This strategist says ‘winners will take us’ and here are 4 more reasons why stock bulls will win in 2020


Taking the team.

Jonathan Nackstrand / Agence France-Presse / Getty Images

A strong start to the week for the shares shows no signs of downward support, as we count the results of the Federal Reserve meeting on Wednesday.

China may help on Tuesday after reporting the first increase in retail sales – 0.5% of 2020 -. Investors are looking at the nation that emerged before the coronovirus pandemic, to see how other countries could exit.

Epidemic concerns, electoral uncertainty, US-China tensions – none of which is enough to make excuses in this tough bull market, said Ryan Detrick, chief market strategist at LPL Financial Phone of the day.

Detroit tells customers that markets are probably pricing in a very optimistic near-term economic recovery scenario, and that “the stock is still required to work to grow at its current valuation.” But he has snatched up his own S&P 500 SPX,
+ 1.27%
Targets up to 3,450–3,500, citing five reasons why the path of least resistance is high.

  1. COVID-19 is under control, with daily cases in the US and below spring peak in hospital. We can expect a vaccine to arrive by the end of the year, but we have a “better playbook of stopping the spread of the virus in the spring and improving the way we treat patients.” Detrick says.

  2. Gross domestic product probably reached a record 30% in the third quarter, and retail sales reached their pre-epidemic peak. They say that there may be more excitement in the Congress before the elections.

  3. “Speed ​​changes.” When the S&P 500 has risen five-straight months, such as April through August, stocks have historically gone higher. The index has seen a similar increase the past 26 times, more than a year later – 5 times, he notes.

  4. Estimating earnings. Detrick says, “Although not always predictable, estimates tend to increase in clusters, so we think the chances are good that estimates could increase and third-quarter earnings from Corporate America are upside down Can. ”

  5. The winners will “continue” this stock market. The so-called “work-from-home” stocks have powerful secular tailwinds that have only strengthened during the epidemic. We estimate that more than half of the S&P 500 are either unaffected by the epidemic or are benefiting from it, with about 40% of the index in technology, digital, media and e-commerce, ”said Detrick. He said that even though the recession has hit the economy hard, consumer staples, health-care and tech stocks are all set to see this year’s earnings.

market

US stock futures YM00,
+ 0.67%

ES00,
+ 0.74%
Nasdaq-100 are higher for NQ00,
+ 1.05%
Front and European stock SXXP,
+ 0.79%
Also on the rise. Along with gold, oil prices are rising.

Keep an eye on the Russell 2000 RUT,
+ 2.65%,
Which on Monday ended the two-season limit.

The buzz

The two-day meeting of the Federal Reserve ended on Tuesday (see this preview). Data on tap includes the New York Survey of Manufacturing, Import Prices and Industrial Production.

According to a survey by consulting firm Deloitte, US holiday sales may depend on whether the wealthy spend too little and low-income families.

After stopping during the coronavirus pandemic, Citigroup C,
-5.58%
The job cuts are reportedly starting.

Apple’s AAPL,
+ 2.99%
The “Time Flies” September event is ahead, but don’t get your hopes up on a new 5G iPhone.

AstraZeneca Ezn,
+ 2.71%
COVID-19 vaccine trials have resumed in the UK, but not in the US, and scientists in Pittsburgh have discovered a small biological molecule that completely neutralizes the virus that causes COVID-19.

Hurricane Sally has turned into a dangerous Category 2 hurricane, as it has closed on the Gulf Coast.

The blowing winds and hot, dry weather have spewed an already destroyed parts of the West Coast, as well as renewed fires in Idaho. But President Donald Trump dismissed climate change as the cause of those fires. Meanwhile, Facebook FB,
-0.17%
The Climate Science Information Center is starting to help the war disintegrate.

Random reads

Actor Paul Rudd has sent a face mask message for millennials.

Out of coma, Russia’s opposition leader sends a message to her family via a cheerful Instagram post.

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