CNBC Pro: Bank of America announces its global picks for this quarter, giving a stock over 100% upside potential
Interest rate hikes, rising energy prices and political turmoil in some parts of the world hurt equities in the final quarter of this year.
To help investors navigate the volatility, Bank of America has released its top “short-term stock picks” for the next quarter, which it expects will “significantly outperform” its peers.
CNBC Pro subscribers can read about five of their stock picks here.
— Ganesh Rao
The dollar index falls back to 110
One factor that could help equity markets on Tuesday could be a slightly weaker dollar, falling for the fifth straight day.
The DXY US Dollar Currency Index was down 1.5% to 110.06 in afternoon trade. The index traded as low as 114.78 last week amid concerns of a collapse in the UK government bond market.
The British pound and euro were each up more than 1% against the dollar on Tuesday. The greenback was also down against the Japanese yen.
– Jesse Pound, Gina Francolla
CNBC Pro: Market Headed For “Best Week Of The Year,” Says Pro – And Names 2 Stocks To Play It
Market veteran Phil Blancato, whose firm has more than $4 billion in assets under management, said he expects next week to be a “turnaround week” for markets.
Investors should jump at the chance to “get into the market,” he said, naming two stocks to benefit from the upcoming rally.
Pro subscribers can read more here.
– Zavier Ong
Stifel’s Barry Bannister says there is “room for a rally” after two straight days of gains
Stifel equity strategist Barry Bannister said shares could continue to rise after this week’s sharp two-day rally.
“I don’t think you have to worry about a recession until the second half of 23,” Barry Bannister, Stifel’s chief equity strategist, said Tuesday on CNBC’s Closing Bell: Overtime. “So there’s room for a rally as you go into the early part of next year.”
The strategist said there could be a “conditional pause” at the December meeting while the Federal Reserve reviews the impact of its rate-hike plan on inflation.
“The leading inflation indicators are all falling, global liquidity has tightened quite a bit. They don’t want to kill the patient to cure the disease,” Bannister said. “And if the data continued to go its way, then the pause would last, and if the data didn’t go its way, it would wander again and we’d go right back down.”
– Sarah Min
CNBC Pro: This isn’t the market bottom, says Morgan Stanley, listing 3 things that need to happen first
According to Morgan Stanley, unless three conditions are met, there is unlikely to be a sustained market bottom.
“We…remind readers that the last few innings of any bear market are very difficult to trade as volatility becomes extreme,” they wrote. “None of the conditions we were looking for to end this bear market are in place.”
Pro subscribers can read more here.
— Wheat Tan
European Markets: Here are the opening calls
European stocks are heading for a lower open on Wednesday, bucking a positive trend seen in the previous session.
According to data from IG, the UK FTSE index is expected to open 27 points lower at 7,059, the German DAX 59 points lower at 12,606, the French CAC 40 25 points lower at 6,005 and the Italian FTSE MIB 112 points lower at 21,426.
The declines expected on Wednesday come after European markets rallied yesterday and the pan-European Stoxx 600 closed 3% higher. Travel and leisure stocks rose 6.1%, leading gains as all sectors and major bourses entered positive territory.
Sterling rose on Tuesday after the UK government’s dramatic policy reversal, and UK government bond yields also fell after last week’s sharp sell-off.
Data releases on Wednesday include final euro-zone PMI data for September and German import and export data for August. Revenue comes from Tesco and Bang & Olufsen.
— Holly Ellyatt