what looks to be another record setting day on the street. >> It does. Um and led by a different group uh than we got used to for most of this year.So yeah, talking about this very very aggressive rotation toward cyclicals. It's been the takeaway from the net dovish message from the Fed. Uh what's interesting is now that we are basically within a few points of the old record in the S&P, it's 6 weeks ago, so you're basically at the same level the S&P 6 weeks ago.You have banks up like 7% since then. Uh trans ...

Spencer Platt/Getty Images Bank of America's Joe Quinlan is bullish on cyclical stocks for 2026. The bank's top markets strategist highlighted sectors like industrials, materials, and financials. Economic growth, rate cuts, and fiscal stimulus are set to boost cyclical stocks, Quinlan said. Tech stocks have driven a disproportionate share of the market's gains in recent years. Now, it's time for them to share the limelight, says Joe Quinlan, the chief market strategist at Bank of America. "There's ...

Tech stocks have driven a disproportionate share of the market's gains in recent years. Now, it's time for them to share the limelight, says Joe Quinlan, the chief market strategist at Bank of America. "There's plenty of places to put money to work better other than, say, Mag 7," he said, referencing the largest stocks in the S&P 500 by market capitalization.Specifically, cyclical stocks should start to look attractive next year, Quinlan said, calling the theme his highest-conviction investing idea right n ...

Core Insights - Archrock, Inc. (AROC) reported strong third-quarter results, but political factors are overshadowing these positive outcomes [2] - The oil and gas industry is characterized as a boom-bust, cyclical sector, requiring patience and experience for successful investment [2] Company Analysis - Archrock is being analyzed for its balance sheet, competitive position, and development prospects within the oil and gas sector [1] - The focus is on identifying undervalued and under-followed oil companies, as well as out-of-favor midstream companies that present compelling investment opportunities [2] Market Sentiment - The market is currently cautious about the potential outcomes in the oil and gas sector, despite Archrock's good performance [2] - Investors in the oil and gas space are encouraged to engage in discussions and share insights through active chat rooms provided by investment groups [2]

Core Insights - The book "How to Make Money in Any Market" emphasizes the importance of growth stocks, which consistently perform well across different market conditions [3][4] - The author advocates for a strategy that combines index funds with select growth stocks to enhance portfolio performance [5][8] Investment Strategy - Focus on companies with scale that have shown resilience during economic downturns and possess low debt levels [6] - The author suggests that traditional sectors like food stocks may no longer be reliable investments [7] Research and Analysis - Understanding financial statements, particularly balance sheets, is crucial for making informed investment decisions [7] - The book highlights the significance of reading conference call transcripts, with a particular emphasis on insights from CFOs rather than CEOs [11][12] - The sentiment of analysts during conference calls can indicate potential stock performance, with negative analyst sentiment suggesting a decline [12][13]

Core Viewpoint - The Federal Reserve has resumed its rate-cutting cycle, which is expected to create new investment opportunities in the stock market, particularly in small and mid-cap stocks, cyclical stocks, and sectors like technology and consumer discretionary [1][6]. Group 1: Bank of America - Investment focus is on small and mid-cap stocks, which are showing signs of recovery amid optimism regarding Fed cuts and potential profit rebounds [3]. - Many small and mid-cap stocks are still undervalued, trading at historically low valuations, indicating potential for growth [3][4]. - An optimistic technical setup is emerging for small and mid-cap indices, suggesting a broader support for these stocks [4]. Group 2: Goldman Sachs - Investment recommendations include technology, consumer discretionary, high-growth stocks, and companies with high floating-rate debt [7]. - Historically, high-growth stocks have outperformed the market during Fed rate-cutting cycles, especially when the economy continues to grow [8]. - Companies with high floating-rate debt have outperformed the S&P 500 by nine percentage points since August, benefiting from lower borrowing costs as rates decrease [8]. Group 3: JPMorgan - Investment strategies focus on emerging markets and cyclical stocks, which tend to outperform defensive stocks shortly after the Fed resumes rate cuts [10]. - Emerging market stocks have historically performed better during Fed rate cuts, partly due to the depreciation of the US dollar and easing monetary policies from other central banks [11].

Core Viewpoint - Home Depot reported better-than-expected earnings, with investors showing mild optimism despite a generally weak earnings outlook for retail stocks this week [3][4]. Financial Performance - Home Depot's revenue for the second quarter was $45.28 billion, slightly below the expected $45.43 billion, while earnings per share (EPS) of $4.68 missed forecasts by 1 cent [5]. - Comparable store sales increased by 1%, marking the largest gain in nearly two years and a significant improvement from a decline of 3.3% in the same quarter last year [6]. Customer Insights - The company noted modest strength in its Do-It-Yourself (DIY) customer segment, with consumers engaging in smaller, seasonal home improvement projects, alongside strength in the Pro sales channel [7]. Guidance and Margins - Home Depot reaffirmed its guidance for the rest of the year, citing strong operating margins as a reason for optimism [8]. - Management acknowledged that while tariffs may increase prices on some products, over 50% of its products are sourced domestically and are not subject to tariffs [9]. Market Position and Economic Context - Home Depot and its competitor Lowe's are considered cyclical stocks, typically outperforming in a strong housing market but lagging in a tight market [10]. - Economic uncertainty is cited as the primary reason for consumers deferring large projects, indicating that broader investor confidence is crucial for stock performance [11]. Stock Forecast - The 12-month stock price forecast for Home Depot is $427.76, representing a 5.25% upside based on 26 analyst ratings [13]. - The stock has shown less volatility compared to larger tech stocks, maintaining a general uptrend since June [13]. - Technical indicators suggest that while the stock appears strong in the near term, it may be entering overbought territory [14][15]. Technical Analysis - Key near-term support levels are identified at around $400 and $391, with immediate resistance at the $409-$410 level [16]. - The stock is currently trading at approximately 26 times forward earnings, slightly above the sector average and its historical average [15].

Core Viewpoint - The contraction in consumer spending in the United States for the first time in nearly two years indicates potential weakness for consumer cyclical stocks and the broader economy [1] Group 1: Consumer Spending and Market Sentiment - Weakening consumer data may lead to a shift towards "defensive" stocks, as investors seek safety amid potential market volatility [2] - If further contractions in consumer spending are reported, capital may gradually shift from cyclical stocks to defensive names [2][4] - Recent performance indicates a rotation towards defensive stocks, with consumer staples outperforming discretionary stocks by 10.5% over the past month [5][6] Group 2: Institutional Activity and Stock Recommendations - Institutional investors have increased their holdings in consumer staples ETFs by 11.6%, while $3.5 billion was sold in discretionary ETFs, highlighting a clear rotation [7] - Colgate-Palmolive is highlighted as a stable investment with a 12-month price forecast of $101.61, indicating a potential upside of 9.57% [8][10] - Exxon Mobil is also noted for its momentum, with a 12-month price forecast of $129.25, suggesting a 20.02% upside [11][12] Group 3: Valuation Insights - Colgate-Palmolive's high price-to-book ratio of 136.2x reflects market willingness to pay a premium for stability amid consumer spending slowdowns [9] - Analysts maintain a consensus price target for Colgate-Palmolive at $101.61, indicating a favorable outlook despite its high valuation [10] - Exxon Mobil's fair valuation is estimated at $135 per share, suggesting further upside potential as reliance on oil remains critical during economic slowdowns [12]