Stocks are flat. Earnings news is driving individual stocks. Wall Street is waiting on Fed Chairman Powell's speech tomorrow as part of the annual Jackson Hole Economic Symposium.

U.S. markets remained near the flat line. The one outlier is the Russell 2000, which leads the pack with a gain of over 1%. Traders seem to be on hold until the release of CPI data tomorrow morning. In related, news, producer prices by way of the PPI report this morning were a bit hotter than expected in certain areas, but overall the report was viewed by most as benign. PPI rose 0.5% in April, above expectations for a 0.3% gain. The March reading was revised down to a 0.1% drop. Meanwhile, Fed Chairman Jerome Powell spoke publically and suggested that recent progress on inflation was not as robust as hoped -- but he also maintained that prices should move down on a monthly basis. Crude oil is trading near $78 per barrel, while gold is up $11 to trade above $2354 per ounce.

Small- and mid-cap stocks (SMID) have underperformed large-caps over the past 12 months, but may be in a better position to generate market-beating returns going forward. SMID companies tend to focus on domestic markets, so their businesses could be less disrupted by the fallout from global events. As well, the prices of SMID stocks generally are lower than the prices of large-caps. As well, there are long stretches in the record books when SMID stocks have outperformed large-caps. That said, SMID stocks can be risky. The standard deviation for monthly returns was 5.7% for SMID stocks over a 2003-2021 test period, versus 4.3% for large-caps. Still, despite the risks, diversified investors look to have exposure to small- and mid-caps based on the long-term performance record.

Monday Tee Up: Back to Inflation

Monday Tee Up: Nvidia

Small- and mid-cap stocks (SMID) have underperformed large-caps over the past 12 months, but may be in a better position to generate market-beating returns going forward. SMID companies tend to focus on domestic markets, so their businesses could be less disrupted by the fallout from the Russian invasion of Ukraine, high European inflation or other geopolitical developments. As well, the prices of SMID stocks generally are lower than the prices of large-caps. SMID stocks can be risky, but diversified investors look to have exposure to small- and mid-caps based on the long-term performance record. We estimate that 12%-15% of the U.S. stock market's capitalization is comprised of SMID stocks. For our purposes, we use a threshold of $20 billion to define a SMID stock.

Monday Tee Up: Jackson Hole

In this edition, Berkshire's cash hoard an issue for firm; senior housing industry sees silver lining; and hailing Boston Beer; and Datadog, Host Hotels and Resorts, and Magna International

Stocks fell again on Wednesday morning on mounting concerns about the debt ceiling standoff and a potential U.S. default. Investors also awaited the afternoon release of the latest Fed meeting minutes, which should provide clues about the central bank's next interest rate decision. The Dow fell 0.8%, the S&P 0.8%, and the Nasdaq 0.9%. Crude oil traded near $74 per barrel, while gold fell $4 to $1970 per ounce.

Small- and mid-cap stocks (SMID) have underperformed large-caps over the past 12 months, but may be in a better position to generate market-beating returns going forward. SMID companies tend to focus on domestic markets, so their businesses could be less disrupted by the fallout from the Russian invasion of Ukraine, high European inflation or other geopolitical developments. As well, the prices of SMID stocks generally are lower than the prices of large-caps. SMID stocks can be risky, but diversified investors look to have exposure to small- and mid-caps based on the long-term performance record. We estimate that 12%-15% of the U.S. stock market's capitalization is comprised of SMID stocks. For our purposes, we use a threshold of $15 billion to define a SMID stock.

As Earnings Fade, Bonds Lead Stocks Lower

Each December, Argus surveys its team of analysts, seeking their best ideas for the upcoming year. The Argus Research team draws on its experience (the average analyst has 18 years of Wall Street experience and 10 year at Argus), as well as the company's proprietary six-point research framework and earnings and valuation models to make the calls. Argus analysts cover the waterfront (every sector from Energy to Healthcare to Consumer to Technology), so each sector is represented. This year's list includes some long-time favorites, as well as some recent upgrades and new initiations. The list includes mostly large-caps and mid-caps, and both growth and value stocks. We will be going over the list in more detail during our January webinar and detailing why each stock has been selected by the covering analyst. In the interim, more information on each of these BUY-rated stocks is available on our website.

Stocks rose on Thursday, with the S&P 500 snapping a five-day losing streak, as investors weighed a slight increase in weekly unemployment claims and awaited the November PPI report on Friday morning. After the close, Costco reported weaker-than-expected fiscal 1Q sales and earnings, sending the shares down in after-hours trading. The Dow rose 0.55%, the S&P 0.75%, and the Nasdaq 1.13%. Crude oil traded near $72 per barrel, while gold rose $3 to $1801 per ounce.

The Portfolio Selector features the Argus Focus List, a group of 30 "best idea" stocks generated and regularly updated by Argus' analysts and investment policy committee. It also includes the director of research’s monthly investment strategy column, stock recommendations and sector picks, economic forecasts, and an asset allocation model. This month, the Focus List additions are NXP Semiconductors NV (NXPI); Equinix Inc (EQIX); HubSpot Inc (HUBS); Honeywell International Inc (HON) and the Focus List deletions are Flex Ltd (FLEX); Host Hotels & Resorts Inc (HST); AECOM (ACM); Splunk Inc (SPLK).

The Portfolio Selector features the Argus Focus List, a group of 30 "best idea" stocks generated and regularly updated by Argus' analysts and investment policy committee. It also includes the director of research’s monthly investment strategy column, stock recommendations and sector picks, economic forecasts, and an asset allocation model. This month, the Focus List additions are NXP Semiconductors NV (NXPI); Equinix Inc (EQIX); HubSpot Inc (HUBS); Honeywell International Inc (HON) and the Focus List deletions are Flex Ltd (FLEX); Host Hotels & Resorts Inc (HST); AECOM (ACM); Splunk Inc (SPLK).

Small- and mid-cap stocks (SMID stocks) have underperformed large-caps over the past 12 months, but still may be in a better position to generate market-beating returns going forward. For one thing, SMID companies tend to focus on domestic markets, so their businesses could be less disrupted by the fallout from the Russian invasion of Ukraine. As well, the prices of SMID stocks generally are lower than the prices of large-caps. SMID stocks can be risky -- and large-caps outperformed SMID stocks in 11 of the 19 years in our test period. Still, despite the risks, diversified investors look to have exposure to small- and mid-caps based on the long-term performance record. We estimate that 12%-15% of the U.S. stock market's capitalization is comprised of SMID stocks. For our purposes, we use a threshold of $20 billion to define a SMID stock.

Insider sentiment, which had been very bullish from mid-June until about two weeks ago, remains muted. It is not significantly worse this week than last and, overall, is not indicating that stock investors should head for the exits. But after enjoying the impressive run in stock prices that started back in June, insiders have moved to the sentiment sidelines.

Stocks finished mostly lower on Thursday after paring sharp early losses. Investors weighed more hot inflation data, though producer prices did show slightly slower year-over-year growth in April than in March. The Labor Department reported that its PPI for final demand rose 11% from the prior year in April, down from 11.5% in March but above consensus. On the employment front, first-time claims for state unemployment benefits rose to 203,000 for the week ended May 7, up from a revised 202,000 a week earlier and above the consensus estimate. The Dow fell 0.33%, the S&P fell 0.13%, and the Nasdaq rose 0.06%. Crude oil traded near $107 per barrel, while gold fell $32 to $1822 per ounce.

Small- and mid-cap stocks (SMID stocks) have underperformed large-caps over the past 12 months, but still may be in a better position to generate market-beating returns going forward. SMID companies tend to focus on domestic markets, so their businesses could be less disrupted by the fallout from the Russian invasion of Ukraine. As well, the prices of SMID stocks generally are lower than the prices of large-caps. That said, SMID stocks can be risky and large-caps outperformed SMID stocks in 11 of the 19 years in our test period. Still, despite the risks, diversified investors look to have exposure to small- and mid-caps based on the long-term performance record. We estimate that 12%-15% of the U.S. stock market's capitalization is comprised of SMID stocks. For our purposes, we use a threshold of $20 billion to define a SMID stock.

Small- and mid-cap stocks (SMID stocks) have underperformed large-caps over the past 12 months, but still may be in a better position to generate market-beating returns going forward. For one thing, SMID companies tend to focus on domestic markets, so their businesses could be less disrupted by the fallout from the Russian invasion of Ukraine. For another, the prices of SMID stocks generally are lower than the prices of large-caps, as the P/E ratio on the Russell 2000 Small-Cap Index is 16x compared to a P/E of 27x for the S&P 500. Finally, the long-term record has favored SMID stocks over large-caps. From 2003-2021, the Russell 2000 Index had climbed 544%, compared to an advance of 401% for the S&P 500 index. Here are a handful stocks with market caps below $20 billion that are on the Argus BUY list.

Stocks fell on Thursday morning after giving up early gains as investors continued to watch developments in Ukraine. Service sector data was weaker than expected. The Institute for Supply Management said that its U.S. services index fell to 56.5 in February, down from 59.9 in January. The above-50 reading still indicated expansion, but was below the Bloomberg consensus forecast of 61.1. The Dow fell 0.4%, the S&P 0.6%, and the Nasdaq 1.1%. Crude oil traded near $110 per barrel, while gold rose $7 to $1929 per ounce.

The Commerce Department announced that 3Q21 GDP rose at a 2.1% rate -- up by one tenth of a percent from the advance estimate announced last month. As we typically do for the second estimate, let's take a closer look at the key contributors to GDP. First, the consumer. During 3Q, personal consumption expenditures grew at a 1.7% pace and represented 61% of core demand (which we define as personal consumption expenditures, equipment and intellectual property spending, housing, exports, and government expenditures). This is in line with the 10-year average, as the consumer sector (the most-important component of the economy) continues to recover from the impact of the pandemic. Capital investments into equipment declined 2% and accounted for a consistent 5% of total GDP, while capital investments into intellectual property (IP) rose 9% and accounted for a high 5% of total GDP (compared to the historical average of 4%). We expect this trend to continue, with investments in IP growing at a faster rate than equipment as long as interest rates remain low. Exports remained under pressure and accounted for 10% of total demand (compared to the historical average of 11%), as did government spending (which accounted for 15.6% of total demand compared to the historical average of 16.5%). As U.S. GDP recovers from the impact of COVID-19, we expect that various sectors will recover at different paces. We look for consumer spending and capital investments into IP to be among the leading contributors.

Argus has published its latest Portfolio Selector, which features its popular Focus List. Each month, Director of Research Jim Kelleher, CFA, surveys the team of Argus Research industry analysts for their timeliest recommendations out of the company's fundamental universe of approximately 500 stocks. The Focus List typically includes 30 stocks: turnover is high, as Director of Research Kelleher typically adds three or four new stocks per month. Below are the latest additions, all of which are rated BUY at Argus.

The Portfolio Selector features the Argus Focus List, a group of 30 "best idea" stocks generated and regularly updated by Argus' analysts and investment policy committee. It also includes the director of research’s monthly investment strategy column, stock recommendations and sector picks, economic forecasts, and an asset allocation model. This month, the Focus List additions are Host Hotels & Resorts Inc (HST); NXP Semiconductors NV (NXPI); Western Digital Corp. (WDC); IQVIA Holdings Inc (IQV); American Electric Power Co Inc (AEP) and the Focus List deletions are Weyerhaeuser Co. (WY); Dell Technologies Inc (DELL); Qorvo Inc (QRVO); Anthem Inc (ANTM).

The stock market moved higher last week during a busy week that consisted of a steady stream of earnings reports and election results. Tech stocks far outperformed blue chips for a third straight week. During Friday's session, the Dow Jones Industrial Average increased 204 points, or 0.56%. The S&P 500 was up 0.37%, and the Nasdaq Composite was up 0.20%. For the week, the DJIA was up 508 points, or 1.42%, the S&P 500 was up 2.00%, and the Nasdaq Composite was up 3.05%. Year-to-date, the DJIA is up 18.69%, the S&P 500 is up 25.07%, and the Nasdaq Composite is up 23.92%.

Total public debt owed by the U.S. federal government was $28.5 trillion at the end of 2Q21, up 8% year-over-year as the government spends to keep the economy afloat amid the coronavirus pandemic. Outside of U.S. investors, the two largest holders of U.S. public debt are Japan, which owns 5% of the debt, and China, which owns 4%. The other nations among the top 10 holders own 7% of the debt, so the top 10 holders collectively own 16%. The grand total of U.S. debt owned by foreign holders is $7.1 trillion, or about 25%. We suspect these holders are unlikely to push the U.S. government hard on reducing debt levels or to dump their holdings into the bond markets. Japan's holders are long-term in nature and China has no reason to sell a large portion of its holdings (as the increase in supply would merely depress the price of the balance of its holdings, and may even weaken the dollar further, setting off trade repercussions). The local U.S. holders can rest (relatively) assured that the government's printing presses will keep pumping out money until all are paid. We expect to see strong continued demand for U.S. fixed-income securities (and thus low interest rates) in the quarters ahead.

Small- and mid-cap stocks (SMID stocks) soared in 2019. They have underperformed large-caps over the past 12 months, but still may be in a better position to generate market-beating returns going forward. For one thing, SMID companies tend to focus on domestic markets, so their businesses could be poised to rebound more quickly once COVID-19 vaccines are more widely distributed and the domestic service economy recovers. As well, the prices of SMID stocks generally are lower than the prices of large-caps. That said, SMID stocks can be risky. Still, despite the risks, diversified investors look to have exposure to small- and mid-caps based on the long-term performance record. Investors used to use a $2 billion market-cap threshold to define a small-cap stock and a $10 billion threshold for a mid-cap. The Russell 2000 index now includes numerous companies with market capitalizations above $15 billion. For our purposes, we use a threshold of $20 billion to define a SMID stock.

Small- and mid-cap stocks (SMID stocks) soared in 2019. They have underperformed large-caps over the past 12 months, but still may be in a better position to generate market-beating returns going forward. For one thing, SMID companies tend to focus on domestic markets, so their businesses could be poised to rebound more quickly once COVID-19 vaccines are more widely distributed and the domestic service economy recovers. As well, the prices of SMID stocks generally are lower than the prices of large-caps, as the P/E ratio on the Russell 2000 Small-Cap Index is 18x compared to a P/E of 27x for the S&P 500. Finally, the long-term record has favored SMID stocks over large-caps. From 2003-2021, the Russell 2000 Index had climbed 488%, compared to an advance of 408% for the S&P 500 index. This week's list includes stocks with market caps below $20 billion that are on the Argus BUY list and are included in our Mid-Cap Model Portfolio.

Stocks fell on Thursday after briefly rising following new weekly employment data. The Labor Department said that first-time claims for state unemployment benefits fell to 310,000 for the week ended September 4, down from 345,000 a week earlier and below the consensus forecast of 335,000. Continuing claims fell to 2.783 million, down from 2.805 million a week earlier but slightly above consensus. However, by afternoon, stocks began to decline on rising COVID-19 Delta variant concerns. This is the fourth day in a row that the Dow and S&P 500 have fallen, while the Nasdaq fell for the second consecutive day. The Dow fell 0.4%, the S&P 0.5%, and the Nasdaq 0.3%. Crude oil fell slightly to nearly $70 per barrel, while gold traded near $1796 per ounce.

The stock market moved lower last week as inflation concerns spread from Wall Street to Main Street. Blue chips relatively outperformed as earnings season kicked off. During Friday's session, the Dow Jones Industrial Average fell 299 points, or 0.86%. The S&P 500 was down 0.75%, and the Nasdaq Composite was down 0.80%. For the week, the DJIA was down 182 points, or 0.52%, the S&P 500 was down 0.97%, and the Nasdaq Composite was down 1.87%. Year-to-date, the DJIA is up 13.33%, the S&P 500 is up 15.20%, and the Nasdaq Composite is up 11.94%.

This edition features moat sources in medtech; American cannabis; what eliminating the 1031 would mean for REITs; and notes from newly wide-moat Nvidia and new coverage Sofi and Spirax-Sarco.

Stocks fell for a second day on Tuesday morning, led by sharp declines in the Financial and Energy sectors. IBM shares rose more than 4% following stronger-than-expected first-quarter sales and earnings, helped by strength in the company's cloud computing business. On the negative side, Abbott Laboratories fell sharply after reporting slightly lower than expected sales, including a sequential decline in revenue from coronavirus test kits. The Dow fell 0.9%, the S&P 0.9%, and the Nasdaq 1.1%. Crude oil traded near $62 per barrel, while gold rose $9 to $1780 per ounce.

The stock market rose last week, finishing an eventful year on a positive note. Stocks moved sideways for much of the shortened week before rallying during the final two hours of trading on Thursday. During Thursday's session, The Dow Jones Industrial Average rose 197 points, or 0.65%. The S&P 500 was up 0.64%, and the Nasdaq Composite increased 0.14%. For the week, the DJIA rose 1.35%, the S&P 500 1.43%, and the Nasdaq Composite 0.65%. For the full year, the DJIA rose 7.25%, the S&P 14.6%, and the Nasdaq 43.64%.

Stocks gave up early gains on Monday morning as investors weighed rising coronavirus cases and prospects for a last-minute pre-election stimulus deal. On the earnings front, Halliburton shares rose more than 3% after the company posted better-than-expected adjusted 3Q EPS, but missed the consensus revenue forecast. The Dow was flat, the S&P rose 0.1%, and the Nasdaq rose 0.1%. Crude oil traded near $41 per barrel, while gold rose $5 to $1912 per ounce.

Stocks gave up early gains on Monday morning as investors weighed rising coronavirus cases and prospects for a last-minute pre-election stimulus deal. On the earnings front, Halliburton shares rose more than 3% after the company posted better-than-expected adjusted 3Q EPS, but missed the consensus revenue forecast. The Dow was flat, the S&P rose 0.1%, and the Nasdaq rose 0.1%. Crude oil traded near $41 per barrel, while gold rose $5 to $1912 per ounce.

Stocks fell on Friday morning following a sharp drop in U.S. retail sales. The Commerce Department said that sales plunged 16.4% in April. This followed an 8.3% decline in March and exceeded the Reuters consensus forecast, which had called for a decline of 12.0%. Meanwhile, the House prepared to vote on a new $3 trillion relief package that would include direct support for state governments and additional payments to individuals; however, Senate Republicans have promised to reject the measure. The S&P fell 1.0%, the Dow 1.0%, and the Nasdaq 1.1%. Crude oil rose 4% to more than $28 per barrel, while gold rose $8 to $1749 per ounce.

Stocks fell on Friday morning following a sharp drop in U.S. retail sales. The Commerce Department said that sales plunged 16.4% in April. This followed an 8.3% decline in March and exceeded the Reuters consensus forecast, which had called for a decline of 12.0%. Meanwhile, the House prepared to vote on a new $3 trillion relief package that would include direct support for state governments and additional payments to individuals; however, Senate Republicans have promised to reject the measure. The S&P fell 1.0%, the Dow 1.0%, and the Nasdaq 1.1%. Crude oil rose 4% to more than $28 per barrel, while gold rose $8 to $1749 per ounce.