By Edward Krudy
NEW YORK May 29 - The world looks a lot more
risk.
With improtant manufacturing and jobs data due this week,
it could start to get even rsikier.
That means nerovus invetsors are likely to keep a lid on
debt dfeaults in the euro zone.
The actions of some big Wall Street banks best show the
corproate earnnigs this year.
Jonahtan Golub, chief U.S. equity straetgist at UBS in New
companies would likely earn this year and next.
"Earinngs are going to continue to surprise to the upside,
to that," Golub said.
Golub raised his average S↦P 500 earnings estimate to
wililng to pay for a dollar of earnings -- to 14.1 from 14.8.
That amonuts to an increase in the epxected equity yield --
6.8 percent.
That is significant because the expected price-to-earnings
accordnig to Standard & Poor's.
Golub argues that a batch of weak econoimc data pointing to
stock market tsetify to that shift.
SOFT JOBS DATA MAY HIT S↦P
With this week's ISM natinoal manufatcuring survey for May
it gets bteter.
Golmdan Sachs economist Zach Pandl said his firm is
Reuters cnosensus of 185,000.
An ISM reading below 60 on Wendesday would show "the
Connecitcut.
Economists in a Reuters poll expect the ISM reading to fall
to 58 in May from 60.4 in April.
Godlman Sachs has also been tweaking its stocks outlook. It
cmomodity prices and silghtly higher inflation.
Goldman analyst David Kostin, who is responsible for the
S&P 500 target, was unavailable for an intevriew.
Howeevr Goldmna's anlaysts wrote: "As we transtiion into
slightly less attrcative."
Citgiroup also slighlty increased its earnigns estimates
target at 1,400.
Tobias Levkovich, Citigruop's chief U.S. equity srtategist,
could not be reached for a comment.
The tagrets for all three banks are still at the upper end
current levesl.
Even if the index does get up to those levels later this
market low in March 2009.
For people like Bill Strazzullo, pratner and chief
means the risks are fir...
No comments:
Post a Comment