By Barbara Kollmeyer, MarketWatch
AFP via Getty Images
The headlines are all about President Donald Trump’s impeachment, but the stock markets don’t care.
And unless investors begin to think a Republican-controlled Senate will vote to remove him, that attitude won’t change.
With just eight trading days left to go in the year, it’s tough to get markets excited about much right now, whereas a year ago they were pretty volatile.
How about some stock ideas for 2020? We bring you those via our call of the day from UBS, which polled its North American managers to get their most compelling ideas going forward. Read on:
Amazon.com /zigman2/quotes/210331248/composite AMZN -1.79% — UBS has a $2,100 target on buy-rated Amazon — 17% upside from Wednesday’s close of $1,784.03. Analyst Eric Sheridan believes investor concerns about the high costs of one-day shipping and investments in Amazon Web Services are now reflected in share prices. And, of course, Amazon dominates in e-commerce, cloud computing, digital ad and media consumption.
Tenet Healthcare /zigman2/quotes/207964487/composite THC -5.20% — The investment bank rates the health care company’s shares a buy, and sees 40% upside for shares, with a price target of $53 (Wednesday’s close — $37.98). Wall Street is just too negative, says analyst Whit Mayo, who expects management to announce another cost reduction program next year. That would be another boost for shares.
Coca-Cola /zigman2/quotes/209159848/composite KO -0.20% — “We like Coca-Cola for stable earnings growth to ride out defensive times,” says analyst Sean King, who has a $63 price target on the buy-rated drinks giant (a 16% gain from Wednesday’s close of $53.91. And the company is on the way to improving its free cash flow productivity, a long concern of investors. Bet on Coke over Pepsi /zigman2/quotes/208744353/composite PEP -1.30% , he says (Morgan Stanley said the same recently).
United States Steel /zigman2/quotes/200069642/composite X +4.88% — UBS is convinced that investors should sell the steel group, laying out a price target of $7 per share — a 48% drop from Thursday’s close of $13.61. Analyst Andreas Bokkenheuser says the company is set to lose market share in an environment where pricing is competitive, and will probably burn cash over the next two years to invest in key assets.
Other stocks they like? Telecommunication company T-Mobile /zigman2/quotes/204659678/composite TMUS -1.06% , multinational conglomerate General Electric /zigman2/quotes/208495069/composite GE -2.41% , transport company Norfolk Southern /zigman2/quotes/200877725/composite NSC -0.86% , investment bank Citigroup /zigman2/quotes/207741460/composite C -1.47% , retailer Lowe’s /zigman2/quotes/205563664/composite LOW -2.25% and toy company Hasbro /zigman2/quotes/201249319/composite HAS -0.62% .
It’s a lackluster start for the Dow /zigman2/quotes/210598065/realtime DJIA -0.88% , S&P /zigman2/quotes/210599714/realtime SPX -1.12% and Nasdaq /zigman2/quotes/210598365/realtime COMP -1.07% . European stocks /zigman2/quotes/210599654/delayed XX:SXXP -0.66% are slipping and Asian markets /zigman2/quotes/211618636/realtime XX:ADOW +0.33% mostly fell. The Bank of Japan didn’t change its interest rates, and neither did the Bank of England, which is probing an alleged hacking incident . The pound and U.K. stocks climbed as the Queen laid out the government’s Brexit plan.
But Sweden’s central bank has become the first central bank to exit negative rates.
Our chart from investment management company BlackRock (via The Daily Shot blog ) gives a pretty good visual on this year’s big winning sectors in the U.S., and puts global equity performances in perspective.