Goldman Sachs expects more China real estate defaults, switches to bear case

Real estate and related industries account for more than a quarter of China’s economy, according to Moody’s estimates. CFOTO | Future Publishing | Getty Images BEIJING — Chinese real estate defaults have increased so much that Goldman Sachs analysts have shifted to their worst-case scenario for the riskiest part of the market. Twenty-two China high-yield … Read more

Why China will likely recover more slowly from the latest Covid shock

As Shanghai tries to reopen businesses, one downtown district over the weekend banned residents from leaving their apartment complexes again for mass virus testing. Pictured here, in another district on May 21, 2022, is a line outside a shopping mall. Xu Kaikia | Visual China Group | Getty Images BEIJING — China’s economy won’t be … Read more

Stock futures fall after Dow’s 600 point comeback

Stock futures fell in overnight trading on Monday as the markets struggled to sustain a comeback rally following weeks of losses. Futures on the Dow Jones Industrial Average fell 110 points, or 0.36%. S&P 500 futures dipped 0.76% and Nasdaq 100 futures dropped 1.3%. Zoom Video shares popped 6% in extended trading after sharing strong … Read more

BlackRock downgrades stocks, citing Fed over-tightening and China risk

With the Federal Reserve’s tightening cycle underway and a slowdown in China that rivals the 2020 downturn, BlackRock is shifting its perspective on the equities market. The asset manager on Monday downgraded developed market equities to a neutral rating from overweight as central banks look to combat rising inflation. BlackRock manages about $9.6 trillion in assets, … Read more

Bulls and bears expected today’s rally, but few see it lasting

This is the daily notebook of Mike Santoli, CNBC’s senior markets commentator, with ideas about trends, stocks and market statistics. A fitting market bounce was likely — even if relatively few handicappers seem to have confidence that it’s the start of a trend change. Seven straight down weeks are rare, sentiment and some oversold conditions … Read more

Goldman says hedge funds’ favorites are seeing worst stretch ever

A group of hedge funds’ favorite stocks are having their biggest underperformance ever, leading managers to rotate out of their growth darlings and into cyclical companies, according to Goldman Sachs. The Wall Street firm analyzed the holdings of 799 hedge funds with $2.4 trillion of gross equity positions at the start of the second quarter … Read more

JPMorgan Chase, Gap, VMWare & more

People pass the JP Morgan Chase & Co. Corporate headquarters in the Manhattan borough of New York City. Mike Segar | Reuters Check out the companies making headlines in midday trading. JPMorgan Chase – JPMorgan rose 7% after the bank said it expects to reach key return targets sooner than planned thanks to rising interest rates giving … Read more

Morgan Stanley strategist who called sell-off sees it getting worse, recommends these stocks to weather bear

Morgan Stanley’s Mike Wilson sees further pain ahead in the market, so he recommended certain cheap stocks with upside to weather the downturn. “While we maintain our bearish outlook, it’s no longer out of consensus. However, given the risks to growth are just emerging, it’s too early to get bullish. Biggest areas of risk remain … Read more

18% of Americans plan to increase stock market investments this year

Thianchai Sitthikongsak | Moment | Getty Images The stock market’s roller-coaster ride isn’t inspiring confidence in investors. Still, a small portion do plan to take advantage of recent price dips. About 18% of Americans are willing to put more money into stock market investments this year, including retirement accounts, according to a recent survey from … Read more

There are 3 signs pointing to more market selling ahead, MKM says

Don’t expect the market sell-off to let up yet, according to MKM Partners’ JC O’Hara. The S & P 500 has fallen more than 17% in 2022 and is riding a seven-week losing streak — its longest since 2001. The Dow Jones Industrial Average , meanwhile, posted its longest weekly losing streak since 1923 — … Read more