Thứ Sáu, Tháng Sáu 2, 2023
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BofA sees stocks rally stalled as profits slide, job market weakens


(Bloomberg) — The rally in U.S. stocks may be halted as corporate earnings plummet and the labor market weakens, according to Bank of America Corp’s Michael Hartnett.


The strategist, who correctly warned last year that recession fears would prompt a stock sell-off, said stocks were valuing profits falling “just” 4% and reiterated his call to Call to sell S&P 500 Index above 4,200 points. That’s less than 2% higher than the last close.


“We continue to be bearish as the economic uncertainty of 2023 ends with a rift in the labor market and an EPS recession,” Hartnett wrote in an April 27 note. The risks of a hard landing on earnings and a “no landing” on interest rates remain high, he added.

After rising 7% in the first quarter, US stocks wobbled in April, with recession fears fueled by controversial Federal Reserve rate hikes with a better start to the year. earnings season. Still, shares rallied on Thursday as solid results from Meta Platforms Inc. underpinning optimism over tech heavyweights.


According to BofA, citing EPFR Global data, technology stock funds received $1.2 billion in the week to April 26, the biggest since November. Chinese stocks also had largest addition since January 2022, at $6.1 billion.

Other highlights include:

  • Global hedge funds received $23 million in inflows, while $52.3 billion went into cash funds and $7.4 billion added to bonds
  • US stocks were out for the second week in a row at $2.7 billion, while $3 billion left European funds – the seventh straight week of buybacks
  • Stylistically, the US large cap has an inflow of $500 million, while the small cap, growth, and value see the outflow
  • Finance has the second largest inflow of capital after technology; energy and materials are reduced the most

—With support from Michael Msika.

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