10-year U.S. Treasury yield
The 10-year U.S. Treasury yield topped 2.79% on Monday, reaching its highest level in three years.
US Banks – What’s in the Price?
The macro-economic picture is deteriorating fast and could push the U.S. economy into recession as the Federal Reserve tightens its monetary policy to tame surging inflation, Bank of America strategists warned in a weekly research note.
Investors need to ask, what’s in the price? As you can see from the chart below, JPM has corrected over the last 6 months from $175 to $130.
JPMorgan Chase & Co, the largest U.S. bank, is expected to report first-quarter earnings on Wednesday.
Goldman Sachs Group Inc is scheduled to report first-quarter results on Thursday.
BlackRock Inc is scheduled to report first-quarter earnings on Wednesday
Citigroup Inc reports first-quarter results on Thursday
Wells Fargo & Co reports first-quarter earnings Thursday
Morgan Stanley is scheduled to report first-quarter results on Thursday
NASDAQ – Valuation Review
NASDAQ’s PE ratio is now 27X forward earnings with 2022 earnings growth rate forecast at 12.3%. The recent rally is a significant extension given the move higher in interest rates.
The graph below looks at the valuation of the S&P relative to US GDP.
9/4 update: The downside momentum continues in the NASDAQ.
Charter Communications – Buy
Charter Communications, Inc. – Class A Common is under Algo Engine buy conditions.
Goldman Sachs – Algo Buy
GS:NYS is under Algo Engine buy conditions.
Home Depot – Algo Buy
HD:NYS is under Algo Engine buy conditions.
NASDAQ – Valuation Review
NASDAQ’s PE ratio is now 27X forward earnings with 2022 earnings growth rate forecast at 12.3%. The recent rally is a significant extension given the move higher in interest rates.
The graph below looks at the valuation of the S&P relative to US GDP.
S&P500 Chart Review
The S&P500 continues to trade higher following the recent Algo Engine buy signals. Short-term, the momentum indicators remain positive and the price action is above the 10-day average.
Take-Two Interactive: Algo Buy
Take-Two announced on Jan 10 that it would be buying Zynga for $12.7b. The current weakness in the share price provides for an attractive entry point.
Solana: Large Cap Crypto
Solana remains under buy conditions and any minor pullback will likely see increased buying activity above the recent $78 support level.
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