Main indexes all up ~1.5% or more; Trump announces UK trade deal
Industrials lead S&P 500 sector gainers; Healthcare sole loser
Dollar advances; crude up >3%; gold down >1.5%
Bitcoin rallies >4.5%; above $100k for first time since Feb 7
US 10-Year Treasury yield rises to ~4.36%
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AS TARIFF UNCERTAINTIES WEIGH, BARCAP FAVORS VALUE AND YIELD STOCKS
Technology stocks have rebounded from a sharp selloff after President Donald Trump announced larger than expected trade tariffs in April and then paused them for 90 days, but uncertainties over trade levies and their impact on the economy remain.
For that reason value and yield stocks are likely better bets than growth, momentum and high volatility stocks for the near term, according to equity analysts at Barclays Capital.
“In a volatile, uncertain, and recession-prone environment, high Yield, low beta Value stocks offer relative safety. Macro and trade risks favor Value's domestic tilt, while Yield is attractive on valuations and tends to outperform in selloffs,” the analysts said.
Easing inflation could help growth stocks, but the impacts from tariffs remain a risk. Barclays is neutral on growth, citing its high beta and weak fiscal year earnings revisions relative to historical trends, outside of mega-cap tech companies.
The bank also maintains a negative outlook on momentum and high volatility stocks, “given their higher correlation in a volatile market; Low Volatility strategies consistently outperform other styles in distressed markets.”
Barclays also favors large caps over small caps, citing their better exposure to quality, better sales/EPS growth and much lower leverage and refinancing risk.
(Karen Brettell)
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FOR THURSDAY'S EARLIER LIVE MARKETS POSTS:
A RELIABLE BUYER WHEN STOCKS WOBBLE? COMPANIES CLICK HERE
LABOR MARKET: EYE OF THE HURRICANE? CLICK HERE
U.S. STOCKS CHEER EXPECTED TRADE DEAL WITH BRITAIN - CLICK HERE
CHIP STOCKS POWERING UP ON THE CHARTS CLICK HERE
US BULLS SAY ECONOMY WILL BOOM NO MATTER WHAT CLICK HERE
ALPHABET SHORT-SELLERS CLOCKED MORE THAN $800 MILLION IN PROFITS ON WEDNESDAY'S SLIDE CLICK HERE
MOVING ON UP CLICK HERE
EUROPE BEFORE THE BELL: DEAL TIME CLICK HERE
MORNING BID: ARMED CONFLICTS RAGE, BUT HOPES EMERGE FOR A TRADE WAR THAW CLICK HERE
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