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Showing posts with the label Markets

Market | Stocks: Don’t bail on stocks now, says world’s top fund manager Barbara Kollmeyer 6-8 minutes Another mega earnings day is already under way, with Microsoft and Alphabet coming later, while the Federal Reserve kicks off its two-day policy meeting. So another day, another record for Wall Street? Stock futures aren’t committing just yet, and investors may be starting to wonder if a peak-everything moment is getting close. “Stock valuations are elevated right now, and a lot of good news is priced in,” says Jeffrey Buchbinder, equity strategist at LPL Financial, to clients in a note. “However, we believe valuations are quite reasonable when considering interest rates are low and we expect inflation to remain largely contained.” That view falls in line with our call of the day from a BlackRock strategist team led by Jean Boivin, head of the asset manager’s Investment Institute. The world’s biggest fund manger had $9 trillion in assets u

News | Markets | Stocks: Affirm Stocks Could go Higher on the thought of of Buy-Now-Pay-Later. Affirm stock could head higher amid 'hypergrowth' of buy-now-pay-later offerings, analyst says in upgrade Emily Bary 2 minutes Shares of Affirm Holdings Inc. AFRM, -0.09% are up 2% in premarket trading Friday after Seaport Global analyst Chris Brendler upgraded the stock to buy from neutral and set an $80 price target. He sees the stock as more attractive following a 34% selloff since he initiated coverage of the company 10 weeks back, whereas the S&P 500 SPX, +1.11% has gained 7% in that time. "In our view, this underperformance comes despite increasing evidence that BNPL [buy-now-pay-later] is going to be huge in the US and based on a string of encouraging data points, we expect Affirm to materially exceed near-term expectations," Brendler wrote in a note to clients. The company offers financial optio

Markets: Day Traders Know When They See one Bubble and They Want in. Day Traders Know a Bubble When They See One, and They Want In Vildana Hajric, Lu Wang 4-5 minutes Source: Getty Images It’s a bubble, according to a survey of retail stock investors. And they don’t want to miss it. An E*Trade Financial survey found that roughly three-quarters of retail investors believe the market is “fully or somewhat” in a bubble, a 3 percentage-point increase from the previous quarterly poll. At the same time, bullish sentiment has increased, rising to pre-pandemic levels at 61%. “Optimism grew as the market hit new all-time highs, vaccines increased, stimulus measures continued, and earnings estimates are high,” said Mike Loewengart, managing director of investment strategy at the firm.

News | Business | Markets |Exchange Traded Funds: What we learnt from fixed-income ETFs during the Covid sell-off

Dave Baxter 5-7 minutes - Source: FT While equity exchange traded funds showed no obvious signs of stress during this year’s sell-off, the picture looked vastly different in the bond space. In March, some of the biggest corporate bond ETFs’ shares traded at discounts of more than 5 per cent to net asset value (NAV), having not exceeded discounts of 0.1 per cent in January. Investors wishing to raise cash in the teeth of a crisis may well have balked at the prospect of such deep discounts. But the official explanation asserts that the problems lie with the underlying fixed-income market and how it arrives at prices, rather than ETFs, which appear to have worked as a price discovery tool and a pressure valve for an illiquid market. The Investment Association (IA), the UK trade body for asset managers, draws a stark contrast between the underlying bond market and bond ETFs in a policy briefing on the subject. It notes t

News | Business | Markets | Europe: European stocks lifted by signs of recovery in Germany’s economy

Naomi Rovnick and Thomas Hale  4 minutes - Source: FT European equities climbed and Wall Street was set to build on its record highs after data showed Germany’s historic economic collapse was less severe than feared and business sentiment has continued to brighten. The rise across Europe’s stock bourses echoed gains in New York on Monday, with the benchmark S&P 500 index rising to a new record. German GDP contracted 9.7 per cent in the second quarter, which was the height of the coronavirus pandemic in Europe, as private consumption, investments and exports collapsed. An earlier reading had shown the economy shrinking by 10.1 per cent between April and June, however. Meanwhile, a survey by Germany’s highly regarded Ifo Institute showed sentiment among business leaders in Europe’s biggest economy improved to its highest level since February. The research group’s business climate index rose to 92.6 for August, up f

News | Business | Markets | Asia: Chinese managers apply to launch first Hang Seng Tech index ETFs

Echo Huang 3 minutes - Source: FT Two Chinese managers have applied to launch exchange traded funds that will track the newly launched Hang Seng Tech Index, according to records from the China Securities Regulatory Commission. China Asset Management and Dacheng Fund Management have made applications to list the new ETFs, which will be aimed at mainland Chinese investors and will use the fund managers’ qualified domestic institutional investors quota. Depending on the approval time, these could be the first ETFs introduced in either the mainland or Hong Kong markets tracking the Hang Seng Tech Index, which was launched on July 27. The new index incorporates 30 constituent stocks, including heavyweight Chinese tech giants such as Tencent, Alibaba and Meituan. This article was previously published by Ignites Asia , a title owned by the FT Group. Hong Kong managers have been relativ

News | Business | Markets | China: Covid-19 vaccine hopeful doubles on China stock market debut

Christian Shepherd and Hudson Lockett  3-4 minutes - Source: FT Shares in a pharmaceutical group that is developing a coronavirus vaccine alongside China’s military more than doubled on its trading debut, as investors brushed aside longstanding doubts over profitability. CanSino Biologics’ stock surged as much as 127 per cent on its first day of trading on Shanghai’s Nasdaq-like Star Market on Thursday after the company raised Rmb5.2bn ($748.9m) in a secondary share offering. The shares later pared some of that initial enthusiasm to trade 85 per cent higher. Appetite for Tianjin-based CanSino’s stock has been driven by its development of an experimental Covid-19 vaccine that seeks to stimulate an immune response to coronavirus using a chemically weakened common cold. The treatment has been developed jointly with a team of leading immunologists from China’s People’s Liberation Army and has already been approved for u

News | Business | Markets | Europe: European equities rise after Nasdaq strikes record

Naomi Rovnick and Hudson Lockett  3-4 minutes - FT European equity markets opened higher on Tuesday, extending a bout of exuberance that began in the US overnight. While London’s FTSE 100 traded flat, Germany’s Dax rose 0.8 per cent, France’s CAC 40 was 0.6 per cent higher and the Euro Stoxx 600 gained 0.4 per cent. Europe’s gains were led by industries that have been among the biggest victims of the Covid-19 pandemic. Within the Euro Stoxx index, automotive shares rose 2 per cent, travel shares gained 1 per cent and the oil and gas segment rose 1.7 per cent. Investors’ willingness to take more risk followed rises in Asian equities on Tuesday. Japan’s benchmark Topix index climbed 1.9 per cent and Australia’s S&P/ASX 200 rose 1.8 per cent in Asia-Pacific trading on Tuesday. Hong Kong’s Hang Seng rose 0.8 per cent while China’s CSI 300 index of Shanghai- and Shenzhen-listed stocks was little changed. This came af

News | Markets | Investing | Europe Bonds: Bond investors wait for more headlines on EU recovery fund

Yoruk Bahceli 2-3 minutes - Source: Reuters AMSTERDAM (Reuters) - Euro zone bond yields held their ground on Thursday with investors’ main focus expected to be any new developments on the European Union’s recovery fund, which aims to help the region’s economy recover from the coronavirus crisis. FILE PHOTO: A two Euro coin is pictured next to an English ten Pound note in an illustration taken March 16, 2016. REUTERS/Phil Noble/Illustration. Hopes are high that the 750 billion euro ($851.70 billion)fund will be approved at a European Union summit late next week. Designed to mostly offer grants to countries worst hit by the coronavirus, it has been one of the main drivers of a drop in Southern European borrowing costs led by Italy in the past few weeks. On Wednesday, European Council President Charles Michel said the EU needed to reach an agreement quickly on the fund but much negotiation was still needed. Euro zone finance

Markets | Bond Market Signal: This bond market signal indicates the bear market isn't over yet

Elliot Smith 4-5 minute - Source: CNBC The price action of high-yield corporate bonds will signal to investors when the bear market triggered by the coronavirus pandemic is truly at its bottom, according to Longview Economics. A bear market is a broad decline in a stock market, often defined as a price decline of 20% from a recent high. Sudden, sharp losses in stocks in early-to-mid-March took global stocks into bear market territory as the coronavirus pandemic spread worldwide and oil prices plummeted. Stock markets have rallied in recent days, however, fueled by unprecedented monetary and fiscal stimulus from central banks and governments around the world, and the commencement of efforts to reopen economies following prolonged lockdowns. Markets have shrugged off dire economic indicators, such as the U.S. shedding a record 20.5 million jobs in April, suggesting that investors are beginning to see a case for a V-shaped recovery.

US Market | Futures Indicator: Dow futures surge more than 200 points as investors focus on reopening of economy

Yun Li 3minutes - Source: CNBC Wall Street and much of the Financial District stands empty as the coronavirus keeps financial markets and businesses mostly closed on April 20, 2020 in New York City. Spencer Platt | Getty Images Stock futures rose in early morning trading Tuesday as investors remained focused on the reopening of the U.S. economy. Futures on the Dow Jones Industrial Average climbed 240 points, implying a Tuesday opening gain of around 173 points. S&P 500 and Nasdaq futures also pointed to a positive Tuesday start for the two indexes. Investors weighed fears of a second wave of coronavirus cases against efforts to reopen businesses and loosen restrictions. California governor Gavin Newsom said Monday some of the state’s retailers will be allowed to offer curb-side pickup starting Friday.  Meanwhile, New York Gov. Andrew Cuomo said that the daily number of hospitalizations and new deaths are declining,

US Market | Futures Indicator: Dow futures drop 300 points to start the week, airline stocks fall on Buffett sale

Yun Li,Fred Imbert 4-5 minutes - Source: CNBC Stock futures fell early Monday morning as traders weighed the reopening of the economy along with brewing tensions between China and the U.S. Dow Jones Industrial Average futures  fell 300 points, or 1.2%, pointing to an opening decline of more than 290 points.  S&P 500  futures lost 1%. Nasdaq-100 futures fell 0.8%. Warren Buffett   said his Berkshire Hathaway  sold all of its airline holdings because of the coronavirus outbreak. While the legendary investor was optimistic over the long term about the outlook for America, the move shows his concern that the pandemic has changed certain industries permanently and could be a sign that other investors are too optimistic about the economy returning to normal quickly. Airline shares were the biggest losers in the S&P 500 in the premarket. Delta, United Airlines, American Airlines and Southwest Airlines all lost more than 10%, wh

US Market | Futures Indicator: US stock futures rise after solid tech earnings, Facebook up more than 10%

Thomas Franck 3-4 minutes - Source: CNBC Futures contracts tied to the major U.S. stock indexes were higher in the overnight session Wednesday evening after both Facebook and Microsoft issued better-than-expected revenue projections in their earnings reports. Dow Jones Industrial Average futures  rose 116 points, implying an opening gain of around 155 points.  S&P 500 and Nasdaq-100 futures  also pointed to Thursday opening gains. Both Facebook and Microsoft equity climbed in after-hours trading Wednesday evening after each reported promising revenue figures despite the global coronavirus outbreak . Facebook soared more than 10% in the overnight session after it reported that, after an initial “significant” pullback in advertising revenues in March thanks to Covid-19, it’s seen sales stabilize in the first three weeks of April . It reported first-quarter per-share earnings of $1.71 and revenues of $17.74 billion. Microsoft r

Business News | Company´s Revenue: GE says first-quarter revenue declined 8%, expects this quarter to be worse because of pandemic

Fred Imbert 2-3 minutes - Source: CNBC General Electric reported Wednesday a steep decline in first-quarter revenue as the industrial giant took a hit amid the coronavirus pandemic. The company posted total revenue of $20.524 billion, which represents a year-over-year decline of 8%. On an adjusted per-share basis, the company earned 5 cents. That’s below a Refinitiv estimate of 8 cents per share. “The impact from COVID-19 materially challenged our first-quarter results, especially in Aviation, where we saw a dramatic decline in commercial aerospace as the virus spread globally in March,” CEO Larry Culp said in a statement. As global travel screeched to a halt, General Electric’s aviation business saw revenue fall by 13% to $6.892 billion on a year-over-year basis in the quarter, with profit tumbling 39% to $1.005 billion from $1.66 billion in the division. Orders also declined by 14%. The company’s power and renewable energy bu

US Market | Futures Indicator: Dow futures point to opening gain of nearly 200 points ahead of Fed decision

Yun Li 3-4 minutes - Source: CNBC Stock futures rose in early morning trading on Wednesday as investors looked for guidance from the Federal Reserve on the future path of interest rates with a gradual reopening of the economy in sight. Futures on the Dow Jones Industrial Average  traded 144 points higher, implying a Wednesday opening gain of 193 points. S&P 500  and Nasdaq futures also pointed to Wednesday opening gains for the two indexes. All eyes will be on the Fed’s monetary policy decision at 2 p.m. ET Wednesday. Investors will look to the central bank’s statement and chairman Jerome Powell’s virtual press conference for clues about how long interest rates will stay near zero as the economy seeks to emerge from coronarivirus crisis. “It doesn’t look like the Fed will raise interest rates beyond 0% until well-past the pandemic, which we think might be around 2023,” said Jim Caron, head of global macro strategies at Morgan

US Market | Futures Indicator: Dow futures up more than 100 points as oil declines; traders weigh prospects of re-opening the economy

Fred Imbert 4-5 minutes - Source: CNBC Charging Bull Statue is seen at the Financial District in New York City, United States on March 29, 2020. Tayfun Coskun | Anadolu Agency | Getty Images Stocks futures were higher in early Monday morning trade, as oil prices fell, while investors assessed the possibility of re-opening the global economy after the coronavirus outbreak. Dow Jones Industrial Average futures were up 177 points, implying a Monday opening gain of around 168 points. S&P 500 and Nasdaq 100 futures also pointed to a higher Monday open for the two indexes. West Texas Intermediate futures were down more than 10% at $15.18 per barrel. Wall Street’s coming off its first weekly decline in three as a record plunge in oil prices sent investors for a wild ride. Both the Dow and S&P 500 fell over 1% last week while the Nasdaq Composite dipped 0.2%. New York Gov. Andrew Cuomo said Sunday the state plans to re-open its economy in phase

Banks: Banks Could Prove Weak Partner in Coronavirus Recovery( Originally Published on April 24, 2020)

Julia-Ambra Verlaine and Liz Hoffman 10-12 minutes - Source: WSJ In September 2008, eight bank chiefs filed out of black town cars and into the Federal Reserve. Their firms had tipped the country toward economic collapse. But they also offered a way out, and the government handed them marching orders, in exchange for billion-dollar bailouts. Today, the banks are not the cause of the economic crisis. But nor are they the solution. Changes to the nation’s financial system, put in place after the 2008 crash to prevent a repeat, have sapped banks’ tolerance for the kinds of risks that are necessary to bring about a recovery, according to regulators, experts and bank executives themselves. Regulators ringfenced Wall Street from Main Street after 2008 and insulated the real economy from the financial one. New rules curbed banks’ risk-taking and pushed more lending and trading outside of banks, to less-regulated institutions such as hedg