Fundstrat Global Advisors Managing Director Mark Newton provides insights into high-yielding stocks in “Making Money With Charles Payne.”
Investors rounded out the month with a basket of red flags over the economy, however, with all three major market averages posting their best month since 2020, taking inflation and recession calm confirmation.
For him S&P 500, the broadest measure of equities, investors would have to go back to 1939 to see a similar performance in July. Overall, the benchmark index was up 9.1% for the month, the largest percentage and point gain since November 2020, according to Dow Jones Market Data Group.
And it may continue to rise, according to Fundstrat Global Advisors managing director Mark Newton, who forecasts a Target 4,000 to 4,200 by mid-Septemberhowever, he warns that it may come without some setbacks.
“Historically, the first part of August has been negative, and many cycles show that markets should consolidate a bit over the next couple of weeks. For investors just waking up to this rally, I don’t think this is ideal.” place to put new money,” she advised.
THE UNITED STATES IS IN A RECESSION
The New York Stock Exchange, corner of Wall Street and Broad. ( )
For him High Tech Nasdaq Compositethe month was the best performance on record, as tracked by the Dow Jones Market Data Group, rising 12.3%, the largest percentage increase since April 2020, fueled by better-than-expected results from Microsoft, Amazon and Apple, plus a drop 10-year Treasury yields stood at 2.642% on Friday.
| Heart | Security | Latest | Change | Change % |
|---|---|---|---|---|
| MSFT | MICROSOFT CORPORATION. | 280.74 | +4.33 | +1.57% |
| AMZN | AMAZON.COM INC. | 134.95 | +12.67 | +10.36% |
| AAPL | APPLE INC. | 162.51 | +5.16 | +3.28% |
These big name companies helped to overshadow the dire economic news. Investors were hit by confirmation of a US recession after second quarter GDP contracted 0.9%, the second consecutive negative reading. This followed a 75 basis point rate hike by the Federal Reserve to rein in red-hot inflation, which remains stubbornly high. And on Friday, the Fed’s preferred gauge of inflation rose 6.8% annually, a new 40-year high. Excluding volatile food and energy, the increase was 4.8%, the Commerce Department reported.
POWELL PROMISES FED IS ‘VERY FOCUSED’ ON TACKLING INFLATION
Former Director of the National Economic Council, Larry Lindsey, provides insights into the state of the US economy in ‘Kudlow’.
“I can’t understand a stock market going higher as there is clearly a slowdown in growth and probably a recession and the Fed’s statement on Wednesday was as aggressive as anyone could hope for. I’ve never heard of an aggressive Fed and an economy in decline are good for stocks. former National Economic Council director Larry Lindsey told FOX Business’ Larry Kudlow.
As for the Dow Jones Industrial Average, it was on the brink of exiting the bear market it entered in March on Friday. For July, the Dow added 6.7%, the biggest percentage and point gain since November 2020. To officially break out of its bear market, the average must close at 32,877.66 or higher, according to Dow Jones tracking. MarketDataGroup.
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While its actual second-quarter earnings have been strong overall, with 73% of companies reporting positive earnings numbers and 66% positive revenue, targets for the third quarter are being lowered, according to senior earnings analyst from FactSet, John Butters.
“During the month of July, analysts lowered third-quarter EPS estimates by a larger-than-average margin,” it wrote in its latest research report. “The market will certainly be watching revisions to EPS estimates over the next few weeks to see if analysts continue to lower EPS estimates” for full-year 2022 and 2023, she added.