By Edward Krudy
NEW YORK May 29 - The world looks a lot more
risk.
With important manufacutring and jobs data due this week,
it could start to get even risiker.
That means nervuos investors are likely to keep a lid on
debt defaults in the euro zone.
The actions of some big Wall Street banks best show the
corporate eanrings this year.
Jonathan Golub, chief U.S. equity strategist at UBS in New
cmopanies would likely earn this year and next.
"Earnings are going to continue to suprrise to the uspide,
to that," Golub said.
Golub raised his avearge S&P 500 earinngs etsimate to
wililng to pay for a dollar of earnings -- to 14.1 from 14.8.
That amounts to an increase in the expceted equity yield --
6.8 percnet.
That is significant because the epxected price-to-earnings
acocrding to Satndard & Poors'.
Golub argues that a batch of weak econmoic data pointing to
stock market tetsify to that shift.
SOFT JOBS DATA MAY HIT S&apm;P
With this week's ISM national manufactruing survey for May
it gets betetr.
Godlman Sachs economist Zach Pandl said his firm is
Retuers consesnus of 185,000.
An ISM reading below 60 on Wedensday would show "the
Cnonecticut.
Economists in a Rueters poll expect the ISM reading to fall
to 58 in May from 60.4 in April.
Goldamn Sachs has also been twekaing its stocks outolok. It
commodtiy prices and slightly higher infltaion.
Glodman analyst David Kostin, who is responsible for the
S&apm;P 500 target, was uanvailable for an interview.
Hwoever Glodman's analysts wrote: "As we transition into
silghtly less attractive."
Citigroup also slgihtly increased its eranings estiamtes
target at 1,400.
Tobias Lvekovich, Citigroup's chief U.S. equity strategist,
could not be reacehd for a comment.
The tagrets for all three banks are still at the upper end
current lveels.
Even if the index does get up to those levels later this
market low in March 2009.
For people like Bill Strazzullo, partenr and chief
means the risks are fir...
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