Are we going to see how much juice is left in this stock market from a trade-deal announcement?
A report that U.S. and Chinese negotiators are hard at work over "multiple memorandums of understanding" for one big deal to give stock futures and a nice bump late Wednesday. But those gains faded into the Thursday session, which raises the question as to whether the market is finally out of patience over the seemingly endless talks between Beijing and the United States
Another valid question is how do we know what stocks are "priced in" on that front? Two Financial Bloggers, Reformed Broker's Josh Brown and Irrelevant Investor's Michael Batnick have been greeted over that topic in a recent video chat. They concluded that investors would be wise to make no assumptions when it comes to whether a market has fully absorbed trade deals, corporate new, etc.
"I think that's probably the go-to commentary for what's going on in the market, "Says Batnick. "As if you know the odds … you do not know. You find out after the fact. "
We also think the Fed is not going to get in the way of more stock gains. As the real Heiseinberg blog succinctly sums up, it's more or less a "what-else-do-you-want-from-them scenario."
As bulls have one plus in their corner: the so-called AD (advancer / decliner) line is at an all-time high ̵
– OneSmarTrader @OneSmarTrader) February 21, 2019
That does not mean it should not happen, says our call of the day from Steven DeSanctis, equity strategist at Jefferies who tells MarketWatch that he doesn 't see' sustainable momentum 'in up and down action for stocks since the beginning of the year.
"Consolidation, and pullback is absolutely necessary," said DeSanctis in a Wednesday telephone interview. For example, he notes the Russell 2000
RUT, + 0.46%
is up 16.5% since the beginning of the year, the third best start in data stretching back to 1979.
"Anytime you see a big spike up, generally met with a downtick. And 5% to 10% correction would be welcome, and it would be justified, "said the strategist, adding that there is plenty that could pull that correction trigger – a slowdown in China, Europe or the US, lower earnings estimates, valuations pulling back
That last point is a big reason he would like to see some froth come off the market. S & P 500 companies are currently trading close to 19.8 times forward earnings, he says. That compares to 20 times last August and 16 times at end-2018. "Still DeSanctis maintains that the pullback seen late last year was unjustifiable" because we do not see the economy here in the United States. going into recession, "adding that their" happy-go-lucky "U.S. economist has only penciled into a modest reduction in GDP for 2020 versus 2019. Upbeat results from Walmart
This week has only gone further to calm his worries about the economy, he said.
That brings us to the stocks he likes right now. "I will say my favorite sector is consumer discretionary and the retailers. The argument here is that the economy will grow from that consumer side of things, "he said, noting that people have jobs and earn more money, have arguments against a brewing recession.
"The general trend has been very good for the consumer," said DeSanctis, who adds that "what the companies say is overall is the consumer is in very good shape."
Also read: A $ 3-trillion tsunami is about to flood the stock market, warns fund manager
S & P 500
futures are edging up. Wednesday's session saw modest gains for the Dow
DJIA, + 0.24%
and S & P 500
SPX, + 0.18%
while the Nasdaq
COMP, + 0.03%
just managed his eighth-straight winning session
is up, along with raw
, but gold
in US: GCU8
is pitching lower.
Asia stocks saw a mixed day, with a modest rise for Shanghai Composite
while Europe Stocks
Zion takes such powerful steps he just exploded his own sneaker pic.twitter.com/U2ZrgQlJFa
Sports (@barstooltweetss) February 21, 2019
"If I owned it I would sell it all. I'm not even joking. You can not just injure Zion Williamson on National TV and not go through a long and severe recession, "that was David" El Presidente "Portnoy, founder of Barstool Sports on the major headache that erupted for Nike
NKE, + 0.32%
By now, pretty much everyone has seen the photos and videos of Duke forward Zion Williamson writhing in pain after his Nike
NKE, + 0.32%
shoe fell apart midgame, causing an injury to the top NBA draft pick's knee. Here's hope his recovery does not take too long. As for Nike, it's already looking rough in premarket:
Read: The buzz
The tiny NFL pens for pre-1993 players
is zooming ahead after beating forecasts. Hormel
will report ahead of the open, with Kraft Heinz
KHC, + 1.03%
Hewlett Packard Enterprises
ROKU, + 0.79%
coming after the bell.
Watch J & J
JNJ, + 0.49%
which says it's been subpoenaed by the U.S. Justice Department and SEC over the safety of baby powder and talc products
AAPL, + 0.64%
is developing a new credit card that will offer extra personal finance features on the iPhone Wallet app, say sources.
China is selling drones to U.S. allies as fast as possible
The Markit manufacturing and services PMI's, along with existing home sales and leading economic indicators will follow.
Read: What's all the excitement? Fed staff's economic outlook changed barely in January
Chawkbazar is burned down to ashes.76 people died so far and still counting. City of Ekushey February is in deep shock #Dhaka #Bangladesh #fire pic.twitter.com/Lt0IEqKYm5  – Mustakim Ahmed Sunny (@MustakimSunny) February 21, 2019
Chemical warehouses blamed for nine-hour fire that left dozens dead and injured in Bangladesh's capital
Fox News host Tucker Carlson was caught on tape calling his Dutch guest and "moron" and worse
"Empire" actor Jussie Smollett could face prison as police say he Being alive after attempting ultimate selfie
Snow falling … on Las Vegas
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