What did the equity crisis tell us on Monday? Investors have failed to get a grip on a second / third wave of COVID-19 and hopes for pre-election incentives have all but disappeared. Tuesday could show us just how much more band aid ripping there is to be done for the markets.
Perhaps an antidote to the uncanny here and now is an optimistic look to the future. That brings us to Call of the day from Barclays, which is deeply involved in global staples for consumers who sell and produce everyday things. Barclays searches 70+ stocks and is offering two to weather the possibly ongoing recession and the other side.
First up is the analyst Lauren Lieberman with her choice of Coca-Cola
"Prior to COVID, Coke's organic sales growth was in the 5% to 6% range for two years. This shows that the newfound goal of being a total beverage game was starting to take hold."
It had driven the beverage giant into crisis as one with great dynamism, and although 2020 was difficult, "the recent changes to the organization and brand portfolio should enable long-term sustainable profit growth". Cola stocks, however, are down 10% since the start of the year – they made a profit jump last week and turned away from costly bottling operations.
On the European side, her colleague William Ackerman likes the Swiss food giant Nestlé
for four reasons: exposure to "long-term attractive categories" such as pet food, baby food, etc. and geographic diversity, an optimistic growth profile and strong leadership. Nestlé stock is down 20% since the start of the year, and the company recently saw sales decline.
Lieberman said it was interesting to see companies in this sector push premium products to capture changing consumer behavior. For example Procter & Gambles
new Dawn liquid soap in a power spray for the price of 200% or Church & Dwight & # 39; s
classy cat litter.
However, as government support wanes, the couple expect consumer businesses to focus on efficiency, affordability, and investing in entry-level brands. Analysts believe e-commerce has been a “game changer” and companies with “strong environmental, social and corporate governance” credentials are likely to outperform.
collect strenth while European stocks
Shares in the tractor manufacturer Caterpillar
are taken below as results. Elsewhere, profits have hit drug maker Eli Lilly stocks
cut its outlook and missed forecasts, Mercks
The results were better than expected. Shares in motorcycle manufacturer Harley-Davidson
are on results. Tech giant Microsoft
comes close to that.
modern micro devices
The competing chip manufacturer Xilinx is also bought later
in an all-stock deal valued at $ 35 billion. The latter's stocks are rising, but AMD's are falling.
hires 50,000 seasonal workers to handle vacation deliveries.
Off Wall Street, investors cheered the results of banking giant HSBC
and energy group BP
A new UK study shows that antibodies caused by COVID-19 infection are not permanent. Italian police used tear gas to disperse protesters over new social restrictions, and curfews hit Spain as well.
Available data includes durable goods orders, Case-Shiller's national home price index, and a consumer confidence index.
Visit Barron's Investing in Tech on Thursday at 1pm. for an insight into 5G from Jeff McElfresh, chief executive of AT&T Communications, and an outlook on IPOs and special purpose vehicles from Kathleen Smith, chairman of Renaissance Capital. Register here.
Patrick Reid, co-founder of the Adamis Principle, which provides forex education and macro-global insights, points to a "worrying" surge in US 10-year Treasury yields
Adamis principle / Tullett Prebon
"Not only that, but also the spread or difference between 30
and 5 year returns
is getting wider. This shows a positive future, but also increased borrowing costs. Mortgages and loans are particularly related, ”Reid told MarketWatch.
He said they were most concerned about real interest rates, which will become "much less attractive" if consumer price inflation (CPI) continues to rise.
Adamis Principles / Tullett Prebon
This could put pressure on risk-weighted assets like stocks, especially if Fed chairman Jerome Powell becomes more neutral in what would be perceived as hawkish, he said.
When the CPI rises it means “less money in your pocket when things get more expensive. Getting a higher return on bonds is great, but the actual amount will hurt you due to the net effect. Less money and your money is buying less, ”he said.
This prompts investors to tighten their belts, cut spending, and take risks; H. to buy shares, he said.
The theme song "Gilligan's Island" is said to become a weapon in a dispute between Bond billionaire Bill Gross and his neighbors.
That's a big leap …
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