The yield on the benchmark 10-year Treasury note fell below 2% for the first time since November 2016 on Wednesday — breaching a key psychological level.Bondsread more
The Fed came very close to promising a rate cut Wednesday, and now markets are focused on a possible July rate cut.Market Insiderread more
Markets had expected the central bank to keep its benchmark interest rate steady while setting up a cut at the July meeting.The Fedread more
Powell said policymakers are concerned about some of the recent economic developments and see a growing case for easier policy.The Fedread more
Amazon and Blue Origin founder Jeff Bezos gave more insight into his space company's lunar plans on Wednesday.Technologyread more
As the presidents of U.S. and China near a highly anticipated meeting on trade, the gap in both sides' expectations regarding a deal remains wide.World Politicsread more
Delta warned travelers that a technical problem could delay flights on Wednesday.Airlinesread more
The Fed chief said that despite reports that Trump was looking to demote or fire him, he doesn't plan on leaving anytime soon.The Fedread more
If the Trump administration and Congress fail to reach a spending agreement, the White House will offer to keep the government funded at its current levels for a year, Mnuchin...Politicsread more
With bold and targeted steps, economists say, government can increase opportunity and incomes for many more people in ways that strengthen, not weaken, American capitalism.Politicsread more
Investors need to be cautious because the economy will get hurt the longer the trade war drags on, Jim Cramer says.Mad Money with Jim Cramerread more
Investors are getting too weighed down by worry and aren't focusing enough on all the stock market has going for it, according to Credit Suisse.
That's the wrong way to look at things, the bank's strategists said in a lengthy report for clients. Credit Suisse is projecting the to end the year at 3,000, representing a 13 percent gain from Tuesday's close.
"While each issue has merit, we believe investors are under-estimating the market's potential upside, and over-estimating risks," said Jonathan Golub, Credit Suisse's chief U.S. equity strategist.
Despite blowout Apple earnings, the stock market continued to struggle on Wednesday. The S&P 500 is little changed on the year.
In addition to the aforementioned concerns, Golub noted fears about whether economic growth won't meet lofty expectations and signals being sent from the bond market, where a narrower gap between government bond yields is kindling fears that a recession is looming.
What he thinks they should be focusing on, though, are the many positives.
For one, corporate America is in the midst of its best earnings season in nearly eight years, with profits on track to grow more than 23 percent. Golub called the pace "unheard of" for an expansion that has been going on this long — since mid-2009.
The economy also looks strong.
Credit Suisse is projecting 2.8 percent GDP growth this year, and Golub pointed out that Institute for Supply Manufacturing readings are at a level that would make a recession historically unlikely for at least the next 12 months.
As for the market itself, the pullback that has brought major averages into correction territory — 10 percent or more declines — has made valuations much more attractive. The now trades about 16 times earnings after being above 18 times at the start of the year.
Even the increased volatility is a positive sign.
The Cboe volatility index, a popular gauge of market fear, spiked above 38 in early February. Readings above 25 have been followed by three-month returns of 6.9 percent in the S&P 500, according to Golub.
"Historically equity returns have been robust following spikes in volatility," Golub said.
Golub's optimism comes at a time when the mood is otherwise downbeat. Investors responding to the American Association of Individual Investors weekly survey report cash positions at an 11-month high, and investing guru Mark Mobius warned on Wednesday of a coming bear market that could see a 40 percent plunge.
However, Golub said business sentiment remains strong even if investors are pessimistic. Capital spending is on the rise following last year's corporate tax cut, and small business and consumer confidence surveys continue to indicate an upbeat climate.
"While the current recovery is one of the longest in history, it is also the slowest. This should naturally extend the cycle," Golub wrote.