods, Constellation Brands STZ, +0.46% ; among convenience stores, Casey’s General Stores CASY, +2.05% CASY, +2.05% ; for gaming and lodging, Eldorado Resorts ERI, +1.36% ; among mass retailers, Walmart WMT, -0.20% ; for restaurants they like McDonald’s MCD, +1.12% and Starbucks SBUX, -0.79% ; and they offer three in the hardline retail space — Home Depot HD, +0.
“XOP [the S&P Oil & Gas Exploration and Production ETF] XOP, +0.67% did make an all-time low in December, and has been up five weeks in a row since then, a sign of a potential major long-term bottom,” Tentarelli writes. At a big Las Vegas tech show on Monday, ride-hailing app company Uber UBER, +0.67% unveiled a partnership for electric air taxis with South Korean auto group Hyundai Motor 005380, -0.43%, while wireless chip maker Qualcomm announced an autonomous driving system.
If large-cap companies downsize to mid-cap, and small-cap firms grow to become mid-cap, then the large-cap and small-cap groups will merge together with the mid-cap group to form just one overall group. Currently, mid-cap seems to be characterized by ambivalence and uncertainty.
Business Business Latest News, Business Business Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: BusinessInsider - 🏆 729. / 51 Read more »