The performance of consumer discretionary businesses is closely linked to economic cycles. This sensitive demand profile can cause discretionary stocks to plummet when macro uncertainty enters the fray, and over the past six months, the industry has shed 12.3%. This drawdown was noticeably worse than the S&P 500’s 2.1% decline.
Small-cap stocks in the Russell 2000 (^RUT) can be a goldmine for investors looking beyond the usual large-cap names. But with less stability and fewer resources than their bigger counterparts, these companies face steeper challenges in scaling their businesses.
Small-cap stocks can be incredibly lucrative investments because their lack of analyst coverage leads to frequent mispricings. However, these businesses (and their stock prices) often stay small because their subscale operations make it harder to expand their competitive moats.
While strong cash flow is a key indicator of stability, it doesn’t always translate to superior returns. Some cash-heavy businesses struggle with inefficient spending, slowing demand, or weak competitive positioning.
Wall Street slumped under the weight of pressure from the bond market, where Treasury yields climbed on worries about the U.S. government's spiraling debt and other concerns
HONG KONG (Reuters) -Goldman Sachs is merging three Asian investment banking businesses it previously managed separately into a single unit to integrate its regional deals advisory and capital market capabilities, according to a memo reviewed by Reuters. Iain Drayton, head of the Wall Street bank's investment banking business in Asia excluding Japan, will lead the integrated Asia Pacific investment banking unit, said the internal memo issued on Thursday.
Asian shares fell Thursday after Wall Street slumped under pressure from the Treasury bond market and worries about surging U.S. debt. U.S. futures were little changed, while Japan's benchmark Nikkei 225 shed 1.0% in afternoon trading to 36,944.55. Rising yields for U.S. Treasury bonds are a canary in the coal mine, Stephen Innes of SPI Asset Management said in a commentary.
SINGAPORE (Reuters) -Stocks and the U.S. dollar fell on Thursday, while longer-dated Treasury yields steadied near their highest in 18 months as worries of a worsening fiscal outlook in the world's biggest economy remained at the top of investors' minds. The spotlight is on U.S. President Donald Trump's tax bill that is expected to be voted on in the House of Representatives within hours and investors are worried it could add about $3.8 trillion to the $36 trillion U.S. debt pile. The sombre mood among investors after Moody's downgraded the U.S. credit rating last week has left markets slightly listless as a "Sell America" narrative gains traction, with the greenback hovering near its lowest in two weeks against other major currencies.
Investing.com-- U.S. stock index futures moved little on Wednesday evening amid persistent concerns over high U.S. debt levels, with focus squarely on President Donald Trump’s tax cut bill, which investors fear could increase government spending.
Palo Alto Networks shares tumbled on Wednesday as the cybersecurity giant’s mostly in-line guidance overshadowed quarterly results that surpassed Wall Street expectations. Monitor these key support and resistance levels.