As market teeters on exhaustion, here’s why value stocks are still stuck in the mud

  • 📰 MarketWatch
  • ⏱ Reading Time:
  • 60 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 27%
  • Publisher: 97%

Business News News

Business Business Latest News,Business Business Headlines

A curious part of the stock market right now: the continued terrible performance of value stocks.

Yes, the major benchmarks are hitting records seemingly daily. But on Tuesday, the S&P 500 SPX, +0.49% closed near its low of the day after making an all-time high, creating what technical analysts call a shooting star. “This is often a sign that a reversal is fomenting due to exhaustion,” said Jeffrey Saut of Saut Strategy. He said the next two days are important for determining whether the rally will continue.

In a note to clients, Wellington Management says what’s going on is that the tail risks on trade have been removed—in other words, the worst outcome of the trade war has been avoided—but the market isn’t convinced growth prospects are improving. And that is why the political situation will be so key for the stock market going forward. “Potential catalysts for change include deglobalization or a heightened regulatory environment better suited to today’s economy,” the fund manager says.Sen. Bernie Sanders won the New Hampshire Democratic primary, with former Mayor Pete Buttigieg coming in second and Sen. Amy Klobuchar finishing third. Entrepreneur Andrew Yang and Sen. Michael Bennet both ended their presidential runs.

Federal Reserve Chairman Jerome Powell generated few headlines in his Tuesday testimony to the House Financial Services Committee, other than being at the receiving end of a critical tweet from President Donald Trump. On Wednesday, Powell will testify in front of the Senate Banking Committee, starting at 9:30 a.m. Eastern, while Treasury Secretary Steven Mnuchin will go before the Senate Finance Committee at 1 p.m. to discuss the budget.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 3. in BUSİNESS

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.

Sprint Stock Soars 77% On T-Mobile Merger, Here’s Why One Expert Thinks It Could Keep SurgingSprint gained $15 billion in market value after its stock jumped on the merger news. So does this mean my plan will get more expensive? I love Sprint
Source: Forbes - 🏆 394. / 53 Read more »

Sprint Stock Soars 77% On T-Mobile Merger, Here’s Why One Expert Thinks It Could Keep SurgingSprint's stock increased 77% on the T-Mobile merger, here’s why 1 expert thinks it could keep surging: by skleb1234 skleb1234 T-Mobile is better
Source: Forbes - 🏆 394. / 53 Read more »