HALISTER1: S&P 500 to Reach 2,424 in 2017 With Oil Above $70: Piper Jaffray

S&P 500 to Reach 2,424 in 2017 With Oil Above $70: Piper Jaffray

(Bloomberg) -- Investors should stay bullish on stocks and oil while bearish on Treasuries, with 10-year yields likely to rise to 3.00%-3.25% next year, Piper Jaffray technical analyst Craig Johnson writes in a note.
  • Sees reflation trade continuing as investors prepare for economic shift from monetary to fiscal policy
  • Johnson downgraded utilities to underweight from neutral, citing “significant deterioration in relative strength” while upgrading transports to neutral from underweight amid cyclical rotation
  • Views indicators such as NYSE A/D line, MicroGroup A/D line, 26-week new highs confirming broad market participation
  • While acknowledging “lengthening odds”, Johnson sticks to call for S&P 500 to hit 2,350 by year-end 2016
  • At Tuesday’s close, S&P 500 was at 2,212.23, 10y yields at 2.39%, oil at $50.93
  • NOTE: Earlier, U.S. Equity Newsletter-Writer Bulls Rise Higher Into Danger Zone
    • Dec. 2 Bloomberg survey of strategists showed average estimate for S&P 500 in 2017 was 2,317
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Craig Johnson (Piper Jaffray Cos)

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S&P 500 Stock Market Moves

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