When it comes to investing in bank stocks, a flattening yield curve, Fed rate cuts and illiquid capital markets are typically considered red flags that send investors running for the hills.
Just as Disney is getting ready to enter the streaming galaxy far, far away - one Wall Street bank has a clear message for Disney investors: The Force is strong with this one. Analysts at Wells Fargo initiated coverage of The Walt Disney Company (DIS) with an Outperform rating and a $173 per share price target. The bank also called the company its “top pick in media” because it has “the best content, strategy and management.”
President Trump’s latest Twitter escapade against the Fed calls for negative interest rates to jump-start the slowing economy. But the prospect of using a monetary tool usually reserved for deeply-troubled economies has many strategists on Wall Street seriously worried. Butcher Joseph Asset Management Chief Investment Strategist Nancy Tengler believes the practice of implementing negative interest rates is “seriously dangerous.” The “$16 trillion in negative yielding debt around the globe - I don't understand how you account for it as an investor,” Tengler said in an interview on Yahoo Finance’s The Final Round.
In his new book “Super Pumped: The Battle for Uber,” New York Times technology correspondent Mike Isaac gives a glimpse into Uber’s rapid rise in Silicon Valley and its consequent struggle to stay dominant in the wake of its recent IPO.
Now more than a year into the U.S.-China trade war, American consumers have so far been largely shielded from the negative impact of tariffs. But one major Wall Street investment bank says that’s all about to change and it has the data to prove it. “I think you're starting to see the pain,” Bank of America Securities Senior U.S. Economist Joseph Song told Yahoo Finance’s The Final Round. “We have a proprietary consumer confidence index, and it actually dipped on the trade headlines in the latest reading.”
Recession is a scary word that sends Wall Street professionals and regular consumers alike into a terrifying flashback of the 2008 financial crisis. But a J.P. Morgan strategist says people shouldn’t be afraid of the next recession because it’s “normal.” “There is so much anxiety out there right now, and I think so much of that has to do with the fact that what happened in '08 was so historically bad that people are absolutely terrified of the next recession when they don't really have to be,” J.P. Morgan Asset Management Global Market Strategist Jack Manley told Yahoo Finance’s The Final Round.
Loup Ventures Managing Partner Gene Munster says he doesn’t expect tariffs on Apple products despite Wall Street’s widespread speculation that the tech giant will be among the companies hurt by the U.S.-China trade war. “This is a critical misunderstanding. Ultimately, Apple products really don't have much tariff risk,” Munster said in an interview with Yahoo Finance’s The Final Round. “The reason is that Apple is an iconic U.S. brand that the U.S. government doesn't want to jeopardize. We don't expect tariffs on Apple products.”
But while many Wall Street shops are still calling for more easing in the fall, the economists at UBS believe that Jay Powell and team are likely done with the rate cuts.
A year after Tilray made history by becoming the first cannabis company to debut on a major U.S. stock exchange, one prominent value investor is doing a victory dance - because he nailed his call on a stock that’s taken investors on a wild roller coaster ride. Whitney Tilson was on Yahoo Finance’s The Final Round on September 19th, 2018 when Tilray stock hit $300 per share. And while most of Wall Street was cheering the cannabis darling, Tilson was singing a different tune, predicting the stock would plunge by a whopping 90% within a year. Ten months later, Tilray stock has given back a significant chunk of post-IPO gains — falling by roughly 85% since its 52-week high of $300 per share.
With stocks sitting at never-before-seen record highs, one Wall Street veteran is not buying into the market euphoria. “Investors appear too complacent about market risks, and we are currently cautious towards stocks. But that could change,” Nuveen Chief Equity Strategist and Senior Portfolio Manager Bob Doll wrote in a note to clients.
But best-selling financial author and long-term Wall Street insider William Cohan says low interest rates are a recipe for disaster that could lead to the next financial crisis.
Shares of digital streaming-media player maker Roku tumbled nearly 4% in early Tuesday trading before rebounding higher following a downgrade from one of Wall Street’s most prominent coverage analysts. RBC Capital Markets analyst Mark Mahaney downgraded the stock to Sector Perform from Outperform because the the stock has “dramatically outperformed the market.”
For those of you looking to settle a debate about what matters most to markets - fed policy or trade policy - one prominent Wall Street veteran says it’s not even a contest. “It’s so depressing to watch the world of mainstream economic punditry to try to blame its epic 2019 forecasting failures on trade policy changes,” says Jefferies Chief Market Strategist David Zervos in a note to clients. “Just to be clear, so far $200 billion of goods from China, representing about 1% of U.S. GDP, are subject to a 25% tariff. And that’s supposed to topple the $20 trillion U.S. economy?? Pullleaasee.” Instead, Zervos says it’s the Fed policy that truly matters to the market and the economy.
With Tesla (TSLA) shares running out of gas in recent months, one shareholder says he’s never been more bullish on the company and its CEO Elon Musk. HyperChange CEO Galileo Russell is scooping up as many shares as he can with all of his available capital because - unlike some of the skeptics in this market - he really believes in the Tesla growth story.
With lackluster May jobs report fueling the odds of an easier monetary policy by the Federal Reserve, one top economist is slamming the brakes on a rate cut. According to Neil Dutta, Head of Economics at Renaissance Macro, June/July timeframe still feels a little too soon for a rate cut.