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Stocks mostly lower as earnings kick off

Stocks mostly lower as earnings kick off

Socks fell Tuesday as investors considered a first batch of corporate earnings results and eyed special events from tech giants Amazon (AMZN) and Apple (AAPL).

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JPMorgan Chase (JPM) kicked off the first set of earnings reports by posting an unexpected increase in profit over last year, driven by a near-30% jump in markets revenue after a stock rally earlier this year and jump in volume drove more equity and bond trading activity. Its provisions for credit costs totaled a smaller than expected $611 million, versus the more than $2 billion in reserve Wall Street had expected the bank would set aside in anticipation of soured loans during the pandemic.

On the whole, consensus economists expect companies within the S&P 500 financials sector will see earnings per share decline, in aggregate, by 19.4% over last year. Still, this estimate – along with the broader estimate for S&P 500 earnings to decline by 20.5% in the third-quarter – has been upgraded since the start of the summer, as analysts mulled a less dire outlook for economic activity since the spring.

“The increase in analysts’ earnings estimates reflects increased confidence in the outlook, even with the challenges Covid-19 still presents in terms of social distancing, various safety protocols, and shifting consumer behavior,” LPL Research analysts Jeffrey Buchbinder and Ryan Detrick said in a note Monday. “We have been encouraged by recent data pointing to a continued steady reopening of the economy, and we believe the likelihood that additional lockdowns may meaningfully impair business activity remains very low.”

“We believe the chances are good that the technology sector and the digital media and e-commerce internet industry groups will produce earnings growth in the third quarter,” they added. “As long as those winners keep winning, and we think they will, they provide a

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Guggenheim’s Minerd says the market is betting on a Joe Biden victory, and a Democratic sweep will be best for stocks in the short run

Guggenheim’s Minerd says the market is betting on a Joe Biden victory, and a Democratic sweep will be best for stocks in the short run



Scott Minerd wearing a suit and tie: Lucy Nicholson/Reuters


© Lucy Nicholson/Reuters
Lucy Nicholson/Reuters

  • Scott Minerd spoke on a panel at the Milken Institute 2020 Global Conference on Monday and said that the markets are betting on a Joe Biden win. 
  • The Guggenheim chief investment officer explained that stocks that would flourish under a Biden win, like those in alternative energy, are flourishing right now. 
  • He added that a Democratic sweep would most likely be the best for the stock market in the short run and not the “disaster” that many are forecasting.

Guggenheim’s Scott Minerd said on Monday that the market is betting on Democratic presidential nominee Joe Biden to win the election.

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During a panel at the Milken Institute 2020 Global Conference, the chief investment officer said stocks that would flourish under a Biden administration are performing much better right now than stocks that would boom under Trump.

Minerd cited alternative energy companies as an example of stocks that are gearing up for a Biden win. The Invesco Cleantech ETF is trading at a record high, and the First Trust Nasdaq Clean Edge Green Energy Index Fund is up almost 100% year-to-date. The iShares Global Clean Energy ETF is trading at its highest level since 2010, and the Invesco Solar ETF is at its highest point since 2011.

Read more: Morgan Stanley lays out its 5 favorite trades for investors looking to dominate a looming V-shaped recovery, even if a stimulus deal takes until 2021

Minerd also said that the resolution of the election “will be positive for markets,” and reduce the risk premium of who the next president is going to be. 

He added that a Democratic sweep would most likely be the best for the stock market in the short run because there will be “lots of stimulus.” 

“I don’t see it in

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3 Safe Stocks for a Coming Market Crash

3 Safe Stocks for a Coming Market Crash

Last month’s slump was a reminder of how quickly the market can go from a rally to a pullback. In this case, the situation is looking bright. The S&P 500 has rebounded more than 7% since its September low, nearly recovering those losses. It’s impossible to predict whether the market will head higher or crash in the months to come. But we do know one thing: Long-term investors will surely face future market crashes. That’s why it’s never too early to prepare.

To me, the best way to insulate a portfolio is with shares I consider “safe.” These are companies that have proven their resilience after a crash, and at the same time they offer strong products/services and growth prospects. Sounds like a lot to ask? Well, these three healthcare names prove it’s possible to deliver the whole package.

Man looking at stock charts on computers in office

Image source: Getty Images.

Abiomed

Annual revenue at Abiomed (NASDAQ: ABMD), a maker of circulatory support devices, has been climbing for more than a decade. During this time, the U.S. Food and Drug Administration (FDA) cleared its collection of Impella heart pumps — the world’s smallest — for elective and urgent procedures including stenting and balloon angioplasty.

Impella devices assist pumping during a procedure or during situations — such as cardiogenic shock — when the heart is unable to pump enough blood to organs. More recently, the FDA granted the Impella two emergency use authorizations (EUA) for the treatment of COVID-19 patients with heart and lung complications.

The coronavirus outbreak caused the postponement or cancellation of many elective procedures, which hurt Abiomed. Worldwide Impella revenue fell 22% in the most recent quarter. But the company said stenting procedures using Impella since have resumed in most locations. In addition to this rebound in traditional business, the COVID-19 EUAs offer Abiomed another

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China’s stocks take a break after Monday’s rally vaulted market value past US$10 trillion as traders put Covid-19 in rear view mirror

China’s stocks take a break after Monday’s rally vaulted market value past US$10 trillion as traders put Covid-19 in rear view mirror



a close up of a street: Hong Kong’s financial district is deserted as the approach of Typhoon Nesat on 29 September 2011 emptied the streets. Photo: SCMP


© SCMP
Hong Kong’s financial district is deserted as the approach of Typhoon Nesat on 29 September 2011 emptied the streets. Photo: SCMP

China’s stocks declined in early trading, taking a respite after rallying by the most in three months, as investors assessed the strength of the economic recovery and the prospect of refresh US stimulus packages. Trading was halted in Hong Kong due to an approach by the tropical storm Nangka.

The Shanghai Composite Index dropped 0.5 per cent to 3,342.18 in early trading on Tuesday. It jumped 2.7 per cent a day earlier on expectations that the recovering in the Asian nation will gather pace and President Xi Jinping will unveil further reform measure in his trip to Shenzhen to mark the 40th anniversary of the economic zone in southern China on the doorsteps of Hong Kong.

China’s stocks top US$10 trillion as economy shakes off 2015 rout, Covid-19

The combined market values of the companies trading on the Shanghai and Shenzhen exchanges rose to US$10.04 trillion on Monday, surpassing the US$10 trillion mark for the first time since 2015. China is the world’s second-largest equity market after the United States.

Get the latest insights and analysis from our Global Impact newsletter on the big stories originating in China.

China is due to release the September data on exports and imports on Tuesday and the data on third-quarter economic growth will be released on October 19. Other markets in Asia were mixed as the US was still deadlocked over a new round of stimulus measures.

Hong Kong’s securities market has been halted from trading in the morning session after the local weather agency raised the typhoon signal to the third-highest level on early Tuesday, the market operator said in a statement.

The Hong Kong Observatory issued the No

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Why the market narrative on a November ‘blue wave’ flipped in just 2 weeks and what it means for stocks, according to UBS

Why the market narrative on a November ‘blue wave’ flipped in just 2 weeks and what it means for stocks, according to UBS



Joe Biden wearing a suit and tie: Joe Biden, the Democratic presidential nominee. Getty


© Getty
Joe Biden, the Democratic presidential nominee. Getty

  • The market narrative on what a “blue wave” in November could mean for stocks has flipped over the past two weeks, UBS said in a note on Monday.
  • The prevailing market narrative over the past few months that election victories for Democrats would hurt stocks because of the potential for higher taxes is now dead, according to UBS.
  • Instead, expect stocks to move higher if there’s a blue wave, and don’t be surprised if investors are disappointed if it doesn’t happen, UBS said.
  • Visit Business Insider’s homepage for more stories.

Throughout 2020, the consensus view has been that a Joe Biden victory and a “blue wave” in November would be bad for the stock market because of the potential for higher corporate taxes and more regulation.

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But that market narrative has been flipped on its head in the past two weeks, UBS said in a note on Monday.

Now investors expect that a Biden victory and Democratic sweep in Congress could be a catalyst for a reflation trade, in which cyclical and value stocks trade higher and the US dollar weakens, further helping US stock prices.

The impetus for a change of heart among investors is threefold, according to UBS:

  1. “The inability to pass a major fiscal package prior to the election means that it’s increasingly likely to be the Democrats’ top priority after a Blue Wave outcome.”
  2. Higher taxes will be a 2022 problem for investors, not a 2021 problem.
  3. “Biden’s widening lead in the polls and prediction markets, and along with it the likelihood of a Blue Wave, is reducing election uncertainty,” UBS said, adding that a delayed or contested election would be more unsettling to investors than a Democratic sweep of the White House and Congress.
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