Salient to Investors: Europe’s debt crisis is pressuring global earnings. Analysts predict S&P 500 companies will report a 1.1 percent average drop in Q2 earnings, the first decline in 11 quarters and after a 6.2 percent average increase in Q1. A stronger dollar threatens earnings as U.S. exports become more expensive. Predictions: Tim Ghriskey at Solaris Group doesn’t expect
READ MORE... →Salient to Investors: The MSCI World Energy Index is down 9.6 percent in 2012, more than any other group, and is up 45 percent since the market bottom in 2009, less than any other industry with earnings tied to economic growth. U.S. energy stocks are at the cheapest levels relative to the
READ MORE... →Salient to Investors: George Soros called on Europe to buy Italian and Spanish bonds, warning a failure by leaders meeting on June 28 to produce drastic measures could spell the end of the euro. Wayne Lin at Legg Mason says the EU summit won’t produce anything extraordinary, that Soros’ views are extreme, and expects more volatility.
READ MORE... →Salient to Investors: Shares of casual-dining chains are rallying despite Americans eating out less because investors prefer holding stocks with little foreign exposure. Rachael Rothman at Susquehanna Financial Group said investors are fearful of holding companies that have a lot of business outside the U.S. Martin Leclerc at Barrack Yard Advisors is bearish,
READ MORE... →Salient to Investors: The U.S. economy may be on the cusp of a pickup in productivity that will make it more difficult for the Fed to reduce unemployment. Corporate profits rose 6.5 percent in Q1 from a year ago, the smallest year-to-year gain since the recession ended in mid-2009. Predictions: Ellen Zentner at Nomura securities
READ MORE... →Salient to Investors: FedEx, regarded as an economic bellwether, predicted Q1 profit lower than analyst estimates. Barnes & Noble Q4 revenue trailed analysts’ estimates. Predictions: Tom Wirth of Chemung Canal Trust sees the risks easing slightly, but expects any market action should the Fed extend Operation Twist to be short-lived. Myles Zyblock of RBC Capital Markets says growing uncertainty – due to
READ MORE... →Salient to Investors: NorthCoast Asset Management says everyone is on the sidelines for fear the market will get hammered if Greece leaves the euro. Predictions: Jeffrey Saut of Raymond James sees another leg up in the stock market on the belief that the Fed is going to have to provide liquidity to prevent the U.S. dollar from rising substantially
READ MORE... →Predictions: David Bianco of Deutsche Bank no longer expects a near term rally of 5 percent or more because of uncertainty about the Greek election, but maintained his year-end prediction of 1,475 on the S&P 500. David Trone of JMP Securities expects some of the largest financial institutions to underperform due to concern that Europe will experience significant damage. Michael Hartnett of Bank of
READ MORE... →Salient to Investors: Brown Brothers says the longest streak of alternating up and down days in the S&P 500 since October is a sign of a tug of war between bulls and bears. A lack of extreme pessimism during the market retreat since April suggests the market could go lower. BGC Partners says
READ MORE... →Salient to Investors: Bank of America survey said optimism among global asset allocators has fallen back to the lows of autumn 2011:, equity holdings have been reduced to underweight for the first time in seven months, cash raised to the highest level since 2008 and third-highest level on record. Predictions: RBC Capital
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