Howmet Aerospace trading at all-time highs back to its Alcoa spinoff in Nov, 2016.Huntington Ingalls trading at levels not seen since Nov, 2022.WW Grainger trading at all-time high levels back to when it began trading in 1967.FedEx trading at levels not seen since Aug, 2021.Fastenal trading at levels not seen since Jan, 2022.Cintas trading at all-time high levels back to its IPO in 1983.Boeing trading at levels not seen since June, 2021.Royal Caribbean trading at levels not seen since Feb, 2020.traded at all-time high levels back to post-bankruptcy IPO in Nov 1993 Marriott International traded at all-time high levels back through its spin-off from Marriott Corp in 1993.Lululemon traded at all-time highs back to its IPO in July 2007. Lennar traded at all-time high levels back to when it began trading in 1971.Horton traded at all-time high levels back to its IPO in June 1992 Chipotle Mexican Grill traded at all-time high levels back to its IPO in January 2006.Booking Holdings traded at all-time highs back to its IPO in April 1999.T-Mobile traded at all-time highs back to the MetroPCS IPO in April, 2007.Overall, 52 S&P 500 components made new 52-week highs. The bearish bottom line for investors is that bank stocks don't win higher price-to-earnings multiples "when credit is deteriorating."Ī slew of S&P 500 names reached their highest levels in a year Monday, as the market tried to keep its six-week winning streak going. More worrying still is that easier monetary policy in 2024 won't help, because in past credit cycles, net charge-offs by banks "have continued to increase even after the Fed begins to cut" interest rates, Morgan Stanley said. Given that have historically moved in tandem with HY bond defaults," that's likely to mean net charge-offs on commercial and industrials loans "will rise in the coming quarters." At the same time, "defaults on high-yield bonds have begun to rise. Nonaccrual commercial real estate loans for banks covered by Morgan Stanley jumped 40% in the third quarter compared with the second, and about 140% year-to-date. Fed funds futures pricing suggests a roughly 40% likelihood that the central bank will lower rates by a quarter of a point in March.Ĭorrection: An earlier version of this story misstated the price movement in Macy's shares.īank stocks are cheap but unlikely to rally so long as investors anticipate a surge in bad loan losses in 2024, Morgan Stanley analysts led by Manan Gosalia wrote to clients Monday.Ĭurrent stock prices reflect an assumption that loan loss provisions will reach 1% of average loan ratios "across the group for 2024, which is 2x levels seen during the Tech Bubble and 3x 2015-2016 peak," and twice Morgan Stanley's own assumptions for next year, the analysts said. Chair Jerome Powell is also expected to reiterate his commitment to lowering inflation in his press conference on Wednesday. The Fed is expected to maintain the fed funds rate steady in the 5.25%-5.5% range. Shares of Meta Platforms ticked down 2.2%. Tech stocks Apple and Nvidia pulled back 1.3% and 1.9%, respectively, limiting the Nasdaq's gains. Macy's shares rallied more than 19% on news the retailer received a buyout offer for $5.8 billion. "No one expects a hike, but hotter-than-expected inflation readings could throw cold water on the idea that rate cuts are coming sooner rather than later," said Chris Larkin, head of trading and investing at E-Trade. The forthcoming data releases are some of the final obstacles left for markets to remain strong into the end of 2023. In terms of key economic data, November's consumer price index reading is due Tuesday, while the producer price index is set for release on Wednesday. The central bank begins its two-day meeting Tuesday. This week, investors are looking ahead to key inflation data, which could affect market movements and rate policy from the Federal Reserve. The S&P 500 and Nasdaq are coming off their sixth straight weekly gain. The Dow Jones Industrial Average advanced 157.06 points, or 0.43%, to finish the session at 36,404.93 - its highest close since January 2022. The broad market index gained 0.39% to close at 4,622.44, its highest closing level since March 2022. The S&P 500 climbed on Monday as investors tried to continue Wall Street's year-end momentum. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit
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