![]() Iran's foreign minister has warned of "pre-emptive action" against Israel in the coming hours over its bombardment of Gaza. Tupperware shares (TUP) are rallying on news CEO Miguel Fernandez is being replaced after just over 3 years on the job. And analysts are upbeat ahead of Netflix's (NFLX) earnings on Wednesday.Ĭheck out MarketWatch's live earnings coverage here. Johnson & Johnson stock (JNJ) is climbing after beating forecasts and lifting guidance. Read: Fannie Mae's CEO says home buyers, owners both trapped by high ratesīank of America (BAC) and Bank of New York Mellon (BK) are up on earnings beats, and Goldman Sachs (GS) beat Wall Street's pared estimates, but shares are flat. Industrial production also rose 0.3%, higher than expected, while a home builders confidence hit the lowest level since January. Retail sales rose 0.7%, stronger than the 0.3% gain that was expected for September. Read: What Israel-Hamas war means for gold as investors seek safetyįor more market updates plus actionable trade ideas for stocks, options and crypto, subscribe to MarketDiem by Investor's Business Daily. Bitcoin (BTCUSD) is trading atop $28,000 - one analyst sees $45,000 likely once the SEC approves an ETF. Major stock indexes SPX DJIA COMP are lower after that retail sales data, with Treasury yields BX:TMUBMUSD10Y BX:TMUBMUSD02Y headed for 16-year highs. "This era is providing us the opportunity to own high return-on-equity companies trading at very depressed prices relative to the average stock and at a huge discount to the shares dominating the S&P 500 index," say Smead. If that call is right, then indeed it may be a cheap time to pick up those millennial bets. Horton (DHI), which is down 2.7% this year, American Express (AXP), up 2.4% and U-Haul (UHAL), unchanged this year. "Any economic contraction that would bring interest rates down would kick in strong economic activity from this powerhouse population group," say the Smead managers.Īnd while the housing market is tough for both buyers and sellers right now, thanks to high interest rates, the managers are betting on home builders, financial institutions and retail-oriented companies to "feed off the millennial move to the suburbs." "The inverted yield curve and the Fed tightening are scaring people away from economically sensitive businesses that should benefit the most from the fact there are 40% more millennials in the 27-42 year-old age group than the Gen Xers who preceded them. The second call from the Smead managers looks to cash in on the "upcoming dominance" of the social-media generation - the millennials who represent a hefty and biggest 72.24 million chunk of the population as of 2022. They highlight stocks such as Occidental Petroleum (OXY)and ConocoPhillips (COP), up 0.7% and 4.6% so far this year, and held in their value fund. Here's their chart showing where the current supercycle is tracking: They believe the market is in the "early stages of a commodity supercycle," with a "once-in-a-lifetime opportunity in oil and gas shares." Those stocks have "dramatically underperformed the price of oil this year and have created what we believe is an excellent short-term buying opportunity of the industry," they say. Lead portfolio manager Bill Smead and his son, co-portfolio manager Cole Smead, think this year will end up in the history books for a mania/bubble over Magnificent Seven tech stocks and AI.Īnd while that will "end badly," they see some of the capital tied up in that making its way "into whatever investors gravitate toward in the future." 30, but up an annualized 16.7% over three years. The year has been tough for value managers like Smead, whose value fund SVFAX is up about 2% on a year-to-date basis as of Sept. Those ideas come from Phoenix-based Smead Capital Management, which has laid out its assessment of where things stand in a new investor letter. If you're among the investors fearing a stock-market failure, our call of the day has some ideas that aren't going to break the bank, given where those shares in question have been trading so far this year. economyĪfter a banging start to the week, stocks are under pressure on Tuesday, as stronger-than-expected retail sales are sending yields on a tear.
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