The central bank is not normally in the business of easing into an economy that is showing few signs of a recession, generally holding fire until more pronounced signs of a...The Fedread more
His case for gold comes as central banks get more aggressive with policies that devalue currencies and are about to cause a "paradigm shift" in investing.Marketsread more
CSX said it expects revenue to fall as much as 2% in 2019, well below a previous forecast of an increase of 1% to 2%.Marketsread more
Challenging conditions in the U.S. housing market, along with tighter currency controls by the Chinese government, cause a stunning drop in foreign demand for American homes.Real Estateread more
The growth in net interest income, a main engine of the industry's profit, looks to slow to a halt in the back half of this year.Banksread more
Here's how Amazon sells ads, and why it has a natural edge over Google and Facebook in some areas.Technologyread more
Netflix reports earnings Wednesday as it loses licensed shows to rivals launching their own streaming services.Technologyread more
Federal Judge William Pauley wrote in a court filing made public Wednesday that materials related to Cohen's campaign-finance probe should be unsealed — and denied a request...Politicsread more
The "'Cadillac tax," set to go into effect in 2022, is unpopular with both Republicans and Democrats, who say it punishes the middle class.Health and Scienceread more
Facebook's head of Calibra David Marcus is grilled during a House Financial Services Committee hearing over the company's digital currency plans.Technologyread more
Gov. Phil Murphy of New Jersey announced a lawsuit against the IRS and Treasury Secretary Steven Mnuchin, responding to new, final rules from the IRS that would largely block...Personal Financeread more
Investors looking for a year-end strategy may want to consider some beaten-down sectors.
Historically, those that have lagged the broader market in first 11 months of a year tend to turn around in the subsequent trading year, according to analysis from Jefferies.
"Lagging groups in one year do not tend to lag in the next," Jefferies equity strategist Steven DeSanctis wrote in a note to clients Monday.
Looking back to 1990, the firm found that the six worst-performing industry groups from January through November have tended to outperform by 92 basis points in December through May.
It's "not a huge number, but at least the bleeding tends to stop," DeSanctis said.
Individual names in underperforming sector groups that fit that strategy this year include Broadcom, Ford Motors, KeyCorp, NXP, Invesco, General Mills and Commercial Metal, all of which Jefferies has a "buy" rating on.
DeSanctis pointed to a few macro events that set the stage for new leaders in the market — Democrats won control of the House of Representatives, U.S. crude oil is giving up year-to-date gains, 10-year yields are rising, and value stocks have been outperforming.
"All these changes come at a time of year when investors are looking for rotation candidates," DeSanctis said. "This makes some of the lagging groups that had been on the wrong side of the above trends worthy of further examination."
High-growth tech stocks had been a favorite for investors during the historic bull market. But in the past month, they have been pouring into defensive groups, which tend to provide a stable dividend regardless of stock market conditions. There also seems to be more interest in cyclicals such as autos, housing, banks and materials stocks as investors "seek value in equities that have been discounting a slowdown, are less crowded, or for which things are arguably getting less bad," DeSanctis said.
U.S. stocks closed more than 300 points higher on Monday, helped by a rise in those beaten-down tech stocks that saw steep losses last week.