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Market’s violent moves will set stage for a massive comeback, Wall Street bull predicts

Published

4 years ago

July 21, 2021

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Market bull Art Hogan is looking beyond the trading week’s rough start.

The National Securities chief market strategist expects the violent moves will set the stage for a massive comeback that will prompt him to hike his S&P 500 year-end target.

“Here we are with everything for sale in a risk-off mode. People piling into the Treasurys,” Hogan told CNBC’s “Trading Nation” on Monday. “Likely, all of that gets stretched.”

The Dow saw its worst day on Monday on jitters associated with Covid-19 Delta variant risks. The S&P 500 and tech-heavy Nasdaq saw their biggest drops since May. Plus, the benchmark 10-year Treasury Note yield slid to 1.17%, a five-month low.

“This is a blip on the radar screen,” Hogan said.

Hogan believes a 5% to 10% drawdown is unfolding. But he emphasizes it would be par for the course.

“We have a 5% drawdown every year on average. Often we have a 10% drawdown on an annual basis,” noted Hogan.

In this environment, he’s encouraging long-term investors to be equal-weight growth and cyclical names. He has had the strategy going back to the early days of the pandemic.

“If you rebalance that every two months and keep that barbell level, I think you’re going to outperform the S&P 500,” he said. “You did last year, and you likely will again this year.”

On the growth side, Hogan likes 5G, cloud security and cloud computing. He likes financials, energy, industrials and materials best among cyclicals.

Hogan, who oversees $20 billion in assets under management, acknowledges Covid-19 risks are growing. But he doubts it will spell extreme restrictions and a significant slowdown in economic growth.

“We’ve got a very short-term memory and very well-toned memory muscle towards [Covid] increases,” he said. “This current wave will likely peak and we’ll get back to focusing on things we should be focusing on like great earnings growth.”

Hogan predicts second quarter earnings season, which is underway, will solidly exceed Wall Street estimates. If they do, he expects to boost his S&P 500 year-end target of 4,400, a 3% increase from Monday’s close.

“There’s plenty of upside in this market. Volatility is part of that process,” Hogan said. “Remember, this is an economy that’s just starting to reopen and these are consumers that are just starting to get back to getting active.”

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Environment

California man sues Amazon after catastrophic electric bike crash

Published

3 hours ago

June 25, 2025

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California man sues Amazon after catastrophic electric bike crash

A man in California has sued Amazon as well as the maker of an electric bike that he purchased on Amazon after he claims that the bike malfunctioned, resulting in a crash that left him severely injured.

According to a lawsuit filed in Los Angeles County Superior Court last week, Robert Lewis suffered catastrophic injuries on December 30, 2024, when the handlebars on his foldable e-bike gave out, causing him to fall violently to the ground. The suit names both Actbest Technology Inc., listed as a Los Angeles-based manufacturer, and Amazon.com Inc. as defendants, alleging that both companies were negligent in manufacturing and selling the defective product.

The incident is the latest in a growing wave of safety concerns surrounding low-cost e-bikes sold through major online marketplaces, where oversight of product quality and safety warnings can be minimal or nonexistent.

While the suit does not name the exact model of e-bike involved in the crash, Actbest does sell an ultra low-cost $369 folding e-bike.

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The complaint accuses Amazon of continuing to sell the bike in question, even after receiving consumer complaints alleging similar defects. “Consumers of Amazon reasonably relied on Amazon’s service to monitor product complaints and remove unsafe consumer products to prevent the sale of defective products,” the lawsuit reads. “Amazon negligently carries out this service by ignoring obvious design, manufacturing and warning defects. They would have been aware [of the danger] had they actually fulfilled the obligations they voluntarily assumed and promised consumers Amazon would implement.”

The mechanism that failed was apparently the handlebar locking system, which is crucial for folding e-bikes to function safely. According to the lawsuit, the failure of this system during Lewis’s ride caused the handlebars to collapse unexpectedly, resulting in a severe spinal cord injury that has rendered him paraplegic. His family, also named as plaintiffs, is seeking compensation for pain and suffering and loss of enjoyment of life.

Lewis’s legal team, led by Andrew Parker Felix of Morgan & Morgan, is seeking damages for medical costs, lost wages, and punitive damages, pointing to what they describe as a pattern of neglect by Amazon in dealing with dangerous products sold through its platform.

“Similar to the hoverboard phenomenon in the past,” the lawsuit reads, “the e-bikes distributed through and sold by Amazon.com are the latest example of Amazon seeking to profit off of a new consumer product space with complete disregard for the safety of its subscribers.”

While Amazon has previously argued that it acts only as a sales platform for third-party sellers, courts have increasingly scrutinized the tech giant’s role in product liability, especially in cases involving dangerous or defective products. There are cases that could serve as precedents where Amazon has been found liable for injurious products sold on its platform.

This lawsuit may further test where that liability begins and ends, particularly in fast-growing consumer categories like e-bikes, where regulatory standards and safety enforcement have struggled to keep pace with demand.

Neither Amazon nor Actbest has responded publicly to the claims, and details about the specific e-bike model involved have not yet been disclosed.

As e-bike adoption continues to rise, especially among budget-conscious consumers looking for affordable transport, the case raises deeper questions about how safety is – or isn’t – being prioritized in a booming but often unregulated product space.

via: Law360

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Environment

CNBC Daily Open: A truce is to be celebrated — but it doesn’t promise peace

Published

8 hours ago

June 25, 2025

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CNBC Daily Open: A truce is to be celebrated — but it doesn't promise peace

U.S. President Donald Trump speaks to reporters onboard Air Force One en route to the NATO summit in The Hague, Netherlands, June 24, 2025.

Brian Snyder | Reuters

The ceasefire between Israel and Iran appears to be holding. In yesterday’s newsletter, we talked about how a blitzkrieg of missile-led diplomacy seemed to help de-escalate tensions.

The flipside of that strange path to a truce is that missiles are, well, fundamentally weapons. Mere hours after both countries agreed to the ceasefire, Israel said its longtime rival had fired missiles into its borders — an accusation which Tehran denied — and was preparing to “respond forcefully.” Probably with more missiles.

U.S. President Donald Trump — who reportedly brokered the ceasefire with Qatar’s Emir Sheikh Tamim bin Hamad Al Thani — expressed frustration with those developments.

“I’m not happy with them. I’m not happy with Iran either but I’m really unhappy if Israel is going out this morning,” Trump told a reporter pool en route to the NATO summit in the Netherlands.

His admonishments seemed to work. There is now a fragile armistice between the two countries.

Oil prices fell and U.S. stocks jumped.

Reuters uploaded a photo of Israeli residents playing frisbee at the beach on June 24. Flights at Israel’s Ben Gurion Airport are resuming, and Iran’s airspace is partially open, according to flight monitoring firm FlightRadar24, CNBC reported at around 3 a.m. Singapore time.

Three hours after that update, NBC News, citing three people familiar with the matter, reported that an initial assessment from the U.S. Defense Intelligence Agency found the American strikes on Iran’s nuclear sites on Saturday left “core pieces … still intact.”

Trump pushed backed on those accusations Tuesday night, writing that “THE NUCLEAR SITES IN IRAN ARE COMPLETELY DESTROYED!”

And so it goes.

What you need to know today

Israel-Iran ceasefire holds, for now
The fragile ceasefire between Israel and Iran, announced by Trump on Monday, appears to be holding. Israel on Tuesday said it would honor the ceasefire so long as Iran does the same. Earlier in the day, both countries accused each other of violating the truce, and said they were ready to retaliate, prompting Trump to say he’s “not happy” with them. Stay updated on the Israel-Iran conflict with CNBC’s live blog here.

Markets jump as traders bet on truce
U.S. stocks jumped Tuesday on expectations that the Israel-Iran ceasefire would hold. The S&P 500 gained 1.11% to put it just 0.9% away from its 52-week high. The Dow Jones Industrial Average added 1.19% and the Nasdaq Composite climbed 1.43%. The Nasdaq-100 rose 1.53% to close at an all-time high. Asia-Pacific markets mostly rose Wednesday. China’s CSI 300 advanced 0.63% at 1:50 p.m. Singapore time. Tech stocks, such as NetEase and Tencent, were up on news that Beijing approved a large number of games in June.

Oil pares losses
Oil prices regained some ground during Asia trading hours Wednesday. Both U.S. crude oil and global benchmark Brent rose around 1.5%. On Tuesday stateside, oil prices tumbled roughly 6%. Earlier in the day, Trump said China can keep buying oil from Iran, in what seemed like a sign that the U.S. may soften its pressure campaign against Tehran.

Powell says Fed is ‘well positioned to wait’
At a U.S. congressional hearing Tuesday, Federal Reserve Chair Jerome Powell said the economy was still strong. But he noted that inflation is still above the central bank’s target of 2%, and the Fed has an “obligation” to prevent tariffs from becoming “an ongoing inflation problem.” In combination, those considerations make the Fed “well positioned to wait” before making a decision on interest rates.

Don’t make trade political: Chinese premier
“Globalization will not be reversed,” Chinese Premier Li Qiang said on Wednesday through an official English translation at the World Economic Forum’s annual conference in China, often dubbed “Summer Davos.” Li urged all sides not to turn trade into a political or security issue, and said engaging in the international economy is a way of “reshaping the rules and order.”

[PRO] Not ‘bullish enough’ on rally: HSBC
The S&P 500′s rally off its April lows has brought it back to roughly 1% off its record high in a very short time. It’s an advance that has perplexed many investors, who worry that another pullback is on the horizon. But Max Kettner, chief multi-asset strategist at HSBC, said he worries he’s not “bullish enough” on the current rally.

And finally…

Renminbi notes next to U.S. dollar notes at a Kasikornbank in Bangkok, Thailand, Jan. 26, 2023.

Athit Perawongmetha | Reuters

China doubles down on promoting yuan as confidence in U.S. dollar takes a beating

China is devising more ways for foreign institutions to use the yuan, as international confidence in the U.S. dollar falters.

In a sign of growing resolve in Beijing to lure the world away from the dollar, People’s Bank of China Governor Pan Gongsheng announced plans last week to set up a center for digital yuan internationalization in Shanghai and promote the trading of yuan foreign exchange futures. Beijing has already rolled out a digital version of its currency to replace some cash and coins in circulation.

— Lee Ying Shan and Evelyn Cheng

Environment

CNBC Daily Open: Investors bet the fragile ceasefire would hold

Published

13 hours ago

June 25, 2025

admin

CNBC Daily Open: Investors bet the fragile ceasefire would hold

US President Donald Trump speaks to reporters about the Israel-Iran conflict, aboard Air Force One on June 24, 2025, while traveling to attend the NATO’s Heads of State and Government summit in The Hague in the Netherlands.

Brendan Smialowski | Afp | Getty Images

The ceasefire between Israel and Iran appears to be holding. In yesterday’s newsletter, we talked about how a blitzkrieg of missile-led diplomacy seemed to help de-escalate tensions.

The flipside of that strange path to a truce is that missiles, well, are fundamentally weapons. Mere hours after both countries agreed to the ceasefire, Israel said its longtime rival had fired missiles into its borders — an accusation which Tehran denied — and was preparing to “respond forcefully.” Probably with more missiles.

U.S. President Donald Trump — who reportedly brokered the ceasefire with Qatar’s Emir Sheikh Tamim bin Hamad Al Thani — expressed frustration with those developments.

His admonishments seemed to work. There is now a fragile armistice between the two countries.

Oil prices fell and U.S. stocks jumped.

And so it goes.

What you need to know today

Markets jump as traders bet on truce
U.S. stocks jumped Tuesday on expectations that the Israel-Iran ceasefire would hold. The S&P 500 gained 1.11% to put it just 0.9% away from its 52-week high. The Dow Jones Industrial Average added 1.19% and the Nasdaq Composite climbed 1.43%. The Nasdaq-100 rose 1.53% to close at an all-time high. Europe’s Stoxx 600 rose 1.11%. Travel stocks were some of the best performers, while oil and gas stocks fell the most.

Oil prices slump for a second day
Oil prices tumbled Tuesday, its second day of declines, as the market bet that the risk of a major supply disruption had faded. U.S. crude oil settled down 6% at $64.37 a barrel while the global benchmark Brent fell 6.1%, to $67.14 during U.S. trading. Prices closed 7% lower on Monday. Earlier Tuesday, Trump said China can keep buying oil from Iran, in what seemed like a sign that the U.S. may soften its pressure campaign against Tehran.

Powell says Fed is ‘well positioned to wait’
At a U.S. congressional hearing Tuesday, Federal Reserve Chair Jerome Powell said the economy was still strong. But he noted that inflation is still above the central bank’s target of 2%, and the Fed has an “obligation” to prevent tariffs from becoming “an ongoing inflation problem.” In combination, those considerationsmake the Fed “well positioned to wait” before making a decision on interest rates.

U.S. is committed to NATO: Secretary-General
There is “total commitment by the U.S. president and the U.S. senior leadership to NATO,” the military alliance’s Secretary-General Mark Rutte said Tuesday morning, as the summit kicked off in The Hague, Netherlands. But America expects Europe and Canada to spend as much as the U.S. does on defense. Ahead of the summit, members agreed to increase defense spending to 5% of gross domestic product by 2035.

And finally…

Pictures from the semi-official Tasnim news agency show the Stena Impero being seized and detained between July 19 and July 21, 2019 near strait of Hormuz, Iran.

Contributor | Getty Images News | Getty Images

Strait of Hormuz GPS jamming remains major security issue, tanker CEO says

Despite a tentative ceasefire between Israel and Iran on Tuesday, security issues in the Strait of Hormuz continue for shipowners.

According to Angeliki Frangou, a fourth-generation shipowner and chairman and CEO of Greece-based Navios Maritime Partners, which owns and operates dry cargo ships and tankers, vessels in the Strait of Hormuz are still being threatened by continuous GPS signal blocking.

“We have had about 20% less passage of vessels through the Strait of Hormuz, and vessels are waiting outside,” Frangou told CNBC.

“You are hearing a lot from the liner [ocean shipping] companies that they are transiting only during daytime because of the jamming of GPS signals of vessels. They don’t want to pass during the nighttime because they find it dangerous. So it’s a very fluid situation,” Frangou said.