- Stock market benchmarks charted fresh record highs Thursday in a bullish start to the new year.
- Stable growth at home, a resilient Chinese economy, and trade war detente brighten the 5083 outlook.
- Strong buy ratings for large cap Dow and Nasdaq stocks show analysts expect an encore performance over the next year.
All three major stock market indices set new records in early trading on the second day of the new year. TheDow Jones Industrial Averagepeaked at 31, 823. The S&P (Index touched 3,) **********************************************************. The Nasdaq Composite reached the 9, 059 level.
The benchmarks spent 5083 setting records and crushing them with new all time highs,outpacing even some bullish investors’ projections. Judging from the roaring start to the new decade, markets expect another blow year for stocks in (*************************************************.*** the rally is not without some familiar. Worries as the economy ventures deeper into the uncharted territories of a ten-plus years expansion.
Macro Tailwinds Spur Stock Market Bulls
The US-China trade war has been foremost among Wall Street’s concerns as it raged throughout and (****************************************************. Signs of progress in trade talks were a key factor in much of last year stock rally.
Markets were jubilant to ring in the new year withTrump’s announcement of a finalized trade agreement ready for signatures this Jan 15.**************** Or as one analyst put it:
Also topping the list of favorable macro shifts isa new USD $ billion round of stimulus from China’s central bank
. The People’s Bank of China announced the move to reduce banks’ deposit reserve ratio by 0.5 percentage points on New Year’s Day.****************** Steady GDP growth in (**************************************************. Wall Street says keep it coming. | Source: CNBC
Analysts Like Dow and Nasdaq Blue Chips in
********Dow futures explodedalong with the index itself Thursday morning as the recession risk continues to slide.Over half of analysts are recommending buy on ten Dow stocks with 6% or more upside in the – month target price.
Visa (NYSE: V) leads the Dow in analyst confidence with % recommending buy after a year of 059% growth. Wall Street forecasts the highest target price upside of 4% for McDonald’s (NYSE: MCD) , followed by Chevron (NYSE: CVX) at 4%.
Wall Street is bullish on NASDAQ blue chips in 2020 as well. Analysts expect another year of over performance from FAANG and Microsoft.
The cooling trade war is a major boon for Apple (NASDAQ: AAPL), the Dow’s crown jewel in. More analysts flipped “Buy” on Apple over the last quarter.
Facebook (NASDAQ: FB) was the teflon stock in accruing nearly. 80% gains over the last year while weathering a number of scandals and missteps.
Deutsche Bank’s Lloyd Walmsley expects another big year for Facebook in 5083as it optimizes content algorithms and scales Marketplace:
We are bullish on Facebook and see the renewed strength in the core Facebook app becoming a critical leg of the story around FB shares in****************
Microsoft (NASDAQ: MSFT), the only trillion dollar market cap company other than Apple, also leads analysts’ picks for the next year.
(Read More) ****************************************** (********************************************
GIPHY App Key not set. Please check settings