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With shelter inflation "sticky" at a 5.4% year over level, Gapen said it could be months before "greater confidence" is achieved. "We think the Fed is unlikely to achieve the confidence it needs to begin rate cuts until shelter inflation takes a step lower," he said. Monthly housing inflation readings in the PCE measure have been running at either 0.5% or 0.4% since March 2023. We don't target housing prices, for example," Powell said. Philadelphia Fed President Patrick Harker, a nonvoter on the FOMC this year, on Tuesday singled out the "long-term stubbornness of shelter inflation."
Persons: Michael Gapen, Gapen, Jerome Powell, Powell, Patrick Harker Organizations: Federal Reserve, Bank of America, Commerce, Philadelphia Fed
Breaking down the market charts The S & P 500 broke out above the 2021 highs of 4,820 in the first two weeks of this year. Again, I don't know. I don't know. And I'm content to come before you and say I don't know and we can't know. This measures how much premium is embedded in the at the money puts and calls in the S & P 500.
Persons: Todd Gordon, Gordon Organizations: Nvidia, Inside Edge, Inside Edge Capital Management
Answering that question assumes understanding why we use the S & P 500 in the first place. While the Dow heavily favors industrial businesses — steel, chemicals, autos, oil and gas — the S & P 500 offers a more diverse representation. Also, the S & P 500 index is weighted by market value, which makes sense to professional investors. While certainly not a proxy for the S & P 500, it provides more exposure to other industries and stocks. As shown below, the equal-weighted S & P 500 has slightly outperformed the S & P 500 over the past 20 years.
Persons: I've, Gamble, Karen Firestone Organizations: Dow Jones, Dow, Apple, Procter, Microsoft, Nasdaq, Bloomberg, Goldman, Commodities, Asset Management
—Katie Stockton with Will Tamplin Access research from Fairlead Strategies for free here . Fairlead Strategies Disclaimer: This communication has been prepared by Fairlead Strategies LLC ("Fairlead Strategies") for informational purposes only. Securities, investment products, other financial products or strategies discussed herein may not be suitable for all investors. The recipient of this information must make its own independent decisions regarding any securities, investment products or other financial products mentioned herein. This material is not to be reproduced or redistributed absent the written consent of Fairlead Strategies.
Persons: CSCO, Katie Stockton Organizations: Cisco Systems, Fairlead, CNBC Pro, Securities
Every weekday the CNBC Investing Club with Jim Cramer holds a "Morning Meeting" livestream at 10:20 a.m. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB.
Persons: Jim Cramer, We're, Jamie Dimon, Jim, Dimon, Eli Lilly, it's, Jim Cramer's Organizations: CNBC, Nasdaq, JPMorgan, Oracle, Nvidia, Costco, Broadcom
Short positions in China stocks shrink after regulatory crackdown
  + stars: | 2024-03-03 | by ( ) www.cnbc.com   time to read: +1 min
Signage for the Shanghai Stock Exchange in Pudong's Lujiazui Financial District in Shanghai, China, on Monday, Jan. 29, 2024. Short positions in China's stock market shrank by a third in February to their lowest in more than three years, reflecting measures by regulators to curb speculation and boost investor confidence. The data, however, does not capture other short positions via derivatives or stock futures. As part of a raft of measures to revive the market, China's securities watchdog last month suspended brokerages from borrowing shares for lending to short-sellers. In addition, investors were banned from short selling stocks bought on the same day.
Persons: CSI300 Organizations: Shanghai Stock Exchange, China Securities Finance Corp Locations: Lujiazui, Shanghai, China
China's Country Garden Holdings said Wednesday it received a liquidation petition filed by one of its creditors, deepening worries about the country's beleaguered property sector. Country Garden said it will oppose the petition "vigorously" and seek legal measures to do so. Country Garden said it intends to "proactively communicate" and work with its offshore creditors on its restructuring plan. China's property sector has historically been the bedrock of the country's economy, accounting for a large share of gross domestic product. Companies like Country Garden and Evergrande have struggled to repay their debt obligations and are now embroiled in drawn-out debt restructuring processes.
Persons: China Evergrande Organizations: Garden Holdings, Hong Kong, Monetary Fund, Companies Locations: Hong Kong, China
Read previewJeff Bezos this week unloaded 12 million shares of Amazon stock, netting him about $2 billion in a strategic move that may position him to once again claim the title of "world's richest man." Before this week's sale of Amazon stock, Bezos' net worth was only $5 billion behind Musk's $200 billion fortune, putting the title of #1 billionaire well within reach. This week's stock sale is not Bezos' first time offloading a large portion of his Amazon holdings, though it is the only major sale he's made since 2021. That year, Bezos sold $2.5 billion worth of shares as he prepared to step down as CEO. In 2019, Bezos offloaded roughly $2.8 billion worth of the company's stock.
Persons: , Jeff Bezos, Bezos, Elon, Bill Gates, Forbes, Musk, Musk's, Bernard Arnault, he's Organizations: Service, Business, Bloomberg, Tesla, SpaceX, The Boring Company, Amazon Locations: Delaware, New York
An investor reacts as she views the stock index at a securities company on May 30, 2007 in Shanghai, China. The CSRC added that the move would "resolutely" crack down on illegal activities that use securities lending to reduce holdings and cash out. The regulator also said it will limit the efficiency of some securities lending in the securities refinancing market from March 18. Last October, the CSRC restricted securities lending businesses and tightened scrutiny of improper regulatory arbitrage by imposing higher margin requirements. Both Shanghai and Shenzhen stock exchanges said they will suspend securities lending by strategic investors during lockup periods, effective from Jan. 29.
Persons: CSI300 Organizations: Analysts, China Securities Regulatory Commission Locations: Shanghai, China, Beijing, Shenzhen
Cracks are beginning to appear in the tech-heavy Nasdaq 100 index . I have shown a chart of Invesco QQQ Trust (QQQ) which is an ETF that tracks the Nasdaq 100. Finding a stock to put on a bearish trade The stock I have picked for a bearish trade is Netflix (NFLX) . Starting Nov. 29, NFLX price candles are forming lower highs and lower lows, which is the easiest way to spot a downtrend. The trade structure I am using here is called a "bear put spread" also known as a "put debit spread".
Persons: NFLX, Nishant Pant Organizations: Netflix, Trade Management
Uber Technologies shares rose on news that the ride-hailing company will join the S&P 500 index . The S&P 500, Dow industrials and Nasdaq Composite all opened lower. Ten-year Treasury yields rose after settling at 4.225% Friday. India's S&P BSE Sensex, however, rose to an all-time high after Prime Minister Narendra Modi’s ruling party won elections in three major states. The price of bitcoin climbed above $41,000, putting it on course for its highest end-of-day level since April 2022.
Persons: Bitcoin, Stocks, Dow, India's, Narendra Modi’s, bitcoin Organizations: Airlines, Uber Technologies, Dow industrials, Nasdaq, Spotify, Overseas, Mining, BSE Locations: Europe, Japan, Hong Kong, China
Holiday spending will be sluggish as consumers grapple with inflation, but Bank of America thinks a handful of value retailers and specialty stores could see a boost. Bank of America projects holiday sales-weighted average same-store sales will rise 0.6% year over year for its retail universe. Here are the buy-rated retailers that could stand out amid broader retail softness, according to Bank of America. Sporting goods chain Academy Sports and Outdoors was also highlighted as a Bank of America favorite. "Consumers are looking for deals and will choose retailers offering the best value," Hutchinson said.
Persons: Lorraine Hutchinson, Hutchinson, Ralph Lauren, Tuesday's, Michael Bloom Organizations: Bank of America, Bank of America ., Walmart, Target, Sporting, Academy Sports Locations: Tuesday's
It's a big week: a Federal Reserve meeting, unemployment numbers and earnings for the biggest company in the S & P 500. The problem is the S & P 500, as a barometer of economic health, much like Pollyanna, skews optimistic by nature of its design. By contrast to the S & P, the R2K tracks smaller, less well-known businesses. In this way a call option will increase in value if the stock price rises through the strike price. In this case the "at-the-money" straddle expiring this coming Friday, November 3rd, is priced at $7.70 or nearly 4.6% of the current stock price.
Persons: Berkshire Hathaway, Tesla, Eli Lilly, ytd, Russell, Friday's Organizations: Reserve, U.S, Apple, Microsoft, Nvidia Locations: Europe, China, U.S, Berkshire
MS YTD mountain Morgan Stanley YTD We certainly hope Morgan Stanley's numbers are as good as Friday's report from our other bank holding Wells Fargo (WFC). Morgan Stanley is expected to grow revenue by more than 2% year over year to $13.2 billion in the third quarter. During a recent conference, Morgan Stanley executives said that capital markets will likely improve in 2024. Shares of Morgan Stanley have struggled this year, dropping more than 8% compared to the S & P 500's nearly 13% advance in 2023. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio.
Persons: Stocks, WTI, Jerome Powell's, There's, Patrick Harker, John Williams, Harker, Austan Goolsbee, Lorie Logan, Powell, Christopher Waller, Philip Jefferson, Waller, Jefferson, – Morgan Stanley, Gamble –, Morgan Stanley YTD, Morgan, Jim Cramer, Morgan Stanley, there's, Gamble, Jim, we'll, Charles Schwab, Goldman Sachs, Johnson, Philip Morris, — CNBC's Zev Fima, Jim Cramer's, Spencer Platt Organizations: Nasdaq, Dow, Columbus Day, West Texas, Federal Reserve, Club, Fed, Market, Philadelphia Fed, New York Fed, Chicago Fed, Dallas Fed, United Auto Workers, General Motors, Chrysler, Ford, National Association of Realtors, Procter, Procter & Gamble, Natural Resources, Exxon Mobil, Coterra Energy, of America, United Airlines, Gamble, Housing, Netflix, Alcoa, American Airlines, Taiwan Semiconductor Manufacturing Company, Alaska Air, CSX, American Express, Jim Cramer's Charitable, CNBC, New York Stock Exchange, Getty Locations: Israel, U.S, New, Wells, KBW, Silicon, Manhattan, New York City
High yield bond funds tout sweet yields, but swirling concerns around the economy are spurring questions on how much longer the income party will last. Consider that the 30-day yield on the SPDR Bloomberg Short Term High Yield Bond ETF (SJNK) is 8.78%. Indeed, the Morningstar U.S. high yield bond index has a year-to-date total return of 4.61%, compared to the -1.29% total return on Morningstar's U.S. corporate bond index . Consumers are also a focal point when it comes to the economic outlook, according to Peter Higgins, head of fixed income and senior fixed income portfolio manager at Shelton Capital Management. Being selective about risk UBS is neutral on high yield overall, but positive on short-dated high yield paper of good quality companies.
Persons: Paul Olmsted, Olmsted, Alina Golant, Golant, Peter Higgins, Dow Jones, Shelton's Higgins, Morningstar's Olmsted, Michael Bloom Organizations: Investors, Federal Reserve, Morningstar U.S, Morningstar's, Morningstar, UBS, Shelton Capital Management
Novartis said in August that it plans to spin off its generics unit Sandoz to sharpen its focus on its patented prescription medicines. Novartis on Wednesday completed the spinoff of its generics and biosimilars business Sandoz, whose shares began trading at 24 Swiss francs in the early minutes of the company's debut on the SIX Swiss Exchange. The Swiss drugmaker initially announced intentions to spin off the business in August, offering stakeholders one Sandoz share for every five Novartis shares via a dividend-in-kind distribution. Pure play companies refer to entities that target a single product or industry sector. Novartis shares climbed more than 3% in early trade in Zurich to lead the pan-European Stoxx 600 index .
Persons: Sandoz, Narasimhan, we've, CNBC's Julianna Tatelbaum Organizations: Novartis, Wednesday, SIX Swiss Exchange, CNBC Locations: Swiss, Zurich
AdvertisementAdvertisementFor British students in the UK, tuition fees are currently capped at £9,250 a year. In 2006, tuition at a UK university cost an average of £3,000 a year, according to the House of Commons Library . Go back a decade, to 2013, and the average house price in this area was £250,911. AdvertisementAdvertisementThe average house price in 1995, when my parents moved in together, was around £56,000. However, if you compare the average house price in 1995 to the average house price in the UK in June 2023 — £287,456 — it's increased by more than 413%.
Persons: Adam England, Zers, , I'm, Gen, I'd, they've, They've, They're Organizations: Economic, Service, Commons, Deloitte, Price Index, Bank of Locations: England, Britain, Ukraine, Bath, North East Somerset
Citigroup CEO Jane Fraser testifies during a U.S. House Financial Services Committee hearing titled “Holding Megabanks Accountable: Oversight of America’s Largest Consumer Facing Banks” on Capitol Hill in Washington, U.S., September 21, 2022. The bank is also planning to list its Mexican consumer unit, known as Banamex, after a sale process fell through. Scottish-born Fraser is the first woman to lead a Wall Street bank. She spoke in March about her life and career in a wide-ranging interview with Carlyle Group (CG.O) Co-Founder David Rubenstein. Reporting by Tatiana Bautzer; writing by Michelle Price; editing by Lananh Nguyen and Josie KaoOur Standards: The Thomson Reuters Trust Principles.
Persons: Jane Fraser, Elizabeth Frantz, Jane Fraser's, we've, Fraser, Michael Corbat's, Sandy Weill, David Rubenstein, Goldman Sachs, Smith Barney, Tatiana Bautzer, Michelle Price, Lananh Nguyen, Josie Kao Organizations: Citigroup, . House Financial, REUTERS, Citi, JPMorgan Chase &, Bank of America, Banks, Carlyle Group, Cambridge University, Harvard Business School, McKinsey, Thomson Locations: Washington , U.S, U.S, New York, Scottish, Mexico
Chinese stock markets have failed to perform in 2023. All three major indexes have lost money for investors over the past week, month, three months, six months, and year. As a result, shorting the Chinese currency has been one of the most profitable investments this year, according to analysis by CNBC Pro of FactSet's ETF performance data. CNBC Pro screened for global China-focused ETFs that have posted positive returns this year to date. A weighted average analysts' price target for companies in the ETF points toward a further 22.4% upside over the next 12 months, according to FactSet data.
Persons: Thierry Wizman, Goldman Sachs, Brent Organizations: Shenzhen Component, Shanghai, Index, U.S, CNBC Pro, Singapore ., London Stock Exchange, U.S ., Macquarie, People's Bank of, China Energy, New York Stock Exchange, bbl, Goldman, Dragon, China Communication Services Locations: Shenzhen, China, New York, London, Amsterdam, Frankfurt, Singapore, People's Bank of China, Macquarie, Dragon China, U.S
NANJING, CHINA - AUGUST 18, 2023 - Aerial photo shows a residential area of Evergrande in Nanjing, East China's Jiangsu province, Aug 18, 2023. (Photo by Costfoto/NurPhoto via Getty Images)Shares of Chinese property developer Evergrande as much as 82% on Wednesday, leading gains on the Hang Seng Index . The stock has since pared its gains, but was still about 70% higher. The real estate sector was the top gainer on the HSI, but the overall index was still in negative territory, dragged by health-care and industrial stocks. Other stocks like Country Garden Holdings and Logan Group also surged, gaining as much as 26% and 28% respectively, while the Hang Seng Mainland Property Index was up about 4%.
Organizations: Getty, Garden Holdings, Logan Group, Mainland Locations: NANJING, CHINA, Evergrande, Nanjing, East China's Jiangsu
RBC has raised its bets on convenience store operator Alimentation Couche-Tard , doubling the weighting of the stock in its "Focus List: Fall 2023" bucket to 5%. The company, along with 26 other stocks, were also on RBC's "Summer 2023" list. Although the bank's stock list has underperformed over the past six months, it has historically and consistently beaten its benchmark S & P/TSX Index . The RBC Strategy Canadian Focus List returned 11.3% in compounded annual growth over the past five years. ATD-CA 5Y mountain Waste Connections RBC also doubled its weighting of U.S.-firm Waste Connections to 5% in its "Focus List: Fall 2023" bucket.
Persons: Irene Nattel, that's Organizations: RBC, RBC Strategy, Canadian, Capital Markets, TSX, Consumer Staples Locations: ATD
Missed quarterly results and light guidance from Analog Devices (ADI) is a reminder that it's not sunshine and rainbows across the entire chip industry, CNBC's Jim Cramer said Wednesday. If you like this story, sign up for Jim Cramer's Top 10 Morning Thoughts on the Market email newsletter for free. "Remember, there are semis that aren't hitting it out of the park," Cramer said on "Squawk on the Street." Analog's industrial and automotive segments — its two largest by revenue — reported good numbers Wednesday morning, Cramer said. The main culprit for the disappointment is its consumer business, Cramer added, pointing to concerns about spending on personal electronics.
Persons: CNBC's Jim Cramer, Jim Cramer's, Cramer Organizations: Devices, PHLX Semiconductor, Nvidia, Cramer's Charitable Trust, CNBC
HSBC identified nine "unloved stocks" listed on the London Stock Exchange that it says could be poised to surge due to several factors. The investment bank said U.K. markets have started to outperform other global indexes for the first time this year — since the release of the U.K.'s June inflation data on July 18. While the bank's strategists retain their underweight view on the U.K. market overall, they highlighted that London-listed stocks are "unambiguously cheap" on a valuation basis. The bank said the above stocks are FTSE 350 constituents with bottom-quartile consensus ratings indicating a sell or underweight rating. "By definition these screens are not relevant to everyone and should be viewed as a basis for further investigation," the HSBC strategists added in a note to clients on Aug. 15.
Persons: Edward Stanford, Hargreaves, — CNBC's Michael Bloom Organizations: HSBC, London Stock Exchange, of England, FTSE, SPX, HSBC FX, Pennon Group, Unilever
The Federal Reserve is changing the way it looks at "financial conditions," a move that could have important ramifications for policy ahead. The Fed has been using a series of interest rate increases to tighten financial conditions and, ultimately, to bring down inflation. Essentially, the move allows the Fed to distance itself from other financial conditions models, such as those formulated by Goldman Sachs and the Chicago Fed . By contrast, the Chicago Fed index's current reading is -0.28, implying relatively loose conditions. Capital Economics noted that the FCI-G "does a better job of illustrating the tightness of US financial conditions than various other measures."
Persons: they've, Krishna Guha, Jerome, Powell, Guha, Goldman Sachs Organizations: Federal, Evercore ISI, Fed, Chicago Fed, Treasury, Dow Jones, U.S, FCI
Every weekday the CNBC Investing Club with Jim Cramer holds a "Morning Meeting" livestream at 10:20 a.m. 'Don't like the tape' Stick with Apple Stay bullish on Wells Fargo 1. Stay bullish on Wells Fargo Wells Fargo (WFC) shares still look attractively valued, Jim said, despite their more-than-2% pop Tuesday. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER .
Persons: Jim Cramer, Jim, he's, Wells, Charlie Scharf, Mike Santomassimo, Wells Fargo, Jim Cramer's Organizations: CNBC, Labor, Federal Reserve, Oracle, Adobe, Apple, UBS Locations: Wells Fargo, U.S, India, Wells Fargo Wells Fargo, Wells
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