'Look for growth': Strategist tells investors not to worry about high stock valuations
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Investors should ignore concerns about high valuations and focus on growth in what has now become a “stock-picking market,” according to Matt Orton, chief market strategist at Raymond James Investment Management.
Orton noted that the recent mixed fortunes of the so-called “cool 7” giant tech stocks, which have fueled much of Wall Street's bullish momentum over the past 18 months, were evidence that “we are back in a stock-picking market” where “fundamentals” once mattered. Other.”
Much has been said about the high valuations of US stocks. Nvidia Its shares trade at about 35 times forward earnings, according to FactSet data, and the broader Magnificent 7 trades at an average of about 34 times forward earnings. Meanwhile, the S&P 500 averages a historic high of 21 times forward earnings.
Tate Orton argued that historical comparisons are irrelevant to a “more developed” market, and that paying a higher multiple is “perfectly fair” in this changing environment.
“It's all about earnings growth, it's all about leaning into where those fundamentals are, and trying to avoid parts of the market where you don't have a positive earnings impact,” Orton said.
“And if you do that, regardless of the valuation, you can grow in it, and I think that's the main message for investors, which is to find growth.”
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-Elliot Smith
Alphabet shares rose 4% after a report that Apple may use Gemini to power iPhone features
the alphabet Shares rose 4% before the bell after a report from Bloomberg apple The company is said to be in talks with the search giant to license its Gemini AI model to power features in the iPhone.
The two companies have been in “active negotiations” for Gemini to run some features scheduled to roll out with the new iPhone software later this year, the report said, citing people familiar with the matter. Bloomberg also reported that Apple has been in talks with OpenAI.
Apple shares rose in recent trading by about 0.3%.
Alphabet shares rose 4% after a report that Apple is considering using Gemini in the iPhone
Goldman Sachs says Indian equity fund inflows hit a 23-month high in February
India flag, stock market, exchange economics and trade, oil production, container ship in export-import and logistics business.
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Goldman Sachs said monthly inflows into Indian domestic equity funds rose to a 23-month high of $3.2 billion in February, based on data from the Mutual Fund Association of India.
GS said inflows into equity funds through systematic investment plans remained strong, reaching new highs of $2.3 billion.
India also saw foreign inflows worth $2.2 billion in the week ending March 15, according to GS.
The country Nifty 50 index It fell 0.3% on Monday after falling more than 2% last week.
– Shreyashi Sanyal
China's retail sales and industrial numbers top expectations
China reported stronger than expected numbers for retail and fixed asset investment in the first two months of 2024.
Retail sales rose 5.5% and industrial production rose 7%, both beating analysts' expectations. The urban unemployment rate reached 5.3% in February.
Investment in real estate fell by 9% year-on-year in January and February, while manufacturing rose by 9.4% during that period.
China's data for January and February are usually combined to smooth out differences from the Lunar New Year, the country's largest national holiday, during which businesses remain closed for at least one week.
-Evelyn Cheng
The Nikkei 225 led gains in Asia, supported by manufacturing stocks
Japan Nikki 225 It rose more than 2% on Monday, surpassing the 39,000 mark for the first time in 10 days as manufacturing and health care stocks fueled the rally.
However, the biggest gainer on the index was the fintech company Rakuten GroupWhich increased by 7.38%.
Other names on the list of gainers include the automaker April Which rose more than 6.5%, as did the pharmaceutical company Chugai Pharmaceuticalwhich increased by 4%.
The yen fell by 0.18% on the back of the rise in the index, trading at 149.29 against the dollar.
Economist says: We expect less transparency from Fed Chairman Jerome Powell this week
The Fed chair could provide less clarity during the central bank's policy meeting that begins Tuesday, according to EY chief economist Gregory Daco.
“We look for Fed Chair Powell to be less transparent than he was in January regarding the ongoing May and June meetings for potential rate cuts,” Daco said in a note on Friday. “However, we expect it will confirm that Fed policymakers have begun to discuss policy easing as well as the timing and logistics of tapering off the quantitative balance sheet tightening process.”
– Brian Evans
Stock futures were little changed
Stock futures were little changed on Sunday, as Wall Street awaits insight on interest rate cuts ahead of the Federal Reserve's policy meeting this week.
Dow Jones Industrial Average Futures Decreased by 20 points or 0.05%. Nasdaq-100 futures It rose by 0.1%. Linked futures contracts Standard & Poor's 500 Hovering near the flat line
– Brian Evans
