Ares Management Stock Pops on S&P 500 Inclusion
4 minutes ago
Ares Management (ARES) will be joining the S&P 500. Investors are cheering the news.
After the bell yesterday, S&P Dow Jones Indices announced that Ares Management will replace Kellanova (K) in the benchmark index before markets open this Thursday, Dec. 11.
Kellanova, the parent of such brands as Pringles, Cheez-It, and Pop-Tarts, is being acquired by Mars Inc. in a deal expected to close Thursday after it received European Commission approval yesterday.
Ares shares surged 8% before the bell. Should they open with that percentage increase, they would be near flat for the year.
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This Wall Street Expert Is Less Bullish on Big Tech Stocks Now. Here’s Why
20 minutes ago
Why ask for the moon, when there are plenty of stars to go around? That’s the latest take from a Wall Street expert regarding the S&P 500.
Dr. Ed Yardeni, founder of Yardeni Research, said on Monday that his firm was ending its 15-year recommendation that investors be overweight the S&P 500’s tech and communications sectors—effectively meaning they should prefer them to the rest of the stocks in the index. The prominent Wall Street economist and market strategist joins other investment professionals who have recently turned sour on the tech behemoths that have have dominated the benchmark index.
What’s changed about the Magnificent 7—Nvidia (NVDA), Apple (AAPL), Alphabet (GOOG), Microsoft (MSFT), Amazon (AMZN), Meta Platforms (META), and Tesla (TSLA)—is that they’ve started to more “aggressively” compete with each other, and have rivals coming out of the woodwork regularly, Yardeni told media networks, including Bloomberg TV and CNBC.
Michael Nagle / Bloomberg via Getty Images
The problem is that betting on the Mag 7 has worked too well, with the tech and comms sectors now accounting for a record 45% of the benchmark index’s market capitalization, Yardeni said. While that may be justified by their earnings share also climbing, their overall riskiness compared to the rest of the index has also risen.
“They used to just operate in their own moats and kind of leave each other alone, but I think we’re now having a competitive situation,” Yardeni said on CNBC. “Not only that but I think we’re going to find out startups are coming [to] challenge some of their technologies.”
Read the full article here.
Stock Futures Tick Higher as Fed Meeting Begins
58 minutes ago
Futures contracts connected to the Dow Jones Industrial Average were up 0.1%.
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S&P 500 futures were 0.1% higher.
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Nasdaq 100 futures were fractionally higher.
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