For Immediate Release
Chicago, IL – June 21, 2022 – 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: Baidu (
BIDU Quick Quote BIDU - Free Report) , Dollar Tree ( DLTR Quick Quote DLTR - Free Report) and Dell Technologies ( DELL Quick Quote DELL - Free Report) . Here are highlights from Monday’s Analyst Blog: Central Banks Will Still Drive Stocks: Global Week Ahead
Global Week Ahead gets dominated by central banks, for a 2nd week in a row.
Forget S&P 500 earnings estimates for the time being. Financial market trading has been fully tied to fresh key macro data and macro-driven policy events these days.
On Monday, the People's Bank of China (PBoC) offers up an interest rate decision.
On Wednesday, Fed Chair Powell speaks to the Senate Banking Committee.
Next in importance, any details on the European Central Bank's (ECB) plan to prevent rate hikes from hurting weaker Euro Area economies. That will be of interest to traders.
In emerging markets, there's no let-up in rate-hike fever:
· - Expect central banks in Indonesia and Mexico to raise rates.
· - Egypt and the Czech Republic central banks are up to bat, too.
· - One major outlier here dismisses a need for tightening: Turkey. That central bank updates Thursday.
Of all the major developed countries' central banks which until recently dismissed consumer price inflation as transitory, one still stands out: the Bank of Japan.
But Reuters writes that it is increasingly being challenged by hedge funds, which are betting it can't hold the line on super-loose policy forever.
Next are Reuters' five world market themes, reordered for equity traders: (1) Wednesday, Fed Chair Powell testifies before the Senate Banking Committee
Fresh off the Federal Reserve's biggest rate hike in nearly three decades, Fed Chair Jerome Powell will be in the spotlight on Wednesday when he testifies before the Senate Banking Committee.
Blistering inflation forced the Fed to raise interest rates by 75 basis points on June 15 and flag a faster rate-rise path. But it also projected a slowing economy and rising unemployment, highlighting a tricky balancing act ahead.
The testimony will allow Powell to hammer home his determination to quell inflation.
But with the S&P 500 down -20% from January record highs and other asset prices also falling, he may be quizzed for details on how the Fed can tame inflation without causing too many ructions in the economy and markets.
(2) Last week, the European Central Bank promised added support. Of what type?
The ECB is promising additional support for the euro bloc's indebted southern rim, looking to calm the angst caused by its policy tightening plans.
So far, all we know is that the new scheme may attach some loose conditions. Investors, keen to find out what shape and form the tool might take, will be on the prowl for clues.
Bond markets reacted with relief to the ECB's plan. But investors are an impatient bunch and could soon test its resolve to contain bond market strains.
Having had to reverse course just six days after failing to reassure markets it would keep borrowing costs in check, ECB officials know the clock is ticking.
(3) Thursday, Turkey's central bank meets. A big southern Europe crisis brewing?
Policymakers at Turkey's central bank will meet on Thursday to debate where interest rates will go. The answer, though, is already known: nowhere. That means pressure on the lira will increase further.
Despite shrinking FX reserves and inflation above 70%, interest rates are stuck at 14%, due to President Tayyip Erdogan's push for lower rates.
Instead, a number of measures — widely seen as failing to address the core problem of soaring inflation — have been introduced to shield locals from the fallout of a currency that has lost some 90% of its value in the past decade.
But in other emerging markets, central banks are not dithering:
· - On Wednesday, Czech rates could rise 100 bps
· - Indonesia may kick off its tightening cycle on Thursday
· - Later that day, Mexico could raise rates by 75 bps while
· - Egypt may continue hiking after last month's 200 bps move
(4) Thursday, a number of advance June purchasing manager indices (PMIs) land
Advance readings of June purchasing managers' indexes (PMIs), due on Thursday, will make for interesting content, showing how businesses coped with this month's surge in the cost of capital and a souring in consumer sentiment.
So far this year, European and U.S. PMIs have held above the 50 mark, while Chinese zero-COVID policies dragged Asia into contraction.
Now, though, European and U.S. PMIs are going the other way, as higher borrowing costs bite. Economists polled by Reuters expect June PMIs to show further modest weakening.
PMI watchers might choose to train their sights on Asia, where readings nudged higher in May and may do so again this month, as swathes of China emerged from lockdowns and authorities stepped up investment.
And Chinese PMIs' return to expansionary territory would be a bonus for the global economy.
(5) Japan's macro data will inform the BoJ, FX and equity markets
The Bank of Japan has defied the direction of monetary policy globally, sticking with ultra-easy settings and a vow to buy 10-year bonds every day to anchor borrowing costs.
The result is a sliding yen, a yield curve that's being bent out of shape and a bond market almost buckling in the tussle between hedge funds and policymakers.
Meanwhile, Japanese living costs are rising and as July mid-term elections approach, the BOJ may face political pressure to tone down its efforts to raise inflation.
That could intensify if inflation data due on Friday shows above-target price growth for a second month in a row.
Top Zacks #1 Rank Stocks
Oil & Gas companies continue to dominate our #1 list. But I am bored with that.
Here is what else I found.
(1) Baidu: Yes. The big mainland China internet search name.
I see a $137 share price and a $47.5B market cap. The Zacks Value score is C, the Zacks Growth score is D and the Zacks Momentum score is C.
(2) Dollar Tree: Hmmm. A deep discount U.S. retail store made our #1 list.
I see a $151 share price and a market cap of $33.9B. The Zacks Value score is D, the Zacks Growth score is B and the Zacks Momentum score is D.
(3) Dell Technologies: The PC supplier made the #1 list too, though their narrative is now that they are an Info Tech solutions provider. The company's operating segment consists of Client Solutions, the Enterprise Solutions Group and the Dell Software Group.
I see a $46 share price and a $33.9M market cap. The Zacks Value score is A, the Zacks Growth score is B and the Zacks Momentum score is D.
I found this interesting: Tech sector stocks in the USA offer investors great value. Now.
The Nasdaq did lead us down.
Nasdaq's forward P/E got slashed -41% from its recent peak. That is similar to the tech stock drawdown seen during the Sept. 2008 meltdown.
Back then, the tech stock down draft did not end there. Nasdaq share values went down another -10%.
Is this time different?
Why Haven't You Looked at Zacks' Top Stocks?
Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared
+40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation. See Stocks Free >>
Zacks Investment Research
800-767-3771 ext. 9339
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 for information about the performance numbers displayed in this press release. https://www.zacks.com/performance