Latest news with #momentum
Yahoo
17 hours ago
- Business
- Yahoo
Momentum Swinging Back to the US, Zavolock Says
Morgan Stanley Chief European Equity Strategist Marina Zavolock discusses stock markets moves says "the momentum has swung back to the US" as the region has "much more AI exposure" than Europe. She speaks on Bloomberg Television.
Yahoo
2 days ago
- Business
- Yahoo
S&P 500 Signals the US Stock Rally Momentum is Waning
(Bloomberg) — Under the surface of the US stock market's march to record highs this month, there are signs the rally is running out of gas. Why the Federal Reserve's Building Renovation Costs $2.5 Billion Milan Corruption Probe Casts Shadow Over Property Boom How San Jose's Mayor Is Working to Build an AI Capital The S&P 500 Index has gone 17 sessions without a move of 1% in either direction, the longest stretch of relative tranquility since December. For Matt Maley at Miller Tabak & Co., the diminished movement shows the market's momentum is waning after its scorching rebound from April's tariff-fueled lows. Amid a barrage of headlines about the Federal Reserve chair's job security and President Donald Trump's trade war over the past few weeks, investors appear to be tiring of waiting for more stocks to join the tech-led market surge, said Maley, the firm's chief market strategist. 'Whenever a narrow rally losses steam, it usually signals that investors are starting to look for signs of a broader rally,' he said. 'When they don't get it, they tend to pull back for a while.' It's hard to blame them for retrenching at the moment, with earnings season just getting underway, trade negotiations in flux and expectations growing that the Fed is months away from potentially cutting interest rates. As Aaron Nordvik at UBS Securities LLC sees it, the tailwinds that were driving shares higher are now easing, such as the stock market's history of strength in July. 'I've been quite bullish for a while now, but most of the good news is now in the price,' said Nordvik, a macro equity strategist at the firm. While he says a sharp slump is unlikely, in his view the risk-reward profile for equities is less attractive than even just a couple weeks ago. This week has the potential to stir up volatility. Two members of the so-called Magnificent Seven megacap tech stocks that powered the market higher in recent years are set to report results — Tesla Inc. and Google parent Alphabet Inc. The stakes will again be high for the cohort as Wall Street looks for an update on their spending plans, especially related to artificial intelligence. Then comes the Fed's July 30 policy decision. The central bank is widely expected to keep rates on hold. But all eyes will be on Chair Jerome Powell to see whether he'll respond to Trump's relentless pressure on him to cut borrowing costs, or reports that the president was on the brink of seeking to fire him. Momentum Reading For now, stocks are near an all-time high, sustained by a broad sense that the US economy is holding up in the face of the president's tariffs, while inflation remains muted. The are other indications of cooling momentum. Dan Greenhaus at Solus Alternative Asset Management points out that the share of S&P 500 members above their 20- or 50-day moving averages has declined lately, an indication the rally may be losing energy. 'But given the better-than-expected inflation and economic data — not to mention corporate commentary which thus far has been pretty good — I'm not sure I'd put too much stock in the technicals right now,' said the firm's chief market strategist. There's also an argument that the ebbing turbulence — the market's so-called fear gauge isn't far above its lows for this year — is a reason for stocks to extend their gains. 'An old saying on Wall Street is, 'Never short a dull market,'' said Dave Lutz, equity sales trader and macro strategist at Jonestrading. 'History shows quiet markets tend to drift upward.' Still, for investors waiting for a fresh catalyst to lure them back in, earnings season has yet to prove decisive. Company results have been solid. But this time the reaction has been muted, a worrisome hint that much of the good news is priced in to a market that's at historically high levels with elevated valuations. And while recent economic data supports the bullish case for stocks, Citigroup Inc. strategists say that much of that is also reflected in shares. 'The issue is the setup,' Scott Chronert, the firm's head of US equity strategy, wrote Friday in a note. 'It feels like the market is moving ahead of positive developments.' A Rebel Army Is Building a Rare-Earth Empire on China's Border Elon Musk's Empire Is Creaking Under the Strain of Elon Musk Thailand's Changing Cannabis Rules Leave Farmers in a Tough Spot How Starbucks' CEO Plans to Tame the Rush-Hour Free-for-All What the Tough Job Market for New College Grads Says About the Economy ©2025 Bloomberg L.P. Sign in to access your portfolio
Bloomberg
2 days ago
- Business
- Bloomberg
S&P 500 Signals the US Stock Rally Momentum is Waning
Under the surface of the US stock market's march to record highs this month, there are signs the rally is running out of gas. The S&P 500 Index has gone 17 sessions without a move of 1% in either direction, the longest stretch of relative tranquility since December. For Matt Maley at Miller Tabak & Co., the diminished movement shows the market's momentum is waning after its scorching rebound from April's tariff-fueled lows.
Yahoo
2 days ago
- Business
- Yahoo
1 Surging Stock to Own for Decades and 2 We Turn Down
Exciting developments are taking place for the stocks in this article. They've all surged ahead of the broader market over the last month as catalysts such as new products and positive media coverage have propelled their returns. While momentum can be a leading indicator, it has burned many investors as it doesn't always correlate with long-term success. All that said, here is one stock with lasting competitive advantages and two not so much. Two Momentum Stocks to Sell: WESCO (WCC) One-Month Return: +13.7% Based in Pittsburgh, WESCO (NYSE:WCC) provides electrical, industrial, and communications products and augments them with services such as supply chain management. Why Do We Think Twice About WCC? Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term Poor free cash flow margin of 2.2% for the last five years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends WESCO's stock price of $205.87 implies a valuation ratio of 14.5x forward P/E. Check out our free in-depth research report to learn more about why WCC doesn't pass our bar. Boeing (BA) One-Month Return: +13.8% One of the companies that forms a duopoly in the commercial aircraft market, Boeing (NYSE:BA) develops, manufactures, and services commercial airplanes, defense products, and space systems. Why Is BA Risky? Declining unit sales over the past two years show it's struggled to increase its sales volumes and had to rely on price increases Cash-burning history makes us doubt the long-term viability of its business model Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution At $229.18 per share, Boeing trades at 32.5x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than BA. One Momentum Stock to Buy: Magnite (MGNI) One-Month Return: +28.2% Born from the 2020 merger of Rubicon Project and Telaria, Magnite (NASDAQ:MGNI) operates the world's largest independent sell-side advertising platform that automates the buying and selling of digital advertising inventory across all channels and formats. Why Is MGNI a Top Pick? Market share has increased this cycle as its 33.3% annual revenue growth over the last five years was exceptional MGNI is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its improved cash conversion implies it's becoming a less capital-intensive business Historical investments are beginning to pay off as its returns on capital are growing Magnite is trading at $24.22 per share, or 27.5x forward P/E. Is now the time to initiate a position? Find out in our full research report, it's free. High-Quality Stocks for All Market Conditions When Trump unveiled his aggressive tariff plan in April 2024, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that's already erased most losses. Don't let fear keep you from great opportunities and take a look at Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Guardian
3 days ago
- Sport
- The Guardian
McIlroy digs in to unearth oddball Open surprise and ‘half-chance' at late title tilt
Deep into day three of the Open and Rory McIlroy is still surfing gigantic waves of momentum and goodwill. He has jumped to six under, at this point only four shots off the lead, with each birdie sounding like a sonic boom over Portrush. It is manic, messianic, and a lot of fun. And then it gets weird. Twilight Zone weird. McIlroy has just twirled a drive into the rough at the 11th. For a moment he fears that his ball is lost, only to get the all clear from the marshal. Better still, he will be playing from trampled-down ground. He pauses. Takes aim. And then as his ball flops wearily into air, a member's Titleist ball, which has been deeply buried under ground, suddenly jumps up beside him. McIlroy smiles in disbelief before telling his caddy: 'I was on a golf ball!' 'It's never happened to me before,' he says later. 'Just a really weird – I had obviously no idea there was a ball anywhere close to my ball. 'It was so, so strange. I thought I was going to get a flier, and I looked up at my ball, and I could see it spinning up against the wind.' It costs McIlroy a bogey five, and to add further insult he hears the roars signifying that Scottie Scheffler has just moved to 12 under par, seven shots clear of his score. But after the cruel comes the divine. McIlroy is now on the 12th, about to caress a 56-foot eagle putt down the slope, right to left. It trundles steadily along before appearing to lose pace 10 feet from the hole. 'It's gotta go,' says the man from Golf Digest, crouching just off the green. And it does. Only to slow down again. 'It's gotta go,' he says again. The roars tell you what happens next. The ball disappears down the hole. And suddenly fans are jumping. Many throw their hands in the air. There are cries of 'Rory! Rory!'. He is now seven under and beaming. 'The eagle on 12 was one of the coolest moments of my career – it's one of the largest roars I've ever heard on a golf course,' he says later. 'To get those shots back straight away was nice.' The crowds surrounding McIlroy were so deep throughout the third round that many supporters were forced to rely on secondary senses to work out what was going on. The frequent eruptions from the galleries. The urgent cries of encouragement. And, especially in the first few holes, the smell that something mystical might be in the air. No wonder people were getting excited, especially after McIlroy made birdies on the 1st, 2nd and 4th. But then chances went begging. The 375-yard par-four 5th has been one of the easiest holes all week. But after a booming drive into the light rough, McIlroy was unable to get up and down for birdie. While on the par-five 7th, which had a scoring average of 4.53 on the day, another chance slipped by. Still, another birdie at the 15th left the Northern Irishman signing for a 66 and tied for fourth on eight under. He is six shots behind Scheffler. But he is still hoping for a miracle. Sign up to The Recap The best of our sports journalism from the past seven days and a heads-up on the weekend's action after newsletter promotion 'It was incredible,' he said of the atmosphere. 'It was so much fun. I got off to the perfect start, three under [on the day] through 4. Felt like at the end of the front nine there, at least through 11, the par on 7 felt like a bogey, and then the bogey on 11. 'Then to play those last seven holes at three under I thought was a good effort. Yeah, I played well. I rode my luck at times, but it was an incredible atmosphere out there. I feel like I've at least given myself half a chance tomorrow.' The same could not be said for the defending champion, Shane Lowry, who shot a three-over-par 74 and then revealed he had been up most of the night with a stomach bug. 'I'm not great,' he says. 'I haven't eaten today yet. I tried to get a protein drink down me after eight holes, and I felt like throwing up all over the place. Yeah, it's been a tough day, but I'm not going to make excuses. I played poorly today and obviously had a bad finish.' Lowry, who is now three over for the tournament, adds: 'You get home late and have to dust yourself off and wake up at 2.30am with cramps in my stomach. ' McIlroy will hope for a smoother night before the mayhem begins again. 'I started Oppenheimer last night,' he says. 'Try to get through another hour of it tonight and maybe finish it tomorrow morning.' He knows, though, that the way Scheffler is playing, it would take something out of a Hollywood movie to defeat him.
