7 Mins Ago
Gold, Japanese stocks and U.S. stocks all reaching “escape velocity,” one strategist says
Prices for gold, Japanese stocks and U.S. stocks are all reaching “escape velocity,” according to Larry Jeddeloh of TIS Group and The Institutional Strategist newsletter.
With gold at all-time highs (at least nominally), “there is no overhead resistance left,” Jeddeloh wrote Wednesday. “[C]entral banks all over the world have become heavy buyers of gold…the interest of central banks in holding alternatives to sovereign bonds already exists and it will grow,” leaving gold “in orbit.” The short-term target for gold may be $2,440-$2,490 an ounce, and $3,000 long term, he wrote.
Similarly, the Nikkei 225 index of Japanese stocks “has broken out to an all-time high and if I apply a measured move analysis to the chart, the long-term target is about 71,000,” the strategist wrote. “[I]n time and price this market could go a long way,” partly because Japanese stocks are underowned by so many domestic and international investors.
See Chart…
Nikkei 225 index of Japanese stocks over past 12 months.
Finally, the S&P 500 has also “hit escape velocity,” wrote Jeddeloh, who earlier in his career was chief investment strategist at UBS in Zurich. “This is another big cap, liquid market which is on all-time highs, there is no overhead resistance, there is earnings growth, GDP growth, a central bank which is limited in what it can do with interest rate rises, but has a lot of incentive to cut rates. Like Japan, foreign investors do not own enough of SPX,” he wrote. At the same time, “U.S. companies operate global franchises, are technology leaders and next-gen technologies are liquid and have name recognition.”
— Scott Schnipper
35 Mins Ago
Stocks making the biggest moves after hours
Check out the companies making headlines in extended trading.
Levi Strauss & Co — Shares jumped 8% after the company posted an earnings and revenue beat in the first quarter. The apparel company reported adjusted earnings of 26 cents per share on $1.56 billion in revenue. Analysts surveyed by LSEG had expected 21 cents earnings per share on $1.55 billion in revenue. Levi’s also raised its full-year profit guidance.
Blackberry — The cybersecurity stock jumped 7.8% after the company announced better-than-expected quarterly results. BlackBerry reported losses of 3 cents per share, versus consensus estimates of 4 cents losses per share, according to StreetAccount. Revenue came in at $173 million, beating forecasts of 150.5 million.
Simulations Plus — The small cap stock gained more than 7% after releasing its fiscal second-quarter results. The company, which develops software for pharmaceutical drug discovery, topped quarterly estimates on both top and bottom lines. Management also reaffirmed its full-year guidance that came above estimates.
— Hakyung Kim
47 Mins Ago
Stock futures open flat
U.S. stock futures traded near the flatline Wednesday night.
Dow Jones Industrial Average futures inched up just 4 points, or 0.01%.
Futures tied to the S&P 500 and Nasdaq-100 ticked up 0.04% and 0.05%, respectively.
— Hakyung Kim
