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The Zacks Analyst Blog Highlights Arista Networks, STMicroelectronics and Extra Space Storage
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For Immediate Release
Chicago, IL – August 23, 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: Arista Networks (ANET - Free Report) , STMicroelectronics (STM - Free Report) and Extra Space Storage (EXR - Free Report) .
Here are highlights from Monday’s Analyst Blog:
Jackson Hole: Global Week Ahead
In the Global Week Ahead, Jackson Hole, Wyoming, is the focal point for markets.
Both stock traders and long-term investors alike will zero in on the Fed's annual confab.
Business activity (manufacturing PMI) indicators in the Euro Zone, and a key inflation gauge (core PCE) in the United States, are also on tap.
Meanwhile, policy rate cuts could start the week, coming from Mainland China’s PBoC.
Next are Reuters’ five world market themes, reordered for equity traders—
(1) The KC Fed’s Jackson Hole summer conference is the top attraction
How big will future rate hikes be? How strong is the economy? What about quantitative tightening?
Investors hope the Federal Reserve may shed light on those questions when central banking heavyweights meet on Aug. 25-27 for their annual symposium in Jackson Hole, Wyoming.
U.S. stocks have screamed higher this summer, despite Fed warnings that expectations of a peak in inflation and a so-called dovish pivot from the central bank may be premature.
Some investors believe Chairman Jerome Powell will push back against the market’s optimism again, reminding investors that there is one more inflation report and another jobs number before the Fed’s September meeting.
Also in demand are further details on the Fed’s reduction of its $9 trillion balance sheet, known as quantitative tightening, which some investors have flagged as a potential risk to market liquidity.
(2) Flash PMI data will show how badly the Eurozone is hurting
Concerns the Eurozone economy is hurtling toward recession are building. Flash purchasing managers index survey data should shed some light on how soon that might happen.
The August numbers, due on Tuesday, may show another month of business activity contraction after S&P Global's final composite Purchasing Managers' Index (PMI), seen as a good gauge of economic health, fell to a 17-month low of 49.9 in July.
Eurozone businesses are struggling from soaring energy prices and shortages, surging inflation and expectations of higher interest rates. An economic sentiment index for Eurozone powerhouse Germany recently showed investor sentiment falling in August as fears grow that the rising cost of living will hit private consumption.
Tuesday will also include the release of flash PMI numbers for the United States and Britain.
(3) On Monday, the People’s Bank of China (PBoC) sets policy rates
More rate cuts loom in China, but analysts and investors doubt they will give any support to an economy ravaged by a property crisis and strangling COVID-19 lockdowns.
The People's Bank of China sets the so-called Loan Prime Rate for one-year and five-year borrowing on Monday — the basis for business loans and mortgages, respectively — after recently surprising markets by cutting key bank lending rates.
The move stoked slowdown fears that sent the yuan sliding to a two-month low.
The PBOC is prodding banks to lend more, and pouring money into the financial system. But demand to borrow simply is not there, with corporates fretting about the economic outlook and consumers wary with property prices plunging.
(4) The release of Personal Consumption Expenditure (PCE) data will draw focus from inflation worriers this week
With markets twitching on any inkling that surging inflation has peaked or remains at four-decade highs, the U.S. Federal Reserve's preferred measure of prices is due on Aug. 26.
The release of the Personal Consumption Expenditures (PCE) price index for July comes after another key inflation measure, the Consumer Price Index (CPI), was flat on a monthly basis in July, the largest month-on-month deceleration of price increases since 1973, a result that heartened stock investors.
In the 12 months through June, the PCE price index advanced 6.8%, the largest increase since January 1982.
With recession fears lingering and investors eager for any clues about the economy's strength, data on New Home Sales hits on Tuesday and Durable Goods on Wednesday.
(5) Six months of war in Ukraine
Wednesday marks the six-month anniversary of Russia's invasion of Ukraine, or “special military operation,” as Moscow called it.
Not only has it been a humanitarian tragedy and plunged the world into a new Cold War, it has also been a key driver of mounting recession worries, especially in Europe where a gas crisis looms large.
The region's gas prices have nearly tripled since June alone. Rationing in powerhouse economies like Germany may well be needed, but the ECB, Bank of England and others are adamant they simply must crush the inflation it is fueling.
Other highly sensitive markets have proved remarkably elastic. Wheat and corn — of which Ukraine and Russia are both huge suppliers — have swooped right back down, while Moscow's main source of income, oil, is now selling for less than when the invasion started.
Top Zacks #1 Rank (STRONG BUY) stocks
(1) Arista Networks:This is a $129 communication components tech stock, with a market cap of $40.3B. I see a Zacks Value score of D, a Zacks Growth score of D and a Zacks Momentum score of F.
(2) STMicroelectronics:This is a $37 general semi chip stock, with a market cap of $34.4B. I see a Zacks Value score of B, a Zacks Growth score of B and a Zacks Momentum score of B.
(3) Extra Space Storage: This is a $212 REIT and Equity Trust stock, with a market cap of $28.5B. I see a Zacks Value score of F, a Zacks Growth score of C and a Zacks Momentum score of B.
Want key ETF info delivered straight to your inbox?
Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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 Arista Networks, STMicroelectronics and Extra Space Storage
For Immediate Release
Chicago, IL – August 23, 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: Arista Networks (ANET - Free Report) , STMicroelectronics (STM - Free Report) and Extra Space Storage (EXR - Free Report) .
Here are highlights from Monday’s Analyst Blog:
Jackson Hole: Global Week Ahead
In the Global Week Ahead, Jackson Hole, Wyoming, is the focal point for markets.
Both stock traders and long-term investors alike will zero in on the Fed's annual confab.
Business activity (manufacturing PMI) indicators in the Euro Zone, and a key inflation gauge (core PCE) in the United States, are also on tap.
Meanwhile, policy rate cuts could start the week, coming from Mainland China’s PBoC.
Next are Reuters’ five world market themes, reordered for equity traders—
(1) The KC Fed’s Jackson Hole summer conference is the top attraction
How big will future rate hikes be? How strong is the economy? What about quantitative tightening?
Investors hope the Federal Reserve may shed light on those questions when central banking heavyweights meet on Aug. 25-27 for their annual symposium in Jackson Hole, Wyoming.
U.S. stocks have screamed higher this summer, despite Fed warnings that expectations of a peak in inflation and a so-called dovish pivot from the central bank may be premature.
Some investors believe Chairman Jerome Powell will push back against the market’s optimism again, reminding investors that there is one more inflation report and another jobs number before the Fed’s September meeting.
Also in demand are further details on the Fed’s reduction of its $9 trillion balance sheet, known as quantitative tightening, which some investors have flagged as a potential risk to market liquidity.
(2) Flash PMI data will show how badly the Eurozone is hurting
Concerns the Eurozone economy is hurtling toward recession are building. Flash purchasing managers index survey data should shed some light on how soon that might happen.
The August numbers, due on Tuesday, may show another month of business activity contraction after S&P Global's final composite Purchasing Managers' Index (PMI), seen as a good gauge of economic health, fell to a 17-month low of 49.9 in July.
Eurozone businesses are struggling from soaring energy prices and shortages, surging inflation and expectations of higher interest rates. An economic sentiment index for Eurozone powerhouse Germany recently showed investor sentiment falling in August as fears grow that the rising cost of living will hit private consumption.
Tuesday will also include the release of flash PMI numbers for the United States and Britain.
(3) On Monday, the People’s Bank of China (PBoC) sets policy rates
More rate cuts loom in China, but analysts and investors doubt they will give any support to an economy ravaged by a property crisis and strangling COVID-19 lockdowns.
The People's Bank of China sets the so-called Loan Prime Rate for one-year and five-year borrowing on Monday — the basis for business loans and mortgages, respectively — after recently surprising markets by cutting key bank lending rates.
The move stoked slowdown fears that sent the yuan sliding to a two-month low.
The PBOC is prodding banks to lend more, and pouring money into the financial system. But demand to borrow simply is not there, with corporates fretting about the economic outlook and consumers wary with property prices plunging.
(4) The release of Personal Consumption Expenditure (PCE) data will draw focus from inflation worriers this week
With markets twitching on any inkling that surging inflation has peaked or remains at four-decade highs, the U.S. Federal Reserve's preferred measure of prices is due on Aug. 26.
The release of the Personal Consumption Expenditures (PCE) price index for July comes after another key inflation measure, the Consumer Price Index (CPI), was flat on a monthly basis in July, the largest month-on-month deceleration of price increases since 1973, a result that heartened stock investors.
In the 12 months through June, the PCE price index advanced 6.8%, the largest increase since January 1982.
With recession fears lingering and investors eager for any clues about the economy's strength, data on New Home Sales hits on Tuesday and Durable Goods on Wednesday.
(5) Six months of war in Ukraine
Wednesday marks the six-month anniversary of Russia's invasion of Ukraine, or “special military operation,” as Moscow called it.
Not only has it been a humanitarian tragedy and plunged the world into a new Cold War, it has also been a key driver of mounting recession worries, especially in Europe where a gas crisis looms large.
The region's gas prices have nearly tripled since June alone. Rationing in powerhouse economies like Germany may well be needed, but the ECB, Bank of England and others are adamant they simply must crush the inflation it is fueling.
Other highly sensitive markets have proved remarkably elastic. Wheat and corn — of which Ukraine and Russia are both huge suppliers — have swooped right back down, while Moscow's main source of income, oil, is now selling for less than when the invasion started.
Top Zacks #1 Rank (STRONG BUY) stocks
(1) Arista Networks:This is a $129 communication components tech stock, with a market cap of $40.3B. I see a Zacks Value score of D, a Zacks Growth score of D and a Zacks Momentum score of F.
(2) STMicroelectronics:This is a $37 general semi chip stock, with a market cap of $34.4B. I see a Zacks Value score of B, a Zacks Growth score of B and a Zacks Momentum score of B.
(3) Extra Space Storage: This is a $212 REIT and Equity Trust stock, with a market cap of $28.5B. I see a Zacks Value score of F, a Zacks Growth score of C and a Zacks Momentum score of B.
Want key ETF info delivered straight to your inbox?
Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
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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.