Stocks are trading lower on Tuesday morning on some weaker-than-expected economic data as well as growing concerns that AI-related stocks are overbought at this juncture. Specifically, the Conference Board's Leading Economic Index slipped 0.4% in January and was lower than the expected 0.3% drop. The index was down 3.0% over the past six months -- a narrower decline than the preceding six-month period, which fell by 4.1%. Still, with six of the 10 index components being positive over the past six-month period, the index no longer is signaling a recession ahead. Turning to stocks, shares of Nvidia (NVDA) are down today, with the company reporting earnings tomorrow after market close. Despite expectations for positive earnings results, the selloff indicates many investors may be concerned that the shares are due for a pullback following an impressive run this year (which saw shares rise over 50% to an all-time high set last week). Shares of other tech companies which also saw strong gains related to AI prospects are trading lower on overvaluation concerns, including Arm Holdings (ARM), Advanced Micro Devices (AMD), and Super Micro Computer (SMCI).

In this edition, M&A helps boost CNH; Tencent's share price level is too pessimistic; a look at Europe's equity market outlook; and Lamb Weston Holdings, Johnson Controls, and Ford Motor.

Sustainable Impact Investing, or ESG investing, is gaining traction not only with Argus Research clients but also with the global investment community. BlackRock CEO Lawrence Fink, who oversees approximately $9 trillion in assets, announced in January 2020 that his firm would be investing in companies that are making progress on sustainability. He doubled down in his January 2021 letter, calling on company managements to disclose their plans for making their businesses "compatible with a net-zero economy" by 2050. As assets have flowed in over the past 40 years, Sustainable Impact Investing has evolved. The discipline, originally known as Socially Responsible Investing, focused at first on excluding companies that conducted business in South Africa, or participated in industries such as tobacco, alcohol, and firearms. Performance of these initial strategies lagged, and the approach has been modified. Now, instead of merely identifying industries to avoid, the discipline promotes "sustainable" business practices across all industries that can have an "impact" on global issues such as climate, hunger, poverty, disease, shelter, and workers' rights.

Sustainable Impact Investing, or ESG investing, is gaining traction not only with Argus Research clients but also with the global investment community. BlackRock CEO Lawrence Fink, who oversees approximately $9 trillion in assets, announced in January 2020 that his firm would be investing in companies that are making progress on sustainability. He doubled down in his January 2021 letter, calling on company managements to disclose their plans for making their businesses "compatible with a net-zero economy" by 2050. As assets have flowed in over the past 40 years, Sustainable Impact Investing has evolved. The discipline, originally known as Socially Responsible Investing, focused at first on excluding companies that conducted business in South Africa, or participated in industries such as tobacco, alcohol, and firearms. Performance of these initial strategies lagged, and the approach has been modified. Now, instead of merely identifying industries to avoid, the discipline promotes "sustainable" business practices across all industries that can have an "impact" on global issues such as climate, hunger, poverty, disease, shelter, and workers' rights.

Recession Fears Fade away as Earnings, Economy Deliver

The growth prospects for the artificial intelligence (AI) universe are impressive, yet hard to determine. Argus has derived a model of the size and scope of the global AI industry, based on our coverage of the major publicly-traded players and most of the mid-tier players, along with our industry analysts' knowledge of private players. We estimate the global AI industry amounted to about $90-$100 billion in 2021, and expect it to grow at a 40% CAGR through 2030, when it is expected to reach $1.8 trillion in annual revenue. We expect annual growth to decelerate from the low- to mid-40% range in immediate years to the mid-30% range for years toward the end of the survey period. But determining a realistic estimate for the size of the industry is a challenge. Even for an industry that promises to redefine measuring tools, there is no measurable unit of AI output comparable to barrels of oil or tons of steel. As well, much of AI development occurs within labs and at universities, and the output is measured in tangible progress against objectives, not dollars or units of output. In the corporate world, nearly all the AI pure-play companies service micro-niches, have little measurable revenue, and are deeply unprofitable. For our list this week, we take a big picture view of three areas where AI applications are developing. In Big Tech, we believe much of the revenue and most of the profitability from AI is attributable to several giant U.S. and a few international companies that operate primarily in growth sectors such as Technology, Communication Services, and Consumer Discretionary. Next, we note that China is also a hub of AI development, with companies like Alibaba, Baidu, and Tencent (though Argus follows only Alibaba). Finally, Niche Tech has significant AI activity among companies pursuing advances in IoT, vehicle electrification, autonomous driving, automation and connectivity solutions for manufacturing, warehousing, construction, and other areas. Here are featured companies followed by Argus in those three categories.

Last week, we noted that corporate insiders were responding to ongoing weakness in stocks with a growing sense of opportunity, this as expressed in weekly data from Vickers Stock Research. This week, the song remains the same: stocks continue what appears to be an orderly but noticeable pullback and insiders continue to respond by buying the falling shares - especially at companies that list on the tech-heavy Nasdaq.

Argus Research believes that ESG investing is a smart option to consider. Companies committed to ESG values typically reflect positive traits from management which often translate into better business. ESG (Environmental, Social, Governance) investing has come a long way and continues to grow. According to the Global Sustainable Investment Association, global assets under management in ESG strategies were $40 trillion in 2020, up from $23 trillion in 2016 and on track for $50 trillion by 2025. The discipline, originally known as Socially Responsible Investing, focused at first on excluding companies that conducted business in South Africa, or participated in industries such as tobacco, alcohol, and firearms. In time, the list of industries to avoid increased to include soft drinks, fast food, and oil and gas, among numerous others. But performance of these initial strategies lagged. Now, instead of merely identifying industries to avoid, the discipline promotes "sustainable" business practices across industries that have an "impact" on global issues such as climate, hunger, poverty, disease, shelter, and workers' rights. At Argus Research, we track ESG progress at specific companies as part of our Management analysis -- one of the six points in our proprietary Six-Point System for fundamental research. In addition to reviewing and measuring the ESG proclamations from companies under coverage, we partner with an ESG research firm, JUST Capital, and leverage its analysis and insights. JUST Capital's mission is to drive measurable corporate change to create a stakeholder-centric form of capitalism that reflects the priorities of the American public. JUST utilizes a combination of data-driven research and strategic engagement in an attempt to shift norms and practices in corporate America and the financial markets. JUST ESG Custom Ratings rank stocks in the Russell 1000 on criteria using a scale of 1-100. Drawing on the JUST Capital rankings, we have compiled focused lists of companies followed by Argus Research that are in position to have a "sustainable impact" on the environment, workplace, community, and marketplace. These firms have exemplary records of delivering on the bottom line, and also in improving the environment, contributing to community relations, and showing respect for their employees. We also have a theme model portfolio based in part on ESG criteria. To build the Argus U.S. ESG Theme Model Portfolio, we apply financial concepts such as industry diversification, income generation, risk reduction, and growth at a reasonable price to our various lists. In addition, all stocks must be on the Argus BUY list. For more on JUST Capital's criteria, please visit the JUST Capital website, www.justcapital.com. For more information on the Argus companies, please see our Analyst Reports at www.argusresearch.com. Here are some of the stocks that are currently in the Argus U.S. ESG Theme Model Portfolio.

In this edition, railroads on an appropriately valued track; get ready to charge your lithium portfolio; initiating coverage of Penn Entertainment; and Deere & Co., Walmart and Farfetch.

Sustainable Impact Investing, or ESG investing, is gaining traction not only with Argus Research clients but also with the global investment community. BlackRock CEO Lawrence Fink, who oversees approximately $9 trillion in assets, announced in January 2020 that his firm would be investing in companies that are making progress on sustainability. He doubled down in his January 2021 letter, calling on company managements to disclose their plans for making their businesses "compatible with a net-zero economy" by 2050. As assets have flowed in over the past 40 years, Sustainable Impact Investing has evolved. The discipline, originally known as Socially Responsible Investing, focused at first on excluding companies that conducted business in South Africa, or participated in industries such as tobacco, alcohol, and firearms. Performance of these initial strategies lagged, and the approach has been modified. Now, instead of merely identifying industries to avoid, the discipline promotes "sustainable" business practices across all industries that can have an "impact" on global issues such as climate, hunger, poverty, disease, shelter, and workers' rights.

The major indices were mixed on Tuesday morning amid continued debt ceiling uncertainty, though Nvidia (NVDA) hit a $1 trillion market valuation and is the ninth public company to reach this mark. The consumer confidence index fell to 102.3 in May from 103.7 in April. The Dow fell 0.4%, the S&P rose 0.2%, and the Nasdaq rose 0.7%. Crude oil is now below $70 per barrel while gold rose $14 to $1976 per ounce.

The first-quarter earnings season is wrapping up, with blended earnings (actual results and the consensus for those still to report) showing a 0.6% year-over-year decline, according to Refinitiv. That is considerably better than the 5.0% decline expected at the start of the earnings period, though still not enough to avoid a technical earnings recession following 4Q's 3.4% decline. Propelling the 1Q outperformance was a 74% beat rate (versus the long-term average of 62%), with strong gains in Consumer Discretionary (+55%) and Industrials (+26%), but drags from Basic Materials and Utilities (both -22%). Our analysts are always on the lookout for companies that boost their outlooks during earnings season. Management's ability to "raise guidance" can often be a catalyst for market-beating returns in the quarters ahead. Here is an initial list of BUY-rated companies in Argus Coverage for which management has raised guidance or increased its outlook during the 1Q23 EPS reporting season.

In this edition, agriculture companies' progress grows in precision ag; the news isn't all bad about inflation; Teradyne gets a deserved second look; and Huntington Bank, Papa John's, and Wingstop.

Monday Tee Up: Inflation, GDP, Walmart Earnings

The Labor Department's nonfarm payrolls report for December 2022 will be released at 8:30 a.m. ET on Friday, January 6, 2023. This report is always eagerly awaited by investors, as it typically provides the first (and most-important) view of the previous month's economic activity. This month's report will be parsed carefully as concerns grow that the U.S is headed toward a recession (with the Federal Reserve focused on slowing the economy to reduce inflation). Recent jobs reports have indicated that the employment environment remains healthy. According to the Labor Department, the economy added 263,000 new jobs last month and the unemployment rate was 3.7% -- near cyclical lows. DOL also noted that there are still 10.3 million job openings available. For December, our nonfarm payrolls forecast calls for 220,000 new positions created in the month. Our estimate is based, in part, on modestly upward trends in initial unemployment claims, a flurry of layoff announcements in the Tech sector, and other factors. Indeed, according to Challenger, Gray & Christmas, U.S.-based employers announced 76,835 job cuts in November, a 127% increase from the 33,843 cuts announced in October. We look for the unemployment rate to stay steady at 3.7%, as more workers re-enter the workforce (the labor-force participation rate is currently a low 62.1%, compared to the historical average of 65%). We expect average hourly wage gains of approximately 5.0%. Many economic forecasters are calling for a recession in upcoming quarters. If that is going to be the case, the unemployment rate may rise toward 6.0% in the months ahead.

Each December, Argus surveys its team of analysts, seeking their best ideas for the upcoming year. The Argus Research team draws on its experience (the average analyst has 18 years of Wall Street experience and 10 year at Argus), as well as the company's proprietary six-point research framework and earnings and valuation models to make the calls. Argus analysts cover the waterfront (every sector from Energy to Healthcare to Consumer to Technology), so each sector is represented. This year's list includes some long-time favorites, as well as some recent upgrades and new initiations. The list includes mostly large-caps and mid-caps, and both growth and value stocks. We will be going over the list in more detail during our January webinar and detailing why each stock has been selected by the covering analyst. In the interim, more information on each of these BUY-rated stocks is available on our website.

ESG (Environmental, Social, Governance) investing continues to grow. According to the Global Sustainable Investment Association, global assets under management in ESG strategies had grown to $40 trillion in 2020, up from $23 trillion in 2016 and on track for $50 trillion by 2025. As assets have flowed in over the past 40 years, Sustainable Impact Investing has evolved. The discipline, originally known as Socially Responsible Investing, focused at first on excluding companies that conducted business in South Africa, or participated in industries such as tobacco, alcohol and firearms. In time, the list of industries to avoid increased to include soft drinks, fast food, and oil and gas, among numerous others. Performance of these initial strategies lagged, and the approach has been modified. Now, instead of merely identifying industries to avoid, the discipline promotes "sustainable" business practices across all industries that can have an "impact" on global issues such as the climate, hunger, poverty, disease, shelter, and workers' rights. At Argus Research, we track ESG developments at specific companies as part of our Management analysis - one of the six points in our proprietary Six-Point Fundamental Approach. In addition to reviewing and measuring the ESG proclamations from the companies under coverage, we partner with an ESG research firm, the JUST Capital Foundation, and leverage its analysis and insights on the topic as well. JUST Capital's mission is to drive measurable corporate change to create a stakeholder-centric, inclusive form of capitalism that reflects the priorities of the American public. JUST utilizes a combination of data-driven research and strategic engagement in an attempt to shift norms and practices in corporate America and the financial markets. JUST ESG Custom Ratings rank stocks in the Russell 1000 on criteria using a scale of 1-100. Drawing on the JUST Capital rankings, we have compiled focused lists of companies followed by Argus Research that are in position to have this type of "sustainable impact" on the environment, workplace, community, and marketplace. These firms have exemplary records not only in delivering on the bottom line, but also in improving the environment, contributing to community relations, and showing respect for their employees. We also have a Theme Model Portfolio based in part on the ESG criteria. To build the Argus U.S. ESG Model Portfolio, we applied financial concepts such as industry diversification, income generation, risk reduction and growth at a reasonable price to our various lists. In addition, all stocks must be on the Argus BUY list. Here are the new stocks that have been added to the Argus U.S. ESG Model Portfolio. For more JUST Score details on these companies, and others in the portfolio, please visit the JUST Capital website, www.justcapital.com.

Sustainable Impact Investing, or ESG investing, is gaining traction not only with Argus Research clients but also with the global investment community. BlackRock CEO Lawrence Fink, who oversees approximately $9 trillion in assets, announced in January 2020 that his firm would be investing in companies that are making progress on sustainability. He doubled down in his January 2021 letter, calling on company managements to disclose their plans for making their businesses "compatible with a net-zero economy" by 2050. As assets have flowed in over the past 40 years, Sustainable Impact Investing has evolved. The discipline, originally known as Socially Responsible Investing, focused at first on excluding companies that conducted business in South Africa, or participated in industries such as tobacco, alcohol, and firearms. Performance of these initial strategies lagged, and the approach has been modified. Now, instead of merely identifying industries to avoid, the discipline promotes "sustainable" business practices across all industries that can have an "impact" on global issues such as climate, hunger, poverty, disease, shelter, and workers' rights.

The long-term trend in the U.S. stock market has been higher. Since 1980, stocks have turned in positive annual performances almost 80% of the time. The average annual gain has been 13%. This year has been a clunker, as stocks entered a bear market in June. Volatility has now had an important presence in the market for six years: the last "normal" year for stocks was 2016, when the market climbed 12%. As we look to 2023, we see a stock market that is more likely to generate normal returns, even if volatility remains high. The start of the year may be difficult, as the Fed still hikes rates, the economy flirts with recession, and the Russian invasion of Ukraine continues. Earnings growth may be minimal in the first half, as margins are high and the consumer-led economy stalls a bit. At the same time, the Fed should be moving to the sidelines and interest rates at the long and short end are unlikely to climb as far and as fast as they did in 2022. This will help equity valuations, which already have come back from nosebleed levels in 2022. Indeed, the bond market often leads the Fed, and investors may be pushing long-term rates lower next year). Likewise, stocks historically have led the economy out of recession, typically bottoming during the middle of the pullback and then recovering. Given low level of unemployment, we don't think an economic recession in 2023 will be particularly long or deep, allowing for an earnings recovery in 2H23. As well, the third year of the presidential cycle historically is a strong year, as the party in power spends to generate electoral momentum. Our initial price target for the S&P 500 in 2023 is 4600, about 14% above current levels.

Investors Concede High Likelihood of Lost 2022, Brace for 2023

In this edition, Precision Ag Will Affect Input Costs and Crop Yields, Chip Wars Create Openings, Decentralized Trials Boom in Pandemic, and Kohl's, Farfetch, and General Motors

Innovation may be hard to define. But to borrow from former U.S. Supreme Court Justice Potter Stewart, you know it when you see it. The United States economy is full of innovation. It has to be. Manufacturing industries that dominated the economy decades ago - textiles, televisions, even automobiles to a large degree - have moved overseas, where labor and materials costs are lower. Yet the U.S. economy, even during the pandemic and the current period of high inflation, has expanded to record levels. If U.S. corporations weren't innovating, creating new products (such as vaccines) and services (such as Zoom calls) and moving into new markets and applications, the domestic economy would not be growing, and capital would not be flooding into the country. The current high level of the U.S. dollar relative to currencies around the world attests to the confidence that global investors have in the innovative U.S. economy.

Innovation may be hard to define but, to borrow from former U.S. Supreme Court Justice Potter Stewart, you know it when you see it. The U.S. economy is full of innovation. It has to be. Manufacturing industries that dominated the economy decades ago -- textiles, televisions, even automobiles -- have moved overseas, where costs are lower. Yet the U.S. economy, even during the pandemic and the current period of high inflation, has expanded to record levels. If U.S. corporations weren't innovating, creating new products (such as vaccines) and services (such as Zoom calls), and moving into new markets and applications, the domestic economy would not be growing, and capital would not be flooding into the country. Consider that the U.S. gross domestic product was approximately $1 trillion in 1930 and was almost $25 trillion at the end of 2Q22. That's growth of 25-times. Meanwhile, the U.S. population has grown less than three-times during that time, to 332 million people from 120 million. In large part, the delta between the GDP growth and the population growth is innovation. To take advantage of the key theme of innovation, Argus has identified approximately 30 companies within its universe of coverage that have been combined to form a diversified portfolio. Most of the companies in the portfolio, which is sponsored by Smart Trust Inc. as the Argus Modern Innovators Unit Investment Trust, are not start-ups but are instead mature companies. They innovate by disrupting industries, launching new products, being first to new markets, and improving existing products and processes.

Innovation may be hard to define, but to borrow from former U.S. Supreme Court Justice Potter Stewart, you know it when you see it. The United States economy is full of innovation. It has to be. Manufacturing industries that dominated the economy decades ago - textiles, televisions, even automobiles, to a large degree - have moved overseas, where costs are lower. Yet the U.S. economy is at its largest point in history and still growing. If U.S. corporations weren't innovating, creating new products and services, and moving into new markets and applications, the domestic economy would be contracting, not expanding, and capital would not be flooding into the country. Particularly at this juncture of the market and economic cycles, when uncertainty is high due to high inflation and rising interest rates, we look for innovative companies to navigate the challenges successfully. At Argus, an 88-year-old independent research firm that has innovated a time or two in its long history, we have focused on four types of innovative companies: Industry Disruptors; First to Market; New Product Specialists; and Product & Process Perfectors. Here are some examples of companies, featured in our Innovation theme model portfolio.

The Labor Department's Nonfarm Payrolls report for August 2022 will be released at 8:30 a.m. on Friday. This report is always eagerly awaited by investors, as it typically provides the first and most-important view of the previous month's economic activity. This month's report will be parsed carefully as concerns grow that the U.S is headed toward a recession, after two consecutive quarters of GDP contraction, and as the Fed is focused on slowing the economy to reduce inflation. Recent jobs reports have indicated the economy is percolating nicely. Last month, the economy added 528,000 new jobs and the unemployment rate dipped to 3.5%. That's the same level as just prior to the pandemic. This month, our payrolls forecast calls for 300,000 new positions. This forecast, which would indicate a month-to-month decline in new jobs, is based in part on the upward trend in weekly unemployment claims (243k last week, versus 200k in early March). In addition, we have seen layoffs in the Fintech and online shopping sector, as mortgage interest rates rise and e-commerce growth levels out. But as we see it, 300,000 new jobs still indicates an economy that remains on a growth track. We look for the unemployment rate to rise toward 3.6%, as more workers re-enter the workforce: the labor force participation rate is still low at 62.1%, and below the 15-year average of 63.4%. Lastly, we look for wage pressures to continue, and anticipate a 5.5% increase in average hourly earnings, in line with the rate of increase last month.

After rallying across July and most of August, the stock market fell hard on Monday, posting its worst single-day loss since June. In that month, stocks fell hard on bad inflation data. This time, there was no evident driver of the selloff, except potential profit-taking after strong gains were logged over the past six weeks.

Stocks rallied on Thursday morning, helped by strong earnings reports from major retailers. Macy's shares rose 16% after the company posted stronger-than-expected first-quarter sales and earnings and raised its full-year guidance. Dollar General also rose strongly following above-consensus first-quarter results. The Dow rose 1.5%, the S&P 1.8%, and the Nasdaq 2.3%. Crude oil rose $4 to $114 per barrel, while gold fell $2 to $1847 per ounce.

This edition features ESG pitfalls amid mineral resources, the outflow of nurses from the healthcare industry, growth in agriculture, and Liberty Global, Sanofi, and BT Group.

March was a tale of two timeframes for many markets. During the first part of the month, the stock market was beaten down, but then turned on a dime and had a very good second half. Commodities of all types went parabolic at the end of February and into the early part of March, but then some (like oil and metals) got crushed in the middle of the month only to recover some of those losses by month's end. Treasury yields of all durations rose sharply for most of the month, before pulling back a bit over the past few days.

Of all the things that normally work well in a bull market, few are working well right now. Breadth and daily momentum on the major indices have traced out bullish divergences since February, and the market has ignored them. Sentiment, which has shown significant fear off and on since January, has not turned the tide either. When price ignores all these indicators (indicators that generally lead to an intermediate- or longer-term bottom), it is not a good condition and reflects behavior that is usually seen during large declines and bear markets. If the S&P 500 breaks to new lows and does not reverse quickly, and with some power, we could see another 5%-10% downside.

The Labor Department's nonfarm payrolls report for February 2022 will be released on Friday. The report is always eagerly awaited by investors, as it provides the first and most-important view of the previous month's economic activity. Last month, the report was a positive surprise, as the number of new jobs rose to 467,000 in January, well above the consensus forecast of 150,000. The unemployment rate ticked higher, to 4.0%, as more workers re-entered the workforce. Since the January survey, damage caused by the Omicron variant has diminished, and we expect another strong reading in February. Our forecast calls for 450,000 new positions created in the month. This is based, in part, on trends in weekly unemployment claims, which recently touched all-time lows but have been trending slightly higher over the past month. We also look for the unemployment rate to remain steady at 4.0%, as more workers re-enter the workforce (the labor force participation rate is still low at 62.2%) in part due to an increase vaccination rates rise. Finally, we look for wage pressures to continue, and anticipate a 5.5% increase in average hourly earnings. The Fed will be looking at this last metric very closely, as it will be one of the final inflation data points published before the central bank's next meeting.

Unless your portfolio is invested in Energy (XLE, +23%), the U.S. stock market has not provided many profitable opportunities so far in 2022. The S&P 500 is down 6.3% year-to-date (YTD), the Nasdaq has given back 10%, the Nasdaq 100 (QQQ) is off almost 11%, the S&P 100 (OEX) has declined 6%, the S&P MidCap 400 (MDY) has lost 5%, and the Russell 2000 (IWM) is down 7.5%.

Our rating on the Industrial sector is Over-Weight. After enduring the challenges of the pandemic, the cyclical stocks in the Industrial sector appear well-positioned within the changing political environment. Specifically, we believe that Industrial stocks will benefit from enhanced infrastructure investment and more-lenient trade policies during the Biden administration. The Industrial sector accounts for 8% of S&P 500 market capitalization. Over the past five years, the weighting has ranged from 7% to 12%. We think that investors should allocate 9%-10% of their diversified portfolios to the group. The sector includes industries such as transportation, aerospace & defense, heavy machinery, and electrical equipment. The sector is underperforming the market thus far in 2021, with a gain of 13.5%. It also underperformed in 2020, with a gain of 9.0%, and slightly underperformed in 2019, with a gain of 26.8%. Here are some of our top picks, all of which are rated BUY at Argus.

The stock market moved sideways last week before a sharp selloff on Friday put stocks firmly in the red. Blue chips relatively outperformed tech stocks,

Over the weekend, the House of Representatives approved the largest public works bill since the 1950s. The bipartisan trillion-dollar bill, which was passed by the Senate in August, now goes to President Biden's desk for signing. The plan focuses on improving the country's infrastructure, from roads and bridges to water systems and electricity grids. It also targets the auto industry, with a focus on electric vehicles and charging stations. In the power sector, Biden's goal is to achieve a carbon-free power industry by 2035. To improve energy efficiency in buildings, he is looking to retrofit four million buildings in the four years. Elsewhere, business Services companies also stand to benefit; bond issuance should pick up given that the infrastructure spending plan will be financed at least in part by bonds; and payroll companies could get a boost processing more paychecks as the infrastructure plan creates "millions of good paying jobs." All-in-all, some of the companies that we think may benefit include the following.

Stocks rose again on Tuesday morning following the full FDA approval on Monday of the Pfizer/BioNTech coronavirus vaccine. Many believe that full approval will boost vaccination rates, which could help to control the Delta variant and, in turn, support the economic recovery. The Moderna and Johnson & Johnson vaccines are also expected to receive full approval in the coming weeks. On the housing front, the Commerce Department said that U.S. new home sales rose 1.0% to a seasonally adjusted 708,000 units in July, above the Reuters consensus forecast of 700,000. The Dow rose 0.2%, the S&P 0.3%, and the Nasdaq 0.5%. Crude oil traded near $67 per barrel, while gold rose $2 to $1808 per ounce.

Sustainable Impact investing continues to grow. According to Opimas, a management consultancy focused on global capital markets, global assets under management in ESG strategies grew to $40.5 trillion in 2020, doubling in four years and tripling in eight. As assets have flowed in, SRI investing has evolved over the past 40 years. Now, instead of merely identifying industries to avoid, the discipline promotes "sustainable" business practices across all businesses that can have an "impact" on global issues such as workers' rights, poverty, hunger, and the climate. Based on numerous requests from clients, we have compiled a portfolio of companies followed by Argus Research that are in position to have this type of "sustainable impact" on the environment, workplace, and community. These firms have exemplary records not only in delivering on the bottom line, but also in improving the environment, contributing to community relations, and showing respect for their employees. We built our portfolio by identifying companies that are BUY-rated by Argus analysts and also score well on ESG (Environmental, Social and Governance) criteria established by the JUST Capital Foundation. JUST Capital utilizes a combination of polling, data-driven research, and strategic engagement to shift behaviors and activities in corporate America and the financial markets. JUST Capital's mission is to drive measurable corporate change to create a stakeholder-centric, inclusive form of capitalism that reflects the priorities of the American public. JUST ranks the Russell 1000 on these criteria against a scale of 1-100. Here are company highlights from the Argus U.S. ESG Model Portfolio.

Stocks rose on Wednesday morning, led by the Consumer Discretionary sector, as Fed officials again sought to ease concerns about inflation. On the M&A front, Amazon said that it would purchase the MGM movie studio for $8.45 billion. The acquisition will bolster its Amazon Prime video service and help it to compete with rival streaming services. The Dow rose 0.2%, the S&P 0.3%, and the Nasdaq 0.7%. Crude oil traded near $66 per barrel, while gold rose $5 to $1903 per ounce.

Sustainable Impact Investing is gaining traction with the global investment community. In January 2020, BlackRock CEO Lawrence Fink, who oversees approximately $9 trillion in assets, announced that his firm would be investing in companies that are making progress on sustainability. He doubled down in his January 2021 letter, calling on company managements to disclose their plans for making their businesses "compatible with a net-zero economy" by 2050. As assets have flowed in over the past 40 years, Sustainable Impact Investing has evolved. The discipline, originally known as Socially Responsible Investing, focused at first on excluding companies that conducted business in South Africa, or participated in industries such as tobacco, alcohol, and firearms. But the performance of these initial strategies lagged, and the approach has been modified. Now, instead of merely identifying industries to avoid, the discipline promotes "sustainable" business practices across all industries that can have an "impact" on global issues such as the climate, hunger, poverty, disease, shelter, and workers' rights.

Our rating on the Industrial sector is Over-Weight. After enduring the challenges of the pandemic, the cyclical stocks in the sector appear well positioned within the changing political environment. Specifically, we believe that Industrial stocks will benefit from enhanced infrastructure investment and more-lenient trade policies during the Biden administration. The Industrial sector accounts for 8.9% of S&P 500 market capitalization. Over the past five years, the weighting has ranged from 7% to 12%. We think that investors should allocate 9%-10% of their diversified portfolios to the group. The sector includes industries such as transportation, aerospace & defense, heavy machinery and electrical equipment. The sector is outperforming the market thus far in 2021. It underperformed in 2020, with a gain of 9.0%, and slightly underperformed in 2019, with a gain of 26.8%. Here are some of our top Industrial picks, all of which are rated BUY at Argus.

President Joe Biden is preparing to announce an infrastructure-rebuilding plan that he estimates will create up to 10 million clean energy jobs. The following areas of the economy stand to benefit from the government spending, which could total as much as $4 trillion. The first element of the plan is improving the country's infrastructure, from roads and bridges to water systems and electricity grids.

The United States economy is full of innovation. It has to be. Manufacturing industries that dominated the economy decades ago - textiles, televisions, even automobiles, to a large degree - have moved overseas, where costs are lower. Yet the U.S. economy, prior to the pandemic, had expanded to record levels. And now, the U.S. Healthcare industry is mobilizing to improve COVID-19 testing, treatments and vaccines. Consider that U.S. GDP was approximately $1 trillion in 1930 but nearly $22 trillion at the end of 2019. That's growth of 22-times. Meanwhile, the U.S. population has grown less than 3-times during that time span, to 320 million from 120 million. The delta between GDP growth and population growth has been driven in large part by innovation. In addition, the value of listed corporations on U.S. stock exchanges at the end of 2020 was approximately $32 trillion, representing 41% of global equity market capitalization, while U.S. GDP represented only 25% of global GDP. The current low level of interest rates (the benchmark 10-year Treasury bond yield is 1.1%) and the relatively high level of the dollar both attest to the confidence that global investors have in the innovative U.S. economy.

Insider sentiment continues to suggest a reasonable degree of caution. As we have said for several weeks now, this caution does not mean that a major correction is bound to occur. But it does suggest that there are few near-term catalysts that insiders see as likely to drive stock prices (around all-time highs already) quickly higher.

The stock market rallied last week, closing a holiday-shortened Friday at new closing records for Nasdaq and the S&P 500. With just a single trading day left in November, the market is on track for its best month since April. On Friday, the Dow Jones Industrial Average rose 38 points, or 0.13%. The S&P 500 edged up 9 points, or 0.24%, and the Nasdaq Composite was up 111 points or 0.92%. Last week, the Dow was up 1.45%, returning to growth after the month's only down week. The S&P 500 was up 1.6%. The Nasdaq was up 301 points or 0.92%. For the year-to-date, the DJIA remains in positive territory with a gain of 4.8%. The S&P is up 12.6%, and the Nasdaq is up 36.0%. Over the past 52 weeks, the Dow is up 6.2%, the S&P 500 is up 15.4%, and the Nasdaq is up 40.2%.

The 3Q20 EPS season is mostly in the record books, with retailers the last group to report. The results were not pretty, but were better than 2Q20. Through mid-November, Refinitiv reported that S&P 500 earnings declined in 3Q at a 7.4% rate -- a vast improvement from the prior quarter's 30.5% decline. Excluding the Energy sector, earnings declined at a 3.2% rate. Of the 462 companies in the S&P 500 that have reported earnings to date for 20Q3, 84% have reported earnings above analyst expectations. This compares to a long-term average of 65% and prior four-quarter average of 73%. Our analysts are always looking for companies that raise their outlooks during earnings season. Management's ability to "raise guidance" can often be a catalyst to strong returns in the quarters ahead. There were not many in this most-recent period. Here are 12 BUY-rated companies in Argus Coverage for which management has raised guidance or increased its outlook during the recent EPS reporting season.