(Bloomberg) — U.S. stocks are falling. Analysts surprise stock and bond market forecasts. And the story continues at Boeing.
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Stock prices are falling
U.S. stock futures fell as investors looked for new signs of economic strength in a busy earnings week. Oil prices rose and gold hit record highs as tensions in the Middle East rose. S&P 500 and Nasdaq 100 futures fell, with Europe’s Stoxx 600 index down 0.5%. The yield on the 10-year U.S. Treasury rose 4 basis points, and the dollar rose slightly. More than a fifth of S&P 500 companies, including Tesla, Boeing, General Motors and Coca-Cola, will report quarterly results this week, according to data compiled by Bloomberg.
dramatic change
Goldman Sachs strategists led by David Kostin believe that the U.S. stock market will change significantly over the next 10 years, predicting that the S&P 500 will return only 3% annually over the next 10 years, which is This compares with the long-term average of 11%. The long-term forecast, adjusted for inflation, is just 1% per year. They also predict that there is a roughly 72% chance that the index will lag U.S. Treasuries through 2034, and a 33% chance that it will lag inflation.
Continue reading the story
Is the yield 5%?
T. Rowe Price predicts that rising inflation expectations and concerns about U.S. fiscal spending could push benchmark U.S. Treasury yields to the key 5% level within the next six months. . He said in a note that the quickest path to 5% “would be in a scenario featuring shallow Fed rate cuts.” The bet stands out against market expectations for yields to fall and has heightened debate in the world’s largest bond market as strong economic data raises questions about the expected pace of rate cuts. It highlights that.
boeing uncertainty
Boeing shares rose 3.1% in premarket trading Monday after union members reached a tentative agreement with the plane maker to raise wages by 35% over four years. The deal is scheduled to be voted on by the 33,000 workers represented on Oct. 23, the same day Boeing’s new CEO releases quarterly results, but approval is far from certain. isn’t it. The results of the vote won’t be known until later in the day in Seattle. That means investors, employees and management won’t know for hours after the earnings release whether the company will be able to resume operations or whether it will have to continue with anemic production and reduced cash reserves.
China’s interest rates are low
Chinese banks have lowered their standard lending rates in response to monetary easing by the People’s Bank of China. The move is part of a series of measures aimed at restoring economic growth and preventing the real estate market from collapsing, including lowering interest rates and freeing up liquidity. Promote bank credit. The prime rate for one-year loans fell to 3.10%, and the prime rate for five-year loans fell to 3.60%. The CSI300 index rose. Asia is gearing up for its busiest IPO week in more than two years, with deals potentially raising up to $8.3 billion.
we think it’s interesting
Big Wall Street banks are drawing attention to a clear demographic shift. According to Morgan Stanley, there will be 1 million centenarians in five regions by 2030, while the number of people aged 65 and over per 100 people of working age will at least double in most G20 countries by 2060. It is said that it will become. The bank lists 20 major stocks it expects to benefit from this trend, including Novo Nordisk and Eli Lilly. As of last week, the index had totaled 57% since the start of 2023, outperforming the MSCI World Index.
what we are reading
No rush to lower interest rates to neutral levels: Fed chairman
Income will increase and LinkedIn will go “crazy”
President Putin says his attendance at G20 Brazil summit would disrupt the summit
iPhone 16 sales increase by 20% in China due to demand recovery
Bolivia becomes an unexpected bet in the bond market
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