JPMorgan’s quant guru says investors are still sleeping on inflation risk — and reiterates his call to buy stocks pegged to the economic recovery ahead of a possible shock

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• Investors may be over preparing for rising inflation while a 'transitory tantrum' looms, Morgan Stanley says (DXY, INX, COMPX) Summary List PlacementThe US inflation report for May is widely expected to show further acceleration in consumer prices but there is a risk that it and upcoming inflation readings will be lower than expected, disrupting consensus trades and sending investors scurrying out of inflation hedges, according to Morgan Stanley. Worries about runaway inflation have led to a breakneck pace of inflows to exchange-traded funds that invest in Treasury Inflation-Protected Securities, the investment bank said in a note published Monday. April's…
• US stocks move lower as investors see hotter inflation and higher rates on the horizon (INX, DJIA, COMPX, NDX, RUI, RUT) Summary List PlacementUS stocks mostly moved lower Monday as investors prepared to see a potential kick higher in consumer price inflation while facing concerns about a new corporate minimum tax rate worldwide.  The S&P 500 edged back from an earlier gain and moved slightly farther away from a near-record high but tech stocks as tracked on the Nasdaq Composite reversed course and gained ground.  Here's where US indexes stood at 4:00 p.m. on Monday: S&P 500: 4,226.46, down 0.08% Dow…
• Global shares eye upbeat end to week as investors look for strong US jobs data, while cryptocurrencies struggle Summary List PlacementGlobal stocks eyed an upbeat end to the week on Friday, trading near record highs ahead of the highly anticipated monthly update on US jobs, with investors braced for another possible surprise after April's big miss. S&P 500 and Nasdaq futures were last up 0.04% at 4:22 a.m. E.T., but Dow Jones futures were 0.03% lower. On Thursday, US stock markets closed lower after a strong ADP reading of a 978,000 increase in private payrolls, and as initial…
• Trading meme stocks like GameStop can mean billions in hidden costs for retail investors — reflecting how the equities market is broken in places, a markets chief says Summary List PlacementThe retail trading frenzy that saw groups of amateur traders encourage one another on Reddit to buy and hold meme stocks is the product of zero-commission trading, according to the co-chief executive of a London-based trading firm. Apps like Robinhood that offer commission-free trades on stocks have created the impression that retail traders place  wagers against the broader stock market and make money in the process. But the boom in meme-stock trading is an example of a battle…
• Ford stock could climb another 12% on a refreshed vehicle lineup and a boost from inflation, JPMorgan says (F) Summary List PlacementFord stock could climb another 12% with a boost from its refreshed vehicle lineup and inflation, JP Morgan says. In a note to clients on Friday, JP Morgan analysts led by Ryan Brinkman reiterated their "overweight" rating on shares of Ford and increased their price target to $18 from $16. The price target represents a potential 12% jump from Thursday's closing share price. Brinkman and his team said they expect Ford to benefit from the improved availability of…
• The director of wealth management at a $12 billion firm shares 3 stocks set to thrive when corporate taxes rise — and says all of them have at least 15% upside from current levels Summary List PlacementOne of President Biden's biggest initiatives since taking office has been to raise corporate tax rates. Initially looking to raise them to 28% from their current levels of 21%, he recently said he would be open to anything between 25% to 28%. Naturally, Wall Street doesn't like this. Higher taxes can mean smaller margins and less impressive earnings, hurting stock performance.  Still, even if Biden and Democrats in Congress succeed in hiking corporate taxes, broader stock performance won't suffer in…
• Friday's US jobs report could trigger 'explosive' volatility in markets, analysts say. Here's why they're bracing for some big price swings. Summary List PlacementFriday's May US jobs report is a major moment for markets that could trigger "explosive" volatility after a quiet week, analysts have said. On average, economists have predicted that nonfarm payrolls rose by 647,000 in May from 266,000 in April. Optimism has risen after Thursday's unofficial ADP payrolls report smashed expectations. But estimates vary significantly: the highest guess is 1 million and the lowest is 355,000, according to Bloomberg data. "The pending monthly payrolls data is certainly a…
• A hedge fund chief who oversees $1.7 billion unloads on the 'lockdown traders' who helped push stock valuations to historically absurd levels — and warns a drop of at least 60% is on the cards Summary List PlacementMark Yusko doesn't beat around the bush when talking about his market outlook. Stocks are due for a 60% pullback or more to reach what would be considered fair value levels by historical standards, the hedge fund chief said in a May 20th episode of his market commentary show. "I'm not saying that has to happen tomorrow," said Yusko, the founder of Morgan Creek Capital. "But you don't see anything in either one of those charts where you…
• Global shares ease after US jobs data cools some economic optimism; oil retreats from 2-year highs Summary List PlacementGlobal shares eased on Monday, as investors digested a slightly disappointing read of the US labor market and prepared for key inflation data later this week, while oil pulled back from two-year highs. Friday's employment report showed the US economy created 559,000 jobs in May, below the 650,000 economists had expected, while April's number was revised up marginally to 278,000.  The report didn't offer traders the confirmation they had hoped for of a robust recovery in hiring. At…