Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Wall Street strategists see more gains in 2022: Reuters poll

EconomyDec 01, 2021 08:15AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: A Wall St. sign is seen near the New York Stock Exchange (NYSE) in New York City, U.S., May 4, 2021. REUTERS/Brendan McDermid/File Photo

By Caroline Valetkevitch

NEW YORK (Reuters) - The S&P 500 will gain 7.5% between now and the end of 2022 to finish at 4,910, driven by earnings and economic growth that will extend this year's rally, according to the median prediction in a Reuters poll of strategists.

Those upbeat forecasts come even as growing concerns about the effect of a new coronavirus variant cloud the picture for the near term, with Wall Street https://www.reuters.com/markets/europe/wall-st-ends-lower-taper-acceleration-worries-pile-onto-virus-angst-2021-11-30 falling sharply on Tuesday, partly on concerns about the Omicron variant.

Yet the S&P 500 remains up over 21% in 2021, benefitting from an economy reopening from pandemic lockdowns.

For 2022, the benchmark S&P 500 will gain 7.5% from Tuesday's close of 4,567 to end the year at 4,910, according to the median forecast of 45 strategists polled by Reuters over the last two weeks.

That forecast is higher than the 4,725 in the late August Reuters poll, although many of the latest forecasts for 2022 were given before the Omicron news.

"Next year is going to slow a little bit, but it's still going to be stronger than trend" for the economy, and that's likely to extend the bull market, said Ryan Detrick, chief market strategist at LPL Financial (NASDAQ:LPLA), which has a 5,050 year-end 2022 target on the S&P 500.

Based on the poll, the Dow Jones industrial average will finish next year at 37,500, up about 8.7% from Tuesday's close.

While profit growth for 2022 is expected to be well below the blowout growth seen this year when businesses bounced back from the start of the pandemic, some strategists think consensus views may be underestimating strength.

"Analysts are still going to be behind the eight ball," Brian Belski, chief investment strategist at BMO Capital Markets, said this week in a virtual chat for his year-ahead outlook. He forecasts the S&P 500 will end 2022 at 5,300.

Strategists in the poll mostly saw earnings expectations improving rather than worsening over the next six months.

Higher costs from supply chain disruptions and labor prompted warnings from companies in the recent earnings season, but many companies so far have been able to pass costs on to consumers.

Wall Street analysts expect S&P 500 earnings to grow 7.9% in 2022, compared with an estimated 49.3% growth in 2021, according to I/B/E/S data from Refinitiv.

Many strategists in the poll, however, viewed a correction or pullback in the S&P 500 in the next six months as likely.

Among the latest reasons for concern, Federal Reserve Chair Jerome Powell https://www.reuters.com/markets/us/powell-yellen-head-congress-inflation-variant-risks-rise-2021-11-30 signaled Tuesday the U.S. central bank would consider speeding up its withdrawal of bond purchases as inflation risks increase.

Earlier this month, the Fed began reducing its purchases of Treasuries and mortgage-backed securities at a pace that would put it on track to complete the wind-down by mid-2022. The program was introduced in early 2020 to ease the economy through the pandemic.

Savita Subramanian, equity & quant strategist at BofA Securities, told investors in a year-ahead video presentation this week that focus within the large-cap space should be on companies "with more stable and growing dividends that will benefit, rather than be hurt from, inflation."

"We like energy and financials for inflation-protected dividends," she said. BofA has a 4,600 year-end target on the S&P 500 for 2022.

(Other stories from the Reuters Q4 global stock markets poll package:)

 

 

Wall Street strategists see more gains in 2022: Reuters poll
 

Related Articles

Nasdaq Moves Off Lows After Dipping Below 14,000
Nasdaq Moves Off Lows After Dipping Below 14,000 By Investing.com - Jan 21, 2022

By Yasin Ebrahim Investing.com – The Nasdaq moved off session lows Friday after falling below the key 14,000 level, as a Netflix-led rout in tech eased and dip-buying in...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Daniel blade
Daniel blade Dec 01, 2021 8:27AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
unbelievable 21% gain in SP500. however, our interesting rate is 0.1%
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email