JHMC News and Press, John Hancock Multifactor Consumer Discretionary From 07/21/22

In our last article, we rated TGT as hold, due to its overvaluation. Since then, its stock price has fallen by about 27%, making the stock much more attractive. In our opinion, the potential negative impacts of the macroeconomic headwinds are already priced in. The safe, sustainab...

Two opposing forces appear to be dominating the market currently, with investors polarized between recession fears and bargain hunting following this year’s large equity selloff. Investors priced in most central bank tightening and seem more confident with the inflation outlook...

Last week, the Labor Department announced that its CPI rose 1.3% in June, higher than the economists’ consensus estimate of 1.1%. But core CPI, excluding food and energy, rose only 0.7% in June and just 5.9% in the past 12 months. The main reason for a higher CPI number is that...

Inflation puts pressure on the service sector as labor shortage and material prices increase costs. Restaurants have to raise prices and pass inflation on to the consumer. Darden Restaurants can take a differentiated approach to price increases, thanks to its diversified revenue a...

The inflation fears led to concern that the Fed would raise interest rates by a full percent when they next meet and that in turn produced selling in stocks. Non-US stocks continue to struggle and that will probably be the case until the dollar comes back down. Economies are big c...

Census Bureau's Advance Retail Sales Report for June headline says - sales came in at 1.00% month-over-month to two decimals and was above the Investing.com forecast of 0.8%. Total sales for the April 2022 through June 2022 period were up 8.1 percent (±0.5 percent) from the same ...

Retail sales and food-services spending rose 1% in June following a 0.1% decline in May. In real terms, total retail sales were down 0.3% (adjusted using the CPI) in June, following a 1.1% decrease in May. Core retail sales, which exclude motor vehicle dealers and gasoline retaile...

This year has been one for the record books. Inflation is at a level last seen in 1982, the S&P 500 return this year is its worst start to a year since 1970, and it is the worst start for the Dow Jones Industrial Average Index since 1962. Investors had few areas to invest in that ...

Persistently elevated rates of price increases and an intensifying Fed tightening cycle are impacting economic activity. The outlook is for continued economic growth, but risks remain elevated. The combination of record-high home prices and sharply higher mortgage rates have sent ...

Capri Holdings Limited is a global fashion group and owner of Michael Kors, Versace, and Jimmy Choo. Capri stock is down >35% YTD, which is significantly more than the S&P 500’s -20%. At a 2023 forward P/E of x6, investors might like to consider Capri stock as a barg...