Connect with us
  • tg

Stock Markets

Fading risks, fear of missing out may fuel US stocks after near 20% rally

letizo News



Worries that have dogged U.S. stocks for months are fading, pushing some Wall Street firms to raise their outlooks for equities and beckoning investors who have remained on the sidelines. 

Signs of strength in the economy, relief over a deal to raise the U.S. debt ceiling and an interest rate hiking cycle that may be nearing its end have heartened investors and driven the benchmark S&P 500 up nearly 20% from its October low – one definition of a bull market.

Further gains may hinge on whether investors who cut stock allocations to the bone over the last year return to the market. Cash on the sidelines is plentiful: U.S. money market fund assets hit a new record of $5.8 trillion last month, while cash levels among global fund managers remain high relative to history, according to the latest survey from BofA Global Research. 

And while computer-driven strategies have been piling into the market for months, according to Deutsche Bank (ETR:DBKGn), positioning among discretionary investors — a cohort that includes everyone from active mutual funds to retail investors — is lighter than it has been 74% of the time since 2010, the bank’s data showed.

“There certainly seems to be a bit of a more optimistic ring to the market,” said Chuck Carlson, chief executive officer at Horizon Investment Services. “Further strength might beget further strength because of the FOMO factor,” he added, using the popular acronym for “fear of missing out.” 


A stronger-than-expected U.S. economy is one reason for investor optimism, after many spent months girding for a widely expected recession.

Data on Friday showed U.S. job growth accelerated in May, even as the unemployment rate rose to a seven-month high – bolstering the case for those betting the Fed can contain inflation without badly damaging growth.

“Inflation has clearly subsided, and yet labor market strength has remained intact,” wrote BMO Capital Markets chief investment strategist Brian Belski in a recent note.

While a severe recession was his biggest worry at the start of the year, now “the anticipated recipe for disaster is simply not present.” BMO raised its year-end S&P 500 price target to 4,550 from 4,300. The index, which is up 11% year-to-date, closed at 4,267.52 on Wednesday. It is up 19.3% since Oct 12.

Other firms that have issued rosy targets in recent days include Evercore ISI, which now sees the S&P 500 at 4,450 at year end, up from its prior view of 4,150, and Stifel, which anticipates the index will reach 4,400 by the third quarter. BofA late last month raised its year-end target for the index to 4,300 from 4,000.

Another key risk dissipated last week when Congress passed a bill to suspend the debt ceiling, averting a potentially catastrophic U.S. default. “Moving past the debt ceiling and at least having some economic data that looks ok is actually enough to get some people interested,” said Keith Lerner, co-chief investment officer at Truist Advisory Services. Lerner on Monday shifted his expected S&P 500 range for this year up to 3,800-4,500, from 3,400-4,300 previously, citing improving earnings trends among other factors. At the same time, investors have been cheered by signals that the Fed is unlikely to deliver many more rate increases that shook markets over the last year. Bets in futures markets showed investors projecting the Fed would leave rates unchanged at its June 13-14 monetary policy meeting and raise them only once more this year.

Of course, plenty of skeptics remain. John Lynch, chief investment officer for Comerica (NYSE:CMA) Wealth Management, said the S&P 500 could retest its October lows with “elevated interest rates and tighter credit standards weighing on economic activity for the remainder of the year.” Another worrisome signal is the fact that the S&P 500’s gain this year has been spurred by just a handful of mega cap stocks like Microsoft (NASDAQ:MSFT) and Nvidia (NASDAQ:NVDA), which have been fueled in part by excitement over advances in artificial intelligence, while large areas of the market have languished. For Hans Olsen, chief investment officer at Fiduciary Trust Co, that’s an ominous sign. Olsen believes signals such as the inverted yield curve show recession risks remain “pretty high” and his firm is maintaining higher than typical cash levels. “We have one powerful rally inside a bear market that has yet to be fully resolved,” he said.

Stock Markets

Iridium secures $200M loan to boost share buybacks

letizo News



Iridium Communications Inc. (NASDAQ:) announced today that it has initiated a $200 million incremental term loan under the same terms as its existing $1.62 billion credit agreement. The company, a key player in the communications equipment sector, plans to use the additional funds to expedite its share repurchase program and for other general corporate purposes.

The new loan will be marketed with the backing of Deutsche Bank AG (NYSE:) New York Branch, which also serves as the Administrative and Collateral Agent. Joining the arrangement are Deutsche Bank Securities Inc., Barclays Bank PLC, Royal Bank of Canada, and Wells Fargo Securities, LLC, as Joint Lead Arrangers and Bookrunners.

Iridium’s move to secure additional capital comes as part of its strategy to enhance shareholder value through an accelerated share buyback plan. The company’s decision to allocate funds for this purpose reflects its commitment to managing its capital structure proactively.

This financial maneuver is disclosed in compliance with Regulation FD, which ensures that all investors receive key financial information simultaneously. The disclosure was made through an 8-K filing with the Securities and Exchange Commission, providing transparency and allowing investors to assess the company’s financial decisions.

The McLean, Virginia-based Iridium, which operates under the jurisdiction of Delaware with a fiscal year ending on December 31, has not disclosed further details regarding the timeline or specific terms of the share repurchases.

The information in this article is based on a press release statement from Iridium Communications Inc. and serves to inform investors of the company’s latest financial activity. The strategic financial steps taken by Iridium are part of its broader efforts to optimize its operations and enhance shareholder returns.

In other recent news, Iridium Communications Inc. has reported positive second-quarter results, including a 5% growth in service revenue and an increase of 80,000 in its subscriber base. The company’s full-year guidance remains on track, forecasting continued growth in service revenue and EBITDA.

Significant contributors to this positive outlook include a $90 million 5-year contract with the U.S. government, a strong position in alternative Positioning, Navigation, and Timing (PNT) services, and advancements in IoT technology.

Iridium is also expanding its device and service offerings through its unique satellite network, with projections of record revenue in 2024 from its collaborations with the U.S. Space Development Agency. The company has also secured a reduction in annual interest expenses by $4 million due to term loan repricing and has increased its quarterly dividend through aggressive share repurchasing.

In terms of future expectations, Iridium is focused on expanding its IoT technology and lowering the cost of end-user devices. The company is also bullish on its satellite-based time and location service, expecting it to generate over $100 million in annual service revenue by 2030. These are all recent developments that investors should take into consideration.

InvestingPro Insights

Iridium Communications Inc. (NASDAQ:IRDM) has shown a proactive approach to shareholder value, as evidenced by their recent move to secure an additional $200 million loan to fund an accelerated share repurchase program. This strategy aligns with InvestingPro Tips that highlight management’s aggressive buyback policy and the anticipation of net income growth this year. With a solid gross profit margin of 71.91% in the last twelve months as of Q1 2024 and a notable EBITDA growth of 4.67%, Iridium is demonstrating its operational efficiency.

The company’s current market capitalization stands at $3.29 billion, and despite a high P/E ratio of 39.44, which suggests a premium valuation, the company’s liquid assets exceeding short-term obligations indicate a strong liquidity position.

Moreover, analysts have revised their earnings upwards for the upcoming period, which may signal confidence in the company’s future performance. For investors seeking more in-depth analysis and additional InvestingPro Tips, there are 10 more tips available, which can be explored further with a special offer. Use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription at InvestingPro.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Continue Reading

Stock Markets

Protests and politics as Netanyahu addresses US Congress

letizo News



By Patricia Zengerle

WASHINGTON (Reuters) -Dozens of Democratic lawmakers planned to skip Israeli Prime Minister Benjamin Netanyahu’s speech to Congress on Wednesday, expressing dismay over the thousands of civilian deaths and the humanitarian crisis from Israel’s campaign in Gaza.

The longtime Israeli leader will make a record fourth speech to a joint meeting of the Senate and House of Representatives at 2 p.m. EDT (1800 GMT), passing British wartime leader Winston Churchill, who made three such speeches.

Netanyahu’s speech was expected to focus on coordinating the Israeli and U.S. response to the volatile situation in the Middle East, where there is a growing danger of the Gaza war spilling over into a wider regional conflict.

He was also expected to call for stronger action against Iran, which supports Palestinian Hamas and Lebanese Hezbollah, both militant groups fighting Israel, and has drawn increased U.S. condemnation over its recent nuclear advances.

Republican leaders in Congress orchestrated the visit, but it was likely to be less confrontational than in 2015 when Republicans sidestepped then-President Barack Obama, a Democrat, and Netanyahu used his speech to criticize Obama’s Iran policy.

This time, Netanyahu will seek to bolster his traditional links to Republicans but also look to ease tensions with President Joe Biden, a Democrat whose support he will rely on for the remaining six months of the president’s term.

Washington is preoccupied with the fallout from Biden’s announcement on Sunday that he was ending his reelection bid and endorsing Vice President Kamala Harris for the Democratic presidential nomination to challenge Republican Donald Trump.


Some lawmakers said they were uncomfortable about appearing to endorse Netanyahu and his hard-right coalition government as he faces declining poll numbers in Israel.

“For him, this is all about shoring up his support back home, which is one of the reasons I don’t want to attend,” Senator Chris Van Hollen told reporters. “I don’t want to be part of a political prop in this act of deception. He is not the great guardian of the U.S.-Israel relationship.”

A Republican House member, Representative Thomas Massie, also said he would not attend. “The purpose of having Netanyahu address Congress is to bolster his political standing in Israel and to quell int’l opposition to his war. I don’t feel like being a prop so I won’t be attending,” he wrote on X.

Some of the most prominent Democrats planned to stay away. They included Senators Dick Durbin, the chamber’s No. 2 Democrat, Tim Kaine, Jeff Merkley and Brian Schatz, all members of the Senate Foreign Relations Committee, as well as Patty Murray, who chairs Senate Appropriations.

In the House, those staying away included progressive Representatives Rashida Tlaib and Alexandria Ocasio-Cortez, as well as Ami Bera, a senior member of the Foreign Affairs Committee, and Adam Smith, the top Democrat on Armed Services.

Smith said he never attends joint meetings but also described himself on Tuesday as “very, very opposed to what Prime Minister Netanyahu is doing in Israel.” 

Harris, who normally would preside over the speech as vice president, will not be attending. Neither will Republican Senator JD (NASDAQ:) Vance, Trump’s vice presidential running mate.

Murray would have presided, as the senior Senate Democrat, in Harris’ absence. Democratic Senator Ben Cardin, who leads the foreign relations committee, will replace her.


Netanyahu will meet both Biden and Harris on Thursday. Harris has at times been more forward-leaning than her boss in criticizing Israel for heavy Palestinian civilian casualties in Gaza.

Netanyahu was to travel to Florida to meet with Trump on Friday. The meeting will be their first since the end of Trump’s presidency, during which the two forged close ties.

Before addressing Congress, Netanyahu spoke at a memorial for Senator Joe Lieberman, who died in March, stressing the lawmaker’s view that Israel must be allowed to achieve its goal of “disabling Hamas” and that the U.S. and Israel had a shared interest in a united front against Iran.

Several hundred activists staged a demonstration on Tuesday at a congressional office building, and mass protests were promised for Wednesday. The Capitol building was surrounded by high fencing and a heavy security presence.

Some protesters were out on Wednesday hours before Netanyahu’s speech, holding signs including, “Stop War Crimes in Gaza.” Dozens of Washington streets were closed, with some neighborhoods patrolled by New York City police officers.

Some Democrats said they were attending despite their concerns. 

© Reuters. Pro-Palestinian demonstrators protest, on the day of Israeli Prime Minister Benjamin Netanyahu's address to a joint meeting of the U.S. Congress, on Capitol Hill in Washington, U.S., July 24, 2024. REUTERS/Seth Herald

“I sit in that chair that I was elected to sit in on days that I enjoy it and days that are iffy and days that I despise it or a mix of the latter two. But I’m elected to be in that seat,” Representative Dan Kildee said.

    “My constituents didn’t elect me to show up only when I enjoy what I’m hearing. If I did that I would spend very little time on the floor of the House.”

Continue Reading

Stock Markets

NSTS Bancorp reaches 52-week high, hitting $10.48

letizo News



NSTS Bancorp, a prominent player in the banking sector, has recently hit a 52-week high, reaching a price level of $10.48. This milestone marks a significant achievement for the company, reflecting its robust performance and strong market position. Over the past year, NSTS Bancorp has demonstrated a remarkable growth trajectory, with a 1-year change of 12.83%. This positive trend underscores the company’s resilience and adaptability in a dynamic market environment. Investors and market watchers are keeping a close eye on NSTS Bancorp, as it continues to navigate the financial landscape with strategic acumen and operational efficiency.

InvestingPro Insights

NSTS Bancorp’s recent surge to a 52-week high is a testament to its market performance, yet a deeper look through InvestingPro metrics reveals a more nuanced picture. With a market capitalization of $51.15 million, the company is a smaller player in the banking sector. Despite achieving a 1-year price total return of 11.25%, NSTS Bancorp grapples with challenges such as weak gross profit margins and a lack of profitability over the last twelve months. Additionally, the stock’s current price is hovering close to this peak, trading at 99.33% of its 52-week high. Investors considering NSTS Bancorp should note that while the stock exhibits low price volatility, it does not offer dividend payouts, which could be a significant factor for those seeking income-generating investments.

For a comprehensive understanding of NSTS Bancorp’s financial health and stock performance, consider the InvestingPro Tips which reveal that the stock is currently in overbought territory according to the RSI, and the company’s P/E ratio stands at -10.89, indicating that it may be overvalued given its lack of recent profitability. To explore additional insights and gain access to exclusive metrics, visit There are 5 more InvestingPro Tips available for NSTS Bancorp, which can be accessed with a subscription. Use coupon code PRONEWS24 for up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Continue Reading


©2021-2024 Letizo All Rights Reserved