Count Wharton Professor Jeremy Siegel among the stock bulls headed into the fourth quarter, versus unwavering bears like Morgan Stanley’s Mike Wilson, who sees a 10% drop ahead.
Our call of the day from Evercore ISI’s head of technical strategy, Rich Ross, is in the bull camp as he declares the “high for equities is not in,” and suggests some stocks that will set investors up nicely for that. What else? He says “panic bottoms” seen in bond proxies, such as utilities via the Utilities Select Sector SPD exchange-traded fund ETF XLU, real-estate investment trusts and staples, are “consistent with a bottom in bond prices,” which is closer than it appears if those proxies have indeed bottomed.
The technical strategist also says it’s time to buy transports DJT, with airlines “at bear market lows and deeply oversold,” while railroads are also bottoming and truckers continue to rise. The buzz Morgan Stanley MS, +2.03%, State Street STT, +2.53%, U.S. Bancorp USB, +6.96%, Citizens Financial CFG, +2.23% and Procter & Gamble PG, +0.13% will report ahead of the open. Tesla TSLA, +0.37% and Netflix NFLX, -1.41% will report after the close.United Airlines shares UAL, +1.49% are down 5% after the airline lowered guidance due to the Israel/Gaza war.