CNBC Pro: Analyst says this FAANG stock is a perennial favorite — and investors should buy the drop
Tech stocks have had a rough year so far, but a Rosenblatt Securities analyst believes the sell-off is an opportunity for long-term investors to buy the drop.
“Stay away from the losers,” he said, recommending “winners in the various secular battles and evolutionary battles” in engineering.
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– Zavier Ong
Stocks could continue this “oversold run” for the next few days, says Wells Fargo’s Harvey
Wells Fargo’s Chris Harvey expects the shares to continue their upward trend.
“The rise in near-term interest, the distortion in retail sales and the action of BOE all suggest that stocks will continue their oversold run for the next several days,” he said in a note to clients on Wednesday.
Stocks hit fresh lows earlier in the week, with the S&P 500 marking a new bear market. The sell-off was prompted by the Fed’s latest interest rate decision last week, which some investors believe steered the market into oversold conditions.
With the cost of capital rising and prices hovering near record highs, the consensus is increasingly that a Fed-led recession is inevitable, Harvey said.
“We treat a recession like a car crash,” he wrote. “You never know how bad it’s going to be, but there’s almost no ‘better than expected’ outcome – so policymakers have to be careful about what they wish for.”
— Samantha Subin
10-year government bond yields have fallen the most since 2020
The yield on the benchmark 10-year Treasury note fell the most since 2020 on Wednesday, although it briefly topped 4% earlier in the session after the Bank of England announced a plan to buy bonds to stabilize the British pound.
The 10-year Treasury yield last fell 23 basis points to 3.733%, or the sharpest decline since 2020.
It hit a high of about 4.019% earlier in the day, a key level that was the highest since October 2008 before those gains were erased.
Yields and prices move in opposite directions. One basis point equals 0.01%.
Wed, August 17, 202212:29 am EDT
European Markets: Here are the opening calls
European stocks are expected to open in negative territory on Wednesday as investors react to the latest US inflation data.
According to data from IG, the UK FTSE index is expected to open 47 points lower at 7,341, the German DAX 86 points lower at 13,106, the French CAC 40 28 points and the Italian FTSE MIB 132 points lower at 22,010.
Global markets retreated after a higher-than-expected U.S. CPI report for August, which showed prices rose 0.1% for the month and 8.3% annually in August, the Bureau of Labor Statistics reported on Tuesday, defying economists’ expectations that inflation would fall 0.1% on a monthly basis.
The core CPI, which excludes volatile food and energy costs, is up 0.6% since July and 6.3% since August 2021.
UK inflation figures for August are due and July euro-zone industrial production to be released.
— Holly Ellyatt
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