Showing posts with the label Investopedia news

Futures Higher as Wall St's Post-Christmas Rally Continues

By Reuters Updated Dec 28, 2018 U.S. stock futures were higher on Friday, extending a two-day rally amid volatile trading and raising expectations that the recent selloff may have eased for now. The final week of 2018 has seen wild swings in equities. The benchmark S&P 500 tested its 20-month low and was at the brink of a bear market territory early in the week before the three main indexes roared back, with their biggest daily surge in nearly a decade on Wednesday and a late rally the following day. On Thursday, the S&P fell as much as 2.8 percent but closed 0.8 percent higher as the markets turned around late in the session. The CBOE Volatility Index, an indicator of short-term volatility in the stock market, rose to 36 midweek, its highest level since early February. It has since pulled back below 30, but remains well above a recent low of 15 at the beginning of December. In a sign of optimism on trade on Friday, China opened the door to imports of rice from th

These 5 Countries Are in Bear Markets. Is the U.S. Next?

By Mark Kolakowski Updated Dec 12, 2018 Trade tensions are weighing heavily on stock prices around the world, with equity indices in countries that are particularly dependent on exports for economic growth being especially hard hit, The Wall Street Journal reports. In the U.S., the S&P 500 Index (SPX) has endured a 10% correction since reaching an all-time record high in intraday trading on Sept. 21, and has yet to make a sustained rebound. Already, 14 major stock indices have dropped by 10% or more from their previous highs, and 6 of these, representing 5 different countries, have suffered bear market declines of 20%, as listed below. 5 Countries With Indexes Down More Than 20% Significance for Investors In a similar fashion to economic recessions , bear markets in stocks can spread worldwide. Thus, the fear that, in an interconnected global economic and financial system, contagion that starts abroad is

Trump Tweets China to Cut Tax on U.S.-Made Cars, Revs Up Auto Stocks

Reuters U.S. President Donald Trump said China had agreed to cut import tariffs on American-made cars, buoying shares in BMW and Daimler AG who manufacture in the United States for export to the world's biggest auto market. Shares of Chinese car dealers also perked up on hopes that such a move could revitalize the domestic auto market that is poised for its first annual sales contraction in decades amid cooling economic growth and a debilitating U.S.-China trade war. Trump, fresh from agreeing a 90-day cease-fire in his trade war with China at the meeting of the G20, said on Twitter "China has agreed to reduce and remove tariffs on cars coming into China from the U.S. Currently the tariff is 40%". The move, if realized, would bolster U.S. carmakers who were hit hard when China ramped up levies on U.S.-made cars in July as part of a broad package of retaliatory tariffs amid the sprawling trade war between Washington and Beijing.

Amazon Faces Antitrust Probe in Its Second Biggest Market. Reuters Germany's antitrust authority has launched an investigation into whether U.S. ecommerce giant Amazon is exploiting its market dominance in its relations with third-party retailers who use its website as a marketplace. The move comes as European regulators have been taking a tough line on U.S. tech giants like Google and Facebook, with the European Commission also looking into Amazon's dual role as retailer and marketplace. Germany's Federal Cartel Office said in a statement on Thursday that it had received many complaints from traders about the business practices of Amazon of late. "Amazon acts as a kind of 'gatekeeper' to customers. The double role as biggest trader and biggest marketplace means there is a potential to impede other traders on the platform," said cartel office President Andreas Mundt. Mundt said the investigation would examine the business conditions that Amazon i

2 Housing Stocks That Look Like Bargains: Investopedia News

Image Matthew Johnston Housing stocks are having a terrible year, weighed down by higher mortgage rates and raw-material costs. Down nearly 29% year to date, the iShares U.S. Home Construction ETF ( ITB ) has plunged nearly 20% in just the last two months. But amid the sell-off, a few niche housing stocks are starting to look like bargains, particularly those in the HVAC—heating, ventilation and air-conditioning—business, such as Ingersoll-Rand PLC ( IR ) and Lennox International Inc. ( LII ), according to Barron’s . Because HVAC units typically last between 12 to 15 years, Baird analyst Tim Wojs sees strong demand for replacement-HVAC units over the next few years as units purchased during the height of the housing boom between 2003 and 2006 will soon need to be replaced. “We probably have a couple more years of strong replacement demand,” Wojs said. 2 Resilient Housing Stocks  Stock/Index  1-

A Netflix Bear Goes Bullish and Sees 60% Gain: Invesopedia News

Image Mark Kolakowski Shares of video streaming service Netflix Inc. ( NFLX ) are down by 24.9% from their all-time high, set in intraday trading on June 21. Skeptics had warned that the stock had risen too high and too fast, that its business model was questionable, that its future growth prospects were overblown, and thus that its stratospheric valuation was unsustainable. However, one of those skeptical analysts has changed his rating from underperform to buy . Matthew Harrigan of Buckingham Research writes, as quoted by Barron's , “The Netflix growth flywheel is driven by subscriber growth enabling more programming spending that both attracts even more members and drives increased engagement with more new programming for current customers." A Netflix Bull's Outlook Scenario Price Target Implied Gain Base Case $406 27.7% Bullish Case $531 67.0% Source: Buckingham Resea

9 Buffett-Style Stock Picks for a Still-Pricey Stock Market I Investopedia News Mark Kolakowski After months of warnings that stock valuations were too high and riding for a fall, the market has done just that in recent weeks. Among those issuing such warnings has been the widely-acclaimed master of value investing , Warren Buffett . He built his combination holding company and investment company  Berkshire Hathaway  into a colossus with a market capitalization of nearly $500 billion through a decades-long process of astute acquisitions and equity investments. As a result, many investors and analysts follow Buffett's moves and pronouncements closely, hoping to emulate his formula for success. Among these analysts is Colleen Hansen of Wells Fargo. She has applied seven  fundamental measures inspired by Buffett to uncover these nine stocks that, per Business Insider , she thinks might be attractive investments or takeover targets for Berkshire: Altria Group Inc. ( MO ), Foot Locker In

8 Stocks That Traders Bet Will Soar Short Term: Investopedia News

Image Mark Kolakowski The falling stock market has sent some investors stampeding for the exits, but options traders have been making big bets that some stocks are likely to score big gains by January. Among these stocks are, per a study by Goldman Sachs as summarized by  Business Insider : Navistar International Corp. ( NAV ), Ford Motor Co. ( F ), Ralph Lauren Corp. ( RL ), Weight Watchers International Inc. ( WTW ), Whirlpool Corp. ( WHR ), Parker-Hannifin Corp. ( PH ), Humana Inc. ( HUM ) and Bank of New York Mellon Corp. ( BK ). The table below lists these stocks in order of the potential gains anticipated by options traders, with the biggest potential at the top. Big Bets On Big Stock Gains Stock YTD Gain Main Business Humana 30.3% Health plans Bank of New York Mellon (13.1%) Banking Parker-Hannifin (25.6%) Industrial and aerospace components Whirlpool (32.4%) Appliances Weigh

5 Chip Stocks Facing Steeper Declines Ahead I Investopedia News

Image Mark Kolakowski The PHLX Semiconductor Index (SOX)  is down by 9.2% since a recent intraday high on Aug. 8, and Morgan Stanley sees more trouble ahead, per a report in Barron's . Back in 2015, chip stocks endured a decline of 30% from peak to trough, and the fundamentals today look equally troublesome, especially regarding excess inventories. The chip stocks with the most negatives surrounding them right now are, per Barron's, ON Semiconductor Corp. ( ON ), NXP Semiconductors NV ( NXPI ), Analog Devices inc. ( ADI ), Maxim Integrated Products Inc. ( MXIM ), and Texas Instruments Inc. ( TXN ). The table below shows how far these stocks, the SOX index, and the S&P 500 Index (SPX) are down from their 2018 highs. Chip Stocks May See Steeper Declines Stock or Index % Decline From 2018 High Analog Devices (29.5%) Maxim Intergrated Products (29.5%) NXP Semiconductors (