Treasuries and investment-grade municipal bonds — should offer stability to portfolios and generate steady income in 2023 as investors navigate continued volatility, the firm wrote in a note to clients Monday.
Heading into the new year, Truist says investors should remain defensively positioned given that it expects one of the worst years for global growth and a base case that accounts for a 2023 U.S.The firm also expects the S&P to trade between 3,400 and 4,300 over the next year, making the near-term risk-reward less favorable.
— Samantha Subin.— Samantha Subin.Analyst Peter Saleh upgraded the restaurant stock to buy from neutral, saying in a note to clients that Domino's pricing power could fuel a rebound.We expect Domino's to enter 2023 with the highest level of menu pricing in more than a decade, and expect management could take price on the $7.99 carryout offering, further bolstering sales and margins next year," the note said.
The stock was down slightly on Monday.
— Samantha Subin.The odds of a soft landing for the economy are becoming increasingly less likely as the yield curve inversion deepens, said Michael Darda, MKM Partners' chief economist and market strategist.— Samantha Subin.Wall Street's strategists expect stocks to trade poorly in the first part of next year, and some say the market is likely to test its lows in the first quarter.Strategists say there is still a chance for a yearend Santa rally, but the stock market is already trading on the same concerns of recession and the earnings slowdown likely to take it lower next year.Kleintop released his 2023 outlook Monday, and he predicts the first half will be worse for stocks than the back half of the year, with a choppiness similar to the past six months."We see positive returns for the year, although high volatility continues for the next few months," he said.Hedge fund manager Dan Niles said the market is in another bear-market rally and investor sentiment could turn sour again in the new year."We still believe that after you get sort of this next bear market rally running, it's last gasp, then you go and retest or break to new lows when you get into 2023," Niles said."Recession probability models point to roughly 2/3 odds of a hard landing," UBS said in a client note.The firm sees flat growth this year and a 1% decline in 2024 amid "a stalling labor market expansion, and [personal consumption expenditures] inflation near 2% in Q4 of next year."."A short-term pause/pullback is likely as equity markets consolidate after reclaiming a key technical level near their 200-day moving averages," wrote analyst Javed Mirza in a note to clients Monday.— Samantha Subin.The firm said it expects more revenue pressure for the bank than is priced into the stock.
"While we believe that increased market penetration and household acquisition provide attractive opportunities for longer-term growth, we see near-term downside to NIM and NII as the bank leans into high-cost, short-dated CDs and FHLB borrowings to fund their high growth strategy," Gosalia wrote in a Monday note.— Samantha Subin.Analyst Andrew Charles named Yum a top pick for next year, saying in a note to clients on Monday that the restaurant company has fundamental upside in this economic environment.(~30% of EBIT) SSS upside & China (~15% of EBIT) reopening potential," the note said.
"Applying this premium to current dynamics suggests a $140/share fair value that we view as a stepping stone to our $155 price target over our 12-month time horizon," the note said.Yum's shares are down about 6.5% year to date, and were little changed near $130 per share on Monday morning.dollar, rising stock market prices and lower credit spreads.
However, financial markets rallied sharply last Wednesday after Powell said he expects the Fed to reduce the level of its rate hikes, probably as soon as next week's Federal Open Market Committee meeting.A possible recession in 2023 means that the S&P 500 will need to set new lows, unless the stock market breaks a streak that goes back to World War II.Bank of America technical research strategist Stephen Suttmeier explained in a note to clients that history suggests the market doesn't bottom until a recession has already begun.Only the March 1945-October 1945 recession saw the SPX rally ahead of and throughout the recession," the note said.
That indicates "Apple is cycling past the worst and making progress in relation to supply chain challenges," analyst Samik Chatterjee wrote in a note Sunday."The ongoing stress in the crypto ecosystem post the FTX collapse drives significant uncertainty on deposit flows at SI in the near term," Gosalia wrote in a Monday note.— Samantha Subin.— Samantha Subin."[We] believe RCL is best positioned to outperform in 2023," Politzer wrote in a Monday note.The analyst expects cruise line operators will have an attractive setup next year as travel rebounds from their pandemic lows.The apparel company said it now expects adjusted earnings per share to range between $2 and $2.20 for the year, compared to previous expectations of $2.40 to $2.50.VF also said revenue growth in the second half of the year should range between 3% to 4% growth in constant dollars, down from previous expectations of 5% to 6% growth.— Samantha Subin.— Samantha Subin, Nicholas Wells.— Samantha Subin— Samantha Subin″[We] are not negative on SBUX; but rather we are simply moving to Hold on what we deem to be a balanced Risk Reward scenario at present," Mullan wrote in a Monday note. "After three years of uncertainty when the market was either too cold or too hot, 2023 could be the year when conditions are 'just right,' potentially delivering earnings well above market expectations," The bank said in a Monday noteThat's set to benefit one global stock, said Goldman, which gives the stock up to 90% upside in its bull case for the firmAndrew Brough, who runs the Schroder UK Mid Cap Fund, said the two conservatively run companies are taking market share ahead of a recession by silently acquiring failing competitors cheaply
UK
Australia
France
Germany
Russia
India
Canada