Goldman Sachs lifted its S&P 500 price target. Why over here



COVID-19 is still raging, traders are starting to place bets on “heavyweight markets around the election”, and the US and China may not agree to hold a planned meeting on weekends.

Of course, no one is denting the stock market to any significant degree. Goldman Sachs became the latest firm to increase its price target for the S&P 500 SPX.
-0.01%,
Increased their year end goal by 20% from 3000 to 3400.

Strategists, led by David Kostin, expect a yield on the 10-year Treasury TMUBMUSD10Y,
0.693%
0.7% to 1.1% growth by year end. This being equal to all things, would be bad for stocks, as it would be a high bar on valuations relative to the constraint. But he expects equity risk to decline.

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  Change in [equity risk premium] Today, the economy is driven by a number of factors including the strength of the economy, the expected situation for the economy to move forward, and investors are on the path ahead, ”he says.

  They expect the risk premium for US equities to decline from 6.3% to 5.7% by the end of the year, and to 5.2% by the end of the first half of 2021. 
  The economy, he says, will grow much faster than the market next year, operated by the firm of approved coronovirus vaccines by the end of 2020 and widely distributed by the first half of 2021. 
  Their earnings-per-share estimates for the S&P 500 companies of $ 170 in 2021, well above Wall Street's $ 165.  "Our EPS estimates are driven by expansion in higher sales and profit margins to 11.4%, back to 2019 levels," he says, adding it will be uneven, as information technology and health companies will lead the way in the energy and financial struggles. 
  <strong>The buzz</strong>
  The US and China delayed their planned negotiations on reviewing a phase one trade agreement.  Over the weekend, President Donald Trump gave the owner of TikTok a 90-day bitedance to sell the video sharing app, and when asked if he wanted to ban other Chinese companies, including Alibaba BABA, 
    <bg-quote field="percentchange" format="0,000.00%" channel="/zigman2/quotes/201948298/composite" class="positive">+ 0.09%</bg-quote><span>,</span>
  He replied, "Well, we're looking at other things, yes."
  The election was delayed in New Zealand due to the epidemic, as Italy is mandating the wearing of masks.  Novavex NVAX, 
    <bg-quote field="percentchange" format="0,000.00%" channel="/zigman2/quotes/202614340/composite" class="positive">+ 9.92%</bg-quote>
  Said it is beginning the second phase of its coronavirus vaccine trial.
   The talk continued around the release of the 13-F filing, which describes how the world's top investors have changed their portfolios at least through June 30.  Warren Buffett's Berkshire Hathaway BRK.B, 
    <bg-quote field="percentchange" format="0,000.00%" channel="/zigman2/quotes/200060694/composite" class="negative">-0.48%</bg-quote>
  Barrick Gold Gold, bought a stake in the gold mine 
    <bg-quote field="percentchange" format="0,000.00%" channel="/zigman2/quotes/201432642/composite" class="negative">-0.55%</bg-quote>
  Wells Fargo selling WFC bets, 
    <bg-quote field="percentchange" format="0,000.00%" channel="/zigman2/quotes/203790192/composite" class="positive">+ 1.11%</bg-quote>
  And JP Morgan Chase JPM, 
    <bg-quote field="percentchange" format="0,000.00%" channel="/zigman2/quotes/205971034/composite" class="positive">+ 0.03%</bg-quote><span>,</span>
  And Goldman Sachs GS 
    <bg-quote field="percentchange" format="0,000.00%" channel="/zigman2/quotes/209237603/composite" class="negative">-0.20%</bg-quote>
  Altogether.
  The economics calendar includes the Empire State Manufacturing Survey and the National Association of Home Builders' Housing Market Index.  Japan reported a 7.8% drop in GDP in the second quarter, recording a record decline, but better than industrial rivals including the US and Germany.
  Politics will be a talking point as the Democratic National Convention closes on Monday night.  Former Vice President Joe Biden and the US Senate swinging for Democrats both predicted a presidential victory.
  Sanofi said that it would buy the Principia Bipharma PRNB, 
    <bg-quote field="percentchange" format="0,000.00%" channel="/zigman2/quotes/208617578/composite" class="negative">-1.15%</bg-quote><span>,</span>
  For $ 3.34 billion, an American biotech is focusing on immune diseases.
  <strong>market</strong>
  Dow Industry DJIA, 
    <bg-quote field="percentchange" format="0,000.00%" channel="/zigman2/quotes/210598065/realtime" class="positive">+ 0.12%</bg-quote>
  Last week 7 rose for the fifth week, and stock futures ES00, 
    <bg-quote field="percentchange" format="0,000.00%" channel="/zigman2/quotes/209948968/delayed" class="positive">+ 0.32%</bg-quote>
    YM00, 
    <bg-quote field="percentchange" format="0,000.00%" channel="/zigman2/quotes/210407078/delayed" class="positive">+ 0.21%</bg-quote>
    NQ00, 
    <bg-quote field="percentchange" format="0,000.00%" channel="/zigman2/quotes/210219788/delayed" class="positive">+ 0.66%</bg-quote>
  More told on Monday.
  Gold futures GC00, 
    <bg-quote field="percentchange" format="0,000.00%" channel="/zigman2/quotes/210034565/delayed" class="positive">+ 0.64%</bg-quote>
  Oil rose during CL.1, 
    <bg-quote field="percentchange" format="0,000.00%" channel="/zigman2/quotes/211629951/delayed" class="negative">-0.26%</bg-quote>
  Futures fell.
  The big overseas move was in China, where Shanghai Composite SHCOMP, 
    <bg-quote field="percentchange" format="0,000.00%" channel="/zigman2/quotes/210598127/delayed" class="positive">+ 2.34%</bg-quote>
  Increased by more than 2%.
  <strong>Chart</strong>
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  <figcaption class="wsj-article-caption article__inset__image__caption" itemprop="caption"/></figure></div> 
  An increase in market power in both the product and labor markets is a driver in decreasing labor share of income, increase in profit share, increase in income inequality, increase in credit-to-GDP ratio and related.  An increase in financial volatility, a new Federal Reserve paper finds.  Researchers suggested that increasing taxes could both reduce income inequality and reduce the possibility of financial instability.
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  <strong>The need to know starts early and is updated until the opening bell, but </strong>Register here<strong> To deliver it once in your email box.  Be sure to check the item requirement.  The emailed version will be sent around 7:30 pm Eastern.</strong>

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