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The Zacks Analyst Blog Highlights: Blackstone, The Bank of Nova Scotia and Carlyle Group
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For Immediate Release
Chicago, IL – December 21, 2021 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Blackstone Inc. (BX - Free Report) ,The Bank of Nova Scotia (BNS - Free Report) and The Carlyle Group Inc. (CG - Free Report)
Here are highlights from Monday’s Analyst Blog:
Merry Christmas: Global Week Ahead
At the end of this Global Week Ahead, the world’s major stock exchanges enjoy a long Christmas break.
Most central banks already wrapped up their final meetings for this year. Their collective decisions (made last week) raised questions for traders to ponder over the holidays.
A bit of fresh U.S. macro data can shed light on how consumers are holding up, given soaring goods prices, and the very transmissible Omicron variant.
Here are Reuters’ final five world market themes for 2021, reordered for equity traders.
(1) Where Did the Major Central Banks Leave Us?
With December's deluge of central bank meetings done and dusted, markets can cruise into year-end, right?
Not quite. The Bank of England, for one, has left investors confounded for the second time in six weeks, as a surprise rate hike again raised questions about its communication style.
The European Central Bank, in the spirit of Christmas perhaps, gave something to everyone – ending emergency stimulus next year cheers the hawks, opting for an open-ended existing asset purchase scheme makes the doves happy. Rising peripheral bond yields suggest some discomfort over easing support.
And by raising rate hike prospects, the Federal Reserve appears to have set the agenda for a tumultuous 2022 as central bankers chart their paths to the exit, albeit at dramatically different paces.
(2) Watch Macro Data for Signs of Holiday Spending Worldwide
'Tis the season to be shopping, but just how cheerful are U.S. shoppers in the face of soaring prices and Omicron?
Clues should come from the December U.S. consumer confidence index on Wednesday and November new home sales, consumer spending and durable goods orders on Thursday.
U.S. consumer prices grew at their fastest pace in around four decades in November. Any signs that rising living costs and pandemic fatigue are weighing on spending — which accounts for over two thirds of U.S. economic activity — will not make for comfortable reading at the Fed.
After all, the central bank just doubled the pace at which it will cut bond purchases and signaled as many as three rate hikes for 2022.
(3) Time for a New British Prime Minister?
Two years after British Prime Minister Boris Johnson's party swept elections, his tenure in office is wobbly.
A revolt by 100 lawmakers, scandals, the loss of a parliamentary seat his party had dominated for 200 years, and a stuttering economy mean bookies are offering even money that he will be replaced in 2022. A majority of voters think he should resign, one poll found.
Already, Brexit had capped Britain's post-pandemic rebound. Now an Omicron "tidal wave" (Johnson's words) spells more trouble. Private-sector growth plunged in December to a 10-month low, PMIs showed, yet 5%-plus inflation may force the Bank of England into several rate hikes next year.
On Dec. 22, final Q3 GDP readings may confirm Britain's economy falling behind G7 peers. Unsurprisingly, British stocks’ 35% price discount versus global peers has not stopped investors from voting with their feet.
(4) Chile Chose a New President
Chileans headed to the polls on Sunday, ending a year full of political risk in Latin America — a region already haunted by income inequalities, volatile leaders, disappointing growth and a disproportionately high COVID-19 toll.
Chile's second round election pitched ultra-conservative Jose Antonio Kast against leftist former student leader Gabrial Boric. With 99.95% of the vote in hand, the 35-year-old Boric won easily by 55.87% to 44.13%. This was the first presidential decider since the world's top copper producer was rocked by protests two years ago.
The regional election cycle continues in 2022.
Colombia is scheduled to hold congressional elections in March and a presidential ballot in May.
Brazil's general vote in October will dominate investors' focus, given the country's economic weight in the region. So far, former leftist leader Luiz Inacio Lula de Silva has a comfortable lead in polls.
(5) How Does China Factor into a New Year?
Investors are trying to work out just what China’s top leaders meant when they said recently that next year would be all about economic stability and prudent monetary policy.
The likes of JPMorgan peg growth estimates around 5%, close to what government advisers recommend. Possibly, policy will be tailored to fit the goal of "common prosperity" before the Communist Party's 20th national Congress next year.
But bond markets are confused. The central bank has infused cash into banks while trying to rein in a strong yuan. Yet, expectations for a cut in its main money market operation rate this week came to naught.
Beijing's goals of stability and deleveraging could mean banks' lending benchmarks won't change next week either.
Top Zacks #1 Rank (STRONG BUY) Stocks
Let’s look at Financial Sector stocks:
(1) Blackstone: This is a $123 a share stock with a market cap of $85B. I see a Zacks Value score of F, a Zacks Growth score of C and a Zacks Momentum score of C.
(2) The Bank of Nova Scotia: This is a $67 a share stock with a market cap of $82.7B. I see a Zacks Value score of D, a Zacks Growth score of F and a Zacks Momentum score of D.
(3) The Carlyle Group: This is a $52 a share stock, with a market cap of $18.4B. I see a Zacks Value score of D, a Zacks Growth score of D and a Zacks Momentum score of F.
Thinking about buying the Financials, after the hawkish Fed, BoE and ECB news?
Given the lousy Zacks Value scores, here, you are late.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights: Blackstone, The Bank of Nova Scotia and Carlyle Group
For Immediate Release
Chicago, IL – December 21, 2021 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Blackstone Inc. (BX - Free Report) ,The Bank of Nova Scotia (BNS - Free Report) and The Carlyle Group Inc. (CG - Free Report)
Here are highlights from Monday’s Analyst Blog:
Merry Christmas: Global Week Ahead
At the end of this Global Week Ahead, the world’s major stock exchanges enjoy a long Christmas break.
Most central banks already wrapped up their final meetings for this year. Their collective decisions (made last week) raised questions for traders to ponder over the holidays.
A bit of fresh U.S. macro data can shed light on how consumers are holding up, given soaring goods prices, and the very transmissible Omicron variant.
Here are Reuters’ final five world market themes for 2021, reordered for equity traders.
(1) Where Did the Major Central Banks Leave Us?
With December's deluge of central bank meetings done and dusted, markets can cruise into year-end, right?
Not quite. The Bank of England, for one, has left investors confounded for the second time in six weeks, as a surprise rate hike again raised questions about its communication style.
The European Central Bank, in the spirit of Christmas perhaps, gave something to everyone – ending emergency stimulus next year cheers the hawks, opting for an open-ended existing asset purchase scheme makes the doves happy. Rising peripheral bond yields suggest some discomfort over easing support.
And by raising rate hike prospects, the Federal Reserve appears to have set the agenda for a tumultuous 2022 as central bankers chart their paths to the exit, albeit at dramatically different paces.
(2) Watch Macro Data for Signs of Holiday Spending Worldwide
'Tis the season to be shopping, but just how cheerful are U.S. shoppers in the face of soaring prices and Omicron?
Clues should come from the December U.S. consumer confidence index on Wednesday and November new home sales, consumer spending and durable goods orders on Thursday.
U.S. consumer prices grew at their fastest pace in around four decades in November. Any signs that rising living costs and pandemic fatigue are weighing on spending — which accounts for over two thirds of U.S. economic activity — will not make for comfortable reading at the Fed.
After all, the central bank just doubled the pace at which it will cut bond purchases and signaled as many as three rate hikes for 2022.
(3) Time for a New British Prime Minister?
Two years after British Prime Minister Boris Johnson's party swept elections, his tenure in office is wobbly.
A revolt by 100 lawmakers, scandals, the loss of a parliamentary seat his party had dominated for 200 years, and a stuttering economy mean bookies are offering even money that he will be replaced in 2022. A majority of voters think he should resign, one poll found.
Already, Brexit had capped Britain's post-pandemic rebound. Now an Omicron "tidal wave" (Johnson's words) spells more trouble. Private-sector growth plunged in December to a 10-month low, PMIs showed, yet 5%-plus inflation may force the Bank of England into several rate hikes next year.
On Dec. 22, final Q3 GDP readings may confirm Britain's economy falling behind G7 peers. Unsurprisingly, British stocks’ 35% price discount versus global peers has not stopped investors from voting with their feet.
(4) Chile Chose a New President
Chileans headed to the polls on Sunday, ending a year full of political risk in Latin America — a region already haunted by income inequalities, volatile leaders, disappointing growth and a disproportionately high COVID-19 toll.
Chile's second round election pitched ultra-conservative Jose Antonio Kast against leftist former student leader Gabrial Boric. With 99.95% of the vote in hand, the 35-year-old Boric won easily by 55.87% to 44.13%. This was the first presidential decider since the world's top copper producer was rocked by protests two years ago.
The regional election cycle continues in 2022.
Colombia is scheduled to hold congressional elections in March and a presidential ballot in May.
Brazil's general vote in October will dominate investors' focus, given the country's economic weight in the region. So far, former leftist leader Luiz Inacio Lula de Silva has a comfortable lead in polls.
(5) How Does China Factor into a New Year?
Investors are trying to work out just what China’s top leaders meant when they said recently that next year would be all about economic stability and prudent monetary policy.
The likes of JPMorgan peg growth estimates around 5%, close to what government advisers recommend. Possibly, policy will be tailored to fit the goal of "common prosperity" before the Communist Party's 20th national Congress next year.
But bond markets are confused. The central bank has infused cash into banks while trying to rein in a strong yuan. Yet, expectations for a cut in its main money market operation rate this week came to naught.
Beijing's goals of stability and deleveraging could mean banks' lending benchmarks won't change next week either.
Top Zacks #1 Rank (STRONG BUY) Stocks
Let’s look at Financial Sector stocks:
(1) Blackstone: This is a $123 a share stock with a market cap of $85B. I see a Zacks Value score of F, a Zacks Growth score of C and a Zacks Momentum score of C.
(2) The Bank of Nova Scotia: This is a $67 a share stock with a market cap of $82.7B. I see a Zacks Value score of D, a Zacks Growth score of F and a Zacks Momentum score of D.
(3) The Carlyle Group: This is a $52 a share stock, with a market cap of $18.4B. I see a Zacks Value score of D, a Zacks Growth score of D and a Zacks Momentum score of F.
Thinking about buying the Financials, after the hawkish Fed, BoE and ECB news?
Given the lousy Zacks Value scores, here, you are late.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.