Amphenol is benefiting from improved end-market demand and strategic acquisitions. Solid free cash flow generating ability is expected to help it sustain current dividend payout level. Ecolab’s robust product portfolio and long-term business potential raise optimism on the stock. The company’s focus on R&D, acquisitions and cost-efficiency program are other growth catalysts. Below is a table of blue-chip stocks that are reporting earnings per share (EPS) in March, with the dates and analyst estimates for their upcoming earnings reports, and the results of their previous earnings reports.
- US business leaders are gaining confidence in the US economy, and a new sentiment reading clocked in above trend for the first time since 2021.
- New York Community Bancorp upstaged Powell’s testimony for traders—bond yields retreated on a report it was seeking a cash infusion.
- The market’s early-year performance has been impressive up to this point, and investors are hopeful that momentum can continue in March.
- Mr. Duggan is a graduate of the Massachusetts Institute of Technology and resides in Biloxi, Mississippi.
- News & World Report, Seeking Alpha, InvestorPlace.com and The Motley Fool.
Sector rotation is an active investing strategy that involves moving money between sectors in an effort to keep it in the best-performing sectors at all times. It often uses exchange-traded funds (ETFs) that track specific sectors — such as tech ETFs or energy ETFs. Sector rotation is an investment strategy that tries to find out — and profit from that information. However, this moment — the likely peak of interest rates for the time being — may be a good time to check whether your investment portfolio is diversified across both stocks and bonds.
March 2024 Stock Market Forecast
This considers what is expected to be something of a bumpy ride through the rest of the year where the labor market can still soften, but sets up a stronger “recovery” looking out towards 2024 that can be positive for stocks. It’s been a good start to the year for stock market investors with the S&P 500 (SPX) up more than 7%, and well above the cycle lows. This follows a historically difficult 2022 with the index ending more than -18% lower which featured some extreme volatility.
“Gas is struggling to find it’s legs as weather bearishness persists, but LNG feedgas is ramping back up so that should give us a bit of support,”Gary Cunningham of Tradition Energy says. “If another major announces any output cuts in the coming days, or we get a withdrawal in the high 40s, we could test $2 on April.” There is little market response to reports that a Houthi rebel attack on a cargo ship in the Gulf of Aden killed two crew members and injured others–the first reported deaths among crews since the attacks began in November. Another hint about the Fed’s future decisions is the “dot plot” that is released after every other meeting, as part of the Fed’s summary of economic projections.
Zacks Analyst Reports
Beyond a correction lower to commodity and energy prices, and easing supply chain conditions, trends in core categories are seen slowing. Over the next few months, the CPI index will begin hitting tough year-over-year comps pushing the annual rate even lower. This narrative was part of the message from Fed Chairman Powell at the February Fed meeting pointing to the disinflation process while recognizing the process is not completely over yet. The data have worked to brush aside the scenario that the U.S. economy was facing a so-called “hard landing”, defined by a deepening recession bringing back parallels to the financial crisis back in 2008.
Things really start to get interesting when you look at the probabilities for the June meeting, however. At the time of writing, FedWatch gives the Fed a 51% chance of cutting rates by 25 basis points — and a 12% chance of cutting them by 50 basis points. The Labor Department reported the U.S. economy added 353,000 jobs in January, far exceeding economist estimates of 185,000 new jobs. December and January represent the first time the U.S. has reported back-to-back months adding more than 300,000 jobs since June and July of 2022. The bond market is pricing in just a 3.0% chance the FOMC will cut rates at its March meeting.
Analysts see 17.8% upside for the energy sector in the next year, more than any other market sector. The market’s early-year performance has been impressive up to this point, and investors are hopeful that momentum can continue in March. March and April have historically been a strong https://www.investorynews.com/ two-month stretch for the S&P 500. For now at least, analysts are anticipating S&P 500 earnings growth will continue to accelerate in the first half of 2024. Analysts project S&P 500 earnings will grow 3.9% year-over-year in the first quarter and another 9% in the second quarter.
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They found that sector rotation strategies tend to underperform simpler strategies. As we wrote in our February outlook, trading on financial news events like Federal Reserve decisions can be hard to do profitably, because the market prices in information very quickly. Futures traders will be doing the same — but about interest rate cuts, rather than basketball. Wall Street analysts project about 8% upside for the S&P 500 in the next 12 months.
Zacks Research is Reported On:
FedWatch data suggests that there will probably be no cut at the May meeting, either — but the odds aren’t quite as slim as for March, at the time of writing. As of late February, FedWatch is showing a probability of less than 3% that the Fed will cut rates in March. David Bahnsen, chief investment officer at The Bahnsen Group, says the recent enthusiasm for tech stocks reminds him of the dot com bubble https://www.forex-world.net/ and investors should tread carefully. “The Fed minutes are showing that we’re still likely a few meetings away from a rate cut,” Swanke says. Most of that though has already been priced into markets, according to Ian Shepherdson, the chief economist of Pantheon Macroeconomics. US stocks rose on Wednesday as traders took in Federal Reserve Chair Jerome Powell’s prepared remarks before Congress.
The company is investing in growth, innovation, cost savings and automation. Block’s comprehensive commerce ecosystem, accelerated business growth and entry into bitcoin space remain major positives. Gas futures have risen on recent announcements of production cuts by major producers, although mild temperatures have reined in demand. New York Community Bancorp upstaged Powell’s testimony for traders—bond yields retreated on a report it was seeking a cash infusion. But they stabilized as the stock surged back in the wake of a $1 billion investment from a group that includes Liberty Strategic Capital, Hudson Bay Capital, and Reverence Capital. So sector rotation may not be a silver bullet, at least with the sector rotation methods we have today.
You can see the full Zacks #1 Rank List or narrow it down to Zacks #1 Rank Stocks with a Value, Growth, Momentum or Income Style Score of A or B. You can also sort the list with criteria you choose, view Additions and Deletions by day, and Performance. Zacks Rank Home – Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners. Central Garden & Pet has been advancing digital capabilities, optimizing its supply chain, expanding data analytics capability and focusing on marketing activities to better engage with customers. Resumption of the payment of quarterly dividend highlights its shareholder-friendly stance.
At its last meeting in January, the Federal Open Market Committee opted to maintain interest rates at their current range of 5.25% to 5.5%, its highest target range in 22 years. Economists are expecting the FOMC to continue to maintain interest rates at current levels at its next meeting that concludes on March 20. Inflation, interest rates and the labor market will likely continue to dominate Wall Street headlines in March. Meanwhile, fourth-quarter earnings numbers have been better than expected as companies are effectively managing rising costs and interest rates that are at 22-year highs.
While investors have cheered impressive earnings and all-time highs for the market, the S&P 500’s forward price-to-earnings ratio has crept up to 20.4, about 15% above its 10-year average of 17.7. As prices continue to rise, it is hard to find signs of cooling in the hot U.S. labor market. Core PCE inflation, which excludes volatile food and energy prices and is the Fed’s preferred inflation measure, was up 2.8% in January. That was in-line with economists’ estimates but still above the FOMC’s 2% long-term target.
Signs that inflation is easing have opened the door for the Fed to back off on its pace of aggressive rate hikes sooner rather than later. Companies emerging stronger and returning to their path of long-term growth potential highlight the bullish case for stocks. Investors are largely expecting the Fed to keep interest https://www.currency-trading.org/ rates level at its March policy meeting, and have dialed back expectations for aggressive interest rate cuts by the end of the year. Investors are pricing in a 33% chance the Fed will cut rates just 75 basis points by December, according to the CME FedWatch tool, in line with what central bankers have forecast.
Mr. Duggan is also the author of the book “Beating Wall Street With Common Sense” and has contributed news and analysis to U.S. News & World Report, Seeking Alpha, InvestorPlace.com and The Motley Fool. Mr. Duggan is a graduate of the Massachusetts Institute of Technology and resides in Biloxi, Mississippi. The consumer price index, or CPI, gained 3.1% year-over year in January.
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