Stock market news today August 22

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JPMorgan’s quant guru breaks down why the ‘unprecedented’
dominance of US stocks is headed for a rude awakening

US stocks are dominating their peers in Europe and Asia to an
“unprecedented” degree, JPMorgan says. But
the firm warns that’s an unsustainable situation.

To best understand just how rare the ongoing divergence is,
consider that momentum for US and European stock prices have gone
in different directions just twice in the
past 20 years. As it stands right now —
and as the chart below reflects — when Europe is combined with
Asia, the momentum split is the widest it’s ever been.

Before we get into what this means for the future of global
stocks, let’s first assess what has led us to this situation in
the first place.

JPMorgan’s quant guru, Marko Kolanovic— a man whose
opinion is valued so highly that it can move markets — says the
combination of share buybacks, comparatively tight monetary
conditions from the Federal Reserve, and a strong dollar
resulting from President Donald Trump’s trade war are the main
fundamental factors driving US outperformance.

TARGET CEO: This might be the strongest consumer
environment I’ve ever seen

American retailers are experiencing the best consumer environment
in over a decade.

“There’s no doubt, that like others, we’re currently
benefiting from a very strong consumer environment, perhaps the
strongest I’ve seen in my career,”
Target CEO 
Brian
Cornell said on his company’s second-quarter earnings call on
Wednesday. 

Starbucks slides as Wall Street worries it’s run out of
room to grow in the US

Starbucks slid 1.8% in trading
Wednesday
after Piper Jaffray cut its recommendation to “neutral” from
“overweight,” citing a slowdown in US same-store sales.

“We believe the stock is range bound at best until U.S. trends
improve,” analyst Nicole Miller Regan wrote in a note sent out to
clients  on Wednesday, per CNBC. “Our perspective is
that there are issues around inconsistent results, credibility of
guidance, and management transitions.”

Piper’s new price target is $53 a share — down from $60 in June,
and $70 for the better part of 2017. Wall Street’s average target
if $58, according to Bloomberg data.

In markets news