4 hours ago
Big retail ETFs suffer worst day since May as Walmart shares fall
Shares of big retailers fell Thursday, pushing the SPDR S&P Retail ETF (XRT) to its worst day in nearly six months.
XRT fell 3.4%, its worst day since May 19.
The ETF’s decline came after Walmart reported its fiscal third quarter. The big-box retailer beat analysts’ expectations on the top and bottom lines, but issued a weak forecast for the year and a guarded outlook on consumer spending. Shares slipped 8%.
Another component of XRT, Bath & Body Works, fell nearly 7%. The soap and candles retailer reported adjusted earnings that beat Street forecasts, but in line with revenue. Bath & Body Works noted that it had “low sales expectations for the fiscal year.”
,Darla Mercado, Chris Hayes
4 hours ago
6 transportation stocks to keep an eye on, according to Goldman Sachs
Goldman Sachs said the third quarter earnings session has been very difficult for the transportation sector due to low volumes and tight margins.
“Our general view is that volumes may be stable, but the bottom line type of recovery from the freight slowdown may be more muted this cycle due to uncertainty around consumer and the pace of shipper re-stocking trends.” wrote analyst Jordan Alliger. “Thus, we generally prefer names that may perform well in a recovery at lower growth volumes; including rail and parcels, which have potentially more modest freight traffic versus a relatively high fixed cost base.” “Benefit by taking advantage of growth.”
Alliger shared six stocks “with exceptional opportunities and reasonable relative valuations” that investors should keep an eye on. These include Union Pacific, Norfolk Southern, J.B. Hunt Transport Services, United Parcel Service, FedEx and XPO.
-Lisa Kailai Hahn, Michael Bloom
4 hours ago
UBS says emerging market equities will deliver highest returns over next decade
According to UBS, stocks, especially emerging market equities, will deliver the highest returns among major asset classes over the next decade.
“Total earnings growth should be well supported by strong growth in disruptive companies in technology, energy and healthcare,” the bank wrote in its year-ahead outlook.
However, it was clarified that equity valuations are likely to be lower due to higher interest rates.
“Global diversification will be critical to moving forward in a globalizing world,” the bank said. “For example, emerging market stocks are trading at a deep discount to historical levels, and we expect them to deliver the highest return rates over the next decade.”
-Lisa Kailai Hahn
5 hours ago
Stock futures opened with little change
Stock futures opened little changed Thursday after the Dow Jones Industrial Average snapped a four-day winning streak during regular trading.
Dow futures rose 25 points, or 0.07%, while S&P 500 futures climbed 0.06%. Nasdaq futures slipped 0.06%.