Beat the Street: traders short Wall Street, but what about the longer term?
With 10-year US treasury yields up over 5%, the Fed Funds Rate looks set to be higher for longer. IGTV’s Jeremy Naylor discusses the investment outlook with John Stolzfus of Oppenheimer Asset Management.
(Video Transcript Summary)
Powell’s policy boosts Treasury yield
In this episode of Beat the Street, host and IG financial analyst Jeremy Naylor dives right into the latest headlines from the trading world before Wall Street opens.
Of particular interest is Jerome Powell's take on monetary policy, which has caused the US 10-year Treasury yield to soar above 5%. This sudden surge has put some pressure on the stock market, making it a bit turbulent. However, there are still some pretty interesting opportunities out there.
Our host discusses American Express's stellar third-quarter earnings. Despite the economic challenges we've been facing, it seems like wealthy customers are still spending quite a bit, driving up Amex's revenue. And if that wasn't impressive enough, gold is also on the rise for the second week in a row.
Investors stay safe amid volatility
In terms of the recent market volatility, which has hit six-month highs, investors are playing it safe, which may lead to a slower start for today's trading. So, don't be surprised if the Dow, S&P 500, and NASDAQ open on a slightly lower note.
With regards to earnings reports, we’ve got American Express, Schlumberger and Hewlett Packard Enterprise. Despite Amex beating expectations and setting some revenue records, their stock is currently experiencing a downward trend.
On the other hand, Schlumberger's earnings have surpassed estimates, thanks to active drilling and higher oil prices. However, Hewlett Packard Enterprise has issued a warning about their outlook for 2024, with expected earnings per share lower than what was previously estimated.
US equity market looks promising
To give us some expert insights, our host interviews John Stolzfus, chief investment strategist at Oppenheimer Asset Management. Stolzfus is optimistic about the equity market and believes that the US Federal Reserve will keep inflation in check.
He also sees potential in energy stocks due to the current state of the oil market. Stolzfus even predicts a rally in the S&P 500, with a target price of 4,900 by the end of the year. But it's not just about the US market: he suggests keeping an eye on Europe and emerging markets too.
Wrapping up the video, our host touches on the Baker Hughes recount of oil rigs and the rising price of gold. Gold is getting awfully close to the $2,000 mark and has been enjoying its best two weeks of the year. So, keep an eye out for those shiny opportunities!
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