There is nothing like higher prices that will change the minds of Wall Street investors and analysts.
Attend the recent upward rise of the S&P 500 SPX,
price targets. Wells Fargo went from being one of the biggest bears on Wall Street to being a bull. This week, Bank of America reluctantly capitulated, raising its year-end target to 4,250 from 3,800, even when U.S. equity strategy chief Savita Subramanian warned: “It may be that that doesn’t end now. But when it ends, it could end badly.
So what could be more remarkable is when a Wall Street company sticks to its weapons. Mizuho Securities USA, the Treasury’s largest securities dealer, still says the S&P 500 will end the year with 4,400. The key to Mizuho’s adoption is the company’s view that the Federal Reserve is moving toward a preventive rather than reactive approach, as the Fed is increasingly concerned that supply chain disruptions are leading to a more sustained rise in prices.
In turn, this will drive the dollar, according to the DXY DXY,
index: will rise to 95, which will increase foreign interest in long-term dollar assets for profit, says Steve Ricchiuto, its chief economist in the United States. According to him, the curve will flatten by the end of the year, with the ten-year-old TMUBMUSD10Y,
rising to 1.5%, while the 2-year TMUBMUSD02Y,
goes up to 0.5%.
“A flatter curve, a stronger dollar and the risk of a previous pullback advocate a long-delayed equity market correction, so we decided not to pursue the broad market index even though our initial target of 4400 by the end of the year has already been exceeded, ”he says.
This backdrop suggests a move away from small and medium-sized stocks to larger-cap companies. “We also have a preference for growth over cyclicals and suggest a reduction in exposure to finance,” he adds. Growth could disappoint expectations by 2022 and tax hikes could weigh on hiring before any increase in transfer payments can raise demand.
Biden talks to Xi
President Joe Biden, after closing the markets, delivered a speech on the fight against the COVID-19 pandemic, in which he ordered the vaccination of all federal employees and contractors of the executive branch and will require employers with 100 o more workers need vaccination or weekly testing.
The White House also said Biden spoke with Chinese President Xi Jinping for the first time in seven months. “The two leaders had a broad strategic debate in which they discussed areas where our interests converge and areas where our interests, values and perspectives diverge,” the reading of the call said.
Affirm AFRM,
shares jumped more than 20% in shares outside working hours, after the installment payment provider raised the revenue guide.
Wells Fargo WFC,
received a $ 250 million fine from the Currency Controller’s Office for home loan practices, but also said the Consumer Financial Protection Bureau’s consent order issued in September 2016 on the bank’s retail practices had expired.
Harvard University said it will stop investing in fossil fuel companies.
Fed regional presidents Robert Kaplan and Eric Rosengren said they would sell the individual shares they owned, following controversy when their active stock market trading was revealed.
The markets
Aided by earnings in Asia, with a maximum of six months for the Nikkei 225 NIK,
– ES00 US futures,
NQ00,
they were stronger. The 10-year Treasury yield was 1.32%.
Random readings
Moneyball analysts are struggling to keep up with wildfires.
The Karens unite to have their name used as an insult.
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