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- Bank of America came out with a new list of its top 10 ideas for the third-quarter on Tuesday, including eight long ideas and two short ideas.
- Included in the long ideas are Cisco Systems (NASDAQ:CSCO), Boeing (NYSE:BA), Datadog (NASDAQ:DDOG), Fair Isaac (FICO), KeyCorp (KEY), Levi Strauss (LEVI), Medtronic (MDT) and Warner Bros. Discovery (NASDAQ:WBD). The two short ideas are Conagra Brands (CAG) and Hims & Hers Health (HIMS). It has Buy ratings on the long ideas and Underperform ratings on the short ideas.
- “As we enter the 2H25, our economics and rates teams have refreshed their outlooks,” the investment firm said in a note to clients. “Our economists continue to see the Fed on hold in 2025 and delivering 100bps of cuts in 2026.”
- The investment firm added that its economists see inflation rising in the second-half due to tariffs, making the Federal Reserve uncomfortable with cutting rates until it sees inflation move “sustainably lower.”
- “The labor market may feel pressure from immigration restrictions and trade uncertainty, but it shouldn’t break,” the investment firm added.