Can Value Stocks Really Make a Comeback?

Plus: When to expect a Fed rate cut, where investors are putting their money, and should you buy CrowdStrike stock. [Morningstar](?utm_source=eloqua&utm_medium=email&utm_campaign=newsletter_smartinvestor&utm_content=56157&elqTrackId=06adaa2d81004a259ce811b030ef0142&elq=f95102e289884e65be3a7379ce513675&elqaid=56157&elqat=1&elqCampaignId=28558) [Smart Investor] Smart Investor [Tom Lauricella, chief markets editor]( Connect with Tom on [LinkedIn]( [Tom Lauricella] In this week's newsletter: - [Can Value Stocks Really Make a Comeback?]( - [The Economy is Cooling – and That’s Good News]( - [When Will the Fed Start Cutting Interest Rates?]( - [5 Charts on Where Investors Put Their Money in Q2]( - [CrowdStrike Selloff a Buying Opportunity After Outage]( - [Going Into Earnings, Is Alphabet Stock a Buy, a Sell, or Fairly Valued?]( It’s not unusual for things to get a bit choppy after the kind of run-up we’ve had since April. Through the middle of this past week, it was about as straight-line a rally as you can get, led by the mega-cap tech stocks that have dominated market headlines for more than a year. But a funny thing happened this week: Many of those names rolled over, especially the semiconductor stocks that have been big AI plays. And even more unusually, value stocks have filled the gap and moved higher. Could this be the start of a long-awaited push for value stocks, or just a short-lived blip? [Sarah Hansen has the outlook](. Against this backdrop, Gabe Alpert looks at the data for the second quarter and digs into where investors have been putting their money. [One hint: yield](. In the background, it’s looking more likely that a long-awaited cooling of the US economy is finally taking place. Consumers are spending less and borrowing more. GDP growth is slower. Should you be worried? We look at [what’s behind the easing of economic growth and what it means for your portfolio](. A more moderate pace of economic growth is a key piece of the puzzle for Federal Reserve rate cuts. [Find out]( when Morningstar chief US economist Preston Caldwell expects that first move to happen. Of course, the big news at the end of the week was the global technology meltdown sparked by the update gone wrong at CrowdStrike. The market punished the stock, sending it down some 9% on Friday. But Morningstar analyst Malik Ahmed Khan [thinks the selloff was overdone](. Lastly, we’re getting into the thick of earnings season. [Netflix]( reported another outstanding quarter, and while Taiwan Semiconductor’s news looked bad on the surface, Phelix Lee thinks it [provides investors a buying opportunity](. Looking ahead, our analysts offer their takes on what to watch when [Microsoft]( [Alphabet]( and [Amazon]( all release their latest earnings reports. That’s it for this week! As always, check out our [Markets page]( for our latest coverage, live stock market updates, and [our weekly calendar]( of key upcoming data and events. [Can Value Stocks Really Make a Comeback?]( [Can Value Stocks Really Make a Comeback?]( Growth stocks seemed unstoppable … until this week. Sarah Hansen [Read More]( Share: [facebook]( [twitter]( [linkedin]( ADVERTISEMENT [media]( [media] Markets and the Economy [The Economy is Cooling, and That’s Good News]( [The Economy is Cooling, and That’s Good News]( A soft landing is in sight. But could the economic slowdown go too far? Sarah Hansen [Do Stock Splits Really Matter?]( [Do Stock Splits Really Matter?]( We look at the data to find whether stock splits are predictive of returns or just cosmetic. Leah Breakstone [CrowdStrike Stock Selloff a Buying Opportunity After Outage]( [CrowdStrike Stock Selloff a Buying Opportunity After Outage]( Despite credible response to global tech outage, CrowdStrike stock slides. Malik Ahmed Khan [Can Anyone Overtake Nvidia in the AI Race?]( [Can Anyone Overtake Nvidia in the AI Race?]( Plus, the stocks powering the artificial intelligence explosion, and how AI can speed up the tech evolution in the restaurant industry. Sarah Hansen, Sean Dunlop, Travis Miller, Ivanna Hampton [When Will the Fed Start Cutting Interest Rates?]( [When Will the Fed Start Cutting Interest Rates?]( Our latest economic forecast for interest rates, inflation, and GDP growth. Preston Caldwell [Midyear Market Outlook: Why It’s a Great Time to Be a Multi-Asset Investor]( [Midyear Market Outlook: Why It’s a Great Time to Be a Multi-Asset Investor]( We believe that opportunity awaits for long-term, patient investors. Danny Noonan [2 of the Best Undervalued Stocks to Buy in a Top-Performing Sector]( [2 of the Best Undervalued Stocks to Buy in a Top-Performing Sector]( These overlooked stocks in a hot sector may not fly under the radar for much longer. Susan Dziubinski [Why We Expect the Job Market’s Slowdown to Renew in 2024]( [Why We Expect the Job Market’s Slowdown to Renew in 2024]( Our latest economic forecast for employment growth, wage growth, and labor force participation. Preston Caldwell [Q3 2024: Market Insights on Stocks, Bonds, and the Economy]( [Q3 2024: Market Insights on Stocks, Bonds, and the Economy]( Plus, top stock picks for the quarter. David Sekera, Preston Caldwell, Susan Dziubinski [What’s Happening in the Markets This Week]( [What’s Happening in the Markets This Week]( Q2 GDP numbers, GE Aerospace, Alphabet, Tesla and more release earnings. Leah Breakstone [When Rebalancing Creates Higher Returns—and When It Doesn’t]( [When Rebalancing Creates Higher Returns—and When It Doesn’t]( Rebalancing reliably reduces risk, but it doesn’t necessarily improve returns. John Rekenthaler [5 High-Yielding Global Renewable Energy Stocks]( [5 High-Yielding Global Renewable Energy Stocks]( Proximus, Vodafone, and Volkswagen are among the top names in this industry. Quinn Rennell [Going Into Earnings, Is Microsoft Stock a Buy, a Sell, or Fairly Valued?]( [Going Into Earnings, Is Microsoft Stock a Buy, a Sell, or Fairly Valued?]( Azure growth and Activision Blizzard integration are among the key trends to watch. Dan Romanoff [Going Into Earnings, Is Alphabet Stock a Buy, a Sell, or Fairly Valued?]( [Going Into Earnings, Is Alphabet Stock a Buy, a Sell, or Fairly Valued?]( Watching AI developments, capital spending plans, and ad spending in second-quarter numbers. Michael Hodel [Going Into Earnings, Is Amazon Stock a Buy, a Sell, or Fairly Valued?]( [Going Into Earnings, Is Amazon Stock a Buy, a Sell, or Fairly Valued?]( Watching AWS, advertising, and generative AI, here’s what we think of Amazon’s stock. Dan Romanoff [Is a Contrarian Approach to ETF Investing Right for You?]( [Is a Contrarian Approach to ETF Investing Right for You?]( Standing alone invites challenges and market-beating potential. Bryan Armour [How the 2024 Election Could Affect Your Portfolio]( [How the 2024 Election Could Affect Your Portfolio]( What to know about the economic and investment implications of this year’s election. Emelia Fredlick Chart of the Week [5 Charts on Where Investors Put Their Money in Q2]( [5 Charts on Where Investors Put Their Money in Q2]( Investors continue to favor bond, income, and tech stock funds. Gabe Alpert [Read More]( Share: [facebook]( [twitter]( [linkedin]( Recent Earnings [Netflix: Another Great Quarter But Growth Has Peaked]( [PNC: Net Interest Income Holds Up Relatively Well]( [Charles Schwab: Despite Sequential Decline, We Still Believe in Medium-Term Growth Story]( [Bank of America: Encouraging NII Guidance and Expense Control Should Boost Profitability]( [BlackRock: Market Gains Offset Slightly Weaker Inflows as Firm Hits Record AUM]( [Citigroup: Continued Expense Diligence Will Be Key for Turnaround Efforts]( [Wells Fargo: Shares Tumble 6% on Updated Expense Guidance]( [JPMorgan: Higher Rates and One-Time Gains Turbocharge Profits]( [KeyCorp: Loan Growth Guidance Has Worsened]( [M&T Bank: Net Interest Income Benefiting From Stable Deposit Costs]( [US Bancorp: Key Metrics Are Stabilizing and Medium-Term Outlook Is Positive]( [Kinder Morgan: New SNG Project to Serve Growing Power Demand]( [Taiwan Semiconductor: Negative News and Upbeat Guidance Create Entry Opportunity]( [Johnson & Johnson: Largely In Line as New Products Ready to Offset Stelara Biosimilars]( [United Airlines: Firm Will Weather the Oncoming Capacity Storm]( [UnitedHealth: Solid Performance, Outlook Maintained Despite Challenges]( [Morningstar Company Reports]( See More Get Top Stock Picks and Market Insights Every Week on The Morning Filter. Every Monday morning, Susan Dziubinski sits down with Morningstar Chief U.S. markets strategist Dave Sekera to discuss what's on his radar, new Morningstar research, and stock picks or plans for the week ahead. [Watch Now.](morningstar/streams?utm_source=eloqua&utm_medium=email&utm_campaign=newsletter_smartinvestor&utm_content=56157) Stay connected: [twitter]( [facebook]( [linkedin]( [instagram]( [YouTube]( [Apple News]( [View online]( | [See all newsletters]( | [Share your feedback]( [Unsubscribe]( from this newsletter. Or update your [email preferences](. © 2024 Morningstar, Inc. All Rights Reserved. 22 W. Washington St. Chicago, IL 60602