SocGen says short small-cap stocks as they look vulnerable to spike in bond yields

seekingalpha04-22

Short small-cap stocks as that pocket of the US equity market contends with stagnate earnings growth while bonds yields march higher, Societe Generale says. A jump in Treasury yields is in the ...

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A jump in Treasury yields is in the ...</p>\n\n<a href=\"https://seekingalpha.com/news/4091939-socgen-says-short-small-cap-stocks-as-they-look-vulnerable-to-spike-in-bond-yields\">Source Link</a>\n\n</div>\n","source":"seekingalpha","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>SocGen says short small-cap stocks as they look vulnerable to spike in bond yields</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nSocGen says short small-cap stocks as they look vulnerable to spike in bond yields\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-04-22 23:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/news/4091939-socgen-says-short-small-cap-stocks-as-they-look-vulnerable-to-spike-in-bond-yields><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Short small-cap stocks as that pocket of the US equity market contends with stagnate earnings growth while bonds yields march higher, Societe Generale says.  A jump in Treasury yields is in the ...</p>\n\n<a href=\"https://seekingalpha.com/news/4091939-socgen-says-short-small-cap-stocks-as-they-look-vulnerable-to-spike-in-bond-yields\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"OEF","symbol_name":"标普100指数ETF-iShares","start_time":0,"source_url":"https://seekingalpha.com/news/4091939-socgen-says-short-small-cap-stocks-as-they-look-vulnerable-to-spike-in-bond-yields","article_id":"2429920747","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2429920747","pubTimestamp":1713798013,"sourceInfo":{"source_id":"seekingalpha","name":"Seeking Alpha"},"weMediaInfo":null,"summary":"Short small-cap stocks as that pocket of the US equity market contends with stagnate earnings growth while bonds yields march higher, Societe Generale says.  A jump in Treasury yields is in the spotli","collect":0,"end_time":0,"defaultTopTitle":"seekingalpha.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"OEF":"标普100指数ETF-iShares","BK4561":"索罗斯持仓","UPRO":"三倍做多标普500ETF","BK4581":"高盛持仓","SPY":"标普500ETF","BK4504":"桥水持仓","TLT.AU":"Tilt Renewables","IVV.AU":"ISHARES S&P 500 ETF/AUS","TLT":"20+年以上美国国债ETF-iShares","QQQ":"纳指100ETF","SPY.AU":"SPDR® S&P 500® ETF Trust","BK4593":"纳斯达克ETF","TBT":"债券20+美国债指数ETF-ProShares两倍做空","BK4550":"红杉资本持仓","OEX":"标普100","BK4534":"瑞士信贷持仓",".SPX":"S&P 500 Index","BK4585":"ETF&股票定投概念","SSO":"两倍做多标普500ETF","SDS":"两倍做空标普500ETF","VOO":"Vanguard标普500ETF","BK4588":"碎股","SH":"标普500反向ETF","BK4559":"巴菲特持仓","IVV":"标普500指数ETF","SPXU":"三倍做空标普500ETF"},"translate_title":"SocGen表示做空小盘股，因为它们看起来容易受到债券收益率飙升的影响","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"TBT":1,"VOO":1,"TLT.AU":1,"TLT":1,"SPY.AU":1,"SPY":1,"QQQ":1,"IVV.AU":1,"US10Y.BOND":0.9,"US12M.BOND":0.86,"US2Y.BOND":0.86,"US30Y.BOND":0.86,"US3Y.BOND":0.86,"US5Y.BOND":0.86,"US6M.BOND":0.86,"US7Y.BOND":0.86,"US912797FH58.BOND":0.6,"US912796CX52.BOND":0.6,"US912797FS14.BOND":0.6,"US912797GB79.BOND":0.6,"US912797GK78.BOND":0.6,"US912797GL51.BOND":0.6,"US912797GW17.BOND":0.6,"US912797HE00.BOND":0.6,"US912797HG57.BOND":0.6,"US912797HH31.BOND":0.6,"SH":0.6,"ESmain":0.6,"IVV":0.6,"OEF":0.6,"OEX":0.6,"SDS":0.6,"UPRO":0.6,"SPXU":0.6,"SSO":0.6,".SPX":0.6},"content_text":"Short small-cap stocks as that pocket of the US equity market contends with stagnate earnings growth while bonds yields march higher, Societe Generale says.  A jump in Treasury yields is in the spotlight as stubborn inflation shrinks prospects for the Federal Reserve to issue numerous interest rate cuts in 2024. The selloff in bonds last week pushed the widely watched 10-year yield (US10Y) (TBT) (TLT) to 4.7% for the first time in October, contributing to chaotic moves in stocks last week. Small-cap stocks \"are still sensitive to bond moves\" even as the correlation between equities and bonds hit a peak in November especially in relation to large-cap indices, Societe Generale ((SocGen)) said in a research note late last week suggesting investors have long positions in the S&P 500 (SP500).  \"Profits are once again the key reason for this. S&P 500 profits, driven by the Nasdaq-100 (NDX) (QQQ), are hitting new highs while Russell 2000 (RTY) (NYSEARCA:IWM) profits are still stuck in a range,\" Manish Kabra, head of US equity strategy at SocGen, said.  \"Small caps are the most levered part of the market, with a large proportion of the debt on their balance sheets being at a floating rate,\" Kabra said.  Kabra said overall, the decorrelation between bonds and equities is \"still rational\" as earnings generated by large-cap companies remain strong, and their use of \"shareholder friendly\" actions such as dividends and buybacks does not endanger balance sheets. Meanwhile, the US equity risk premium remains in \"rational\" territory at around 3.1%, just below the long-term average. The rate is low but hasn't breached the 3% threshold that would indicate an exit out of rational territory. \"The latest ERP of 3.1% and the US 10y bond yield of 4.6% are still consistent with our [S&P 500] (SPY) (IVV) (VOO) index target of 5,500. However, a US 10y bond yield of 5% would mean 8% downside for US equities,\" Kabra said.  Large-cap stocks this year are already outpacing the performance of small caps, with the S&P 500 up about 4.5% in 2024 while Russell 2000 has declined by nearly 4%.  See the moves across the Treasury curve on the Seeking Alpha bond page.  More on the Russell 2000 Index  March 2024 Monthly Small-Cap Stocks May Be At Risk According To NFIB Data Russell 2000 Q4 2023 Earnings Preview: The Bar Is Set Lower Once Again","kind":null,"is_publish_news":null,"is_publish_highlight":null,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.22.4","shortVersion":"4.22.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2429920747"}