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The consensus view is that lower rates will stave off a recession by stimulating economic growth through lower borrowing costs. The hidden danger of a double cutHowever, David Kelly of JPMorgan Asset Management warned that lower rates aren't an economic panacea. In fact, the chief global strategist thinks these cuts could, paradoxically, cause the economy to slow in the near term. Advertisement"The important thing to recognize is that cutting interest rates at the start doesn't stimulate the economy at all," Kelly said on CNBC. "There is a J-curve effect; it actually slows the economy because people begin to anticipate those lower rates, so they want to wait for lower rates."
Persons: , Jim Caron, Claudia Sahm, Jerome Powell, Sahm, Ronald Temple, Kevin Philip of, David Kelly, Kelly, what's, you've, Kelly isn't, it's, they've Organizations: Service, Federal, Business, Fed, Dow Jones, Morgan Stanley Investment Management, CNBC, New Century Advisors, Lazard, Kevin Philip of Bel Air Investment Advisors, JPMorgan Asset Management
Franklin Templeton's Yi Ping Liao describes the South Asian country as "a fertile hunting ground to identify stocks." And if this continues, you can potentially see lower equity risk premiums for the market," the assistant portfolio manager told CNBC Pro on Sept. 12. She likes that the Indian market offers the "opportunity to identify good stocks," following an improvement in its breadth. Among the names Liao is betting on is automaker Tata Motors . Elsewhere, in the tourism and hospitality industry, the portfolio manager likes hotel chain Indian Hotels — the company behind premium brands like Taj, Vivanta and Ginger.
Persons: Franklin Templeton's Yi Ping Liao, Liao, Franklin, Morgan Stanley, China's, Vivanta, Ginger, India's financialization Organizations: CNBC Pro, Templeton, Growth, IMI, Bombay Stock Exchange, World Economic, Bain & Company, Tata Motors, Tata, Apollo, Max Healthcare Institute, Insurance, Taj, HDFC Bank, ICICI Bank, Kotak Mahindra Bank Locations: India, Asia, China, U.S
Forty-one percent of analysts polled by FactSet have a buy rating on Tesla stock, while 21% have a sell rating. About 43% of analysts surveyed by FactSet maintain a buy rating on IBM stock, but 21% are at a sell. He also noted that the risk-to-reward skew on IBM stock is more balanced, leaving less upside for the stock. IBM YTD mountain IBM stock. Goldman Sachs recently added IBM to its conviction list with a $220 price target, or 2% above where shares closed Wednesday.
Persons: Tesla, TSLA, Wolfe Research's Emmanuel Rosner, Rosner, Morgan Stanley, Adam Jonas, Jonas, Elon Musk, Bernstein's Toni Sacconaghi, Sacconaghi, Goldman Sachs, Jim Schneider, Campbell Soup Organizations: CNBC Pro, FactSet, U.S, automakers, IBM, Pepperidge
Morgan Stanley reiterates Apple as overweight The firm said iPhone 16 demand may not be as bad as feared after comments from the T-Mobile CEO. Morgan Stanley reiterates Nio as overweight Morgan Stanley said it's bullish on the EV company as Nio unveils its latest mid-sized family model, the L60. " Morgan Stanley reiterates Tesla as overweight Morgan Stanley said it's concerned about the company's robotaxi event but that it's standing by the stock. Morgan Stanley downgrades Elanco to equal weight from overweight Morgan Stanley said it "lacks conviction" in shares of the pet biopharma company. "We are initiating on Coursera (COUR) with a Buy rating and a PO of $11 (44% upside potential).
Persons: Morgan Stanley, Apple, TMUS, Piper Sandler, Robinhood, Piper, KeyBanc, Redburn, Mizuho, Raymond James, Nio, it's bullish, TD Cowen, Cowen, Tesla, it's, Hertz, Wells, Morgan Stanley downgrades Elanco, rideshare Organizations: Mobile, Apple Intelligence, JPMorgan, Gas Sciences, Kodiak Gas Services, Talos Energy, Northern Oil, Nio, Micron, Barclays, UW, Laboratories, Abbott Laboratories, Outfront Media, " Bank of America Locations: Kodiak
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via Email'Insurance cut' is the right way to describe what the Fed did: Jim CaronJim Caron from Morgan Stanley Investment Management explains why the Fed delivered a jumbo rate cut at the start of the rate cut cycle.
Persons: Jim Caron Jim Caron Organizations: Morgan Stanley Investment Management, Fed
The S & P 500 gave up post-Fed gains Wednesday and closed modestly lower. Morgan Stanley should have a decent pop when trading opens because lower interest rates should boost parts of its business , including investment banking. MS YTD mountain Morgan Stanley YTD We thought Morgan Stanley's share price was too low to sell when we held our September Monthly Meeting last week. Based on premarket prices, Morgan Stanley shares were hovering around $101, representing a much better level to take some off. One more factor behind our trim is that the S & P Short Range Oscillator remained in overbought territory after Wednesday's close.
Persons: Morgan Stanley, Jim Cramer's, Stocks, Morgan Stanley's, Goldman Sachs, Morgan Stanley YTD, We'll, Jim Cramer, Jim Organizations: Federal Reserve, CNBC
Morgan Stanley’s Brian Nowak on Darden-Uber partnership
  + stars: | 2024-09-19 | by ( ) www.cnbc.com   time to read: 1 min
In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailMorgan Stanley’s Brian Nowak on Darden-Uber partnershipBrian Nowak, managing director at Morgan Stanley, joins 'The Exchange' to discuss Darden's partnership with Uber for delivery, the Uber-Waymo partnership expansion, and more.
Persons: Morgan Stanley’s Brian Nowak, Brian Nowak, Morgan Stanley, Uber Organizations: Darden
Traders work on the floor of the New York Stock Exchange (NYSE) on the first trading day of 2024 on January 02, 2024 in New York City. Futures tied to the S&P 500 inched lower by 0.12%. Dow futures hovered near the flatline, while Nasdaq 100 futures slipped 0.21%. Unemployment data, along with the Fed's half-point rate cut on Wednesday, seemed to bolster investors' sentiment. The three major averages are on pace for weekly gains, with the S&P 500 up nearly 1.6% through Thursday's close.
Persons: John Donahoe, Stocks, Dow, Chris Larkin, Morgan Stanley Organizations: New York Stock Exchange, Stock, Dow Jones, Federal, Dow, Nasdaq, Shipping behemoth FedEx, Nike Locations: New York City, Thursday's
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailMorgan Stanley’s Sherry Paul on navigating the markets after the Fed's rate cutSherry Paul, Morgan Stanley Private Wealth Management managing director, joins ‘Closing Bell’ to discuss Morgan Stanley's rate cut playbook, recession fears, and more.
Persons: Morgan Stanley’s Sherry Paul, Sherry Paul, Morgan Stanley, Bell, Morgan Organizations: Morgan Stanley Private Wealth Management
Read previewMorgan Stanley has some disappointing news for investors: your taxes are probably going up in the next few years. But one strategist at Morgan Stanley says it's not that simple. Despite these differences, Morgan Stanley expects tax rates to increase no matter who takes office. And a divided Congress, which Morgan Stanley predicts is very likely in November, will only further reduce the likelihood of dramatic change. Typically, the stock market is more influenced by the business cycle than tax policy or political party, according to Morgan Stanley.
Persons: , Morgan Stanley, Trump, Kamala Harris, it's, Monica Guerra, Morgan Stanley Wealth Management's, Harris, Biden, There's, haven't, Guerra isn't, Guerra Organizations: Service, Business, Morgan Stanley Wealth, US, Trump, Republican, Democratic, Treasurys, New, Equity Locations: New York City
The leader of one of the largest U.S. carriers said there have been more iPhone 16 sales in the first week of preordering compared to the same period last year for the iPhone 15. The iPhone 16 was announced on Sept. 9 , when the company held this year's fall new product event. So, they're buying up the food chain, and they're buying at a greater rate," Sievert said, dismissing any softer iPhone 16 sales data as "nonsense." This is important because mobile carriers — including Verizon and AT & T — are the single-largest iPhone sales channel for Apple. Apple CEO Tim Cook inspects the new iPhone 16 during an Apple special event at Apple headquarters on September 09, 2024 in Cupertino, California.
Persons: Jim Cramer, Mike Sievert, Sievert, Morgan Stanley, That's, Jim, Sievert —, Wednesday's, — Morgan Stanley, Chi Kuo, Kuo, Jim Cramer's, Tim Cook, Justin Sullivan Organizations: Apple, Wall Street, Mobile, U.S, Verizon, AT, JPMorgan, Barclays, Bank of America, TF Securities, Apple Intelligence, CNBC Locations: U.S, Cupertino , California
We have a handful of them in the Club's portfolio, led by Best Buy . The five Club stocks with the biggest dividend yields fit the bill: Best Buy, Morgan Stanley , Coterra Energy , Stanley Black & Decker and Wells Fargo . Best Buy, Stanley Black & Decker and Wells Fargo are the best positioned of the five top-yielding Club stocks. "Morgan Stanley is now in no man's land: Too low to sell, too high to buy," Jim said. Customers look at appliances for sale at a Best Buy store in Miami, Florida, Oct. 8, 2021.
Persons: we're, Morgan Stanley, Stanley Black, Decker, Wells, Wells Fargo, Jim Cramer, Jim, Charlie Scharf, Coterra, it's, Jim Cramer's, Joe Raedle Organizations: Best, Coterra Energy, BBY, JPMorgan, Texas, Jim Cramer's Charitable, CNBC, Getty Locations: U.S, Wells Fargo, Miami , Florida
This story is available exclusively to Business Insider subscribers. Vital PursuitThe meals cost less than $5 and are available at retailers including Target and Walmart, starting Wednesday, according to the company. These small meals, branded as protein-rich, are designed to help GLP-1 users lose more fat, and less muscle. "We want to be a brand for those 82% of Americans who are managing their weight," Stoehr told Business Insider, referencing a Morgan Stanley report. "These meals seem like a decent option... but not a great one," Malloy wrote in an email to Business Insider.
Persons: , Nestlé, Kristen Stoehr, Stoehr, Morgan Stanley, We're, Alix Turoff, Mike Molloy, Hilary Brueck, I've, I'd, Turoff, Malloy, It's, that's, I'm, Nestlé's, Marlene Schmidt, Morgan Stanley's Organizations: Service, Business, Target, Walmart Locations: Nestlé, New York
The Club has stayed with Morgan Stanley on expectations that its investment banking outfit will flourish again. At Wells Fargo , the Club's other financial name, lower rates should help its burgeoning investment banking business. Wells Fargo shares year-to-date have performed better than Morgan Stanley, gaining 11%. WFC YTD mountain Wells Fargo (WFC) year-to-date performance The Corporate and Investment Banking division makes up 23% of overall revenue. To be sure, Wells Fargo management said during July's second-quarter earnings call that the bank will continue to de-risk its office portfolio.
Persons: Banks, Erica Groshen, Morgan Stanley, Morgan, Jim Cramer, Jim, Goldman Sachs, Charlie Scharf, Wells, July's, Jim Cramer's, Jerome Powell, William McChesney Martin, Chip Somodevilla Organizations: Federal Reserve, New York Fed, CNBC, Cornell University, Fed, Investment, Morgan Stanley's Institutional Securities, Morgan Stanley's, Wells, Investment Banking, CIB, Federal Reserve Bank, Getty Locations: Wells Fargo, Wells, Washington ,
Concerns about iPhone 16 lead times could send Apple shares lower in the near term, according to Morgan Stanley. This has led to the stock underperforming by an average of five points in the three months following an iPhone launch. "What will matter most over the next 10 days is the trajectory of iPhone 16 lead times, as historically iPhone lead times elongate through the first in-store availability date (Friday, September 20th) before gradually trending lower in the weeks thereafter," the analyst wrote in a Wednesday note to clients. "Therefore, a more sustained elongation in iPhone 16 lead times from today should be viewed positively, while a sharp reversal in iPhone 16 lead times after Friday would likely indicate a greater risk of negative iPhone build revisions." With 48 analysts covering the stock, 36 of them have a strong buy or buy rating, while 11 are neutral.
Persons: Morgan Stanley, Erik Woodring, Woodring, Wall Organizations: Apple
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailFed 50 basis-point cut is a 'risk management' decision, says New Century's Claudia SahmDavid Kelly, JPMorgan Asset Management chief global strategist; Claudia Sahm, New Century chief economist; and Jim Caron, CIO of cross-asset solutions at Morgan Stanley Investment Management, join CNBC's 'Power Lunch' to break down the Fed's decision to cut interest rates by 50 basis- points and what it means for markets.
Persons: Claudia Sahm David Kelly, Claudia Sahm, Jim Caron Organizations: JPMorgan Asset Management, Claudia Sahm , New, Morgan Stanley Investment Management Locations: Claudia Sahm ,
Japan commemorated its "Respect for the Aged Day" earlier this week, with the national holiday underscoring a somewhat problematic fact — the country has a record number of elderly citizens to celebrate. Government data released ahead of the event showed that Japan's population of people aged 65 and over had risen to an all-time high of 36.25 million. A survey from Teikoku Databank last month showed that 51% of companies across sectors in Japan feel there is a shortage of full-time employees. Meanwhile, 2023 saw the number of Japan's workers aged 65 and over rise for a 20th consecutive year to reach a record 9.14 million, Statistics Bureau data showed. Feldman warned that as these elderly workers begin to retire from the workforce, there won't be the same number of young workers stepping up to replace them.
Persons: Robert Feldman, Morgan, Databank, Feldman Organizations: Statistics Bureau, Ministry of Internal Affairs and Communications, Morgan Stanley, Securities Locations: Japan
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailFed's 50bps cut may send wrong message to equity markets, says JPMorgan's David KellyDavid Kelly, JPMorgan Asset Management chief global strategist; Claudia Sahm, New Century chief economist; and Jim Caron, CIO of cross-asset solutions at Morgan Stanley Investment Management, join CNBC's 'Power Lunch' to break down the Fed's decision to cut interest rates by 50 basis points and what it means for markets.
Persons: JPMorgan's David Kelly David Kelly, Claudia Sahm, Jim Caron Organizations: JPMorgan Asset Management, Claudia Sahm , New, Morgan Stanley Investment Management Locations: Claudia Sahm ,
Here are Wednesday's biggest calls on Wall Street: Stifel initiates Penumbra as buy Stifel said it's bullish on shares of the medical device company. Bank of America reiterates FedEx as buy Bank of America lowered its price target to $345 per share from $347 but said it's bullish heading into earnings next week. " Bank of America reiterates TJX Companies, Burlington and Ross as buy Bank of America said the off-price retailers are best positioned for younger generations. Bank of America reiterates Starbucks as buy The firm said it's standing by shares of the coffee giant. Bank of America reiterates Alphabet, Meta, Amazon and Uber as buy Bank of America said the internet tech companies are the best way for "more defensive positioning."
Persons: Stifel, it's, Bernstein, Apple, Morgan Stanley, Tesla, BTIG, JPMorgan, Wells, Wolfe, Ross, ROST, Goldman Sachs, Goldman, Needham, Uber, William Blair Organizations: PEN, HSBC, KKR, Co, Apple, Bank of America, FedEx, GE Healthcare, UBS, Talen Energy, JPMorgan, Civitas Resources, Micron, MU, Barclays, TJX Companies, BURL, Marriott, Computer, Guggenheim, Sirius XM, " Bank of America, Google, Nvidia, Broadcom Locations: China, Burlington, InfiniBand
Read previewFor Wall Street, policy — not politics — is the motto leading up to November. Death and taxesUnsurprisingly, tax policy is at the top of money managers' minds, according to Frank Kelly, senior political strategist at DWS. The filibusterThere's an under-the-radar issue keeping portfolio managers up at night: the elimination of the filibuster, according to Kelly's conversations with clients. Wall Street analysts expect a very close election, and even a minute change could be enough to push the needle on the outcome for either candidate. Given how important gridlock is to the market, there's not enough conversation around the impacts of eliminating the filibuster, Kelly believes.
Persons: , Kamala Harris, Donald Trump, DWS, Frank Kelly, Harris, Trump, David Bianco, Bianco, Goldman Sachs, Chuck Schumer, Kelly, Monica Guerra, Morgan Stanley, Morgan Stanley Wealth Management's, it's, Jack Ablin, Washington doesn't Organizations: Service, Asset Management, Business, Trump, Jobs, DWS, Wall Street, Morgan Stanley Wealth, Cresset Capital Management, White, Washington, Democrats, Republicans Locations: DWS Americas
The Fed just issued its first interest rate cut in four years. AdvertisementStocks got a brief leg up to a new intraday record on Wednesday after the Federal Reserve issued its first rate cut since 2020. "The Fed has given the market what it was looking for with the bigger 50-basis point rate cut," Joel Kruger, market strategist at LMAX Group said in a statement. Here's where US indexes stood at the 4 p.m. closing bell on Wednesday:AdvertisementStocks have historically reacted well to Fed rate cuts. "All we needed today was for Powell to validate market expectations that the Fed is acknowledging the downside risks to the labor market and responding appropriately."
Persons: Stocks, , Jerome Powell's, Joel Kruger, Morgan Stanley, Kruger, Tom Lee, Priya Misra, Powell, Jason Pride Organizations: Service, Federal Reserve, LMAX, JPMorgan Asset Management Locations: Glenmede
The rise comes amid anticipation that the Fed will deliver a half-point rate cut. Investors are anticipating the Federal Reserve's long-awaited rate cut tomorrow, which will be announced at the end of the central bank's two-day policy meeting. Regardless of the size of the cut, investors buying up bitcoin are anticipating the looser lending conditions will lead to more speculative behavior. We could be seeing a recovery of investors' appetite for risk-on assets like crypto, instigating more flows into Bitcoin spot ETFs," said Leena ElDeeb, a research analyst at 21Shares. Seasonal factors weakened the spot bitcoin ETF inflows this summer while deteriorating macro conditions drove investors toward safe, risk-off assets.
Persons: , Morgan Stanley, Tuesday's, Leena ElDeeb, Alex Kuptsikevich, Bill Dudley Organizations: Service, New York
Bank of America reiterates Amazon as buy Bank of America said it's sticking with its buy rating on Amazon following CEO Andy Jassy's letter to employees on Monday. Bank of America adds Palantir to the US1 list Bank of America added the stock to its top picks list. Bank of America reinstates Carvana as buy Bank of America resumed coverage of Carvana and upgraded it to buy saying it sees accelerating growth. Bank of America upgrades Hewlett Packard Enterprise to buy from neutral Bank of America said shares of the company are "attractive." Bank of America upgrades GE Vernova to buy from neutral Bank of America said it sees a "power surge" for the stock.
Persons: Oppenheimer, Andy Jassy's, Andy Jassy, Bernstein, Tesla, underperform Bernstein, Redburn, LSCC, Ford Tamer, Mizuho, DELL, Morgan Stanley, Virgin, Jefferies, it's bullish, JEF, ARMK, Baird, BTIG, " Jefferies, SolarEdge Organizations: Nvidia, " Bank of America, Bank of America, Semiconductor, Stifel, Board, Dell, JPMorgan, ViaSat, United Airlines, Viasat, IFC, Virgin Galactic, Virgin, Citi, UBS, APP, RBC, Baird Conference, Burger, Walmart, Technologies, Healthcare, Barclays, D, WEC, Hewlett Packard Enterprise, of America, Hewlett, Packard Enterprise, GE, Gas Power Services Locations: Europe
The Federal Reserve is set to cut interest rates Wednesday for the first time in four years, which should make the yields for dividend stocks even more attractive, lifting the group. Using the CNBC Pro Stock Screener tool, we searched for stocks with a dividend yield above 3% and a low debt-to-equity ratio under 60%. Click here to view the results on CNBC Pro's Stock Screener tool and to make your own screener. Coterra Energy and ConocoPhillips are other energy names with strong dividends and attractive returns, according to the CNBC Pro screener. Other strong dividend stocks from the screen include Truist Financial and phosphate and potash mining company Mosaic .
Persons: Morgan Stanley, Devin McDermott, McDermott, Bank of America Wamsi Mohan, Mohan Organizations: Federal, Exxon Mobil, ConocoPhillips —, CNBC, Stock, CNBC Pro's, Energy, Exxon, Chevron, Devon Energy, Coterra Energy, ConocoPhillips, CNBC Pro, Hewlett Packard Enterprise, Bank of America
Go to newsletter preferencesSign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read previewEven when compared to the impressive and lengthy history of the University of Oxford, this week's gathering at Trinity College is noteworthy. Academics, nerds, and rising starsThe speakers over the two-plus days are roughly half Man employees and half external invitees. The firm balances the external speakers — from finance and other disciplines — with a line-up of Man executives and internal rising stars who are working on something that ties into the overall theme. Oxford offers plenty of advantages for the firm's leadership to get to know the decision makers at these firms.
Persons: , Tom Holland, Steven Desmyter, Milken, Desmyter, there's, Holland, Morgan Stanley, Clare Woodman, John Curtice, Jamie Dimon, Goldman Sachs, Lloyd Blankfein, Mike Lynch, Sumant Wahi, Vinayak Kumar, It's Organizations: Service, University of Oxford, Trinity College, Business, Ashmolean Museum, BBC, Morgan Stanley EMEA, Oxford, Oxford Man Institute, Union House Locations: British, Davos, Hawaii, Sydney, Sicilian, it's, Rhodes House, Trinity, New York, London, Dubai
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