Goldman Sachs has downgraded its U.S. growth forecast to 2.4% from 2.6% and 2023 to 1.6% from 2.2% as senior chairman Lloyd Blankfein warned of very, very high risks for a U.S. recession.
If I were running a big company, I would be prepared for it. If I was a consumer, I d be prepared for it, he said over the weekend.
One of the most bullish banks on Wall Street was Goldman in the year 2022 when it cut its S&P 500 target to 4,300. Their baseline forecast assumes no recession, but they say they expect a drop to 3,600 if that happens.
The S&P 500 firms posted much better than expected 1Q EPS growth of 11%, but investors have been mauled by a 18% near-bear market plunge since the index peaked on January 3 rd, said chief U.S. equity strategist David Kostin, in a note.
A list of 20 stocks with valuations below the previous bear market lows is their consolation prize and their call of the day.
They also have size and liquidity - an above-average market cap is needed for uncertain times - and balance sheet strength, meaning they are typically less sensitive to an economic slowdown because they can withstand a fall in credit market liquidity, said Kostin and the team.
The price earnings multiple after a 20% haircut to expected 2023 earnings is below the forward p e at the bottom of either of the March 2009 and March 2020 bear markets.
Given the different real interest rate environments, the highlighted stocks are more attractively valued today on a yield gap basis compared to the rest of the index than they were in 2009 or 2020, said Kostin and the team.
After a potential 20% reduction in 2023 EPS, the stocks on this list would still have E compound annual growth earnings per share growth rate of 4%, compared to 2% for the median S&P 500 company.
Where can I hide? What will happen next as stocks slump toward bear market amid stagflation fears?
It is da svidanya to Russia for McDonald's MCD, as the fast-food giant announces plans to leave the country and sell its business there, which could cost it up to $1.4 billion. McDonald s wants to secure 62,000 jobs there.
The data sets of COVID lockdowns triggered the slump in retail sales and industrial production in China, the weakest since March 2020, according to Deutsche Bank.
Elon Musk, Tesla TSLA, said Twitter s TWTR legal team has accused him of breaking a nondisclosure agreement over bots, following his Friday announcement that a $44 billion deal for the social media group is on hold.
It is a big week for retailer results, with Target TGT, Home Depot HD and Walmart WMT on tap. The take-Two Interatcive TTWO will report its results after the close.
U.S stock futures ES 00, YM 00, NQ 00, are down after China data, oil prices CL 00, BRN 00, are down, while Treasury yields TMUBMUSD 10 Y, TMUBMUSD 02 Y are flat to weaker. The dollar DXY, and gold GC 00 are lower, and the BTCUSD is weaker and trading just under $30,000 with most cryptocurrencies under modest pressure.
Read: Barry Silbert offers sympathy and advice to those who lost their fortunes last week.
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Goldman Sachs senior bankers have been told to take all the vacation they want.
A Thai beach cove, famous by Leonardo di Caprio, is reopening. You may not be visiting soon.
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