S&P 500 historically posts best returns following US midterms Options signal a Democratic sweep would briefly rattle index Residents wait in line for early voting for the midterm elections in Atlanta, Georgia, on Nov. 4.Photographer: Michael M. Santiago/Getty Images The stock market’s short-term fate is riding on something that’s been a major boon for equities for more than 70 years: US midterm elections. Rising interest rates, mounting recession risks and the steepest inflation in four decades may cause a break with past trends. But the fourth quarter and year after mid-term elections has historically been the stock market’s strongest stretch during the four-year presidential cycle. With polls showing that Democrats could lose control of the US House or the Senate, stocks may get a fu

Summary Large 1-day rallies are usually associated with the bear market rallies. Major bottoms require a policy change. The Fed is still in inflation-fighting mode. gonin/iStock via Getty Images The top 20: daily returns for S&P500 The SPDR S&P 500 Trust ETF (NYSEARCA:SPY) that tracks the S&P500 soared by 5.5% Thursday (11/10/2022) - and almost broke into the top 20 daily S&P500 returns in history - since the 1920s. So, what doesit mean? Is this just a bear market rally, or a signal of the major bottom. Let's first evaluate the top 20 list of the daily rates of return for the S&P500: As you can see from the list above, 12 out 20 top daily returns were the bear market rallies, and 8 out of these 12 were during the 1929-1932 bear market and the Great Depression. 8 out of

QuantumScape (NYSE:QS) shares marked a double-digit percentage decline on Wednesday as Morgan Stanley Adam Jonas shifted his rating to a Sell-equivalent. “We believe 3Q results were narrative changing,” he advised clients on Wednesday. “While solid-state batteries may still represent thefuture of energy storage, the path to getting there is proving to be more difficult and longer-dated than we and the market had expected.” Given the uncertainty of the timeline to scale and gain acceptance among OEMs, as well as the more difficult funding environment confronting the company, Jonas took his rating to “Underweight” from “Equal-Weight”. Additionally, he slashed his price target from $12 to just $4, a new Street low. Shares of the San Jose-based solid state lithium metal battery startup fell 15

This article is an outgrowth of my own research on how your taxes reduce the money you have in retirement to spend. Those taxes come from many directions while you are working and then when you are retired. Most people accept them as a necessary evil to increase their net worth and accumulate a retirement nest egg. In August I wrote “ Dividends Aren't For Taxable Accounts,” which was part 1 in this journey. Now three months later the positions have been filled to my satisfaction, leaving 20% in cash, just in case some of my patience brings something I can’t pass up or I just need some extra cash to spend without selling any long-term holdings. First a quick review of the strategy behind this portfolio. Setup and Ground Rules I will invest in 10 Non-dividend paying stocks that are initially

Summary AMD is scheduled to release its Q3 results after market close on November 1. Analysts are extremely divided on the chipmaker's Q4 guidance, with low and high estimates differing by nearly 50%. This might be an opportune time for long-term investors to scoop AMD's shares amidst the ensuing market chaos. Advanced Micro Devices, Inc. (NASDAQ:AMD) is scheduled to host its Q3 earnings call after market close this Tuesday, November 1. Although the company has already released a dismal set of preliminary Q3 numbers, there’s still a lot of uncertainty about the extent of its sales slump. So, in addition to tracking its headline financial figures, investors may also want to monitor its purchase commitments, guidance for the next quarter or two and its management's comments about their produ

Reuters) - Wall Street's main indexes gained on Tuesday, shaking off an unconfirmed report of Russian missiles crossing into Poland that sparked volatility, as investors seized on softer-than-expected inflation data that raised hopes of a pullback in rate hikes by the U.S. Federal Reserve. Equities were boosted by Tuesday's inflation report that showed producer prices rising 8% in the 12 months through October against an estimated 8.3% rise. The gains built on a rally that was kicked off late last week by a cooler-than-expected report on consumer prices. "The market has been driven by the inflation number that came out a little bit lower than expected and confirmed last week's number to some degree that we may have rounded the corner on inflation," said Peter Tuz, president of Chase Invest

The cost of streaming is going up, and for once Netflix isn't to blame. The competition is finally starting to focus on becoming profitable after several years of keeping pricing low to grow their subscriber bases. That means price hikes. Walt Disney and Apple have already announced price hikes, while Paramount and Warner Bros. Discovery have clearly stated intentions to do so next year. The competitors' price hikes come at a time when Netflix is making it more affordable than ever to subscribe to its streaming service. That could be great news for Netflix and its investors. Your streaming bill is going up It was only a matter of time before media companies started raising the prices of their direct-to-consumer offerings. The market for streaming content has become more competitive as ther

Red-hot inflation, geopolitical tensions, an uncertain outlook for consumer spending and the housing market -- the list of stock market headwinds goes on and on. One approach for folks looking for a simple way to ride out the volatility is to invest in good companies that have attractive dividend yields. An advantage of a sizable yield -- particularly a yield of 4% or higher -- is that the dividend on its own is enough to supplement some income in retirement. However, the 4% level is even more critical right now because rising interest rates have pushed the three-month Treasury bill rate up. In fact, the three-month Treasury bill yield is currently 3.8% -- which is the highest level in 15 years. A stock with a 4% yield is essentially providing the same amount of passive income as a three-m

The stock market can play tricks on your mind. You feel invincible in a bull market, but in a bear market you feel like you'll never make money again. It's been a long fall for many growth stocks in 2022, but keep your head up. Historically, Wall Street has always recovered, and there isn't a reason why this would be any different. The market will probably rebound at some point, so now is a great time to start thinking about your top investment ideas for 2023. Stocks like Shopify, Workday, and Sea Limited were losers in 2022, but here's why they could be big winners in 2023 and beyond. Stock up on this e-commerce stock Will Healy (Shopify): Most long-term Shopify investors probably want to forget 2022. This time last year, it had flirted with all-time highs. However, the bear market hit th

These EV stocks could knock Tesla off its perch as the most dominant EV company. BYD Company(BYDDF): Triple-digit growth in sales and earnings is an incredible feat in the current economic climate. Li Auto(LI): Should reach profitability much quicker than its peers. FordMotor(F): Underrated EV stock that’s witnessing massive growth in sales for its all-electric lineup. Lucid Group(LCID): Reservation numbers continue to climb at a healthy pace, a testament to its long-term case. ChargePoint(CHPT): Massive market share in the EV charging infrastructure space, which should continue to grow at a breathtaking pace for the foreseeable future. Mullen Automotive(MULN): The unique proposition of EVs with solid-state batteries makes Mullen an incredible speculative bet. Nio(NIO): Trading at a dirt c

Summary Nvidia stock staged a strong intra-day rally of 14% on Thursday after new data showed softer-than-expected price increases in October that harbingers a potential "dovish response from the Fed". The stock's recent gains as a result of mitigating strategies taken against the newly imposed export restrictions to China is also welcome news, underscoring investors' confidence in Nvidia's longer-term prospects. Yet, mounting macroeconomic uncertainties still remain a large overhang on the stock's near-term performance, with renewed concerns of a crypto downturn adding complexity to the Nvidia stock's outlook. The following analysis will walk through some of the latest developments in Nvidia's operating, macro and regulatory environment, and gauge their respective implications on the stoc

Fed hikes by 75 basis points U.S. private payrolls rise more than expected Powell says Fed not close to pausing U.S. stocks ended sharply lower on Wednesday, as comments from Fed Chair Jerome Powell shattered initial optimism over a Fed policy statement that raised interest rates by 75 basis points but signaled that smaller rate hikes may be on the horizon. In a volatile trading session, equities initially moved higher in the wake of the hike by the Fed, the fourth straight increase from the central bank of that magnitude as it attempts to bring down stubbornly high inflation. The target federal funds rate was set in a range between 3.75% and 4.00%, but the impact of the hike was initially tempered by new language that suggested the central bank was mindful of the effect its outsized rate

Shares of Rivian Automotive are up 17.4% on Thursday, following the premium electric vehicle (EV) maker's release late yesterday of its third-quarter 2022 report. The stock's rise is primarily attributable to management reaffirming its 2022 vehicle production guidance of 25,000 vehicles. It's also surely getting a tailwind from the strong market, which is surging following October inflation data coming in better than widely expected. As background, Rivian has launched three all-electric premium vehicle models, including R1T (pickup truck), R1S (SUV), and EDV ("electric delivery vehicle"). At this point, the company is only producing vans for Amazon, which owns a significant stake in Rivian. However, in September, Rivian formed a partnership with Mercedes-Benz, in which the two automakers w

Company says US users are spending less time on Snapchat video Snap has cut workforce to focus on revenue-generating projects (Bloomberg) -- Snap Inc. reported its slowest quarterly sales growth ever, saying that a decline in advertising spending continues to drag on results. Shares plunged more than 27% in late trading. The maker of the Snapchat app said third-quarter sales increased 6% to $1.13 billion. That was just shy of analysts’ average estimate of $1.14 billion, according to projections compiled by Bloomberg. The social media company spent the quarter shrinking and refocusing its business, announcing in August that it was cutting 20% of its workforce and slashing projects that don’t contribute to ​​user or revenue growth, or to the company’s augmented reality efforts. The changes w

Earnings Watch: Alphabet, Amazon, Apple, Meta and Microsoft plan to announce crucial results amid doubts about the economy, and they will all report in the biggest week of earnings season Meta Platforms Inc. and other large tech companies, once easy bets for growth, report earnings that could show a different trajectory in the week ahead. The biggest week of third-quarter earnings season will also likely be its most anxiety-ridden, as an onslaught of onetime surefire tech giants prepare to report amid staffing cutbacks and signs of slowing demand for digital ads, e-commerce and smartphone sales. The dyspepsia for tech investors begins Tuesday, with earnings from Microsoft Corp. (MSFT) and Google parent Alphabet Inc. (GOOGL). Facebook parent Meta Platforms Inc. (META) reports on Wednesday.

Reuters) - Wall Street's main indexes ended lower on Monday, with real estate and discretionary sectors leading broad declines, as investors digested comments from U.S. Federal Reserve officials about plans for interest rate hikes and looked for next catalysts after last week's big stock market rally. Losses accelerated toward the end of the up-and-down session, with focus turning to Tuesday's producer price index report and markets highly sensitive to inflation data. Earlier on Monday, Fed Vice Chair Lael Brainard signaled that the central bank would will likely soon slow its interest rates hikes. Her comments somewhat buoyed sentiment for equities that had been dampened after Federal Reserve Gov. Christopher Waller on Sunday said the Fed may consider slowing the pace of increases at its

Summary As the oil bears are waiting for the demand destruction to kick in and take the oil prices lower, the upcoming supply disruptions could ruin their forecasts. With the upcoming embargo of Russian oil, the supply disruptions are likely to outweigh the demand destruction, which could result in oil prices trading at the current relatively high levels. Exxon Mobil stands to significantly benefit from those disruptions, as the company is well-positioned to seize the opportunities that come with supply shocks. Although oil prices have been decreasing since June after a rapid appreciation, caused mostly by Russia's invasion of Ukraine, Exxon Mobil Corporation's (NYSE:XOM) share price continues to accelerate to this day. The stock is now trading at itsall-time high levels. While the oil bea

These best tech stocks to buy all feature low risk and deep discounts. Nvidia(NVDA): Shares appear significantly undervalued following a steep sell-off. Adobe(ADBE): Its income-statement performance is impressive. Intel(INTC): Shares look compelling at this deeply discounted price. Taiwan Semiconductor(TSM): It’s a profit-generating machine. Applied Materials(AMAT): Its returns on equity and assets are among the best in the chip industry. Lam Research(LRCX): Its ROE and ROA are even better than those of Applied Materials. NXP Semiconductors(NXPI): It’s perhaps the riskiest of the bunch but may offer greater rewards. Tech stocks have suffered disproportionately in the current bear market, as they tend to do in every bear market. But the bullish long-term bias of the market tells us that sto

Reuters) - U.S. stocks surged to close out the trading week on Friday after a report said the U.S. Federal Reserve will likely debate on a smaller interest rate hike in December, raising hopes the central bank may be poised to adopt a less aggressive policy stance. Some Fed officials have begun sounding out their desire to slow down the pace of increases soon, according to a Wall Street Journal report, and how to signal plans to approve a smaller increase in December. San Francisco Federal Reserve President Mary Daly echoed that sentiment and said it's time to start talking about slowing the pace of the hikes in borrowing costs and doing so should avoid sending the economy into an "unforced downturn" by hiking interest rates too sharply. In addition, Chicago Federal Reserve Bank President

Summary NIO has seen its shares slump over the last year. Rising interest rates, supply chain issues, and geopolitical tensions are to blame. That being said, NIO continues to grow its business and its expansion to Europe has started. Article Thesis NIO Inc. (NYSE:NIO) has, like many other EV stocks, seen its shares decline quite a bit so far this year. This has made the stock a lot cheaper, relative to where NIO traded when its shares hit their highs last year. At the same time, NIO has made some operational progress and started its expansion into Europe. NIO isn't profitable yet, and thus may not be suitable for risk-averse investors. But its current valuation is not very demanding, and the company's growth potential is strong. Why Has NIO's Price Dipped? NIO has seen its share price dec