Stock market live updates: Dow futures dip 70, JPMorgan sees sell signals, hedge funds buy tech

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David Bailin, chief investment officer at Citi Private Bank, told CNBC on Friday that investors could get burned in a “rush to safety” due to coronavirus concerns. Gold, treasuries, utilities stocks and growth stocks “actually are going to turn out to be dangerous places in the market to be … when we get over the hump of the coronavirus,” Bailin said in a “Squawk Box” interview. “We think those are going to turn out to be places where the market is overvalued, and we’ll actually see reversals.” Bailin said he’s “constructive” on the overall market. However, he advises investors to pick their spots because, in his view, the S&P 500 is “fully priced.” —Belvedere

Goldman Sachs notes that “the typical hedge fund now carries 69% of its long portfolio in its top 10 positions, up from 55% in 2005.” Top favorites of the hedge fund crowd include Amazon and Microsoft, according to a Goldman note. The firm also points out that all investors are crowding into the biggest stocks and that could be worrisome. “In the S&P 500, the 10 largest companies account for 25% of market cap, nearing the 27% share reached at the peak of the Tech Bubble in 2000,” the Goldman note stated. —Melloy

The U.S. stock market could be subjected to near-term headwinds as a slew of “systematic sell signals” are tripped up, JPMorgan technical analyst Jason Hunter said in a note to clients. Hunter noted that as the S&P 500 hit record highs, it did so with “much less momentum and weaker internals.” Hunter also pointed to how narrow the leadership in the market has been, noting: “With only a select group of stocks powering the rally … multiple momentum and internal divergences provide technical signals that increase the probability for a short-term setback.” —Imbert

  • Raymond James upgraded The RealReal to outperform from market perform
  • Stifel downgraded Domino’s Pizza to hold from buy
  • RBC upgraded Chewy to outperform from sector perform
  • Wells Fargo resumed ViacomCBS as underweight
  • Evercore ISI upgraded L Brands to outperform from in line
  • SunTrust downgraded Shake Shack to hold from buy
  • DA Davidson upgraded WW International to buy from neutral
  • UBS raised its price target on Salesforce to $230 from $190
  • DA Davidson downgraded Morgan Stanley to neutral from buy
  • Raymond James downgraded T-Mobile to outperform from strong buy

CNBC PRO subscribers can read more here. —Bloom

Source: https://www.cnbc.com/2020/02/21/stock-market-today-live.html

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