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EQIX - Equinix Inc News Story

$658.01 -12.0  -1.8%

Last Trade - 26/05/20

Sector
Financials
Size
Large Cap
Market Cap £48.68bn
Enterprise Value £57.29bn
Revenue £4.63bn
Position in Universe 153rd / 6360

LIVE MARKETS U.S.-Analysts' favorite stocks are taking it on the chin

Thu 27th February, 2020 7:18pm
* Major averages down 21%, but off worst levels * All S&P 500 sectors red; real estate, tech take biggest hits * Dollar, crude fall; gold gains; U.S. 10-yr T-note yield ~1.29% Feb 27 - Welcome to the home for real-time coverage of U.S. equity markets brought to you by Reuters stocks reporters and anchored today by Terence Gabriel. Reach him on Messenger to share your thoughts on market moves: terence.gabriel.tr.com@reuters.net ANALYSTS' FAVORITE STOCKS ARE TAKING IT ON THE CHIN (1356 EST/1856 GMT) The S&P 500 .SPX companies most loved by analysts are among the stocks taking the worst beatings in recent sessions, although they are in line with the rest of the market year to date, according to a Reuters analysis. Stocks that are highly rated by analysts often become crowded trades, making them particularly vulnerable to swings in investor sentiment such as this week's deepening fear about the coronavirus outbreak. The 20 S&P 500 components with the highest average analyst ratings have fallen 12% on average since the S&P 500's record high close on Feb. 19, according to Refinitiv data. Among those analyst favorites are Microsoft MSFT.O , Alphabet GOOGL.O , Visa V.N , Synopsys SNPS.O and Centene CNC.N . The 20 S&P 500 components with the lowest average analyst ratings have fallen an average of 9% since Feb 19, barely better than the S&P 500's 10% drop during the same period. Among those stocks that are unpopular with analysts but are outperforming the market are Kraft Heinz KHC.O , Wells Fargo WFC.N and Clorox CLX.N , which has gained 4% since Feb 19 on expectations it will sell more disinfectant cleaning products. Year to date, 12 out of the 20 stocks most favored by analysts are outperforming the S&P 500's 6% decline, even after Wall Street's recent selloff, with Salesforce.com CRM.N , Amazon AMZN.O and Equinix EQIX.O each gaining 6% or more during that time. The 20 stocks most highly rated by analysts on average have fallen 5% year to date, while the 20 lowest-rated stocks have lost 11%, underperforming most of Wall Street. (Noel Randewich) ***** WFII MAKES 2020 S&P 500 TARGET CHANGE (1318 EST/1818 GMT) The Wells Fargo Investment Institute (WFII) is out with a note highlighting changes to their 2020 year-end targets. They also announced a change to equity asset-class and sector guidance as well as tactical allocations. Indeed, WFII is now providing a 2020 year-end S&P 500 target range of 3,260-3,440. This is down from a range of 3,340-3,520. The mid-point of their new target range is 3,350, or about 8.5% above the last SPX price. WFII also downgraded emerging market equities from neutral to unfavorable. However, they upgraded U.S. mid-cap equities from neutral to favorable. In terms of sectors, WFII downgraded industrials to unfavorable from neutral, while they upgraded communication services to favorable from neutral. WFII now says that coronavirus containment may take longer than they expected. They also believe that Bernie Sanders' recent primary success is a contributing factor to financial market risk aversion. That said, they ultimately, expect coronavirus containment and an eventual economic recovery, but they believe there is insufficient data to predict when a rebound may come. (Terence Gabriel) ***** STOCKS REBOUND OFF MID-MORNING LOWS (1203 EST/1703 GMT) After hitting lows shortly after 10:30 am, the major averages have seen some recovery. This amid elevated volatility. Indeed, the CBOE Volatility Index .VIX spiked to its highest level since February 2018. At its low Thursday, the S&P 500 .SPX was down 3.5% bringing its total decline from its 3,393.52 record intraday high to 11.4% in just 6 trading days. In any event, with its recovery, the S&P 500 has spent time chopping around its sticky 200-day moving average (now at about 3,047). urn:newsml:reuters.com:*:nL2N2AQ0BY Meanwhile, in a note to clients Thursday, Goldman Sachs said U.S. companies will see profits stagnate in 2020 thanks to the spread of the coronavirus in China and beyond. urn:newsml:reuters.com:*:nL3N2AR4O8 As for the S&P 500, Goldman said it expects the benchmark index to trade around 2,900 in the near-term, 14.4% below the index's record closing high hit on Feb. 19, assuming the U.S. 10-year Treasury yield US10YT=RR drops to 1%. If the yield climbs to 1.5%, Goldman expects S&P 500 to hit 3,400 by the year-end. Regarding the current weakness, Matthew Keator, managing partner at the Keator Group, a wealth management firm in Lenox, Massachusetts, said, “Fear is a much stronger emotion than greed and with the uncertainty surrounding the lack of production and consumption, people are taking advantage of this uncertainty to take some profits off the table.” Keator added, “Nobody knows when it will be time to buy. From the perspective of portfolio managers, if people are underweighted, it’s an opportunity to buy. There are opportunities in this market. It’s predicated on what your long term goals are and what your allocation is.” Here is where markets now stand: (Terence Gabriel, Stephen Culp) ***** HERE ARE THURSDAY'S LIVE MARKETS - US - POSTS PRIOR TO 1200 EST/1700 GMT: THURSDAY DATA: OTHER THAN THAT, MRS. LINCOLN, HOW WAS THE PLAY? (1100 EST/1600 GMT) urn:newsml:reuters.com:*:nL2N2AR17U SLIDE CONTINUES: S&P 500 HITS 10% CORRECTION (1028 EST/1528 GMT) urn:newsml:reuters.com:*:nL2N2AR12P DOW INDUSTRIALS: TRACKING ITS WORST WEEK SINCE THE FINANCIAL CRISIS (0915 EST/1415 GMT) urn:newsml:reuters.com:*:nL2N2AR0NP FUTURES SHARPLY LOWER AS CORONAVIRUS CONCERNS OUTSIDE CHINA MOUNT (0807 EST/1307 GMT) urn:newsml:reuters.com:*:nL2N2AR0DV <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ midday02272020 https://tmsnrt.rs/2T866Br ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
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