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An employee in the warehouse of Cainiao Smart Logistics Network, the logistics affiliate of e-commerce giant Alibaba, in Wuxi, China s Jiangsu province in November, 2020. HECTOR RETAMAL/AFP/Getty Images
China’s economic recovery has set it apart in the past year, sending Chinese stocks soaring, and drawing investors. But U.S. investors have had to grapple with increasing risks, including Beijing’s heightened scrutiny of its internet giants, as well as a flurry of U.S. executive orders aimed at restricting U.S. investment in some Chinese companies.
Questions about the state of U.S.-China relations as the Biden administration comes in and the fate of measures introduced in recent weeks raises questions of how U.S. investors should proceed, even as strategists and large investors advocate for China to be part of long-term portfolios.
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Delta Air’s disappointing earnings report isn’t stopping Wall Street from maintaining a bullish outlook, pegged to a second-half recovery. Patrick T. Fallon / AFP via Getty Images
Airline investors aren’t expecting much this earnings season and are looking ahead to the second half of the year.
That narrative appeared to take hold after
Delta Air Lines (ticker: DAL) missed fourth-quarter-earnings estimates and issued guidance below consensus estimates for the first quarter. Delta’s results don’t bode well for the two other full-service carriers:
American Airlines Group (AAL). United is scheduled report earnings next Wednesday, with American scheduled to report on Jan. 28.
Exxon Mobil, everything seems to be working out for the company in 2021.
As of Thursday afternoon, shares of Exxon (ticker: XOM) up more than 4% on the day were on track for their ninth consecutive gain. The stock has risen 22% in that period. It has gotten some help from regulators in recent days. A pipeline in the Permian Basin in which the company has a 30% stake won approval from the Federal Energy Regulatory Commission this week.
And Exxon is suddenly getting a warm welcome on Wall Street, raising the possibility that fund managers will give it another look. Analysts at both J.P. Morgan and Morgan Stanley are now urging investors to buy the stock. J.P. Morgan hadn’t raised its rating on Exxon to Buy since at least 2014.
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