Midcaps look promising - Kostin
Dow rallies ~0.8%, S&P 500 modestly green, Nasdaq off ~0.4%
Industrials lead S&P sector gainers; Comm Svcs weakest group
Euro STOXX 600 index up ~0.5%
Dollar advances; gold rises; crude up >1%; bitcoin up ~3%
U.S. 10-Year Treasury yield edges up to ~4.42%
Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com
MIDCAPS LOOK PROMISING - KOSTIN
David Kostin, chief U.S. equity strategist at Goldman Sachs, said in the firm's 2025 equity outlook call this week that he sees opportunities for investment in S&P 400 .IDX midcap stocks.
Midcap stocks are "at similar expected levels of earnings growth as larger-cap stocks, but trade at a much lower valuation," he said.
He added that they have a long track record of better performance than large caps and small caps.
If the Federal Reserve cuts rates - and Goldman Sachs expects that will continue for the next six to eight months - "that is going to benefit midcap stocks more than anything else, so they have the greatest torque to a cut in rates," he said.
"The reason for that is the midcap stocks have around 25% of their balance sheet, their borrowings, in the form of floating rate debt," Kostin noted, and "less interest expense means upward revisions to earnings and EPS, which typically drives stocks."
(Caroline Valetkevitch)
*****
FOR THURSDAY'S EARLIER LIVE MARKETS POSTS:
THURSDAY DATA BUFFET: HOME SALES, JOBLESS CLAIMS, ET AL - CLICK HERE
S&P 500 DIPS AS ALPHABET DROPS; NVIDIA FLAT AFTER RESULTS, FORECAST - CLICK HERE
CFRA SETS 2025 YEAR-END S&P 500 TARGET AT 6,585 - CLICK HERE
INDIAN EQUITIES ARE PRIMED FOR A DRAB FEW MONTHS, GS SAYS - CLICK HERE
BUYBACKS TO HELP LAGGING EUROPE - CLICK HERE
HOPE YOU'RE KEEPING UP - CLICK HERE
EUROPE BEFORE THE BELL: BUSY BUSY - CLICK HERE
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
