In mid-December, a 5,100 close was predicted, with the target thus lifted by about 2% since. This is also a 3.9% jump from Friday’s close and a significant rise from the 4,700 set by Kostin’s team in November. “Increased profit estimates are the driver of the revision,” the team said of the adjustment in a note to clients.

The S&P 500 has risen by approximately 4.9% since the start of the year, with further increases expected amid expected interest rate cuts by the Federal Reserve and a projected artificial intelligence boom that is expected to lift tech stocks. Profits for companies listed in the index are expected to grow by 8.8% in 2024 compared to the previous year.

The post Goldman Sachs Lifts S&P 500 Target Amid Rising Performance appeared first on theprimarymarket.com.

Hatzius recalled that real disposable household income has grown at a pace of 4% in 2023, seeing it as a trend that will support resilient consumer spending. “We think 2024 is going to be a little weaker, but we’re still expecting about 3% real disposable household income growth. If that’s right, or even if that’s anywhere close to right, then it’s very difficult to see declines in real consumer spending,” the chief economist observed.

According to Hatzius, the U.S. unemployment rate should remain steady in 2024 at around 3.5%, with around 100,000 jobs expected to be created per month on average.

The post US Consumers Will Remain Resilient in 2024, Goldman Sachs Chief Executive Claims appeared first on theprimarymarket.com.

Michael Wilson of Morgan Stanley exhibited a cautious approach, claiming that economic sentiment can further weaken and that stock investors have so far been too optimistic about a soft landing. “It’s fair to say that we just don’t know the answer to the question, yet, in terms of a soft landing outcome and an associated rebound in pricing power,” Wilson explained, referring to how cooling inflation has suppressed businesses’ abilities to raise prices.

Goldman Sachs’ David Kostin, on the other hand, believes that investors can afford to increase market exposure. While Goldman Sachs’ equity sentiment indicator dropped for the first time since December, Kostin is of the opinion that this is a temporary dropoff, with mutual funds, hedge funds, and retail traders poised to become more bullish with their decision-making as economic conditions improve.

The post Morgan Stanley and Goldman Sachs at Odds Over Market Outlook appeared first on theprimarymarket.com.

The investment giant’s decision to lower its recession odds is driven by the cooldown in market concerns as the banking sector continues to stabilize following March’s crisis which saw the start of the collapse of a slew of U.S. banks.

Also considered was the nation’s GDP growth, with a forecast of 1.8% for 2023. “We have become more confident in our baseline estimate that the banking stress will subtract only a modest 0.4 percentage points from real GDP growth this year,” Jan Hatzius, Goldman’s chief economist stated in anote. “Regional bank stock prices have stabilized, deposit outflows have slowed, lending volumes have held up, and lending surveys point to only limited tightening ahead.”

The post Goldman Reduces U.S. Recession Probability Following Debt Deal appeared first on theprimarymarket.com.

Led by Christian Mueller-Glissmann, the Goldman Sachs team wrote in a note that while continued economic growth and cooling inflation have so far contained aggressive swings, recent market volatility, and weaker economic data are giving rise to the potential for greater price fluctuations.

Based on their model assessing a combination of macroeconomic factors, market indicators, and broader uncertainties, Goldman strategists have attributed a 54% chance of high volatility on the S&P 500. In contrast, the team has only provided a 39% chance of moves being milder.

While bond markets have expressed high volatility this year, stocks have remained fairly steady as investors remain confident that slowing growth will convince the Federal Reserve to cut interest rate hikes. Now, volatility across the banking sector and other markets has led to uncertainty, thereby reducing the predictability of the direction in which the market will advance.

The post Goldman Strategists Expect Stock Volatility to Spike appeared first on theprimarymarket.com.

Despite the government’s pledge to contain the crisis, the fallout has created a wave of concern and financial strain for U.S. banks. This comes as the Federal Reserve appeared intent on accelerating its interest rate hikes to beat down inflation. Treasury two-year yields dropped 18 basis points to 4.34%, putting them on track to their steepest three-day decline since October 1987.

Yields on two-year Treasury notes skyrocketed above 5% last Wednesday after Fed Chair Jerome Powell suggested that 50 basis point hikes were on the table if economic data continued to point to high employment and payrolls. Now, a quarter-point interest rate hike next week is looking more likely.

“We continue to look for a 25 basis-point hike at next week’s meeting,” Michael Feroli, chief US economist at JPMorgan Chase & Co. stated on Sunday. “Even before the problems flared up in the banking sector, we thought a 50 basis-point move would be ill-advised, and we still think that is the case.”

The post Goldman Sachs Expects Pause On Interest Rate Hikes Amid SVB Failure appeared first on theprimarymarket.com.

In this week’s note sent to clients, Goldman’s retail analyst Kate McShane shared three reasons why Walmart stock is a buy. The first reason is “strong top-line trends along with market share gains.” Also, McShane is high on Walmart because improved inventory position that should result in expected “moderated markdown pressure” and the fact that its “long-term algorithm remains intact.”

McShane has a $155 price target for Walmart compared to the current $138.91 per share. The analyst also has adjusted profits estimates from $5.69 to $5.89 per share while expecting $6.44 in 2023.

Sharing its second-quarter results earlier this week, Walmart revealed some positives that give optimism to investors. The retailer beat the Wall Street estimates by a lot, reporting $152.86 billion in revenue versus the $150.81 billion expected. The expected earnings per share were set at $1.62 but came at $1.77 adjusted. The same-store sales also exceeded expectations, with Walmart U.S. having a Q2 growth of 6.5% to 5.9% predicted.

Walmart shares have been up 7.91% in the past month, peaking at $139.52, which represents the highest mark since mid-May. However, Walmart stock still remains 3.93 down year to date.

The post Goldman Analyst Share 3 Reasons Why You Should Buy Walmart Stock appeared first on theprimarymarket.com.

In mid-December, a 5,100 close was predicted, with the target thus lifted by about 2% since. This is also a 3.9% jump from Friday’s close and a significant rise from the 4,700 set by Kostin’s team in November. “Increased profit estimates are the driver of the revision,” the team said of the adjustment in a note to clients.

The S&P 500 has risen by approximately 4.9% since the start of the year, with further increases expected amid expected interest rate cuts by the Federal Reserve and a projected artificial intelligence boom that is expected to lift tech stocks. Profits for companies listed in the index are expected to grow by 8.8% in 2024 compared to the previous year.

The post Goldman Sachs Lifts S&P 500 Target Amid Rising Performance appeared first on theprimarymarket.com.

Hatzius recalled that real disposable household income has grown at a pace of 4% in 2023, seeing it as a trend that will support resilient consumer spending. “We think 2024 is going to be a little weaker, but we’re still expecting about 3% real disposable household income growth. If that’s right, or even if that’s anywhere close to right, then it’s very difficult to see declines in real consumer spending,” the chief economist observed.

According to Hatzius, the U.S. unemployment rate should remain steady in 2024 at around 3.5%, with around 100,000 jobs expected to be created per month on average.

The post US Consumers Will Remain Resilient in 2024, Goldman Sachs Chief Executive Claims appeared first on theprimarymarket.com.

Michael Wilson of Morgan Stanley exhibited a cautious approach, claiming that economic sentiment can further weaken and that stock investors have so far been too optimistic about a soft landing. “It’s fair to say that we just don’t know the answer to the question, yet, in terms of a soft landing outcome and an associated rebound in pricing power,” Wilson explained, referring to how cooling inflation has suppressed businesses’ abilities to raise prices.

Goldman Sachs’ David Kostin, on the other hand, believes that investors can afford to increase market exposure. While Goldman Sachs’ equity sentiment indicator dropped for the first time since December, Kostin is of the opinion that this is a temporary dropoff, with mutual funds, hedge funds, and retail traders poised to become more bullish with their decision-making as economic conditions improve.

The post Morgan Stanley and Goldman Sachs at Odds Over Market Outlook appeared first on theprimarymarket.com.

The investment giant’s decision to lower its recession odds is driven by the cooldown in market concerns as the banking sector continues to stabilize following March’s crisis which saw the start of the collapse of a slew of U.S. banks.

Also considered was the nation’s GDP growth, with a forecast of 1.8% for 2023. “We have become more confident in our baseline estimate that the banking stress will subtract only a modest 0.4 percentage points from real GDP growth this year,” Jan Hatzius, Goldman’s chief economist stated in anote. “Regional bank stock prices have stabilized, deposit outflows have slowed, lending volumes have held up, and lending surveys point to only limited tightening ahead.”

The post Goldman Reduces U.S. Recession Probability Following Debt Deal appeared first on theprimarymarket.com.

Led by Christian Mueller-Glissmann, the Goldman Sachs team wrote in a note that while continued economic growth and cooling inflation have so far contained aggressive swings, recent market volatility, and weaker economic data are giving rise to the potential for greater price fluctuations.

Based on their model assessing a combination of macroeconomic factors, market indicators, and broader uncertainties, Goldman strategists have attributed a 54% chance of high volatility on the S&P 500. In contrast, the team has only provided a 39% chance of moves being milder.

While bond markets have expressed high volatility this year, stocks have remained fairly steady as investors remain confident that slowing growth will convince the Federal Reserve to cut interest rate hikes. Now, volatility across the banking sector and other markets has led to uncertainty, thereby reducing the predictability of the direction in which the market will advance.

The post Goldman Strategists Expect Stock Volatility to Spike appeared first on theprimarymarket.com.

Despite the government’s pledge to contain the crisis, the fallout has created a wave of concern and financial strain for U.S. banks. This comes as the Federal Reserve appeared intent on accelerating its interest rate hikes to beat down inflation. Treasury two-year yields dropped 18 basis points to 4.34%, putting them on track to their steepest three-day decline since October 1987.

Yields on two-year Treasury notes skyrocketed above 5% last Wednesday after Fed Chair Jerome Powell suggested that 50 basis point hikes were on the table if economic data continued to point to high employment and payrolls. Now, a quarter-point interest rate hike next week is looking more likely.

“We continue to look for a 25 basis-point hike at next week’s meeting,” Michael Feroli, chief US economist at JPMorgan Chase & Co. stated on Sunday. “Even before the problems flared up in the banking sector, we thought a 50 basis-point move would be ill-advised, and we still think that is the case.”

The post Goldman Sachs Expects Pause On Interest Rate Hikes Amid SVB Failure appeared first on theprimarymarket.com.

In this week’s note sent to clients, Goldman’s retail analyst Kate McShane shared three reasons why Walmart stock is a buy. The first reason is “strong top-line trends along with market share gains.” Also, McShane is high on Walmart because improved inventory position that should result in expected “moderated markdown pressure” and the fact that its “long-term algorithm remains intact.”

McShane has a $155 price target for Walmart compared to the current $138.91 per share. The analyst also has adjusted profits estimates from $5.69 to $5.89 per share while expecting $6.44 in 2023.

Sharing its second-quarter results earlier this week, Walmart revealed some positives that give optimism to investors. The retailer beat the Wall Street estimates by a lot, reporting $152.86 billion in revenue versus the $150.81 billion expected. The expected earnings per share were set at $1.62 but came at $1.77 adjusted. The same-store sales also exceeded expectations, with Walmart U.S. having a Q2 growth of 6.5% to 5.9% predicted.

Walmart shares have been up 7.91% in the past month, peaking at $139.52, which represents the highest mark since mid-May. However, Walmart stock still remains 3.93 down year to date.

The post Goldman Analyst Share 3 Reasons Why You Should Buy Walmart Stock appeared first on theprimarymarket.com.