por admin » Jue Dic 08, 2022 2:43 pm
Stocks rise as S&P 500 tries to snap 5-day losing streak
Samantha Subin
Sarah Min
A lot of inflation has already been 'baked into the cake,' says Judy SheltonWATCH NOW
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A lot of inflation has already been ‘baked into the cake,’ says Judy Shelton
Stocks rose Thursday as the S&P 500 attempted to crack a five-day losing streak and Wall Street evaluated the odds of a recession ahead.
The Dow Jones Industrial Average inched 60 points higher, or 0.2%, bolstered by gains from Chevron and Boeing. The S&P 500 added 0.4%, while the Nasdaq Composite rallied 0.8%.
The S&P kicked off the week on a sour note, building on losses from the previous week. Its fifth consecutive down session Wednesday brought the benchmark index to its longest losing streak since October.
“We had a strong selloff over the last few days and it doesn’t take much to create even the underpinnings for a modest rally,” said Quincy Krosby, LPL Financial’s chief global strategist, referring to Thursday’s jobless claims — specifically continuing claims —as the likely catalyst.
The data showed a modest uptick in claims. Continuing claims hit their higher level since February, a slight move in the right direction for the economy that could further fuel the narrative that the labor market needs to break in order for the Fed to successfully tamp down inflation.
“Again, we’re back to bad news being good news,” Krosby said.
Meanwhile, Exxon after lifting its buybacks, while Chevron gained on a higher capital spending budget. GameStop rose after posting earnings.
Investor attention remains laser-focused on next week’s Federal Reserve policy meeting, where the central bank is widely expected to issue a 50 basis point interest rate hike. It’s a smaller increase than the prior four rate hikes, but may do little to alleviate recession fears as the Fed attempt to squash surging prices.
Next week’s November consumer price index should also provide more clarity on the direction of inflation.
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UBS names PVH a top-pick stock for 2023
The fashion company behind brands such as Calvin Klein and Tommy Hilfiger is a top pick at UBS.
The firm said PVH is one of the most likely to beat expectations for earnings next year out of the 40 stocks covered. Analyst Jay Sole reiterated the stock as a buy with a target of $100. That presents an upside of 37.3% over where it closed Wednesday.
Driving the optimism is a new plan to transform the business model. The stock is up 3.7% following the UBS note.
“PVH’s new management team is simply modernizing a company that has fallen behind peers in some areas,” Sole said in a note to clients.