This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

Bumps in the Soft Landing

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

Stocks rose again on Wednesday morning as investors weighed new retail sales and producer price data, along with strong earnings from Target. The Commerce Department said that U.S. retail sales fell 0.1% in October after a revised 0.9% increase in September. The Reuters consensus forecast had called for a decline of 0.3%. Meanwhile, producer prices pointed to continued progress on inflation. The Labor Department said that its producer price index for final demand fell 0.5% in October, the largest decrease since April 2020, after a 0.4% increase a month earlier. The Dow rose 0.3%, the S&P 0.2%, and the Nasdaq 0.2%. Crude oil fell nearly 2% to $77 per barrel, while gold traded near $1965 per ounce.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

As of the close on September 11, the S&P 500 (SPX), the Nasdaq, and the Nasdaq 100 (QQQ) had all regained their 50-day averages. All three lost the 50-day in mid-August and again last week, so it is encouraging that these major indices are putting up a stand around the key average. At the same time, the three majors remain above their August lows and the pullback has turned into a sideways battle, with a lower high and a higher low in place.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

Stocks rallied on Friday morning following the passage of the debt ceiling bill in the Senate late Thursday and a stronger-than-expected May employment report. The Labor Department said that the U.S. economy added 339,000 nonfarm payroll jobs last month, up from a revised 294,000 in April and well above the Reuters consensus forecast of 190,000. However, the unemployment rate rose to 3.7% from 3.4%, and growth in average hourly earnings slowed slightly from April. The Dow rose 1.5%, the S&P 1.2%, and the Nasdaq 0.9%. Crude oil rose 2% to $71.50 per barrel, while gold fell $13 to $1983 per ounce.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

Monday Tee Up: Heavy on Earnings, Light on the Economy

Stocks pared early losses on Thursday, but still finished in negative territory. Investors weighed earnings reports from major retailers and tech companies, along with new housing market and employment data. Housing starts fell a sharp 4.2% to an annualized 1.425 million in October, but topped the consensus forecast. Building permits fell 2.4% to 1.526 million, also above consensus. On the employment front, first-time claims for state unemployment benefits rose by 4,000 to 222,000 for the week ended November 12, below the consensus forecast. Continuing claims rose slightly from the prior week to 1.507 million. The Dow fell 0.02%, the S&P 0.31%, and the Nasdaq 0.35%. Crude oil fell 4% to $82 per barrel, while gold fell $13 to $1763 per ounce.

Stocks rose strongly on Wednesday morning as investors weighed earnings reports from AMD, Starbucks, and CVS along with new U.S. service sector data. The Institute for Supply Management said that its nonmanufacturing index rose to 56.7 in July, up from 55.3 in June and above the Reuters consensus forecast of 53.5. The reading marked the first increase after three straight monthly declines. The Dow rose 0.9%, the S&P 0.9%, and the Nasdaq 1.8%. Crude oil fell 2% to $92 per barrel, while gold fell $19 to $1771 per ounce.

Stocks were mixed on Tuesday morning. Cryptos are lower, with Bitcoin down 5.54% over the last 24 hours and Ethereum down 2.24%. Markets are increasingly expecting a 75 basis point hike from the conclusion of the Fed meeting tomorrow. The Producer Price Index was in line with estimates with a monthly rise of 0.8% as prices moderated on a year-over-year basis to a rate of 10.8%. The Dow fell 0.4%, the S&P fell 0.1%, and the Nasdaq rose 0.3%. Crude oil rose to $123 per barrel, while gold fell $17 to $1814 per ounce.

The stock market continues to be battered and we have finally reached the white-knuckle point of the decline, with Russia's actions in Ukraine adding to the mix. While there was little evidence of panic on Wednesday (such as we saw in the latter part of January), results for NYSE decliners versus advancers and NYSE up volume versus total volume were well ahead the levels of just a few weeks ago. Based on the charts of the indices, we could get another dose of "throw in the towel" trading action.

Stocks rose strongly on Friday morning, led by the Technology and Communication Services sectors, after recovering from sharp early losses. But there were more signs of accelerating inflation. The Commerce Department said that its personal consumption expenditures index rose 5.8% from the prior year in December, up from 5.7% growth in November and in line with the Bloomberg consensus forecast. The Dow rose 0.5%, the S&P 1.2%, and the Nasdaq 2.0%. Crude oil rose more than 1% to $88 per barrel, while gold traded near $1786 per ounce.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

The market ain't afraida' no ghosts, and stocks sailed into Halloween weekend flying high on a witch's broom. The S&P 500, assigned to Dracula's coffin in September, rose up to reach an all-time intra-day high at 4,608 on October 29 before finishing the session an all-time closing high of 4,605.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

Stocks were mixed on Tuesday morning amid uncertainty about the economic impact of the Delta variant. Factory order data showed slower growth but still topped the consensus forecast. The Commerce Department said that U.S. factory orders rose 1.5% in June, above the Reuters consensus of 1.0% but down from 2.3% growth in May. The Dow rose 0.2%, the S&P fell 0.1%, and the Nasdaq fell 0.6%. Crude oil traded near $70 per barrel, while gold fell $8 to $1814 per ounce.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

April 2021 lived up to its billing as the best stock month of the first half. During April, the S&P 500 appreciated 5.2%, better than any month so far this year; March was closest with a 4.2% gain. Through the end of the fourth month, the S&P 500 is up 11.3% year-to-date.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

Stocks rallied strongly on Tuesday morning on signs that the Biden administration and Congressional Democrats would move forward quickly on their $1.9 trillion stimulus plan, rather than opt for a smaller plan like that proposed by Republican senators. On the earnings front, UPS shares rose after the company posted stronger-than-expected 4Q results. Investors also looked ahead to earnings from Alphabet and Amazon after the close. The Dow rose 2.0%, the S&P 1.7%, and the Nasdaq 1.4%. Crude oil traded near $55 per barrel, while gold fell $22 to $1840 per ounce.

Growth stocks outperformed value, again, in 2020. But in an environment of historically low interest rates (and with the coronavirus and a high unemployment rate seemingly poised to keep them low for a long time), many investors are searching for high levels of income, often be found in value stocks. During recent years, the performance record has favored growth. Since 2010, the Russell 1000 Growth Index has climbed more than 400%, compared to an advance of 200% for the Russell 1000 Value Index. In eight of the past 10 years, growth stocks topped value. That hasn't always been the case. In the previous decade, including the Great Recession, value stocks were better performers, advancing a low 8%, but still better than growth, which declined 15%. Value investors trace their roots to the famous "Security Analysis" textbook, written by Ben Graham, an economics professor at Columbia University. The tide may now be turning. Progress on COVID-19 vaccines has given a lift to some of the cyclical companies (energy companies and banks) that have lagged in recent quarters, and value stocks have kept pace with growth stocks in the past quarter. In any event, value is the place to achieve income. The current yield on the iShares Russell 1000 Value Index ETF is 2.5%, compared to the 1.0% current yield on the iShares Russell 1000 Growth Index ETF. This is not unimportant, as the current yield on the 10-year Treasury bond is 0.95%. For our list this week, we have screened our coverage universe for stocks that are BUY-rated by Argus Research analysts, have a Financial Strength rating of at least Medium, and have a yield of 3.0% or higher.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

Growth stocks may be outperforming value, again, in 2020. But in an environment of historically low interest rates (and with the coronavirus and economic shutdown seemingly poised to keep them low for a long time), many investors are still searching for high levels of income, which can often be found in value stocks. Progress on COVID-19 vaccines has given a lift to some of the cyclical companies (energy companies and regional banks) that have lagged in recent quarters, and value stocks have kept up the pace with growth stocks in the past quarter. The current yield on the iShares Russell 1000 Value Index ETF is 2.5%, compared to the 1.0% current yield on the iShares Russell 1000 Growth Index ETF. This is not unimportant, as the current yield on the 10-year Treasury bond is 0.95%.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

Stocks rose strongly on Wednesday morning despite the still uncertain outcome of a much closer-than-expected presidential election. Still, by mid-morning, Joe Biden had opened narrow leads in the swing states of Michigan and Wisconsin and stood to benefit from as yet uncounted mail-in ballots in these and other key states. Wall Street also focused on the Senate, where Republicans were likely to remain in control with a narrow majority. The Dow rose 2.1%, the S&P 2.6%, and the Nasdaq 3.7%. Crude oil traded near $39 per barrel, while gold fell $8 to $1903 per ounce.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

Everything looked so good at the end of August. Economists were anticipating a sharp recovery in GDP in 3Q, after the 30%-plus plunge in 2Q. Analysts were convinced they had seen the worst of the earnings decline. News was breaking daily on COVID-19 vaccine developments. Stock investors, who look ahead, lifted equity indices to all-time highs. But at those all-time highs, stocks were priced for perfection and not for disappointment, which is what September has delivered. In a sense, the problems started when the month began and students headed back to school. The lack of a nationwide COVID-19 testing program quickly became apparent, and new coronavirus hotspots emerged across the country. Meanwhile, in Washington, politicians were pushing for a fast-track vaccine, while scientists were pushing back to ensure safety. What looked like a 4Q20 solution now may be a summer 2021 solution. The nation's political machinery moved into high gear, as it typically does after Labor Day in an election year, and the already-tense political environment ratcheted even higher after the death of Ruth Bader Ginsberg, which created a vacancy at the Supreme Court. As investors have sold shares in September, the VIX Volatility Index has started to climb again. We expect elevated levels at least into November. In this environment, we recommend investors focus on high-quality stocks, with strong balance sheets and experienced management.

Everything looked so good at the end of August. Economists were anticipating a sharp recovery in GDP in 3Q, after the 30%-plus plunge in 2Q. Analysts were convinced they had seen the worst of the earnings decline. News was breaking daily on COVID-19 vaccine developments. Stock investors, who look ahead, lifted equity indices to all-time highs. But at those all-time highs, stocks were priced for perfection and not for disappointment, which is what September has delivered. In a sense, the problems started when the month began and students headed back to school. The lack of a nationwide COVID-19 testing program quickly became apparent, and new coronavirus hotspots emerged across the country. Meanwhile, in Washington, politicians were pushing for a fast-track vaccine, while scientists were pushing back to ensure safety. What looked like a 4Q20 solution now may be a summer 2021 solution. The nation's political machinery moved into high gear, as it typically does after Labor Day in an election year, and the already-tense political environment ratcheted even higher after the death of Ruth Bader Ginsberg, which created a vacancy at the Supreme Court. As investors have sold shares in September, the VIX Volatility Index has started to climb again. We expect elevated levels at least into November. In this environment, we recommend investors focus on high-quality stocks, with strong balance sheets and experienced management.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

Stocks rose on Wednesday morning, rebounding from a late-day selloff on Tuesday despite the continued fiscal stimulus stalemate in Washington. The Labor Department reported that consumer prices rose 0.6% in July, unchanged from the prior month but above the Reuters consensus forecast of 0.3% growth. Prices also rose 1.0% from the prior year, above the consensus of 0.8%. Moderna shares rose on news that the company had won a $1.5 billion vaccine supply contract with the U.S. government. The Dow rose 1.0%, the S&P 1.3%, and the Nasdaq 2.0%. Crude oil traded near $42 per barrel, while gold rose $3 to $1949 per ounce.