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Jackson Hole Event is Bullish for Stocks: HCA, RCL, GM to Gain
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Central bank officials worldwide would meet in Jackson Hole to discuss monetary policies and their implications on economic growth. The Jackson Hole Symposium will be held from Aug 22-24 and Federal Reserve Chair Jerome Powell is expected to give a speech on Friday.
Stocks have, traditionally, risen in the weeks before and after the Jackson Hole event. The gauge of U.S. large caps — the S&P 500 — registered an average return of 0.9% in the two weeks around Jackson Hole since 2010, per Nicholas Colas, co-founder of DataTrek.
The S&P 500, except for once, has scaled upward around the Jackson Hole conference that Powell attended, added Colas. In 2022, Powell had to implement aggressive monetary policies to curb relentless price pressures, eventually dragging the S&P 500 down in the two weeks around the Jackson Hole meeting. He acknowledged that households and businesses must endure pain as the Fed introduced a slew of interest rate hikes.
Have a look at the S&P 500’s returns that Colas is referring to, citing a MarketWatch article:
Image Source: Zacks Investment Research
However, unlike 2022, things are looking much brighter now as most market participants expect Powell to hint at an interest rate cut soon in the gathering as inflationary pressures have subsided. Interest rate cuts would increase consumer outlays, lower borrowing costs, enhance economic growth, and lift the stock market.
At the same time, weakness in the U.S. housing market has strengthened hopes of a swift implementation of interest rate cuts to help the economy chug along. Almost 67.5% of traders expect the Fed to trim interest rates by 25 basis points in the September policy meeting, per CME FedWatch Tool.
By the way, consumers have shown enough signs of resilience in a higher interest rate environment. Consumers continue to splurge on discretionary items, with sales at U.S. retailers rebounding in July, a tell-tale sign that the economy is poised to grow and boost stock market returns (read more: 3 Stocks to Play the Rebound in Retail Sales: BBY, EAT, CARS).
Talking about returns, the S&P 500 has bounced back from an early August swoon. After recording its worst day on Aug 5 since 2022, the broader index has notched eight straight winning sessions till Aug 19 for the first time this year (read more: 3 Profitable S&P 500 Stocks With Room to Run: NOW, BSX, COO).
Banking on such positives, it’s prudent for astute investors to place bets on S&P 500 growth stocks such as HCA Healthcare, Inc. (HCA - Free Report) , Royal Caribbean Cruises Ltd. (RCL - Free Report) and General Motors Company (GM - Free Report) that can make the most of the encouraging period surrounding the Jackson Hole gathering.
HCA Healthcare is the largest non-governmental operator of acute care hospitals in the United States. HCA Healthcare, currently, has a Zacks Rank #1 and a Growth Score of B.
The Zacks Consensus Estimate for its current-year earnings has increased 6.1% over the past 60 days. HCA’s expected earnings growth rate for the current year is 16.8%.
Royal Caribbean Cruises
Royal Caribbean Cruises is a cruise company. Royal Caribbean Cruises, presently, has a Zacks Rank #1 and a Growth Score of A.
The Zacks Consensus Estimate for its current-year earnings has increased 3.7% over the past 60 days. RCL’s expected earnings growth rate for the current year is 69.9%.
General Motors
General Motors is one of the world’s largest automakers. General Motors, currently, has a Zacks Rank #2 and a Growth Score of B.
The Zacks Consensus Estimate for its current-year earnings has increased 5.7% over the past 60 days. GM’s expected earnings growth rate for the current year is 29.4%.
Shares of HCA Healthcare, Royal Caribbean Cruises, and General Motors have gained 38.7%, 22.7%, and 28%, respectively, so far this year.
Image Source: Zacks Investment Research
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Jackson Hole Event is Bullish for Stocks: HCA, RCL, GM to Gain
Central bank officials worldwide would meet in Jackson Hole to discuss monetary policies and their implications on economic growth. The Jackson Hole Symposium will be held from Aug 22-24 and Federal Reserve Chair Jerome Powell is expected to give a speech on Friday.
Stocks have, traditionally, risen in the weeks before and after the Jackson Hole event. The gauge of U.S. large caps — the S&P 500 — registered an average return of 0.9% in the two weeks around Jackson Hole since 2010, per Nicholas Colas, co-founder of DataTrek.
The S&P 500, except for once, has scaled upward around the Jackson Hole conference that Powell attended, added Colas. In 2022, Powell had to implement aggressive monetary policies to curb relentless price pressures, eventually dragging the S&P 500 down in the two weeks around the Jackson Hole meeting. He acknowledged that households and businesses must endure pain as the Fed introduced a slew of interest rate hikes.
Have a look at the S&P 500’s returns that Colas is referring to, citing a MarketWatch article:
Image Source: Zacks Investment Research
However, unlike 2022, things are looking much brighter now as most market participants expect Powell to hint at an interest rate cut soon in the gathering as inflationary pressures have subsided. Interest rate cuts would increase consumer outlays, lower borrowing costs, enhance economic growth, and lift the stock market.
At the same time, weakness in the U.S. housing market has strengthened hopes of a swift implementation of interest rate cuts to help the economy chug along. Almost 67.5% of traders expect the Fed to trim interest rates by 25 basis points in the September policy meeting, per CME FedWatch Tool.
By the way, consumers have shown enough signs of resilience in a higher interest rate environment. Consumers continue to splurge on discretionary items, with sales at U.S. retailers rebounding in July, a tell-tale sign that the economy is poised to grow and boost stock market returns (read more: 3 Stocks to Play the Rebound in Retail Sales: BBY, EAT, CARS).
Talking about returns, the S&P 500 has bounced back from an early August swoon. After recording its worst day on Aug 5 since 2022, the broader index has notched eight straight winning sessions till Aug 19 for the first time this year (read more: 3 Profitable S&P 500 Stocks With Room to Run: NOW, BSX, COO).
Banking on such positives, it’s prudent for astute investors to place bets on S&P 500 growth stocks such as HCA Healthcare, Inc. (HCA - Free Report) , Royal Caribbean Cruises Ltd. (RCL - Free Report) and General Motors Company (GM - Free Report) that can make the most of the encouraging period surrounding the Jackson Hole gathering.
These stocks carry a Zacks Rank #1 (Strong Buy) or 2 (Buy) and a Growth Score of A or B, a combination that offers the best opportunities in the growth investing space. You can see the complete list of today’s Zacks Rank #1 stocks here.
HCA Healthcare
HCA Healthcare is the largest non-governmental operator of acute care hospitals in the United States. HCA Healthcare, currently, has a Zacks Rank #1 and a Growth Score of B.
The Zacks Consensus Estimate for its current-year earnings has increased 6.1% over the past 60 days. HCA’s expected earnings growth rate for the current year is 16.8%.
Royal Caribbean Cruises
Royal Caribbean Cruises is a cruise company. Royal Caribbean Cruises, presently, has a Zacks Rank #1 and a Growth Score of A.
The Zacks Consensus Estimate for its current-year earnings has increased 3.7% over the past 60 days. RCL’s expected earnings growth rate for the current year is 69.9%.
General Motors
General Motors is one of the world’s largest automakers. General Motors, currently, has a Zacks Rank #2 and a Growth Score of B.
The Zacks Consensus Estimate for its current-year earnings has increased 5.7% over the past 60 days. GM’s expected earnings growth rate for the current year is 29.4%.
Shares of HCA Healthcare, Royal Caribbean Cruises, and General Motors have gained 38.7%, 22.7%, and 28%, respectively, so far this year.
Image Source: Zacks Investment Research