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☆ What is divestment? And does it work?
▼ + stars: | 2024-04-28 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +8 min

From Princeton University in New Jersey to the University of Southern California in Los Angeles, the same chant can be heard: “Disclose! The specifics of student protesters’ divestment demands vary in scope from school to school. Other students, like those at Cornell University and Yale, are asking their schools to stop investing in weapons manufacturers. Other common threads include demanding universities disclose their investments, sever academic ties with Israeli universities and support a ceasefire in Gaza. Proponents for divestment counter that its value lies in raising awareness and stigmatizing partnerships with targeted regimes or industries.

Persons: “, ” Israel, Witold Henisz, Henisz, ”, Nicholas Dirks, ” Dirks, Dirks, “ They’ll, Anna Cooban, Michelle Bowman, Eli Lilly, Estee Lauder, Jerome Powell Organizations: New, New York CNN, Palestinian, Princeton University, University of Southern, Columbia University Apartheid, Columbia, Cornell University and Yale, Research, The Wharton School, University of Pennsylvania, CNN, University of California, Columbia’s Faculty of Arts and Sciences, Federal Reserve, European Central Bank, Dallas Fed, Samsung, AMD, Starbucks, Benz Group, Volkswagen, PayPal, adidas, Diamondback Energy, Restaurant Brands, Pinterest, Caesars Entertainment, PMI, Conference Board, Mastercard, Qualcomm, Pfizer, Marriott, eBay, US Commerce Department, Apple, Novo Nordisk, Shell, ConocoPhillips, Cigna, Universal Music Group, Hershey, US Labor Department Locations: New York, New Jersey, University of Southern California, Los Angeles, Columbia, Palestine, Israel, Gaza, South Africa, Berkeley, United States, Europe, DoorDash

☆ The AI-fueled stock market bubble will crash in 2026, research firm says
▼ + stars: | 2024-04-27 | by ( Matthew Fox | ) www.businessinsider.com time to read: +3 min

The AI-fueled stock market bubble will burst in 2026, according to Capital Economics. The research firm said rising interest rates and higher inflation will weigh down equity valuations. AdvertisementAn artificial intelligence-fueled stock market bubble will burst in 2026, according to Capital Economics. The research firm has said that a stock market bubble, driven by investor excitement towards artificial intelligence, would drive the S&P 500 to as high as 6,500 by 2025, led by technology stocks. The expected bursting of the stock market bubble should lead to a decade of investment returns that favor bonds over stocks.

Persons: —, Diana Iovanel, James Reilly, Iovanel, Reilly Organizations: Capital Economics, Service, Capital, US

☆ Europe is beating inflation. Why can’t America declare victory?
▼ + stars: | 2024-04-26 | by ( Anna Cooban | ) edition.cnn.com time to read: +6 min

The Fed aims to keep inflation at 2% over the longer run. Meanwhile, among the 20 countries that use the euro, annual consumer price inflation has slowed steadily since the start of the year. Fed Governor Michelle Bowman said earlier this month that she would favor a rate hike “should progress on inflation stall or even reverse.”So why does the United States appear to have a bigger inflation problem than Europe? Some economists argue there isn’t actually much daylight between the US and European rates of inflation, pointing to a quirk in the US measures. The measure is designed to track inflation in the real estate market while accounting for the fact that most Americans own their homes.

Persons: Michelle Bowman, Paul Donovan, Simon MacAdam, ”, MacAdam, ” Carsten Brzeski, Janet Yellen, Jim Watson, Brzeski, “, ” Davide Oneglia Organizations: London CNN, Federal Reserve, European Central Bank, PCE, UBS Global Wealth Management, Capital Economics, ING, CNN, Monetary Fund, Washington, Reuters, Getty, —, ECB, Lombard Locations: United States, Europe, Centreville , Maryland, AFP, Russia, Ukraine

☆ The recent sell-off stocks is just the start, and the ongoing correction has further to go as risks mount, JPMorgan says
▼ + stars: | 2024-04-23 | by ( Yuheng Zhan | ) www.businessinsider.com time to read: +3 min

The recent stock slump was just the start of a correction, according to JPMorgan. Investors are too complacent with some risks, and inflation and geopolitics could hurt the market. AdvertisementHe pointed out that investors scrambled to dial down risk amid rising inflation fears and worsening geopolitical risks, which added to the slump in recent weeks. The hotter-than-expected CPI print of 3.5% year-over-year in March signals that recent inflation surprises in the US aren't just noise. AdvertisementSince January, the two-year Treasury yield has surged from 4.2% to 4.9%, matching levels seen last August.

Persons: —, Stocks, Marko Kolanovic, Kolanovic, Israel didn't Organizations: JPMorgan, Investors, Service, Treasury Locations: Israel

☆ Buy this little-known Brazilian wholesale retailer with nearly 30% upside, JPMorgan says
▼ + stars: | 2024-04-23 | by ( Pia Singh | ) www.cnbc.com time to read: +1 min

JPMorgan thinks Assaí Atacadista, one of the largest retailers in Brazil, is a strong investment play as the company begins to reflect better operating trends. Analyst Joseph Giordano upgraded Assaí, a Brazilian self-service wholesale company with almost 300 stores that trades on the New York Stock Exchange, to overweight from neutral. JPMorgan also raised its price target by $2.50 to $17.50, implying upside of almost 30% over the next year. "We revisit our views on the Brazilian cash & carry space ahead of 1Q24 results," Giordano wrote in a note Tuesday. A more flexible balance sheet would enable Assaí to take advantage of the fact that major competitors are not opening new stores, he said.

Persons: Assaí Atacadista, Joseph Giordano, Giordano, Atacadão, Assaí Organizations: JPMorgan, New York Stock Exchange Locations: Brazil, Brazilian, U.S

High mortgage rates are likely to constrain affordability through the peak homebuying season, which typically lasts from spring to early fall. See more mortgage rates on Zillow Real Estate on ZillowMortgage CalculatorUse our free mortgage calculator to see how today's mortgage rates would impact your monthly payments. 15-Year Fixed Mortgage Rates Essentially Flat (+0.01%)The average 15-year mortgage rate is 6.25%, just a single basis point higher than last week. Mortgage Refinance Rates30-Year Fixed Refinance Rates Inch Up (+0.09%)The average 30-year refinance rate is 7.53%, nine basis points higher than last week. Mortgage rates also rose dramatically in 2023, though they started trending back down toward the end of the year.

Persons: you'll, It's, refinance Organizations: US, of, CPI, Incoming, Zillow, FHA Locations: Chevron

☆ Wharton's Jeremy Siegel: Still see gains ahead in the market this summer
▼ + stars: | 2024-04-19 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWharton's Jeremy Siegel: Still see gains ahead in the market this summerJeremy Siegel, a Wharton School professor of finance, joins 'Squawk on the Street' to discuss whether recent equity performance is warranted, how Fed voters would explain the gap between PCE and CPI data, and more.

Persons: Jeremy Siegel Organizations: Wharton School

☆ Oil prices aren't the Fed's biggest problem right now — American demand is, says an economist
▼ + stars: | 2024-04-19 | by ( Huileng Tan | ) www.businessinsider.com time to read: +3 min

Israel's strike on Iran caused oil prices to spike, sparking fears of rising inflation. But US inflation is more impacted by strong domestic demand than by oil prices, an economist told Bloomberg TV. Oil prices gained as much as 4% following reports of the attack before later subsiding. Services is demand, and that demand needs to come from somewhere — and that's a robust economy," Chaar told Bloomberg. "I would say the biggest challenge here for the Fed is to manage the demand of the US economy," Chaar said.

Persons: —, Samy Chaar, Lombard Odier, Jerome Powell, Chaar Organizations: Bloomberg, Service, Fed, Bloomberg TV, Federal, Services, Institute for Supply Management Locations: Iran, Israel, —, Swiss, America

☆ Japan's March inflation slows to 2.6%, eyes are now on Bank of Japan move
▼ + stars: | 2024-04-19 | by ( ) www.cnbc.com time to read: +1 min

Japan's core inflation slowed in March due to mild rises in food prices while staying comfortably above the central bank's 2% target, government data showed on April 19, 2024. Japan's core inflation slowed in March due to mild rises in food prices while staying comfortably above the central bank's 2% target, government data showed on Friday. The nationwide core consumer price index (CPI), which excludes fresh food items, rose 2.6% in March from a year earlier after rising 2.8% in February. The "core core" index, which excludes both fresh food and energy costs and is closely watched by the Bank of Japan as a key gauge of broader inflation trends, rose 2.9% after increasing 3.2% in February. The BOJ has said a virtuous cycle of sustained, stable achievement of its 2% price target and strong wage growth was crucial for normalizing policy.

Organizations: Bank of Japan

☆ Dollar takes a breather as investors ponder U.S. rates outlook
▼ + stars: | 2024-04-18 | by ( ) www.cnbc.com time to read: +3 min

The dollar was soft on Thursday as traders assessed the U.S. interest rates outlook in the wake of comments from Federal Reserve officials that cemented expectation of monetary settings remaining restrictive for a while longer. The dollar was soft on Thursday as traders assessed the U.S. interest rates outlook in the wake of comments from Federal Reserve officials that cemented expectation of monetary settings remaining restrictive for a while longer. The yen strengthened 0.05% to 154.29 a dollar but remained close to the 34-year low of 154.79 touched on Tuesday. Japan last intervened in the currency market in 2022, spending an estimated $60 billion to defend the yen. Elsewhere, the Australian dollar was little changed at $0.6439, while the New Zealand dollar eased a bit to $0.5914 after spiking 0.6% on Wednesday.

Persons: Sterling, Michelle Bowman, Kristina Clifton, Tony Sycamore Organizations: Federal Reserve, Traders, Market Committee, Federal, Fed, Commonwealth Bank of Australia, IG, Japan, New Zealand Locations: U.S, Japan, South Korea, Tokyo, Seoul

☆ More and more Americans are becoming 'ALICEs.' They can't afford rent and groceries but are falling through the cracks in the country's safety net.
▼ + stars: | 2024-04-18 | by ( Noah Sheidlower | Juliana Kaplan | ) www.businessinsider.com time to read: +6 min

Many ALICEs are workers whose wages typically aren't enough to cover their bills, meaning they live paycheck to paycheck. And while those measures might reach the most financially distressed Americans, the benefit cut-offs leave behind the still-precarious group of ALICEs. Some state-to-state benefits are often available to individuals and families earning 200% to 250% of the Federal Poverty Level. Simultaneously, over the last 12 years, ALICEs have been falling behind on wage increases. AdvertisementIndeed, many Americans aren't necessarily falling into poverty, but they are increasingly teetering toward becoming ALICEs.

Persons: —, ALICE, ALICEs, Stephanie Hoopes, United For ALICE, Hoopes, ALICE would've Organizations: Service, United Way's, Business, Survey, United For, SNAP Locations: Montana, Idaho, ALICEs, Florida, Utah

Average 30-year mortgage interest rates are hovering around 7%, according to Zillow data. Last week, mortgage rates climbed to levels not seen since November 2023 after the latest Consumer Price Index report showed that inflation was hotter than expected in March. While the Fed doesn't set mortgage rates, changes in the federal funds rate do influence mortgage lenders' decisions on how much interest to charge on loans. See more mortgage rates on Zillow Real Estate on ZillowToday's refinance ratesMortgage type Average rate today This information has been provided by Zillow. This means your entire monthly mortgage payment, including taxes and insurance, shouldn't exceed 28% of your pre-tax monthly income.

Persons: you'll, Fannie Mae Organizations: Federal Reserve, CPI, Zillow, Mortgage, Association, Sky Locations: Chevron

☆ Dollar steady, yen fragile after Fed comments dash rate cut bets
▼ + stars: | 2024-04-17 | by ( ) www.cnbc.com time to read: +4 min

The comments follow a slew of data in recent weeks that highlight the strength of U.S. economy along with persistent inflation. Against a basket of currencies, the dollar was last at 106.33, just below the five month peak of 106.51 touched on Tuesday. I'm watching dollar strength and U.S. real yields very closely." On Wednesday, the yen was last at 154.65 per dollar, having touched the 34-year low of 154.79 in the previous session. The Australian dollar rose 0.12% to $0.641, while the New Zealand dollar rose 0.22 to $0.589.

Persons: Jerome Powell, Powell, Powell's, " Powell, Ben Bennett, Kieran Williams, InTouch Capital's Williams Organizations: Federal Reserve, U.S, Traders, Investment Management, Asia FX, InTouch, CPI, New Zealand Locations: Washington, Asia, JPY, Japan

Until inflation slows further and the Federal Reserve is able to start lowering the federal funds rate, mortgage rates are likely to remain elevated. If the latest PCE numbers support the narrative that inflation is remaining stubbornly high, mortgage rates could inch up further. See more mortgage rates on Zillow Real Estate on ZillowMortgage CalculatorUse our free mortgage calculator to see how today's mortgage rates would impact your monthly payments. 15-Year Fixed Mortgage Rates Essentially Flat (+0.01%)The average 15-year mortgage rate is 6.12%, just a single basis point higher than last week. Mortgage rates also rose dramatically in 2023, though they started trending back down toward the end of the year.

Persons: you'll, It's, refinance Organizations: Federal Reserve, US, of, Fed, Zillow, FHA Locations: Chevron

☆ Fed Chair Powell hints at no interest rate cut in May, keeping rates higher for longer
▼ + stars: | 2024-04-16 | by ( Bryan Mena | ) edition.cnn.com time to read: +5 min

Interest rates are currently nestled at a 23-year high after the Fed launched an aggressive rate-hiking campaign two years ago. Inflation is down considerably from a four-decade peak reached in the summer of 2022, but recent inflation reports have shown persistent price pressures in services and housing. First rate cut in the summer? Wall Street already wasn’t betting on a rate cut in May, but some analysts are estimating the first cut could come some time in the summer. Analysts at Goldman Sachs, JPMorgan and Nomura are estimating a first rate cut in July.

Persons: Jerome Powell, “, Powell, ”, ” Quincy Krosby, don’t, hasn’t, Goldman Sachs, Philip Jefferson Organizations: Washington CNN, Federal, Wilson, Fed, Congress, LPL, Atlanta Fed, Goldman, JPMorgan, Nomura, Bank of America, Barclays, Deutsche Bank, ” Locations: Wells Fargo, rebalance

☆ Treasury yields rise as investors consider economic and geopolitical outlook
▼ + stars: | 2024-04-15 | by ( Sophie Kiderlin | In | ) www.cnbc.com time to read: +1 min

U.S. Treasury yields climbed Monday as investors considered the outlook for the economy and looked ahead to fresh data and comments from Federal Reserve officials. Traders also assessed geopolitical tensionsInvestors considered the path ahead for the economy and monetary policy following the latest inflation data and looked to fresh economic reports due in the week ahead. That came as questions about the outlook for the economy as well as Federal Reserve monetary policy and especially interest rate cuts were already widespread. In the week ahead, investors will be looking to economic data for fresh hints about the state of the economy. Various Fed policymakers are also expected to give remarks, which investors will be scanning for clues about the monetary policy outlook.

Organizations: Treasury, U.S, Federal Reserve, Traders, PPI Locations: East, Iran, Israel

☆ A CIO details 4 reasons why the recent inflation spike is temporary — and says the Fed will still cut rates 3 times this year
▼ + stars: | 2024-04-15 | by ( Matthew Fox | ) www.businessinsider.com time to read: +4 min

Raymond James' CIO also explained why he still sees the Fed cutting interest rates three times in 2024. But according to Raymond James chief investment officer Larry Adam, inflation is set to reverse lower and the Fed is going to cut interest rates at least three times this year. AdvertisementIf the economy slows, then so should inflation, and it should give the Fed more confidence to begin cutting interest rates. Real-time inflation metrics show a sharp declineWhile official government metrics show stubbornly high rent and used vehicle prices, real-time measures show considerably lower prices. The point is: there should be plenty of disinflation in the pipeline as CPI converges with some of these more real-time metrics," Adam said.

Persons: Raymond James, Larry Adam, Adam Organizations: Reserve, Fed, Labor, ISM Manufacturing, ISM

☆ Dow futures rebound from worst week of 2024 even as traders brace for Israel response to Iran attack: Live updates
▼ + stars: | 2024-04-14 | by ( Hakyung Kim | ) www.cnbc.com time to read: +3 min

S&P 500 futures added 0.2% and Nasdaq-100 futures advanced 0.3%. The losses caused the Dow to shed 2.4% last week for its worst week since March 2023 and its second down week in a row. The S&P 500 slid 1.5% for its worst week since October 2023. Iran launched drones and missiles on Israel on Saturday night, marking the first direct attack on Israel from Iranian territory. Guha added that the a key question remaining is how Israel Prime Minister Benjamin Netanyahu will respond to the attack.

Persons: Dow, Krishna Guha, Evercore, Guha, Benjamin Netanyahu, Biden, Netanyahu, Goldman Sachs, JPMorgan Chase, Jamie Dimon Organizations: New York Stock Exchange, Iran's, Dow, Dow Jones, Nasdaq, Global Policy, Central Bank Strategy, Israel, T, Treasury, JPMorgan Locations: Israel, Iran

Average 30-year mortgage rates spiked this week in response to the latest Consumer Price Index data, which came in hotter than expected. If the Fed needs to keep rates higher for longer, mortgage rates will stay high as well. See more mortgage rates on Zillow Real Estate on ZillowMortgage CalculatorUse our free mortgage calculator to see how today's mortgage rates would impact your monthly payments. 15-year Fixed Mortgage RatesLast week, average 15-year mortgage rates were 6.16%, a 10-basis-point increase from the previous week, according to Freddie Mac data. Once the Fed cuts rates, mortgage rates should fall even further.

Persons: it's, you'll, Freddie Mac Organizations: Federal Reserve, Zillow Locations: Chevron

Mortgage rates are a bit lower today, though they're still well above where they started the month. See more mortgage rates on Zillow Real Estate on ZillowMortgage CalculatorUse our free mortgage calculator to see how today's mortgage rates will affect your monthly and long-term payments. 15-Year Fixed Mortgage RatesAverage 15-year mortgage rates were 6.16% this week, according to Freddie Mac data, which is a 10-basis-point increase from the previous week. Now that the Fed has paused hiking rates, mortgage rates have come down a bit. Once the Fed starts cutting rates, which is likely to happen this year, mortgage rates should fall even further.

Persons: they're, Freddie Mac Organizations: Markets, Treasury, Investors, Federal Reserve, Zillow, Fed Locations: February's, Chevron

☆ 3 of our stocks report earnings next week. Here's what we want to see from each
▼ + stars: | 2024-04-13 | by ( Zev Fima | ) www.cnbc.com time to read: +8 min

Heightened tensions in the Middle East, including the possibility of Iran attacking Israel, sent stocks back down and oil prices higher. If the choice is between a weak economy with lower rates or a strong economy with higher rates, we'll take the strong economy every time. Low rates may help with valuation multiples, but it's a strong economy that leads to earnings growth and that's what we, as long-term investors care about. Shelter costs are a major sticking point for overall inflation, which makes Tuesday's housing starts and building permits report a key watch item. We'll get another look at housing with the release of the March existing home sales report on Thursday.

Persons: we've, we'll, Morgan Stanley, Wells, bode, we're, Goldman Sachs, Charles Schwab, Johnson, ERIC, JB Hunt, Kinder Morgan, DR, Ally, Huntington, Jim Cramer's, Jim Cramer, Jim, Abbott, Ethan Miller Organizations: Dow Jones, Wednesday, Federal Reserve, Abbott Labs, Cardiovascular Systems, Diagnostics, Procter & Gamble, Constellation Brands, Procter, T Bank, Bank of America, Bank of New York Mellon, BK, PNC Financial, PNC, Ericsson, United Airlines, Interactive, ASML Holdings, US Bancorp, Citizens, Alcoa, CSX, Discover Financial, Nokia, Alaska Air, Blackstone BX, McLennan, Netflix, PPG Industries, Gamble, Financial, American Express, Jim Cramer's Charitable, CNBC, Las Vegas Convention, Getty Locations: Iran, Israel, China, Marsh, Las Vegas , Nevada

☆ Stocks are undergoing a needed, and (so far) modest, pullback in a longer-term bull market
▼ + stars: | 2024-04-13 | by ( Michael Santoli | ) www.cnbc.com time to read: +8 min

The result was a 1.5-percent weekly drop in the S & P 500 , with Friday's setback exacerbated at least somewhat by a collective clenching-up of risk markets on some geopolitical worry. This dynamic hasn't been reversed, but the signal has grown a bit staticky, draining some conviction from the macro bullish case with the S & P 500 still 24% above the October low. Bull market's backdrop First, it's a bull market, and not a particularly mature or excessively generous one yet. Yet both stocks are still outperforming the S & P this year. The S & P 500 closed Friday at exactly the same level of five weeks earlier, on March 8 – which was perhaps the moment of maximum investor confidence in the "we can have it all" thesis.

Persons: I've, Jerome Powell, Powell, Wall, it's, We're, John Butters, Fastenal, Scott Chronert Organizations: Federal, ICE, Treasury, CPI, Fed, Grainger, Citi

☆ Surging inflation fears sent markets tumbling and Fed officials scrambling
▼ + stars: | 2024-04-13 | by ( Jeff Cox | ) www.cnbc.com time to read: +8 min

Energy prices, which have been a major factor in the past two months' inflation readings, pushed higher on signs of further geopolitical turmoil. Minutes released Wednesday from the March Fed meeting showed officials were concerned about higher inflation and looking for more convincing evidence it is on a steady path lower. Sticky price CPI entails items such as housing, motor vehicle insurance and medical care services, while flexible price is concentrated in food, energy and vehicle prices. "If that's the case, you would require a decent amount of unemployment to get inflation all the way to 2.0%." That's why Furman and others have pushed for the Fed to rethink it's determined commitment to 2% inflation.

Persons: Spencer Platt, —, Stocks, Jason Furman, We've, Israel, Jim Paulsen, Wells, Substack, Paulsen, Furman, Barack Obama, Jamie Dimon, John Williams, Susan Collins, it's, Larry Fink Organizations: Getty, Investors, Dow Jones, CNBC, of Economic Advisers, New York Fed, National Federation of Independent Business, Labor Department, JPMorgan, University of Michigan's, Boston, Commerce, CPI, Citigroup, Fed, Atlanta Fed, Dallas Fed, Harvard, BlackRock Locations: Manhattan, New York City, Iran, Israel

☆ Fed remains in focus for venture capital investors after strong CPI report
▼ + stars: | 2024-04-12 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailFed remains in focus for venture capital investors after strong CPI reportCNBC's Kate Rooney reports on news how rates will impact Silicon Valley investor's privately held portfolios.

Persons: Kate Rooney

☆ Wall Street heads into the week ahead on edge as traders brace for a raft of earnings, economic data
▼ + stars: | 2024-04-12 | by ( Sarah Min | ) www.cnbc.com time to read: +7 min

How the corporate America is handling sticky inflation and the prospect of higher interest rates will be top of mind for investors in the week ahead, after this week's choppy moves. The first-quarter earnings season, which kicked off Friday, will give Wall Street insight into how businesses expect to weather an environment of elevated interest rates. More macro data, such as U.S. retail sales, will give insight into how the consumer is handling higher pricing pressures. First-quarter earnings season underway The corporate earnings season kicks into high gear in the week ahead. This week, the small cap Russell 2000 is on track for a losing week, down by more than 1%.

Persons: Bob Doll, CNBC's, Wolfe, Rob Ginsberg, Ginsberg, Goldman Sachs, Morgan Stanley, FactSet, Robert Haworth, Haworth, Charles Schwab, Johnson, D.R, KeyCorp Organizations: Dow Jones Industrial, Exxon Mobil, Costco, Apple, Crossmark, Investments, Investors, Bank of America, Consumer, U.S . Bank, Index, Retail, T Bank, Housing, Manufacturing, Hunt Transport Services, United Airlines, Johnson, Bank of New York Mellon, UnitedHealth Group, Northern Trust, CSX, Discover Financial Services, Prologis, U.S . Bancorp, Philadelphia Fed, American Express, Procter, Gamble, Fifth Third Bancorp, Schlumberger Locations: America, China, NAHB, Vegas Sands, U.S, Horton

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