Most investors now expect Biden to beat Trump, but view it as bearish for stocks

Most U.S. equity investors now expect presumptive Democratic nominee Joe Biden to defeat President Donald Trump in the November election, according to a new survey from RBC, an event that will also be bearish for stocks given the former Vice President’s policy stances.

According to the survey of 107 institutional investors, 63% of investors expect Biden and the Democrats to win in November. The data represent a sharp reversal from Wall Street’s sentiment before the COVID-19 pandemic, which showed markets consistently pricing in Trump’s reelection.

Democratic presidential candidate Joe Biden speaks about reopening the country during a speech in Darby, Pennsylvania, on June 17, 2020. (Photo by JIM WATSON / AFP) (Photo by JIM WATSON/AFP via Getty Images)

Along those lines, investors anticipating the president’s victory fell substantially for the second consecutive survey, RBC noted. Presently, only 37% see a Trump re-election — down more than half from the

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5 powerful stocks to buy with the stock market skyrocketing again

The stock market is back in major rally mode again after a brief downdraft. So, instead of trying to fight the tape as they say on Wall Street trading floors, why not back up the truck and search for additions to the portfolio.

Market experts we talk with are divided on what should be the precise investor attack plan right now considering the market has rallied more than 40% off the March 23 lows, according to Yahoo Finance Premium data. Do you day-trade high-flying tech stocks such as Netflix (NFLX), seeing as there is nothing better to do each day (no sports on TV, after all) and the streaming giant is a powerhouse? Do you seek out “safe” dividend stocks, say like Clorox (CLX), that while no longer cheap valuation wise do pay out a solid, predictable dividend? Or do you spend hours searching for fresh names to invest in

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Stocks fall as coronavirus cases jump in some states

Stock futures ticked down Wednesday evening, adding to losses from the regular session.

The S&P 500 and Dow snapped a three-day winning streak by market close, with concerns over a jump in coronavirus cases in some major states contributing to declines. However, big tech shares continued to climb and added to their run of outperformance, despite increasing scrutiny from regulators in the U.S. and Europe. Apple’s (AAPL) stock climbed to an all-time intraday high, but steadied near the flat line during late trading.

Travel and leisure stocks fell Wednesday, with increases in new coronavirus cases appearing and threatening a smooth reopening process. New cases in Florida jumped to the highest level since the pandemic began, and Texas’s hospitalization rate surged by the most since the beginning of the month. Other states including Arizona, Nevada and Oregon also saw spikes in cases as of Wednesday’s counts, as regions struggled to keep

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Stocks of bankrupt companies going bananas despite companies being broke

There’s been a surge of interest in stocks of companies in financial trouble, most notably Hertz (HTZ), which filed for Chapter 11 bankruptcy and was dumped by activist investor Carl Icahn only to be picked up by many users on Robinhood and other stock-trading platforms.

The interest in Hertz has been so hot that the company asked and was granted the right to sell $1 billion in new shares of stock that are essentially worthless. 

“What you’re getting right now is this great disconnect between fundamentals and finance,” said Mohamed El-Erian, chief economic adviser at Allianz, on CNBC. “Take Hertz. A company in a bankruptcy procedure that saw its share price go up….now they’re talking about issuing stocks, warning investors they may be worthless.”

On June 9, Hertz opened at $3.37 and saw highs and lows of $6.25 and $3.09, respectively, which represent massive swings over 80%. The whole

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Stocks can’t handle the truth

The stock market gave a rare nod to reality this week, after Federal Reserve chair Jay Powell laid out his vision for a creeping economic recovery that will take years rather than months.

The Federal Reserve forecast that real GDP will decline 6% by the end of 2020, which is considerably worse than the loss in output from the 2008 financial crash. Output won’t return to normal till 2022, the Fed predicts, with millions of demolished jobs along the way. Powell said on June 10 the Fed will have to provide extraordinary stimulus measures for years.

Stocks closed modestly lower the day Powell spoke, but plummeted the following day, with the S&P 500 (^GSPC) falling nearly 6% on June 11, the biggest daily decline since the chaotic selloff in March. The stock market’s soaring ascent since late March has puzzled many analysts wondering how stocks can surge amid mass unemployment

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