Barrons weekend update: positive on ARCH
* Cover story: A federal debt that's nearly $19T leaves less flexibility for the U.S. to fund infrastructure projects, but that doesn't mean they shouldn't be undertaken-failing to do so would be more expensive in the long run because of the affect crumbling infrastructure has on productivity; Historically low rates and the possibility of 100-year bonds should provide incentives for the government to act.
* Features: 1) Barron's list of the top 10 stock picks for 2017 includes GOOGL, AAPL, C, DAL, Deutsche Telekom, MRK, NVS, TOL, UL, DIS; 2) The lower corporate tax rates the Trump administration plans to impose will help retailers such as TJX and FL more than struggling ones such as GME, AEO, JCP; 3) Positive on ARCH: Coal company emerged from bankruptcy having made significant changes, and should benefit from the shifts in supply and demand as it picks up orders for thermal and metallurgical coal.
* Tech Trader: T's DirectTV NOW "looks to be a great product, but selling 60 channels of live video at close to, or below, cost seems unwise; Less media regulation under the Trump administration could make vertical integration for media companies such as VZ, DIS, VIA, FOXA, DISH an imperative.
* Trader: Investors are no longer buying stocks whole hog, but are rotating their money from one part of the market to another, keeping a lid on the S&P for now, says Michael Shaoul of Marketfield Asset Management; The recent OPEC deal is a game changer, creating the possibility the oil glut will fade as early as the first quarter of 2017, says MS analyst Evan Calio; The market has accepted that tax cuts are a given under Donald Trump, but Wall Street is trying to figure out how much companies will gain from lower tax rates.
* Interview: John Levin and Jack Murphy of Levin Capital looks for value-priced stocks with potential catalysts, and they see plenty of opportunities in the market (picks: DOW, DD, Nestle, NOK; pan: XOM).
* Profile: Jenny Jones, portfolio manager of Hartford Schroders U.S. Small/Mid Cap Opportunities fund, looks for mispriced companies and companies that grow earnings consistently (top 10 holdings: ARMK, PVH, VWR, VNTV, KAR, SPB, ROL, GHC, XRAY, CPHD).
* Small Caps: Positive on EVC: Broadcaster stands to benefit from a growing Hispanic market in the U.S., and its valuable spectrum holdings could help send shares higher.
* Follow-Up: "If the past is prologue, the Trump Treasury could go ahead with 50- or 100-year bond sales without further market disruption"; "Double-digit prices for crude oil are here to stay. But $100 crude is likely gone for good, as is OPEC's dominance of the market."
* European Trader: When it meets on December 8 amid a backdrop of downside risks to economic growth from political uncertainty, the European Central Bank's governing council could signal more quantitative easing.
* Asian Trader: China Unicom will invite BIDU, BABA, and Tencent to become shareholders, but investors should be cautious about rushing after the threesome into the stock because of Beijing's uncertain role.
* Emerging Markets: Many emerging markets face a bumpy ride ahead following the presidential election, but countries such as Brazil, India, and Poland have corporate-earnings strength.
* Commodities: Arabica futures prices fell in November as new data pointed to higher-than-expected supply in the current season, which could weigh on prices through next year.
* Streetwise: The Trump administration isn't looking like the anti-establishment outfit the president-elect's working-class voters might have expected, but that doesn't matter to investors-especially those holding financial services stocks.