Not for the faint of heart.
Stock futures are pointing to a bounce after Wednesday’s recession. And investors are feeling whispered by the second-wave COVID-19 alarm bells, having to steel their nerves again for a big earnings day, as big technology guns get ready to report after take-off – Apple AAPL
Google GOOGL of the alphabet,
And Facebook FB,
but our Phone of the day A team of strategists at UBS, led by Chief Investment Officer Mark Heffel, urges investors to hold steady against COVID headlines, as the team predicts a “short-term” setback for equities.
“We continue to see the upside in the medium term, and target 3,700 on the S&P 500 as of June 2021, about 13% above today’s levels,” Haefel and team said, in a note to customers.
He added, “While local sanctions to control the epidemic will be a pressure on development, we see the impact expected to be more limited in the first half of this year.”
Consumers and companies have so far adapted to the restrictions and must cope better with new ones, although there is little space left in the air travel and hospitality sectors. “For the economy as a whole, we believe the impact of sanctions is greater than the relative demand shock and less than the absolute demand shock over the first half.”
US third quarter results have been “solid” and fourth quarter estimates for most companies are rising, suggesting momentum in the fourth quarter. However, some tech stocks may be at risk of small earnings shortfall, as valuations are high. Microsoft’s MSFT,
This week’s results and feedback are an example of this.
Governments continue to support struggling economies, except in the US, where consumer spending may decline. That said, a US stimulus bill would pass soon after the election, regardless of the outcome.
“The general public has become less fearful. This is a mixed blessing because it reduces the likelihood of full compliance with the new rules, which may slow down the inclusion of the virus, but on the contrary means that the negative economic impact has been reduced, ”said Haffel and team.
UBS strategists believe that with the possibility of 10 vaccines in late-stage trials worldwide, the government will be able to ease restrictions by the second quarter of next year. This would help corporate results “recover pre-epidemic levels by the end of 2021.”
Stock futures ES00,
S&P 500 rising after SPX,
Worst day after June. European Stock SXXP,
Struggling after five months of beating. Asia had a rough session. And oil prices CL.1,
Beer veteran Molson Copts results of TAP
Those stocks are boosted. Drugmaker Modern mRNA,
Losses went up, but stock is up. Income from food groups Kraft-Heinz KHC,
Still to come Reporting will also stop after social-media group Twitter TWTR,
And coffee giant Starbucks SBUX,
From Europe, Finnish handset maker Nokia shares Nokia,
Slipping on low guidance. Shares of social media group Pinterest PINS,
Blowouts are increasing after results.
The European Central Bank announced its policy decision 45 minutes later at 8:45 pm ET with a press conference. But the central bank cannot take action until next month.
The US GDP in the third quarter has probably increased by 30%, but what is going on right now will not tell us much. Further, weekly jobless claims and pending home sales.
Drugmaker Regineron REGN,
His experimental antibody cocktail stated “significantly lower” COVID-19 levels and the need for more hospitalizations and emergency-room visits.
Inphi IPHI shares,
Marvel Technologies are up 31% after MRVL,
Announced a cash and stock deal to buy out its rival. The shares of Marvel are down.
Two people were killed and several were injured in a knife attack in France.
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The UK football star’s petition for free school meals for children from poor families reached 1 million signatures during the holidays.
Rare turtles in Mexico are hunted by the thousands.
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