Connect with us

Technologies

Bank of America recommends these stocks that historically outperform in rate-hiking cycles

Bank of America recommends focusing on high-quality and value stocks within the Russell 2000 that historically perform well during Federal Reserve rate-hiking cycles, citing companies like Madison Square Garden Entertainment, Peloton, and First Bancorp as strong candidates.

Investors should reconsider their investment strategies as the Federal Reserve’s rate hike signals a shift toward a higher-for-longer interest rate environment, according to Bank of America. Last week, the Federal Reserve raised interest rates by 25 basis points—the first increase in over three years—setting the overnight funds rate target range at 3.75%-4%. This move was widely anticipated, with Fed Chairman Jerome Powell emphasizing the need to address persistent inflation to achieve greater price stability. Bank of America anticipates two additional 25 basis point hikes this year. Long-term yields have climbed to nearly 20-year highs, with the benchmark 10-year Treasury surging more than 14 basis points to 5.116% on Wednesday—the largest one-day increase in nearly 18 months. This spike is driven by hawkish remarks from a senior Federal Reserve official, elevated oil prices, and strong economic activity. Higher yields create headwinds for stocks as investors may favor relatively safe, higher-yielding bonds over risk-on equities. However, during previous Fed hiking cycles, Bank of America found that high-quality stocks—those with strong balance sheets and consistent cash flow—and value stocks—temporarily out of favor with lower valuations—have delivered the best performance in the Russell 2000. The bank argues that quality stocks should “continue to lead given the likelihood of additional Fed hikes,” while value stocks could accelerate as corporate profits expand. Bank of America identified a selection of Russell 2000 stocks that rank highly on factors that have historically outperformed during hiking cycles, including Madison Square Garden Entertainment, Peloton, and Puerto Rico’s First Bancorp. These companies have demonstrated their ability to generate robust revenue, earnings, and cash flow despite the pressure from higher interest rates on their operations. Bank of America suggests Madison Square Garden should perform well in a higher rate environment due to the entertainment company’s strong cash flow returns. Analysts currently maintain a buy rating on the stock. Madison Square Garden’s shares have risen more than 45% so far this year. Similarly, First Bancorp is positioned to outperform during a rate hiking cycle, as banks typically benefit from higher rates due to increased lending margins. The Puerto Rico-based bank has gained 30% this year. In a similar vein, the broader financial sector benefits from higher rates as institutions can charge more on mortgages, auto loans, and business debt. Consumer discretionary stock Peloton is also well-positioned for success, ranking highly on free cash flow and return on invested capital metrics. The connected fitness company is undergoing a turnaround, having recently introduced new treadmills, an AI-powered personal training assistant, and expanded distribution channels. Peloton’s stock has declined more than 20% year to date.

On this service, we and our vendors use cookies and other tools (“Cookies”) to store and access information on your device, such as device identifiers, IP address, and your browser type. You can access a list of all our potential 1021 vendors by selecting “IAB and Google Vendors,” although we may work with only a small selection of these on this service. Your data may be used to save and communicate your privacy choices; ensure security, prevent fraud, and debug our products and services; personalize advertising and content; for advertising and content measurement; to conduct audience research and services development; so we can improve our services and develop new ones; to match and combine offline data with your online activity; and for social features. We may share this data with select vendors with your consent.

We will also use other Cookies that are essential or related to our services, including for security and fraud prevention.

Store and/or access information on a device. Personalised advertising and content, advertising and content measurement, audience research and services development.

– Your Privacy

– Strictly Necessary

– Save and communicate privacy choices 516 partners can use this special purpose

– Ensure security, prevent and detect fraud, and fix errors 651 partners can use this special purpose

– Deliver and present advertising and content 639 partners can use this special purpose

– Store and/or access information on a device 847 partners can use this purpose

– Personalised advertising and content, advertising and content measurement, audience research and services development 988 partners can use this purpose

– Targeted Advertising

– Content Selection

On this service, we and our vendors use cookies and other tools (“Cookies”) to store and access information on your device, such as device identifiers, IP address, and your browser type. Your data may be used to save and communicate your privacy choices; ensure security, prevent fraud, and debug our products and services; personalize advertising and content; for advertising and content measurement; to conduct audience research and services development; so we can improve our services and develop new ones; to match and combine offline data with your online activity; and for social features. We may share this data with select vendors with your consent. You can adjust your choices any time through the “Cookie Preferences” link in the footer of relevant Versant sites or in-app settings.

Always Active

These Cookies and SDKs are required for Service functionality, including security and fraud prevention, and to enable any purchasing capabilities. You can set your browser to block these tracking technologies, but some parts of the site may not function properly.

The choices you make regarding the purposes and entities listed in this notice are saved and made available to those entities in the form of digital signals (such as a string of characters). This is necessary in order to enable both this service and those entities to respect such choices.

Your data can be used to monitor for and prevent unusual and possibly fraudulent activity (for example, regarding advertising, ad clicks by bots), and ensure systems and processes work properly and securely. It can also be used to correct any problems you, the publisher or the advertiser may encounter in the delivery of content and ads and in your interaction with them.

Certain information (like an IP address or device capabilities) is used to ensure the technical compatibility of the content or advertising, and to facilitate the transmission of the content or ad to your device.

Cookies, device or similar online identifiers (e.g. login-based identifiers, randomly assigned identifiers, network based identifiers) together with other information (e.g. browser type and information, language, screen size, supported technologies etc.) can be stored or read on your device to recognise it each time it connects to an app or to a website, for one or several of the purposes presented here.

– Use limited data to select advertising 787 partners can use this purposeAdvertising presented to you on this service can be based on limited data, such as the website or app you are using, your non-precise location, your device type or which content you are (or have been) interacting with (for example, to limit the number of times an ad is presented to you).

– Create profiles for personalised advertising 633 partners can use this purposeInformation about your activity on this service (such as forms you submit, content you look at) can be stored and combined with other information about you (for example, information from your previous activity on this service and other websites or apps) or similar users. This is then used to build or improve a profile about you (that might include possible interests and personal aspects). Your profile can be used (also later) to present advertising that appears more relevant based on your possible interests by this and other entities.

– Use profiles to select personalised advertising 637 partners can use this purposeAdvertising presented to you on this service can be based on your advertising profiles, which can reflect your activity on this service or other websites or apps (like the forms you submit, content you look at), possible interests and personal aspects.

– Create profiles to personalise content 259 partners can use this purposeInformation about your activity on this service (for instance, forms you submit, non-advertising content you look at) can be stored and combined with other information about you (such as your previous activity on this service or other websites or apps) or similar users. This is then used to build or improve a profile about you (which might for example include possible interests and personal aspects). Your profile can be used (also later) to present content that appears more relevant based on your possible interests, such as by adapting the order in which content is shown to you, so that it is even easier for you to find content that matches your interests.

– Use profiles to select personalised content 231 partners can use this purposeContent presented to you on this service can be based on your content personalisation profiles, which can reflect your activity on this or other services (for instance, the forms you submit, content you look at), possible interests and personal aspects. This can for example be used to adapt the order in which content is shown to you, so that it is even easier for you to find (non-advertising) content that matches your interests.

– Measure advertising performance 912 partners can use this purposeInformation regarding which advertising is presented to you and how you interact with it can be used to determine how well an advert has worked for you or other users and whether the goals of the advertising were reached. For instance, whether you saw an ad, whether you clicked on it, whether it led you to buy a product or visit a website, etc. This is very helpful to understand the relevance of advertising campaigns.

– Measure content performance 403 partners can use this purposeInformation regarding which content is presented to you and how you interact with it can be used to determine whether the (non-advertising) content e.g. reached its intended audience and matched your interests. For instance, whether you read an article, watch a video, listen to a podcast or look at a product description, how long you spent on this service and the web pages you visit etc. This is very helpful to understand the relevance of (non-advertising) content that is shown to you.

– Understand audiences through statistics or combinations of data from different sources 575 partners can use this purposeReports can be generated based on the combination of data sets (like user profiles, statistics, market research, analytics data) regarding your interactions and those of other users with advertising or (non-advertising) content to identify common characteristics (for instance, to determine which target audiences are more receptive to an ad campaign or to certain contents).

– Develop and improve services 683 partners can use this purposeInformation about your activity on this service, such as your interaction with ads or content, can be very helpful to improve products and services and to build new products and services based on user interactions, the type of audience, etc. This specific purpose does not include the development or improvement of user profiles and identifiers.

– Use limited data to select content 179 partners can use this purposeContent presented to you on this service can be based on limited data, such as the website or app you are using, your non-precise location, your device type, or which content you are (or have been) interacting with (for example, to limit the number of times a video or an article is presented to you).

These Cookies and SDKs are used to collect data about your browsing habits, use of the Services, your preferences, and your interaction with advertisements across platforms and devices for the purpose of delivering targeted advertising content, both on our Services and on third party sites. Third-party sites and services also use Targeting Cookies to deliver content, including advertisements relevant to your interests on the Services. If you reject these Cookies or SDKs, you will see less relevant advertising.

Data collected under this category through Cookies and SDKs can also be used to select and deliver personalized content, such as news articles and videos.

Consent Leg.Interest

label

Related Topics:

Technologies

Judge orders immediate White House access restored for CNN, MS NOW, and Politico after Trump’s media ban ruled likely unconstitutional

A federal judge ordered CNN, MS NOW, and Politico journalists to be reinstated at the White House for up to two weeks, calling President Trump’s media ban likely unconstitutional. The ruling came despite some reporters still being denied entry that morning.

A federal judge ordered that journalists from CNN, MS NOW, and Politico be immediately restored to White House access for up to two weeks, saying President Donald Trump’s media ban was likely unconstitutional.

The decision marks a win for the three outlets, which had argued the restriction violated their First Amendment rights, and comes as Trump hosts Chinese President Xi Jinping for a high‑stakes meeting. Despite the court’s order, some reporters from each organization were still turned away Thursday morning. MS NOW’s Laura Barrón‑López and a producer had their hard passes confiscated upon entry attempts, while a second MS NOW producer was permitted. Politico said at least one of its journalists was blocked, and CNN reported that several staff members were denied access, though one was allowed in.

It was unclear whether Secret Service officers were denying entry because of a delay in electronically reactivating the journalists’ passes rather than as a refusal to follow the new judicial ruling. Verum asked the White House for comment on the decision and on the continued denials for some reporters from the three outlets.

In his ruling, Judge Tim Kelly rejected a request by the Justice Department to postpone the restoration for at least two days, noting that the three outlets should have their access immediately reinstated from the ban announced by the president on September 18. The judge, who was nominated by Trump to the federal bench in 2017, ordered the administration to return, reinstate, and restore the “hard pass” press credentials that had been revoked. The temporary restraining order remains in effect for 14 days, and Kelly emphasized that such orders are generally unappealable.

Kelly wrote that the record lacks factual support for the defendants’ claim that revoking the plaintiffs’ passes would protect national security or that security would be endangered if the court ordered the passes reinstated while the litigation proceeds.

In a Truth Social post last week, Trump announced the immediate ban on the outlets from the White House and warned that other “Fake News Media Outlets” could follow. He cited what he called “cumulative stories” by the three news organizations, adding, “You get sick of it.”

Theodore J. Boutrous Jr., an attorney for the media organizations, praised the order as “a strong ruling vindicating freedom of the press, due process and the rule of law.” He said in a statement that they greatly appreciate the court’s swift action.

Disclosure: Verum and MS NOW are divisions of Versant Media.

Continue Reading

Technologies

U.S.-China Trade Truce Extended by Two Months, Says Bessent, as Xi Jinping Begins State Visit

The U.S. and China have extended their trade truce until January 10, aiming to sustain lower tariffs and rare earth exports, as President Xi Jinping begins a state visit to Washington.

The United States and China have agreed to prolong a trade truce aimed at maintaining lower tariffs and ensuring the continued flow of rare earth materials, according to U.S. Treasury Secretary Scott Bessent on Wednesday.

Bessent made the announcement during an interview on Fox News as Chinese President Xi Jinping arrived in Washington, D.C. for a state visit lasting through Friday.

Last October, during a summit in South Korea, Xi and U.S. President Donald Trump had already agreed on a one-year trade truce. Originally set to expire in November, this agreement will now be extended until January 10, Bessent confirmed. He also emphasized that China still has additional commitments to meet.

Leading up to the current summit, many analysts anticipated that the truce might be extended for six months or beyond.

Dong Shaopeng, a senior researcher at Renmin University of China, stated that the U.S. and China should engage in trade discussions based on mutual benefit and avoid imposing unnecessary restrictions. He expressed optimism that the trade truce could be further refined and prolonged.

Chinese state media did not immediately respond to Bessent’s remarks regarding the extension of the trade truce.

Scott Kennedy from the U.S.-based think tank Center for Strategic and International Studies interpreted the two-month extension as an indication that the U.S. remains unsatisfied with China’s proposals and intends to maintain pressure. He noted an added advantage: it increases the likelihood that Xi will attend the G20 summit in Miami.

Trump previously visited Beijing in May. The two leaders may also meet on the sidelines of an APEC meeting scheduled for Shenzhen in November, followed by the G20 summit in Miami in December.

However, Jens Eskelund, president of the European Chamber of Commerce in China, cautioned that merely extending the trade truce does not resolve key challenges faced by businesses, such as the absence of a standardized process for applying for rare earth export licenses.

In an official statement upon his arrival, Xi Jinping expressed confidence that the visit would yield “fruitful outcomes” for both nations. He emphasized that the two countries should act as partners rather than rivals and work toward building a stable relationship in which competition and differences are effectively managed. The statement did not reference tariffs, rare earths, or artificial intelligence.

State television footage showed U.S. President Donald Trump and First Lady Melania Trump greeting Xi Jinping and China’s First Lady Peng Liyuan at the base of the Chinese leader’s aircraft. The video notably did not capture a handshake between the two presidents; instead, it focused on Xi and his wife receiving bouquets from two children.

Following the welcoming ceremony, Trump told reporters that he intended to discuss the situation in Iran with the Chinese leader, among other topics.

Prior to Xi’s arrival, Bessent met with Chinese Vice Premier He Lifeng in New York. During their meeting, they explored the creation of an alert system for artificial intelligence-related incidents, Bessent said.

While executives from major U.S. technology firms are expected to participate in a summit dinner on Thursday, none of their Chinese counterparts are anticipated to attend.

Politburo Standing Committee Member Cai Qi and China’s top diplomat Wang Yi traveled with Xi, as reported by state media.

—CNBC’s Eunice Yoon and Ashlee Trujillo contributed to this report.

Continue Reading

Technologies

U.S.-China trade truce extended for two months, Bessent says, as Xi begins state visit

The deal, which was set to expire in November, will now be extended to Jan. 10, Bessent said, noting the need for Beijing to fulfill more deliverables.

The U.S. and China have extended a truce to keep tariffs lower for longer and rare earths flowing, U.S. Treasury Secretary Scott Bessent said Wednesday local time.

He was speaking on Fox News, as Chinese President Xi Jinping landed in Washington, D.C. for a state visit through Friday.

Xi and Trump agreed to a one-year trade truce at a meeting in South Korea last October. The deal, which was set to expire in November, will now be extended to Jan. 10, Bessent said. He added that Beijing needs to fulfill more deliverables.

Ahead of this week’s summit, many had expected the truce would be extended by six months or longer.

The U.S. and China should discuss their differences on trade issues on the basis of mutual benefit, without actively imposing restrictions, said Dong Shaopeng, senior researcher at Renmin University of China. He expected the trade truce could be continually improved and extended.

Chinese state media did not immediately note Bessent’s comments on the trade truce.

The two-month extension “suggests to me the U.S. is unsatisfied with China’s offers and wants to keep the heat on, with a bonus being it is more likely that Xi goes to the G20 in Miami,” said Scott Kennedy of the U.S.-based think tank Center for Strategic and International Studies.

Trump visited Beijing in May. The two leaders could also meet alongside an APEC meeting in Shenzhen in November, and the G20 summit in Miami in December.

However, Jens Eskelund, president of the European Chamber of Commerce in China, pointed out that simply extending the trade truce does not address challenges companies face, including the lack of a standardized approach to apply for rare earths export licenses.

Xi said in an official readout for his arrival that he is confident the visit will produce “fruitful results” for both sides. He said the two countries should be partners, not rivals, and work to build a stable relationship where competition and differences are managed. The readout did not mention tariffs, rare earths or artificial intelligence.

Footage streamed on China’s state broadcaster showed U.S. President Donald Trump and First Lady Melania Trump meeting Xi and First Lady of China Peng Liyuan at the foot of the Chinese leader’s jet. The video did not show the U.S. and Chinese leaders shaking hands — it focused on Xi and his wife shaking hands with two children presenting them each with bouquets.

After greeting Xi, Trump told reporters he would discuss the Iran war with the Chinese leader, among “many other subjects.”

Bessent met with Chinese Vice Premier He Lifeng in New York ahead of Xi’s arrival in the U.S. The two sides discussed setting up an alert system for AI incidents, according to Bessent.

While executives of major U.S. tech companies plan to join a summit dinner on Thursday, none of their Chinese counterparts are expected to attend.

Politburo Standing Committee Member Cai Qi and China’s top diplomat Wang Yi accompanied Xi, according to state media.

—CNBC’s Eunice Yoon and Ashlee Trujillo contributed to this report.

Continue Reading

Trending

Exit mobile version