Fixes the headline to clarify that it is a bear rally, not a bear market, that the analyst says will continue.
A stock market that has seen five straight advances for the Dow Jones Industrial Average DJIA, still doesn't have many believers.
After meeting clients in the U.K., Michael Hartnett, Chief Investment strategist at Bank of America, described most in a short-term gain long-term pain kind of mode. The sell-off seems too orderly to trust that the lows have been made.
Hartnett believes that a super-spike oil view could see crude-oil reach $150. He mentioned another risk that is less discussed - a house of cards in private equity.
Hartnett isn't a long-term believer, and he set 4,200 as the point at which to fade the S&P 500 SPX, We fade rallies e.g. He said that SPX 4200 was not in rush.
He writes that bear rally bandwagon charges ahead because of the view that peaks have been made in CPI, bonds yields, the U.S. dollar and Fed hawkishness. He writes about a pivot by the Federal Reserve at the annual Jackson Hole address in late August, by which time the federal funds rate should be between 1.75% and 2% and a few months of quantitative tightening will be in the books.
The Bank of America's bull and bear indicator is in extreme bearish territory, and Hartnett says there are many oversold assets relative to their 200 day averages, which make them vulnerable to a tradeable bounce. Among them are the 30 year Treasury, CCC high yield bonds, Chinese and German stocks, U.S. banks and tech stocks, consumer stocks in the U.S. European Union and China, and industrials in Europe.
There are a lot of economic data coming out, as the preferred inflation gauge of the Fed, the PCE price index, is due to be released, along with personal income and consumer spending data. The advance report on trade is due for publication, and the final reading of the University of Michigan consumer-sentiment index is set to be released after the open.
Gap GPS fell 19% after the retailer slashed its outlook on the struggles at its Old Navy division.
Costco Wholesale COST met earnings expectations but also flagged margin pressure. It won't hike hot dog prices, though it has succumbed to lifting croissant and muffin prices.
Dell Technologies DELL shares went up after its earnings topped expectations due to enterprise demand.
Biotechs will be on the move after a series of data was published at the annual meeting of the American Society of Clinical Oncology. SpringWorks Therapeutics SWTX, Iovance Biotherapeutics IOVA and Mirati Therapeutics MRTX, all major holdings of the hedge fund Perceptive Advisors, each slumped, while Adicet Bio ACET and PMV Pharmaceuticals PMVP gained.
The U.S. stock futures ES 00, NQ 00, pointed to a continuation of recent gains. The yield on the 10 year Treasury TMUBMUSD 10 Y was 2.74%.
Here are the most active stock-market tickers as of 6 a.m. Eastern.
The Uvalde, Texas school where 19 children and two teachers were shot dead, made extensive preparations on how they would counter a gunman.
The New York Yankees and Tampa Bay Rays used their social-media accounts during Thursday night game to tweet facts about gun violence instead of baseball.
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