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The Zacks Analyst Blog Highlights: JPMorgan, General Motors, Stellantis, CNH Industrial and Tesla

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For Immediate Release

Chicago, IL – June 22, 2021 – 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: JPMorgan Chase & Co. (JPM - Free Report) , General Motors Company (GM - Free Report) , Stellantis N.V. (STLA - Free Report) , CNH Industrial N.V. (CNHI - Free Report) and Tesla, Inc. (TSLA - Free Report) .

Here are highlights from Monday’s Analyst Blog:

Will Fed Stress Tests Rally Bank Stocks? Global Week Ahead

In the Global Week Ahead, the Fed releases the results of its annual Bank stress tests on Thursday at 4:30 pm ET.

How do these matter?

The Fed announced this on March 25th: Banks that pass this stress test will have restrictions on dividends and share buybacks lifted after June 30th.

So, Thursday could see strong moves in major Bank stocks, like JPMorgan.

The Fed already stated restrictions will end “for most firms” after June 30th.

In addition, Vice Chair Quarles said June 1st the stress tests showcase a “very resilient” banking system. This portends a low risk of any disappointment.

Individual banks that fail the stress test?

They remain subject to restrictions through Sept 30th.

If they fail again, at that time, even tighter distribution limitations will be imposed.

Next are Reuters’ five world market themes, reordered for equity traders—

(1) The Long Commodity Trade Is a Crowded One

Commodity and energy markets have been running red hot, fueled by a heady mix of post-pandemic economic recovery, ample global liquidity and speculative buying.

There's little sign of a let up — or is there?

The world's biggest oil traders predict crude prices will stay above $70 a barrel, and — in a sharp reversal — don't discount a return to $100.

China announced plans to release industrial metals from its national reserves to curb commodity prices and fight inflationary pressures in what would be the first such move in a decade by the world's top metals consumer.

In a sign that the road ahead might not be quite so smooth, asset managers identified being long commodities as the "most crowded" trade in a recent BofA survey — a status that often precedes an unwinding as markets fear a bubble bursting.

(2) On Wednesday, Purchasing Manager Indexes (PMIs) for the USA, Australia, and U.K.

The United States, Australia, Britain and the euro area will kick off global June flash purchasing managers' index (PMI) readings.

The forward-looking economic indicator should confirm a solid outlook for manufacturing, but also divergences opening up.

A swift roll-out of COVID-19 vaccines, economies reopening from lockdowns and hefty stimulus mean PMIs in major economies should remain comfortably above the 50-mark dividing expansion from contraction. The May Eurozone composite PMI hit its highest level since February 2018.

In contrast, India and Brazil have found it hard to contain the coronavirus; Thailand is grappling with its third and worst wave. This could weigh on business activity in emerging markets again, adding to pressure on wealthy nations to help vaccinate the world and close disparities.

(3) Also on Wednesday, U.S. New Home Sales Numbers

New home sales and mortgage application numbers on Wednesday provide a view into U.S. housing — a standout in the post COVID-19 recovery that has shown some weakness lately.

U.S. homebuilding rebounded less than expected in May as the high price of lumber and shortages of other materials hindered builders' ability to take advantage of an acute shortfall.

The focus on lumber prices is a window into inflationary pressures just as the Federal Reserve projects a faster timetable for rate rises and mulls how to end crisis-era bond-buying.

The PHLX housing index of homebuilders and other housing-related stocks has retreated recently but remains one of this year's outperformers.

(4) On Thursday, the Bank of England Meets

The Bank of England meets on Thursday, and sterling bulls are hoping chief economist Andy Haldane's last meeting will provide another boost for the pound.

Haldane has warned of inflationary pressure that might force the BoE to turn off its monetary stimulus taps. Indeed, May inflation zipped above its 2% target for the first time in two years.

Analysts expect no changes to policy after the BoE last month said it would slightly slow the weekly pace of its bond purchases. Britain's decision to delay the full reopening of its economy by a month may be seen as a reason for caution.

Some don't rule out a discussion around tapering, however, with other central banks starting to consider exiting emergency stimulus. Money markets price in more than 9 bps of BoE rate hikes by May 2022 — doubling from the start of the week.

(5) The Tokyo Olympics Saga Continues 


It's not just the Bank of Japan on the sidelines of a global debate about when to exit ultra-easy settings. A polarized and emotional country is watching as preparations for the Tokyo Olympics, due to start in a month, heat up.

The coming days should see some easing of emergency lockdown measures for Tokyo and a few other districts, an acceleration of Japan's slow vaccination drive and details of the numbers of spectators that will be allowed into stadiums.

Polls indicate that most Japanese remain wary of the Games even as Prime Minister Yoshihide Suga, battling sagging ratings and a corporate scandal, stakes his reputation on them.

Japan's summer blues may help explain why the yen is languishing near one-year lows around 111-per-dollar.

Top Zacks #1 Rank Stocks

I noted three Zacks A-rated automakers on our #1 list.

General Motors: This is a $59 stock with a market cap of $85.2B. I see a Zacks Value score of A, a Zacks Growth score of B, and a Zacks Momentum score of A.

Stellantis: This is a $20 stock with a market cap of $50B. I see a Zacks Value score of A, a Zacks Growth score of A, and a Zacks Momentum score of A.

CNH Industrial: This is a $16 stock with a market cap of $22B. I see a Zacks Value score of B, a Zacks Growth score of B, and Zacks Momentum score of C.

For a reference, Tesla currently has a market cap of $600B. These three major large cap auto firms sum to $157B.

Is Tesla really 12 major auto firms in one?

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