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Investors with cash on the sidelines may want to start moving some of that money into bonds, according to a new report from BlackRock. The bond market has seen some volatility amid the uncertainty around interest rates and the Federal Reserve's monetary policy. Bond yields move inversely to prices. US10Y YTD mountain 10-year Treasury yields Yields are at levels not seen in 20 years, he pointed out. Aggregate Bond ETF year to date The iShares Core Total USD Bond Market ETF (IUSB) is also a passively managed, broad bond market fund which adds exposure to potentially higher-yielding names.
Persons: Steve Laipply, shouldn't, Laipply Organizations: Federal, Treasury, BlackRock, Fed, Core, Aggregate Bond, Bloomberg U.S, SEC, Aggregate, Bond Locations: BlackRock
The fall of Gucci was inevitable
  + stars: | 2024-05-03 | by ( Madeline Berg | ) www.businessinsider.com   time to read: +13 min
"We got used to hearing about double-digit growth at Gucci," Fflur Roberts, the head of luxury goods at Euromonitor, told Business Insider. "I think of what a fashion editor is wearing — it's not Gucci," Lindsey Solomon, a fashion publicist, told BI. After taking the top spot on the Lyst Index of fashion's hottest brands in 2022, Gucci dropped to number 11 last quarter. "We still believe the Gucci brand's current growth rate, which is 10 times higher than that of the industry, represents a risk going forward," Morningstar's Sokolova wrote in a 2017 note. Gucci relied heavily on China for its growth, but stores — perhaps including this one in China's Hainan Province — have struggled recently.
Persons: Alessandro Michele's, loafers, Gigi Hadid, Sienna Miller, Steve Madden, ASOS, Sally Singer, Michele, Fflur Roberts, Alessandro Michele, Harry Styles, Billie Eilish, Jared Leto, Kevin Mazur, Bauer, Griffin, Jeff Kravitz, Gucci, Sabato De Sarno, Lindsey Solomon, De Sarno, François, Henri Pinault, China —, Jelena Sokolova, Solomon, Daniele Venturelli, Michele —, Sokolova, It's, Thomas Chauvet, Morningstar's Sokolova, Michele's Gucci, wasn't, Jeremy Moeller, Chauvet, Roberts, Chanel, Gucci's, Gucci hadn't, Hermès, Birkin, Louis Vuitton's Neverfull, Pinault, Louis, Euromonitor's Roberts Organizations: Creative, Gucci, The Recording Academy, Axelle, Morningstar, BI, Citi, Disney, Getty, Revenue, China News Service, Bain, Louis Vuitton Locations: Euromonitor, China, The Asia, Pacific, China's Hainan Province, Asia
Shares of Danish pharmaceutical giant Novo Nordisk slid 4% on Friday, extending a 2.7% loss on Thursday as analysts pored over the details of the firm's first-quarter results and monitored a potential rival weight loss treatment. The company reported that sales for its blockbuster injectable weight loss treatment Wegovy, more than doubled to 9.38 billion Danish kroner ($1.4 billion). Novo Nordisk, which also makes diabetes treatment Ozempic, said the rise in sales had offset a slight reduction in prices. Analysts expected even higher weight loss drug sales in the quarter, and some noted that Novo Nordisk's 2024 outlook raise for both sales growth and operating profit was due to one-off accounting adjustments. The boom in demand for weight loss treatments saw Novo Nordisk overtake French luxury group LVMH to become Europe's most valuable company last year.
Persons: Karsten Knudsen, Karen Andersen Organizations: Novo Nordisk, Novo, Morningstar Locations: Novo
The Copenhagen-based firm subadvises funds like the Harbor International Compounders ETF (OSEA), which O'Reilly has co-managed since its launch in early September 2022. But despite launching less than two years ago, O'Reilly said in a recent interview that the ETF's success didn't happen overnight. "We feel the strategy that we have can work in any market environment," O'Reilly said. The ETF is more balanced when it comes to countries, as no more than 13% of its stocks are from a single nation. 5 international stocks to buy nowAfter outlining his investing strategy, O'Reilly spoke about five companies he's especially excited about now.
Persons: Peter O'Reilly, who's, O'Reilly, You've, he's, Germany — Organizations: London, Asset Management, Business, Carnegie Asset Management Locations: Ireland, Dublin, Copenhagen, France, Japan, United Kingdom, Germany
That said, in general, most investors would be best served buying a diversified bond fund, said Mulach. What to look for in bond fundsThere are several factors to consider when investing in a bond fund. Intermediate-core durations typically range between 75% and 135% of the three-year average of the effective duration of the Morningstar Core Bond Index. Top Morningstar Bond Funds Ticker Fund Morningstar Category Type 30-day SEC yield Adj. Aggregate Bond ETF can be a great option to simply replicate that index, he said.
Persons: Morgan Stanley, shouldn't, Morningstar, Mike Mulach, Chuck Failla, Failla, Mulach, You'll, Baird, BSBSX Baird, Morningstar's Organizations: Treasury, Federal Reserve, Sovereign Financial, Morningstar, SEC, Mutual, FLTB Fidelity, Fidelity, Hartford, Aggregate
There's one dividend stock that Morningstar says is "deeply undervalued" right now and which it's bullish on for the long term. "Yet we're bullish on this undervalued stock for the long term. Goldstein noted that FMC's products lean toward insecticides, which generate over half of its revenue. According to FactSet, FMC has an indicated annual dividend yield of 4% for 2024. "FMC stock looks deeply undervalued, trading at half of what we think it's worth," Goldstein added.
Persons: Morningstar, Seth Goldstein, Goldstein, Morningstar's, Dave Sekera Organizations: Morningstar, FMC Locations: FactSet
For the beleaguered drugstore chain, the odd “Gummy Mango” candy is a much-needed win. Walgreens said it didn’t work with any paid influencer to hype up its mango gummies but that it took off organically. Walgreens is quickly following up on the success of its mango gummy with a new peelable banana gummy candy. As Esarte and his team rushed to restock the mango gummies last last year, a bigger challenge emerged. After weeks of scrambling and rushing, Walgreens is better prepared to make a bigger splash with the mango gummies.
Persons: It’s, Keonhee Kim, TikToker @Trinhdoesthings, , Marty Esarte, Esarte, we’ve, ” Esarte, Anthony Behar, Gen Z, China grinds, “ We’ve, Kim, Tim Wentworth, Tim, ” Kim Organizations: New, New York CNN, Walgreens, CNN, National Confectioners Association, Food Institute, Millennial, Morningstar Locations: New York, Asia, China
One strategist, however is looking keenly at European equities, and notes that "Europe isn't a boring market." "You would hope that will translate through to the stock market in terms of company earnings growth in Europe. "While you might see some kind of short-term downturn, in the longer-term the picture is very positive for the sector," Field added. He sees value in payments, which he described as "one of the most undervalued parts of European financial services." The sector has trailed market performance, with valuations looking "interesting" over the last 12 months, Morningstar noted in its recent report.
Persons: Michael Field, Field, Morningstar Organizations: CNBC Pro, European Central Bank, Consumer, Swatch Group, Financial, Morningstar, ING Bank, Group, Health, Novo Nordisk Locations: U.S, Europe, Netherlands, British, Swiss
It's been putting on boot camps to attract customers, per Bloomberg. CEO Alex Karp has likened them to "a rock concert;" they've included perks like racetrack drives. The data mining company, cofounded by PayPal Mafia member Peter Thiel, has been holding software boot camps to recruit new customers, Bloomberg reported Tuesday. The company put on over 500 boot camps last year and expects to average five camps a day globally this year, according to Bloomberg. It's like, yeah, yeah, if you know somebody, we can get you backstage."
Persons: Palantir, It's, Alex Karp, , Peter Thiel, Morningstar, Malik Ahmed Khan, Rishi Jaluria Organizations: Bloomberg, Service, PayPal Mafia, AIP, RBC Capital Markets Locations: Pontiac , Michigan
The Nasdaq tumbled 2.1% on Friday as tech stocks plunged, marking its worst day since January 31. “US earnings updates this week will be key to see if they can keep topping expectations and buoying risk appetite in a higher-for-longer interest rate environment.”Tesla, Facebook-parent Meta, IBM, Microsoft and Alphabet all report first quarter earnings later this week. “Big Tech earnings may determine whether the stock market avoids its first four-week losing streak in two years,” wrote Chris Larkin, managing director of trading and investing at E*TRADE from Morgan Stanley on Monday. About 15% of S&P 500 companies have reported first quarter earnings, and nearly three-quarters of those companies have posted a positive earnings-per-share surprise. But investors are nervously waiting for the Magnificent Seven, those massive Tech stocks that carry an outsized portion of market weight, to report.
Persons: Monday’s, , , They’re, Tesla, Chris Larkin, Morgan Stanley, aren’t, we’re, Dave Sekera, ” Taylor Swift’s, Apple Taylor Swift, Liam Reilly, Department ”, Post Malone, Laura He Organizations: CNN Business, Bell, New York CNN —, Nasdaq, BlackRock, Federal Reserve, Facebook, IBM, Microsoft, “ Big Tech, Tech, Companies, Nvidia, Apple, Big Tech, Bank of America, Morningstar, Department, Spotify, Poets Department, Amazon Music, Apple Music, EV, Tesla Locations: New York, Wells, China, Germany, United States, Tesla’s, Europe
When trying to assess the growth prospects of companies, portfolio manager Jack Dwyer says the consumer is king. CNBC's Will Koulouris will ask the CEO of Infusive Asset Management how he harnesses the power of the consumer in Pro Talks on Wednesday, April 24. The top holdings of Infusive's Consumer Alpha Global Leaders Fund include Amazon , Netflix and Alphabet , in addition to consumer stocks such as McDonald's , LVMH and PepsiCo . When selecting stocks, Dwyer urges investors to avoid making generalizations about consumer strength on a country basis, and highlighted a divergence across the luxury sector. To discover Dwyer's top stock picks, j oin CNBC Pro Talks on Wednesday, April 24 at 6:30 a.m. BST / 1:30 p.m. SGT / 1:30 a.m.
Persons: Jack Dwyer, CNBC's Will Koulouris, Dwyer, Hermes, Morningstar, Will Koulouris Organizations: Infusive, Management, Infusive's Consumer Alpha Global, Fund, Amazon, Netflix, PepsiCo, Nvidia Locations: LVMH, millennials
Investors are ramping up outflows from Cathie Wood's ARK funds after a three-year decline. The suite of ARK ETFs has seen net outflows of $2.2 billion so far this year, triple the outflows in 2023. AdvertisementInvestors in Cathie Wood's ARK ETFs are starting to increase the pace of outflows after a string of bad bets and a painful three-year decline. The ARK ETFs' combined assets under management stand at $11.1 billion, down 81% from its peak AUM of $59 billion in 2021. This dynamic — the sharp decline in ARK funds while the broader stock market hits record highs — was highlighted by Morningstar earlier this year.
Persons: , Morningstar, Amy Arnott, Wood, Tesla Organizations: Service, Innovation, Morningstar, Nvidia, Unity Software
DXYZ 1M mountain The Destiny Tech 100 fund has seen big swings and is trading well above its net asset value. "It's common for them to not trade exactly at their NAV, but trading at a premium is very strange. Robinhood confusion The popularity of the new fund appears to have caused some confusion on retail brokerage app Robinhood . According to Prasad, the Destiny fund was previously available for trading on brokerage Robinhood, but they started seeing complaints last week that things had changed. "Our focus is not on the premium," but in building out the fund, Prasad said.
Persons: Jack Shannon, Shannon, Chelsea Childs, Sohail Prasad, Prasad, Robinhood, Chelsea, Destiny Organizations: SpaceX, New York Stock Exchange, Tech, Morningstar, Gray, CNBC, Trust
Heightened geopolitical tensions have triggered volatility in crude oil prices, but one strategist is looking keenly for opportunities in the energy sector. Stephen Ellis, energy and utilities strategist at Morningstar, said oil market volatility does present challenges and urged investors to be patient, which "regularly pays off within energy." Brent crude oil prices were trading around $86.50 on Apr. 'Quality' names within energy Ellis said he searches for quality names when selecting stocks in the energy space. "All of these are 'moaty' firms that have some upside to our fair value estimates, even in a period of high oil prices," Ellis explained.
Persons: Stephen Ellis, Ellis, Morningstar, SLB Morningstar, It's Organizations: Morningstar, CNBC Pro, TC Energy, APA Corp, ExxonMobil, Schlumberger Locations: Brent, Suriname
Global stock markets may be coming under pressure from geopolitical tensions and sticky inflation — but one portfolio manager sees potential in several stocks. Hinchliffe oversees more than $1 billion of PineBridge's assets via its Global Focus Equity Fund . What we are trying to do is beat the benchmark by constructing our portfolio to be similar to the market from a risk perspective," Hinchliffe said. "We're not taking a view that small caps are better or worse this year than last year; we're not taking the view that growth stocks are better than value stocks. The portfolio manager noted that they "clearly led the market last year based on fantastic earnings growth by and large."
Persons: Rob Hinchliffe, Hinchliffe, , Morningstar, We're, we're, France's Legrand Organizations: PineBridge Investments, CNBC Pro, Global Focus Equity Fund, Equity Fund, Stock, Microsoft, Nvidia, Walmart Locations: U.S, Swiss
Like many others, fund manager Jim Golan has made a fortune from mega-cap growth stocks. For the last 19 years, Golan has logged consistently solid returns as manager of the $2.2 billion William Blair Large Cap Growth Fund (LCGNX). Large, high-quality growth stocks have been in vogue since the early 2010s, though that doesn't explain why Golan's fund has excelled versus its peers. How to invest in large growth stocks — and 4 top picksTo impress Golan, stocks must have scale or other structural advantages that lead to success over his three- to five-year investing horizon. Below are four companies the leading fund manager is especially bullish about, along with the ticker, market capitalization, sector, and thesis for each.
Persons: Jim Golan, Golan, William Blair Large, David Ricci, Morningstar, , Golan isn't Organizations: Growth, Business, Microsoft, Nvidia
It's called a managed futures strategy. That's according to iM Global Partner, which has the largest exchange-traded fund — iMGP DBi Managed Futures Strategy ETF (DBMF) — that copies the strategy. Meanwhile, a managed futures strategy, with its short-term approach across stocks, bonds, commodities, and currencies, is generally uncorrelated to longer-term bond and stock market performance. From January to October 14, 2022, for example, the Credit Suisse Managed Futures Strategy (CSAIX) was up around 26%. iMGP DBi Managed Futures Strategy ETF (DBMF)January-October 14, 2022 returns: 33.9%2024 year-to-date returns: 13.1%Assets under management: $988 millionFirst Trust Managed Futures Strategy Fund (FMF)January-October 14, 2022 returns: 15.7%2024 year-to-date returns: 7.3%Assets under management: $144 millionKFA Mount Lucas Managed Futures Index Strategy ETF (KMLM)January-October 14, 2022 returns: 50%2024 year-to-date returns: 8.8%Assets under management: $284 millionSimplify Managed Futures Strategy ETF (CTA)
Persons: It's, , Andrew Beer, Seth Klarman's, Beer, we've Organizations: Global, Business, Treasury Bond ETF, Credit Suisse, Morningstar, Lucas Locations: DBMF, lockstep, VettaFi
His brokerage account mainly holds dividend and technology stocks and an S&P 500 index fund. AdvertisementHe also began buying the NEOS S&P 500 High Income ETF (SPYI), which launched in August 2022. It also beat out similar funds, such as the JP Morgan Equity Premium Income ETF and the Global X S&P 500 Covered Call ETF, throughout 2023. Portfolio VisualizerFor this reason, he decided to bet on an ETF similar to SPYI that went live in January 2024: the NEOS Nasdaq-100 High Income ETF (QQQI). It's also subject to the 60/40 tax rate, which means that only 40% of the fund's gains are subject to the higher short-term capital gains tax rate.
Persons: , Austin Hankwitz, Roth, Ethereum, Hankwitz, it's, It's, Austin Organizations: Service, Business, Morgan, Nasdaq, SPYI, JPMorgan Nasdaq Equity
It was under the tutelage of legendary investor Peter Lynch that Sullivan developed the edge that has served him in his career. The numbers Today, Sullivan manages the Putnam Investments Core Equity Fund (PMYYX) , a multicap fund with $4.4 billion in assets that he started in 2010. "The numbers are good," Sullivan said. Ultimately, Sullivan said he's learned a lot from other investors, noting the good stock pickers have had "pretty eclectic" approaches that helped them outperform the market over time. "And I found the good fortune over the decades to be around pretty good stock pickers, pretty good money managers."
Persons: Gerard Sullivan, Peter Lynch, Sullivan, Lynch, hadn't, , Arthur Yeager, PMYYX, Morningstar, It's, Yeager, Tesla, it's, that's, Rajesh Subramaniam, he's, I'm, That's Organizations: Fidelity, Columbia Business School, Magellan Fund, Putnam Investments, Equity, Pacific Gas & Electric, CMS Energy, Companies, Nvidia, FedEx Locations: Brooklyn, U.S, California, Michigan, Pinterest
Investors have been raking in income thanks to attractive yields in the U.S. bond market. Investing in global bond funds Individual investors can add exposure to foreign bonds through global bond funds. There are hedged funds, which hedge foreign currency exposure back to the U.S. dollar and therefore reduce currency risk. "It's good to be diversified because foreign bond exposure is a massive part of the global bond markets," Mulach said. Here are Morningstar's top picks for global bond exposure: The Pimco strategies keep the bulk of their non-U.S. currency exposure hedged back to the U.S. dollar.
Persons: Rick Rieder, Rieder, Collin Martin, Martin, It's, Mike Mulach, Mulach, Rick Rieder's, Darla Mercado Organizations: BlackRock, SEC, Investment, U.S ., European, European Central Bank, Federal, Schwab Center, Financial Research, Morningstar, U.S, Strategic Global Bond Fund, Investor, Morningstar . Dodge, Cox's Global Bond Fund Locations: U.S, Europe, BlackRock, Mexico, Brazil
A screen displays trading information about shares of Truth Social and Trump Media & Technology Group outside the Nasdaq MarketSite in New York City on March 26, 2024. The former president is the majority shareholder in Trump Media, which trades under the initials of his name, DJT, on the Nasdaq. "The reason that people own this stock is because, in one way or another, they support Donald Trump," Rekenthaler said. The closest company comparison to Trump Media is Tesla, according to Rekenthaler. Trump Media is currently a $4 million business through social media, he said.
Persons: Donald Trump, Rekenthaler, John Rekenthaler, Tesla, Elon, Trump, FAFSA, Preston D, Cherry, who's, Oprah —, Ted Jenkin, Jenkin Organizations: Truth Social, Trump Media & Technology Group, Nasdaq, Trump Media, Morningstar, Elon Musk, Trump, Securities and Exchange Commission, Finance, Adidas, CNBC FA Council Locations: New York City, Green Bay , Wisconsin, Atlanta
That success can be seen in funds like the Morningstar five-star, gold-rated Baird Aggregate Bond Fund . BAGSX 1Y mountain Baird Aggregate Bond Fund, investor shares Since BAGIX's inception in 2000, it has seen a 4.74% annualized gain through March 31, 2024, according to Baird. The team runs a number of fixed income funds in addition to the Baird Aggregate Bond Fund, including the Morningstar five-star rated Baird Intermediate Bond Fund. The product was one of the top performing actively managed bond funds in 2023, according to Morningstar. With the yield curve still inverted, short-term term Treasury bills are yielding over 5%.
Persons: Baird, Mary Ellen Stanek, Stanek, hasn't, Morningstar, we've Organizations: Baird Advisors, CNBC, Bond Fund, Institutional, SEC, Investor, Bloomberg U.S, First Wisconsin Trust, Treasury, Bond, Morningstar, Pensions, Investments, AAA, MBS
Those what-ifs could further roil gas and oil prices. But if there’s further conflict, he said, “you’d see a much higher premium for oil prices. If there’s a de-escalation of tensions between Israel and Iran, they said, oil prices should come down over the next few weeks. But if there’s an escalation in conflict, they expect that oil prices could jump to more than $100 per barrel, they wrote in a note Monday. Retail sales rose 0.7% in March from the prior month, a slower pace than February’s upwardly revised 0.9% gain, the Commerce Department reported Monday.
Persons: New York CNN —, JPMorgan Chase, Jamie Dimon, ” Dimon, Jerome Powell, We’ll, Christine Lagarde, Andrew Bailey, Dave Sekera, Israel doesn’t, , , Moody’s, there’s, Chris Isidore, Pete Muntean, Sam Salehpour, Read, Bryan Mena, Claire Tassin Organizations: CNN Business, Bell, New York CNN, Dow, JPMorgan, International Monetary Fund, IMF, Bank, Bank of Canada, Seven, European Central Bank, Bank of England, Morningstar, Nvidia, AMD, Wall Street Journal, Federal Reserve Bank of New, Boeing, Federal Aviation Administration, Alaska Airlines, Commerce Department, Morning, Amazon Locations: New York, Russia, Ukraine, China, United States, Washington ,, Iran, Israel, Federal Reserve Bank of New York
Many shares look expensive in today's market, but there are still cheap stocks to be found — some of which can be held for the next 10 years, according to the pros. They shared with CNBC Pro their tips for picking cheap stocks that hold long-term promise, as well as their top picks. How to pick cheap stocks Morningstar's Susan Dziubinski says she believes in owning stocks that offer "some sense of certainty" in terms of cash flow and company fundamentals. Freddie Lait, chief investment officer at Latitude Investment Management, says a willingness to invest in some cyclical stocks is key. Cheap stocks to hold for the long term Morningstar's Dziubinski named three cheap stocks that investors can hold for the next decade: U.S. consumer health firm Kenvue , regional U.S. bank U.S. Bancorp , and medical equipment firm Zimmer Biomet .
Persons: Susan Dziubinski, isn't, Freddie Lait, Lait, he's, Dziubinski, Zimmer Biomet, Morningstar, Bancorp Morningstar, AutoZone Organizations: CNBC, Latitude Investment Management, U.S . Bancorp, Companies, Bancorp Locations: U.S, AutoZone
Morningstar Wealth's Marta Norton: Tech looks overvalued to us
  + 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 EmailMorningstar Wealth's Marta Norton: Tech looks overvalued to usMarta Norton, Morningstar Wealth CIO for the Americas, joins ‘Squawk Box’ to discuss whether the Middle East conflict could impact the market, why she sees lots of opportunities in consumer staples, and more.
Persons: Morningstar, Marta Norton Organizations: Morningstar
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