nov 23  welcome to the home for realtime coverage of markets brought to you by reuters reporters you can share your thoughts with us at marketsresearchthomsonreuterscom us stocks end mixed as value pops growth sags 1605 est2105 gmt major us indexes ended mixed as rising treasury yields prompted investors to sell stocks that are sensitive to higher interest rates and buy stocks in sectors such as energy and financials indeed there was a clear tilt in favor of value ivx sectors vs growth igx within the sp 500 this as the us 10year treasury yield has popped more than 10 basis points so far this week putting in the 168 area energy spny and financials spsy posted the biggest gains among major sp 500 sectors while consumer discretionary splrcd communication services splrcl and tech splrct took the biggest hits under the surface banks spxbk surged and transports djt gained while chips sox and fangs nyfang were pressured a late rally lifted stocks well off their lowest levels of the day but sp 500 value is still on track for its best weekly performance relative to sp 500 growth in more than six months be wary of the bubble 1345 est1845 gmt barry b bannister market strategist at stifel is out with a note this week with a warning beware the bubble bannister believes that fed wariness of asset bubbles coupled with the concerns of president biden and treasury secretary yellen about inflation have changed the market risk calculus according to bannisters calculations a bubble driven by current central bank yield repression may take the sp 500 to 5500 mid2022 and 6750 mid2023 creating a systemic risk when it bursts the solution to this dilemma as bannister sees it is for the fed to adopt a moderately hawkish tilt which lifts the real 10year tips yield bolsters the dollar lowers inflation tightens financial conditions and reduces valuation for this overextended market in any event bannister says global money supply growth is already slowing furthering the equity correction case and past policy tightening by china has already put the writing on the wall for a us cyclical slowdown in the first half of 2022 according to the strategist therefore he prefers sp 500 defensive stocks for the next few months earnings season wrapping up after blast from retailers 1230 est1730 gmt after a week filled with retailer earnings the thirdquarter us earnings season is close to wrapping up while reports last week were not all positive with retail giant target tgtn warning about higher costs and several companies including walmart wmtn citing supply chain disruptions many retailers gave investors reason to feel optimistic about the upcoming holiday season and estimated earnings growth for the sp 500 consumer discretionary sector splrcd which includes many retailers was up friday from the week before the estimate for the sector is now seen at 189 compared with 145 a week ago according to ibes data from refinitiv as of friday with results in from some 95 of the sp 500 spx companies overall sp 500 earnings growth is seen at 423 compared with 415 a week ago and well above the 294 seen at the start of october per refinitiv data the percentage of companies beating earnings estimates has remained high as well and was at 808 as of friday corporate debt rated bbplus or lower by sp global ratings grew by 79 to 558 trillion in the first half of 2021 outpacing growth of 16 for investmentgrade debt the credit rating agency reported this week overall growth of sprated global financial and nonfinancial corporate debt including bonds notes loans revolving credit facilities and preferred securities slowed to 31 from 38 in 2020s first half when issuers raised unprecedented funding to bolster liquidity and bridge operations in response to covid19 the report said the amount of corporate debt sp rates grew by more than 684 billion at 228 trillion by july 1 with 76 rated in the investmentgrade category at bbbminus or higher the largest increases were for debt rated in the bbb and b categories which jumped by 3845 billion and 265 billion respectively due in part to rating upgrades growth in brated debt was fueled by a surge in leveraged finance issuance as well as rating upgrades of more than 80 issuers to the b level from the ccc level in the first half of 2021 sp reported as the dust settles on cop26 there is a lot that has been said on what it means for governments companies and investors but the consensus view was that trillions of dollars worth of funding need to be mobilized to have meaningful hope of averting the worst of climate change and that the private sector is key it stands to reason that the asian infrastructure investment bank aiib is looking to beef up the amount of private capital it can help put to work on its projects ludger schuknecht vice president and corporate secretary of the aiib told the reuters global markets forum gmf the aiibs securitization program was well subscribed adding that about a third of participation was from outside asia itself if you look at the spreads over six months liable for the class a the aaarated one in the 120125 basis point rangeso a good return for those investors who wanted high rated bonds and a good amount schuknecht said the bank was even trying to create an environment for retail investors to also invest in the climate space which he added would be a first in asia while climate finance was earlier closely linked with debt markets and more specifically green bonds earlier cop26 seems to have cemented the belief among many investors across the capital structure that money needs to be allocated in a more environmentally aware manner interest is across the range of solutions – discretionary portfolios liquid and illiquid funds structured products direct deals damian payiatakis head of sustainable  impact investing at barclays private bank told the gmf for many investors the entry points tend to be into investments where they are already active and familiar if i take a step back sustainability is the next stage of investing not simply the latest product or trend payiatakis added a lone economic indicator released on tuesday suggests the growth of business activity in the united states has lost some momentum while the manufacturing sectors usmpmpeci expansion accelerated slightly growth in services usmpspeci  which accounts for a larger slice of the total pie  unexpectedly applied the brakes according to global information firm his markit markits preliminary flash purchasing managers index pmi for november delivered 591 reading for goods makers a 07 point increase over october but the services print defied consensus by dropping 17 points to an even 57 two points lower than expected taken together the composite number shed 09 points to 569 while the us economy has essentially reopened for business with seesawing demand for goods versus customer facing services approaching some semblance of equanimity the supply side of the equation remains in intensive care as shortages of materials and workers continue to constrain activity the slowdown underscores how the economy is struggling to cope with ongoing supply constraints writes chris williamson markits chief business economist input cost inflation spiked sharply higher in november to reach a new survey high adding to pressure for firms to pass the recent surge in costs on to customers in order to protect margins average prices charged for goods and services continued to rise at an unprecedented rate” williamson adds compared with global rivals us and european factory activity expansion is essentially neckandneck with merchandise producers across the pond outpacing the us in output and headcount but stateside producers enjoying faster growth in new orders and since the end of the pandemic recession  the deepest and shortest economic contraction on record  china has been a clear laggard on wednesday investors will be treated to a veritable traffic jam of indicators as the markets hightail it out of town to accommodate the thanksgiving holiday on tap for tomorrow are deep breath mortgage demand corporate profits durable goods gdp consumer spending pce inflation jobless claims inventories new home sales and consumer sentiment as for wall street a lack of meaningful marketmoving catalysts exerted its gravitational pull on the major stock indexes with the benchmark sp 500 on the road to its third straight day in the red energy spny is the outlier on the upside with spiking crude prices boosting the sector sharply higher after opening as a mixed bag wall streets three major averages managed to turn positive in tuesdays early trading after us his markit data showed us business activity slowed moderately in november amid labor shortages and raw material delays contributing to soaring prices halfway through the fourth quarter read more however the sp 500 spx and nasdaq ixic were less sure of themselves and have quickly dipped back into the red at last glance there were four modestly declining sectors with tech splrct off most communications services splrcl consumer discretionary splrcd and healthcare spxhc are down the energy sector spny is the benchmarks biggest percentage gainer as oil gained ground to steady near 80 a barrel after the united states announced plans to release up to 50 million barrels of oil from its reserves to cool the market markets are also still digesting mondays news that jerome powell was nominated for a second term as fed chair and the fact that expectations were pushed forward on monday for an interest rate hike by as soon as june 2022 compared with the previous expectation for july read more lira in crisis again but not a global contagion just yet 0917 est1417 gmt after an 11day losing streak for the lira the turkish currency is now firmly in crisis territory again the biggest concerns on investors minds now are where is the selloff going to end and what are the chances of the contagion spreading turkeys lira plummeted nearly 15 on tuesday while its benchmark index xu100 rose 15 due to suddenly cheap valuations turkeys banks xbank have held up well so far up 19 this month the broader stocks index is up 17 in november having scaled record highs given its limited trade and financial links with the rest of the world alongside most emerging markets improved external positions economist simon macadam at capital economics writes that any global spillovers are unlikely turkish banks have 10 billion of foreign loans on their books so domestic banking strains would not have a big impact on overseas lending the way this would get uglier for the rest of the world is if president erdogan were to hold his nerve for long enough and for the lira to fall far enough to endanger turkey’s banks writes macadam nonetheless some spanish and other european banks like bbva with turkish exposure through its garanti subsidiary may continue to underperform for the duration of the crisis as they did in 2018 adds the economist over the past six months or so the dow jones industrial average dji has been trapped between two logscale trend lines on a weekly basis the dow closed above a more than 90year resistance line in late march with this action the polarity of the line flipped from resistance to support since then the dow has bounced off of it a number of times refusing to end a week back below it it now resides as support around 34000 on the upside the bluechip average faces a resistance line from early 2018 this line capped strength in midaugust and again earlier this month it now resides around 36700 meanwhile over the past six months or so weekly momentum has been waning the macd hit a more than oneyear low in midoctober and despite the dows earlynovember thrust to new highs the momentum study managed just a tepid rise the dow is now down 26 from its 3656573 november 8 intraday high but with the macd remaining weak risk remains for dji to continue to oscillate down to once again test the support line read more ultimately a weekly close outside the range defined by these two lines may signal potential for acceleration ending back below the support line can suggest a failed breakout above a very longterm trend line with risk then for a major reversal for tuesdays live markets posts prior to 0900 est1400 gmt  click here read more terence gabriel is a reuters market analyst the views expressed are his own