Investing

Analysts say bet on stocks like Anaplan and Repay

Frank Calderoni, CEO of Anaplan.

Adam Jeffery | CNBC

In the final leg of 2020, stocks have delivered a record-breaking rally. The Dow Jones Industrial Average recently closed above 30,000 for the first time, with the other major U.S. stock indexes hovering close to record highs.

Encouraging updates on the advancement of a coronavirus vaccine prompted an investor rotation into cyclical stocks, which tend to outperform during periods of economic recovery.

“Although 30,000 isn’t much different than 29,999, there is something special about those big milestone numbers… This is yet another reminder of how far stocks and the economy have come since the depths of March,” chief market strategist for LPL Financial, Ryan Detrick, commented.

However, the near-term is riddled with uncertainty as the distribution of a vaccine presents a significant challenge, one that will require global coordination. At the same time, coronavirus cases are surging in the U.S., with it reporting the highest single-day death toll since early May this week.

Against this backdrop, one way to find compelling plays is to follow the activity of the analysts with proven stock picking abilities. TipRanks analyst forecasting service attempts to pinpoint the best-performing analysts on Wall Street. This is determined by success rate and average return per rating, factoring in the number of ratings made by each analyst.

Here are

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Huge November gains may make the usual year-end ‘Santa Claus rally’ less likely

Santa Claus pays a visit on the floor at the New York Stock Exchange.

Brendan Mcdermid | Reuters

A big year-end rally? Don’t get too excited yet.

December is traditionally an up month: Since 1945, the S&P 500 rose nearly 1.5% in all Decembers and advanced in price 73% of the time, according to Sam Stovall at CFRA Research.

But hopes for the usual “Santa Claus rally” may have to be tempered a bit this year.

For one, there is the powerful November rally.

The S&P 500 in November is closing up 11.2%, the fourth biggest gain of all time but only the second biggest gain this year, after April, with a gain of 12.7%.

However, a powerful November rally like the one we have just had often causes problems with the usual year-end “Santa Claus rally,” according to Stovall.

History “suggests that this November’s surge may end up ‘stealing from Santa,'” he wrote in a recent note to clients. Whenever the S&P 500 was up by 5%+ in November, the market posted a sub-par average rise and frequency of gain in December.”

Huge November gains

November catalyzed a move into cyclical/value stocks that was much more powerful and sustained than previous value rallies, with significant gains in traditional value sectors like energy and banks, as well gains in broader

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Goldman Sachs bankers using drones to help clinch M&A deals

Richard Newstead | Moment | Getty Images

Drones have arrived on Wall Street.

Goldman Sachs, the world’s top mergers advisor, is among investment banks using drone technology to give its clients a bird’s-eye view of the companies they are bidding on, according to Stephan Feldgoise, the firm’s global co-head of mergers and acquisitions.

After Covid-19 made the prospect of hosting in-person visits with groups of bidders unsafe, commercial-grade drones have been used to conduct virtual tours of everything from shipping ports and railroads to chemical factories, warehouses and big-box retail locations, he said.

“We have been selling asset-based businesses all over the world using drones for site visits and fly-overs,” Feldgoise said in a phone interview. “It gives buyers the confidence they need because when you are buying a business, you want to see, touch and feel what you are buying. “

It’s the latest example of how the pandemic has forced change onto what had been one of the most old-school, technologically-resistant corners of Wall Street. Investment banking has traditionally relied on platoons of twenty-somethings (using Excel and PowerPoint, software invented in the 1980s) to support senior bankers whose most valuable asset is their relationships, honed over boozy dinners and social events, to corporate officers and board members.

But the coronavirus put an end to the in-person

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SpaceX plans for Starship test flight next week, which Elon Musk gives 1-in-3 odds of landing intact

SpaceX prototype rocket Starship SN8 stands on the company’s launchpad in Boca Chica, Texas before an engine test.

@LabPadre

SpaceX is aiming to launch its latest Starship rocket prototype as early as “next week,” CEO Elon Musk said on Tuesday, in what would be the company’s most ambitious flight test of the rocket to date.

Musk confirmed that Starship prototype Serial Number 8, or SN8, successfully completed a test firing of its three engines ahead of the flight attempt. This next launch is aiming to reach about 50,000 feet altitude – well above the 500 foot flights of the prototype’s predecessors SN5 and SN6, which completed flight tests on Aug. 5 and Sept. 3, respectively.

The prototypes are built of stainless steel and represent the first versions of the rocket that Musk unveiled last year. The company is developing Starship with the goal of launching cargo and as many as a 100 people at a time on missions to the Moon and Mars.

SpaceX is aiming to pass several further development milestones with Starship SN8’s flight.

“Goals are to test 3 engine ascent, body flaps, transition from main to header tanks & landing flip,” Musk said in a tweet.

Asked what he thought about chances of the Starship prototype landing intact after the flight, Musk gave SN8 low odds

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The market is looking for clues from the Fed on whether it will adjust bond buying

U.S. Treasury Secretary Steven Mnuchin and Federal Reserve Chair Jerome Powell are seated to testify before a House Financial Services Committee hearing on oversight of the Treasury Department’s and Federal Reserve’s coronavirus disease (COVID-19) pandemic response on Capitol Hill in Washington, U.S., September 22, 2020.

Joshua Roberts | Reuters

The Federal Reserve could provide clues about its bond buying program when it releases its minutes Wednesday, but the odds the central bank takes action at its December meeting have fallen slightly with the expected nomination of Janet Yellen as Treasury Secretary.

Minutes from the Fed’s last meeting are released Wednesday at 2 p.m. ET. The Fed talked about possible ways to adjust the program at that early November meeting, so it may reveal some aspects of that discussion.

Market speculation had been building that the Fed will tweak the bond buying program when it meets in December by changing the duration of the bonds it is buying but keeping the total Treasury purchases at $80 billion a month. The theory is if the Fed increases the purchases of longer duration Treasurys, like 10-year notes and 30-year bonds, that would keep the rates that impact mortgages and other loans from rising.

Vincent Reinhart, chief economist at Mellon, said the minutes may not reveal much other than that changing the average duration

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