The bank is forecasting the S&P 500 to end on 4,600 points at the end of 2023; a 0.4% rise from the 4,582.23 at Friday’s close. Citigroup also raised its target for 2024 from 4,400 points to 5,000 points; a 9% rise from current levels.

According to the New York City-based lender, companies listed on the S&P 500 are expected to draw in earnings of $220 per share on average for the current year; up from the previous forecast of $215 per share.

Citigroup’s change in target comes as it lowers its bets on the likelihood of a U.S. recession in the fourth quarter of 2023. Instead, the bank pushed this probability out to the first quarter of 2024.

The post Citigroup Lifts S&P 500 Year-End Target appeared first on theprimarymarket.com.

Q2 earnings for companies are estimated to have fallen by 6.4% on a year-over-year basis. Despite still being a decline, this is a significant improvement from the 7.9% drop estimated the previous week.

The projection is based on the earnings results of 254 companies listed on the S&P 500 Index. Around 79% of reports that have already been released have beaten analysts’ expectations.

Among the major winners this week is Google parent company Alphabet Inc. With a 0.1% rise in year-over-year earnings, Alphabet significantly outperformed Wall Street’s expectations of a 5.1% fall.

Stocks have continued to rise as inflation, which remained surprisingly persistent, has been cooling, thereby raising bets that the Federal Reserve will soon end its aggressive monetary tightening campaign.

The post Forecast for S&P 500 Q2 Earnings Still Weak But Improving appeared first on theprimarymarket.com.

“We are back in bull territory, which might be part of what it takes to get investors enthusiastic about equities again,” Savita Subramanian and the equity strategy team at Bank of America Global Research wrote in a note on Friday. “If investors feel pain in bonds, via lower returns or negative opportunity costs – likely if real rates rise from here – they should be incented to return to equities, especially equities that benefit from rising real rates (cyclical).”

According to research from the Bank of America, the S&P 500 rose 92% of the time throughout the 12 months since its bull market rise began. The historical average rise for any 12 months since 1950 is 75%.

While the bull market may be back, investors remain apprehensive to jump back into stock trading. One determining factor that will affect investor confidence is the Federal Reserve’s next interest rate decision at its June meeting. Currently, markets expect the Fed to pause its rate-hiking process.

The post S&P 500 Back in Bull Market, Bank of America Confirms appeared first on theprimarymarket.com.

Speaking with Bloomberg TV, Wilson said that US stocks are heading towards a big drop later this year. He predicted a hit of more than 20% due to a combination of the poor earnings situation and the recent crisis in the banking sector.

“The earnings situation is way worse than what the consensus thinks, which is more in line with what we’ve been saying all along,” said Wilson. “And the banking stress only makes us more confident.”

According to Wilson, S&P 500 will hit lows between 3,000 and 3,300 points at some point in 2023 before bouncing back. His base case puts the index at 3,600 points to the end of the year, followed by the bull case at 4,200 and the bear case at 3,600.

“That path to 3,900 still goes through the low 3,000s ultimately,” he added.

It is important to note that Wilson isn’t the only one predicting a downturn for US stocks. Plenty of other top Wall Street strategists are believed to share his pessimism and expect sustained periods of a bear market.

The post Morgan Stanley Strategist Expects 20% Drop for US Stocks Later This Year appeared first on theprimarymarket.com.

The bank is forecasting the S&P 500 to end on 4,600 points at the end of 2023; a 0.4% rise from the 4,582.23 at Friday’s close. Citigroup also raised its target for 2024 from 4,400 points to 5,000 points; a 9% rise from current levels.

According to the New York City-based lender, companies listed on the S&P 500 are expected to draw in earnings of $220 per share on average for the current year; up from the previous forecast of $215 per share.

Citigroup’s change in target comes as it lowers its bets on the likelihood of a U.S. recession in the fourth quarter of 2023. Instead, the bank pushed this probability out to the first quarter of 2024.

The post Citigroup Lifts S&P 500 Year-End Target appeared first on theprimarymarket.com.

Q2 earnings for companies are estimated to have fallen by 6.4% on a year-over-year basis. Despite still being a decline, this is a significant improvement from the 7.9% drop estimated the previous week.

The projection is based on the earnings results of 254 companies listed on the S&P 500 Index. Around 79% of reports that have already been released have beaten analysts’ expectations.

Among the major winners this week is Google parent company Alphabet Inc. With a 0.1% rise in year-over-year earnings, Alphabet significantly outperformed Wall Street’s expectations of a 5.1% fall.

Stocks have continued to rise as inflation, which remained surprisingly persistent, has been cooling, thereby raising bets that the Federal Reserve will soon end its aggressive monetary tightening campaign.

The post Forecast for S&P 500 Q2 Earnings Still Weak But Improving appeared first on theprimarymarket.com.

“We are back in bull territory, which might be part of what it takes to get investors enthusiastic about equities again,” Savita Subramanian and the equity strategy team at Bank of America Global Research wrote in a note on Friday. “If investors feel pain in bonds, via lower returns or negative opportunity costs – likely if real rates rise from here – they should be incented to return to equities, especially equities that benefit from rising real rates (cyclical).”

According to research from the Bank of America, the S&P 500 rose 92% of the time throughout the 12 months since its bull market rise began. The historical average rise for any 12 months since 1950 is 75%.

While the bull market may be back, investors remain apprehensive to jump back into stock trading. One determining factor that will affect investor confidence is the Federal Reserve’s next interest rate decision at its June meeting. Currently, markets expect the Fed to pause its rate-hiking process.

The post S&P 500 Back in Bull Market, Bank of America Confirms appeared first on theprimarymarket.com.

Speaking with Bloomberg TV, Wilson said that US stocks are heading towards a big drop later this year. He predicted a hit of more than 20% due to a combination of the poor earnings situation and the recent crisis in the banking sector.

“The earnings situation is way worse than what the consensus thinks, which is more in line with what we’ve been saying all along,” said Wilson. “And the banking stress only makes us more confident.”

According to Wilson, S&P 500 will hit lows between 3,000 and 3,300 points at some point in 2023 before bouncing back. His base case puts the index at 3,600 points to the end of the year, followed by the bull case at 4,200 and the bear case at 3,600.

“That path to 3,900 still goes through the low 3,000s ultimately,” he added.

It is important to note that Wilson isn’t the only one predicting a downturn for US stocks. Plenty of other top Wall Street strategists are believed to share his pessimism and expect sustained periods of a bear market.

The post Morgan Stanley Strategist Expects 20% Drop for US Stocks Later This Year appeared first on theprimarymarket.com.