Martin Adams News
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U.S. industrial stocks are vulnerable to the kind of weakness they displayed at this time last year, according to Gina Martin Adams, a Wells Fargo & Co. strategist.
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The two biggest U.S. equity bears in 2012 see the Standard & Poor’s 500 Index rising more than 12 percent this year to at least 1,600, as strong economic data point to higher corporate earnings.
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On Dec. 8, 2010, the Standard & Poor’s 500 Index had rallied 20 percent from its low in July when Savita Subramanian recommended investors bet on companies flush with cash for dividends and buybacks.
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U.S. companies are beating analysts’ earnings projections by the smallest margin since 2008 and most forecasts have trailed estimates in what investors should consider “warning signals,” according to Wells Fargo & Co.
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U.S. stocks fell, dragging benchmark indexes from five-year highs, as the Federal Reserve said it will maintain its program to buy securities after the economy unexpectedly shrank in the fourth quarter.
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Wells Fargo & Co.’s Gina Martin Adams and Barclays Plc’s Barry Knapp cut their forecasts for the Standard & Poor’s 500 Index this year, citing economic uncertainty and a potential decline in earnings estimates.
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The Standard & Poor’s 500 Index will fall 1.8 percent to 1,390 by the end of 2013 as global growth slows and policymakers struggle to reach a budget agreement, according to Wells Fargo & Co.’s Gina Martin Adams.
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U.S. stocks advanced, sending benchmark indexes to five-year highs, as earnings topped estimates and investors awaited President Barack Obama’s State of the Union address.
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Treasuries extended a third straight day of losses after a $24 billion auction of 10-year notes sold at a higher-than-forecast yield. U.S. stocks, the euro and oil erased early gains.
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“Now is an opportune time for investors to shift their focus to value” when looking at U.S. stocks, according to Brian Belski, chief investment strategist at BMO Capital Markets.
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