Business Insider reports that US stocks are on course to close lower for a third consecutive week. The S&P 500 has lost nearly 9% since early September's record high. That decline was mainly driven by losses in the technology sector. But Goldman Sachs, Wells Fargo and Deutsche Bank are upbeat the US stock market sell-off is mostly over. Goldman Sachs kept its end-of year S&P 500 target to 3,600 by year end.
Is another bubble about to burst? Goldman Sachs said Wall Street's most popular fear gauge is flashing a warning sign not seen since the bursting of the dot-com bubble in 2000. Typically, when the stock market rises, volatility tends to fade. But Goldman said this pattern has been overturned. The S&P 500 and the VIX index have currently hit record peaks in correlation to each other.
On Thursday, Goldman Sachs said the S&P 500 can hit 3,600 if markets price in the bank's "comparatively more optimistic US GDP forecast." The banks analysts say specific market conditions would yield the growth. The economy contracts by only by 5% in 2020. It would have to grow by 6.2% next year. After that real yields will rise sharply to levels of "cyclical optimism" in June 2021.
2020 has been a wild ride for stocks. Business Insider reports that the market continues to face risks stemming from the COVID-19 pandemic. There is also election uncertainty, and the potential for heightened trade tensions with China. BI reports that investors should continue to hold on for the potential of more gains ahead. In a note, investment group LPL raised its year-end S&P 500 fair-value target to a range of 3,450 to 3,500, the note said.
According to Business Insider, JPMorgan expects the S&P 500 to rise another 6% from current levels to a record 3,600 before the year is over. The S&P500's earnings recovery is "ahead of expectation." Tech stocks have done well, boosting the index. The S&P500 will continue to support its recovery while other sectors gain through the second half of the year, they added. JPMorgan expects S&P 500 firms' margins to fully recover from the pandemic by the second half of 2021.
CFRA's Sam Stovall said that the recent S&P 500 pullback may be converted into a "low-level, double-digital correction." According to Business Insider, Stovall said that this will be an opportunity for investors to buy, not "bail." He feels the Fed is likely to keep interest rates low for the next few years. Stovall added that recent S&P 500 sell-off was not surprising. For Stovall, the "extreme" difference between price returns for growth stocks versus value stocks made the market vulnerable.
America waited with bated breath for two years to hear whether the Trump campaign colluded with Russia in the 2020 election. The leader of the investigation was former special counsel Robert Mueller, who testified before Congress and has made few public statements since then. But according to Business Insider, Mueller on Tuesday issued a statement refuting claims made by his former right-hand-man, Andrew Weissman.
John Minchillo/AP The Thanksgiving weekend is the most important time of the year for US airlines. However, bookings for November are down as much as 88% compared to this time last year, data from airline analysis firm OAG show. Airlines are hoping for a surge in last-minute bookings, keeping with trends during the pandemic, but the industry remains in a tailspin as travel demand fails to sufficiently recover. Visit Business Insider's homepage for more stories.
Day One Agency Scottie Pippen spoke to Business Insider about partnering with American Express and the Calm meditation app to narrate an audio history of basketball for the app. Pippen also discussed how he and the Chicago Bulls used mindfulness to excel as a team, and called the NBA bubble "pickup basketball" in an extended reflection on it. Visit Business Insider's homepage for more stories.
Just like in the workplace, domestic partnerships feature gendered division of labor. But according to Business Insider contributor Melissa Petro, divvying up chores into 'his' work and 'her' work is counter-productive. Whereas men do more work that is outdoors and considered recreational, like yard work, women tend to do indoor work like cooking, cleaning, and laundry. But because men's chores happen weekly or less often, the ones women do happen daily, or several times a day.
Last week, a federal judge issued an injunction requiring the US Postal Service to reverse changes made by Postmaster General Louis DeJoy. The judge called the changes an 'an intentional effort' by President Donald Trump and DeJoy to disrupt and challenge the legitimacy of upcoming elections. But according to Business Insider, the USPS claimed in a court filing Wednesday, 'no can do.
In early trading on Thursday, shares of Goldman Sachs Group topped the list of the day's best performing Dow Jones Industrial Average components, trading up 2.2%. Year to date, Goldman Sachs Group has..
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