Stocks on the move: Greggs, Accelleron up 5%
Shares of the British bakery chain Greggs gained 5.6% in early trade after reporting an increase in quarterly sales despite the worsening cost of living crisis and falling consumer confidence in the UK
CNBC Pro: Want a “defensive move” with a return of up to 5%? Buy this fund, says the strategist
It’s been a volatile year for both stocks and bonds, Wall Street’s major indexes ends its worst month since March 2020and Treasury yields remain high.
However, David Dietze, chief investment strategist at Point View Wealth Management, says “pockets of opportunity” still exist.
“Short-term defensive moves are probably warranted,” Dietze told CNBC’s “Street Signs Asia” on Monday, and named his favorite fund to play in the market right now.
Look at Q4 earnings forecast more than Q3 actuals, says S&P Global
According to S&P Global, fourth-quarter earnings forecasts provided by companies when releasing third-quarter results will be far more important to the future direction of the market than the actual third-quarter numbers themselves.
“October brings earnings, with third-quarter estimates already down 7%, and the numbers whispering little more than that,” wrote Howard Silverblatt, the index’s senior analyst over the weekend. “The biggest concern (than the actual numbers for Q3, when consumers were still spending) is the guidance for Q4, as consumers have pulled back, inflation continues, and the Fed’s ‘adjustments’ will have a more substantial impact.”
Analysts expect third-quarter S&P 500 earnings to rise 6.1% from the same quarter a year ago, and nearly 18% from the second quarter of 2022, S&P Global said.
Next year estimates call for earnings growth of 14.3% over 2022 and a corresponding forecast P/E ratio of 15.0.
Silverblatt also looked at the typical performance of the S&P 500 in the month of October. “Historically, the index has shown gains 57.4% of the time, with an average gain of 4.18% for up months, an average decrease of 4.67% for down months, and a decrease overall average of 0.46%,” he wrote.
CNBC Pro: Here’s What’s Next For Stocks, According To Wall Street Pros
September is finally behind us, much to the relief of many equity investors who endured a difficult month, with all major US indices posting steep losses.
With a historically weak month now firmly in the rearview mirror, what is the outlook for equities as we enter the fourth quarter of the year?
CNBC Pro scoured the research to find out what Wall Street is thinking.
Pro subscribers can find out more here.
— Zavier Ong
European markets: here are the opening calls
European stocks are heading for a higher open on Tuesday, building on the gains seen in yesterday’s trading session.
Britain’s FTSE is expected to open 30 points higher at 6,934, Germany’s DAX 126 points higher at 12,324, France’s CAC 40 58 points higher at 5,850 and Italy’s FTSE MIB 245 points higher at 21,043, according to IG data.
The expected higher open in Europe comes after a rebound on Wall Street on Monday. There, stocks rallied to start the new month and quarter on a positive note, as Treasury yields fell from levels not seen in about a decade. It was the best day since June 24 for the Dow and the S&P 500 the best day since July 27.
Earnings come in from Greggs on Tuesday and Eurozone producer price data for August is released.