House Democrats contend the $15 per hour minimum wage bill will lift workers who have not seen the benefits of a strong economy.Politicsread more
The Philadelphia Fed saw its primary gauge measuring the sector jump from 0.3 in June to 21.8, far better than Wall Street estimates of 5 and the highest in a year.Economyread more
Stocks erased earlier losses, but the rise was kept in check as Wall Street digested a mixed batch of corporate earnings results.US Marketsread more
"It's better to take preventative measures than to wait for disaster to unfold," Williams told the annual meeting of the Central Bank Research Association.The Fedread more
The fact that interest rates are relatively low makes the idea of a so-called insurance rate cut later this month an attractive option for the Fed.Market Insiderread more
Video of the event does not show the president disagreeing with his supporters. Instead, it shows that Trump paused as the chant began, allowing his supporters to continue...Politicsread more
President Trump said he's looking at the JEDI Contract that will be awarded to Microsoft or Amazon.Technologyread more
Wealthy clients liquidate some investments every year to cover their tax bill, so presumably this was higher than what Morgan Stanley has seen previously.Financeread more
Hacker Square at Facebook's headquarters pays homage to the company's early motto of moving fast and breaking things.Technologyread more
It's tempting to view Netflix as a possible replacement for the entire media ecosystem. But execs on its Q2 earnings call showed lower ambitions: It just wants to create the...Technologyread more
These are the stocks posting the largest moves midday.Market Insiderread more
JPMorgan told clients to buy health-care stocks and sell staples shares because income investors will rotate into more reasonably valued parts of the market that still have sturdy dividend and earnings growth.
"Similar to Low Vol (relative to Value), staples appears to be in a bubble (relative to Healthcare) after outperforming by 20 percent in the past year and it trades at a record valuation spread of more than 5x turns on PE NTM, " JPMorgan U.S. equity strategist Dubravko Lakos-Bujas wrote in a note Tuesday. "We believe staples has become crowded during this cycle after a rotation triggered by the Fed turning more dovish, zero rates abroad, and stabilizing USD."
He upgraded the health-care sector to overweight and downgraded the staples category to underweight on "a convergence sector trade."
Staples has a forward P/E valuation of 22 times versus the health-care sector at 16.5 times, according to the strategist.
Lakos-Bujas doesn't believe the valuations are "justified by the fundamentals" as staples historically trade at a discount to health care on lower growth prospects and profit margins. Health-care stocks are currently estimated to increase sales in the coming year 6.4 percent versus staples at 3.8 percent, according to Lakos-Bujas.
"Drug pricing headlines and political rhetoric have been drivers of health-care sector underperformance over the last year. ... We see limited read-through to business fundamentals as successful reform would require considerable alignment in Washington. We recommend using any headline related pullbacks to add Healthcare exposure," the report said.
Here are seven of the top health-care picks from JPMorgan.