If this stock market is shaping up like 2008, here's where we could be headed next, says strategist

Those looking for a bit of good news to start the week may have to cast the net further out. Stock futures are tilting lower as COVID-19 cases flare up in China, threatening more lockdowns.

“This is a very important season as the collapse in equities so far in 2022 is largely due to margin compression [costs rise for companies that can’t pass onto consumers] and not really earnings weakness,” said a team of strategists led by Jim Reid at Deutsche Bank. The SPDR S&P Biotech ETF XBI is around 36% off its lows, and maybe there is more room to run here, but “near-term risk/reward is hard to defend,” he said, adding that he also sees some charts of highflying auto components companies, who have been in the grips of a strong rally, looking vulnerable.

Shanghai officials have detected the highly contagious new Omicron BA.5 coronavirus subvariant, which is spreading fast across India.

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

The Stock Market Faces Next Test as Inflation Looms Over Earnings SeasonInvestors expect concerns about hot inflation and strapped consumers to dominate the corporate-earnings season that kicks off this week
Source: WSJ - 🏆 98. / 63 Read more »

Weekend reads: What's going on in your local housing market?In the first six months of 2022, national data reflected a sharp five-year decline in housing inventory as total listings fell over 33% in June 2022 from the same month in 2017.
Source: MarketWatch - 🏆 3. / 97 Read more »