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☆ Stock market today: US stocks close at record highs after encouraging May inflation and Fed commentary
▼ + stars: | 2024-06-12 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +3 min

US stocks rose to fresh records Wednesday as traders took in cool inflation and Fed comments. AdvertisementUS stocks rose on Wednesday as investors took in cool inflation data and the Federal Reserve's latest guidance on rate cuts, helping the S&P 500 to another record close. The 10-year Treasury fell seven basis points to 6.33%, rising from steeper losses earlier in the day after the central bank updated its outlook to include fewer rate cuts than previously expected. FOMC members said they didn't believe it was "appropriate" to cut rates until they had gained more confidence inflation is trending back to 2%. Fed fund futures show that investors see a 62% chance the Fed will cut rates three times or more by year-end, according to the CME FedWatch Tool.

Persons: —, FOMC, Powell, Bill Adams Organizations: Service, Federal, Treasury, Fed, Comerica Bank Locations: April's

☆ Mega-cap stocks are overvalued and risk a big correction, according to a CIO. Here's why that presents a 'monstrous' buying opportunity.
▼ + stars: | 2024-06-11 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +4 min

The stock market's leaders are overvalued and could suffer a big correction, RBA's Richard Bernstein said. The RBA chief investment officer pointed to a discrepancy between the debt and equity markets, which could hint at a soon-to-come market correction. But, only a narrow group of stocks are dominating the equity market, which implies profits aren't expanding for most companies. While large-cap stocks tanked during the lost decade of the 2000s, small-cap, energy, and emerging market stocks did exceedingly well. In a previous note, he said the stock market's shifting leadership from the most-hyped names to underloved equities presents once-in-a-generation opportunity for investors.

Persons: RBA's Richard Bernstein, —, Richard Bernstein, Bernstein, Goldman Sachs, Goldman Sachs Research Bernstein, Russell Organizations: Service, Wall Street, Apollo, Bloomberg, Goldman Sachs Research, Nasdaq

☆ Home prices will go down this summer as sellers can't postpone listing any longer, Redfin CEO says
▼ + stars: | 2024-06-11 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +1 min

Home prices will fall this summer as owners cave to selling pressure, according to Redfin's CEO. Homes in Florida and Texas are already beginning to see "major price cuts," the firm said. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . AdvertisementHouse prices will drop this summer as homeowners trying to wait out high mortgage rates are realizing they can't postpone moving any longer, according to Redfin CEO Glenn Kelman. Homes in key metros, like Florida and Texas, are already seeing "major price cuts," Kelman said.

Persons: —, Glenn Kelman, Kelman, Redfin Organizations: Homes, Service, Business Locations: Florida, Texas

☆ There's a stock market crash coming in 2025 as the 'bubble of all bubbles' bursts, economist says
▼ + stars: | 2024-06-10 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +3 min

The US is poised to see an epic stock market crash next year, according to Harry Dent. AdvertisementThe stock market could be in for a steep correction, resulting in a crash even worse than what investors saw during the Great Financial Crisis, according to economist Harry Dent. "Hero" stocks, like chipmaker Nvidia, could drop as much as 98%, he said, implying a multi-trillion market crash. "We've got to see a crash of about 40% to say, okay, the bubble's finally let off the steam. "This is really the second tech bubble version," he added, referring to the dot-com bubble in the 2000s."

Persons: Harry Dent, —, Dent, We've, " Dent Organizations: Service, Harvard Business School, Nasdaq, Nvidia, Fox Business Network

☆ Buying a home is probably never getting cheaper as rates aren't coming down and pandemic migration trends persist, 'Shark Tank' investor Kevin O'Leary says
▼ + stars: | 2024-06-10 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +1 min

The "Shark Tank" investor predicted high mortgage rates were here to stay. Pandemic migration trends also aren't reversing, which has kept home prices elevated. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . AdvertisementThe housing market probably isn't ever going to get any cheaper, according to "Shark Tank" star Kevin O'Leary. This story is available exclusively to Business Insider subscribers.

Persons: Kevin O'Leary, —, that's Organizations: Service, Fox Business, Business

☆ A shortage of young men in the workforce could weigh on housing, Social Security, and growth for years to come
▼ + stars: | 2024-06-09 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +6 min

Read previewAmerica's job market is mysteriously short of young men. Zack Mabel, a research professor at Georgetown University, theorizes that falling labor force participation among young men could impact the economy for at least several decades. AdvertisementStraining the economyThe economy appears to already be feeling the decline in male workforce participation. Besides the years following the pandemic, US workforce participation rate hasn't been that low since the 70s, World Bank data shows. There's no clear answer for how to get young men back into the workforce.

Persons: —, Carol Graham, That's, Graham, They're, Zack Mabel, Mabel, Meredith Whitney, Whitney, they're Organizations: Service, Brookings Institute, Bureau of Labor Statistics, Business, Georgetown University, World Bank, Bank, Wall, Brookings, Government, Social Locations: Brookings

☆ 3 things homebuyers should do to hack the unaffordable housing market, according to Fannie Mae's chief economist
▼ + stars: | 2024-06-07 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +4 min

Read previewThe housing market is historically unaffordable, but according to Fannie Mae's lead economist, prospective buyers can do a few things to make things to get a leg up. Have a good credit scoreMortgage rates are elevated, and having a poor credit score makes borrowing costs even steeper, Duncan said. Buyers who shop around tend to score better deals and more affordable rates, Duncan said. AdvertisementPeople betting that mortgage rates or home prices will come down soon are taking a gamble. Some homebuyers can afford to speculate on the market, but most first-time homebuyers cannot, Duncan noted.

Persons: —, Fannie Mae's, Doug Duncan, Duncan, That's, you'll, Charles Schwab Organizations: Service, Business, Yahoo Finance, National Association of Realtors Locations: today's

☆ Nvidia stock has another 24% to climb as it looks poised to dominate the computing market for the next decade, Bank of America says
▼ + stars: | 2024-06-06 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +3 min

The bank reiterated its $1,500 price target this week, implying another 24% upside for the stock. Nvidia will continue to dominate the computing market in the next upgrade cycle, the bank said. BofA strategists have a 12-month price target of $1,500 a share, implying another 24% upside from where the stock was trading late Thursday morning. Vivek Arya, a senior semiconductor analyst for the bank, added that he believed the stock would dominate the computer market for the next decade. Nvidia stock undergo a 10-for-1 split on Friday, a move that could be a catalyst for further gains as a lower share price helps draw more attention from retail investors.

Persons: —, Jensen Huang, Vivek Arya, Ayra Organizations: Bank of America, Nvidia, Service, AMD, Intel, Yahoo Finance, Wall Street, Apple

☆ Fed policy hasn't cooled the labor market and a 'serious consumer recession' could strike if services jobs tumble, real estate billionaire Barry Sternlicht says
▼ + stars: | 2024-06-06 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +3 min

Read previewThe Federal Reserve's aggressive inflation fight hasn't worked to cool off the job market, and the central bank risks sparking a "serious" downturn for US consumers, according to real estate billionaire investor Barry Sternlicht. Sternlicht said high interest rates haven't loosened the job market even in the most rate-sensitive areas like construction. Related storiesJobs in the healthcare industry have climbed 1.4 million since March 2022, the month the Fed first began raising interest rates. The Fed keeping interest rates higher for longer risks further weakening the job market. Other Wall Street forecasters have been warning of the risk of recession, especially as interest rates look poised to stay higher for longer.

Persons: —, hasn't, Barry Sternlicht, Sternlicht, Jerome Powell, He's Organizations: Service, Starwood Capital, Business, Fed, Bureau of Labor Statistics, CNBC, Challenger, New

☆ Stock market today: Indexes rise as weak private payroll data boosts optimism for rate cuts
▼ + stars: | 2024-06-05 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +2 min

Stocks rose on Wednesday as investors took in weaker jobs data. Investors are solidly betting on at two rate cuts in 2024, according to the CME FedWatch tool. AdvertisementUS stocks ticked higher on Wednesday as traders took in soft jobs data and revved up their hopes for Fed rate cuts later this year. Meanwhile, annual wage growth remained level at 5% — both promising signs that the job market is coolingWeaker hiring trends are good news for the outlook for rate cuts. Investors are largely expecting the Fed to hold interest rates steady at its next policy meeting, but are still feeling bullish on rate cuts by the end of the year.

Persons: —, 1750,000 Organizations: Service, Treasury, ADP, Bank of America, Investors

☆ Stock market today: S&P 500 closes at record high as rate cut hopes rise and Nvidia surges
▼ + stars: | 2024-06-05 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +2 min

US stocks jumped on Monday as traders took in an improved outlook for Fed rate cuts. Investors see two rate cuts in 2024, per the CME FedWatch tool. Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Expectations for rate cuts have been bolstered by a cooling labor market, which gives the Federal Reserve room to losen monetary policy. "Investors are viewing slow economic data as 'goldilocks,' with growing hope for Fed rate cuts," Mark Hackett, Nationwide's chief of investment research said in a statement on Wednesday.

Persons: —, Nvidia's, Mark Hackett, Nationwide's Organizations: Service, Nasdaq, Reserve, Apple, Microsoft, Bureau of Labor Statistics

☆ 3 signs the US economy is nearing a recession have flashed in the last week, SocGen says
▼ + stars: | 2024-06-05 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +3 min

Read previewThe US economy is edging precariously close to a recession, and it's flashed a handful of warning signs in just the last week that suggest a downturn is on the horizon, according to Société Générale. New manufacturing orders contracted in May, and overall manufacturing activity contracted for the 18th time over the last 18 months, according to the Institute for Supply Management. Advertisement"Although many may dismiss the importance of the manufacturing sector for the overall economy, it is undeniable that overall GDP ebbs and flows closely with it. SocGen isn't alone in sounding the alarm, and other economists say that high interest rates are finally working their way through the economy and depressing growth. New York Fed economists see a 52% chance the economy could slip into recession within the next 12 months.

Persons: —, it's, Société, Albert Edwards, " Edwards, Edwards, That's, SocGen isn't Organizations: Service, Business, Fed, Institute for Supply Management, New York Fed

☆ Elon Musk diverting Nvidia chips from Tesla to X shows the EV maker is not his priority, longtime Tesla investor Ross Gerber says
▼ + stars: | 2024-06-05 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +3 min

CNBC reported that Elon Musk diverted Nvidia chips bound for Tesla to X and xAI. Longtime Tesla investor Ross Gerber said the move shows the EV maker is not Musk's priority. AdvertisementTesla isn't at the top of Elon Musk's list of priorities, according to longtime investor Ross Gerber. Musk confirmed the decision in a recent post on X, adding that Tesla "had no place to send the Nvidia chips to turn them on." As an investor, I've done what I've needed to do and I've had to sell a lot of my Tesla stock.

Persons: Elon, Tesla, Ross Gerber, —, Gerber, Musk, I've, Ron Baron Organizations: CNBC, Nvidia, Service, Elon, Twitter, Tesla, Musk's, EV Locations: Tesla, Texas, Austin

☆ Home prices could drop for the next 6 months as inventory rises by the biggest margin since the financial crisis, investment strategist says
▼ + stars: | 2024-06-04 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +1 min

Home prices could start falling as soon as the end of summer, one strategist predicts. That's due to a sharp rise in unsold homes, with inventory climbing 16% year-per-year in April. That's the highest increase in unsold inventory recorded since the Great Financial Crisis. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . That's according to Brian Nick, a senior investment strategist at Macro Institute, who's calling for a drop in home prices that could take place over the next three to six months.

Persons: —, homebuyers, Brian Nick, Nick Organizations: Service, Macro

☆ Brace for a 10% slide in the S&P 500 as stagflation makes the Fed unlikely to cut rates, Stifel says
▼ + stars: | 2024-06-04 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +3 min

The stock market is headed for a 10% decline over the next quarter, Stifel analysts warned. AdvertisementThe stock market is headed for a sell-off in the coming months that will see the S&P 500 drop 10%, according to Stifel strategists. When adjusted for inflation, the overall S&P 500 remains below its level at the end of 2021 — something that could be "emblematic of underlying problems" in the market, Stifel said. "We continue to forecast the S&P 500 corrects about -10% to ~4,750 before the end of 3Q 2024 from the recent peak," strategists said in a note on Tuesday. When the inflation-adjusted S&P 500 transitions out of a Secular Bull Market it historically enters a 'Secular Bear Market,' which is a much more treacherous period for investors."

Persons: —, Stifel, Stocks Organizations: Service, Federal Reserve, Secular

☆ Famed short seller Andrew Left is back shorting GameStop years after taking a hit during meme-stock mania
▼ + stars: | 2024-06-03 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +2 min

Andrew Left just placed a fresh bet against GameStop shares amid its latest rally. AdvertisementAndrew Left, the famed short-seller who lost big betting against Gamestop's stunning rally in 2021, is back to shorting the meme stock amid its latest surge. Left, who also shorted Hertz and Tesla competitor Nikola in 2020, told Bloomberg he placed a bet against Gamestop stock on Monday. His latest short comes amid a surge in retail interest in GameStop. Left's firm, Citron Research, stopped publishing notes on its short bets in January 2021, around the time GameStop shares notched their all-time high.

Persons: Andrew Left, —, Nikola, Keith Gill, Kitty, Gill Organizations: GameStop, Service, Gamestop's, Bloomberg, Gamestop, Citron Research

☆ 5 moves investors can make as they navigate extreme speculation with the potential for huge losses, according to elite investor Gary Shilling
▼ + stars: | 2024-06-03 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +4 min

The investing environment is loaded with risks, according to top forecaster Gary Shilling. AdvertisementStock market investors are facing the risk of huge losses as the economy slows, and there are five rules they should follow to prepare for future headwinds, according to elite forecaster Gary Shilling. The stock market's setup also looks troubling. Shilling has advised investors in Chinese stocks to switch to Indian assets for months, citing factors like better economic growth prospects and population growth. AdvertisementShilling has maintained a notably bearish view on stocks and the economy, despite more investors warming up to the possibility of soft landing.

Persons: Gary Shilling, —, Shilling, Steer Organizations: Service, Stock, Reserve, Nvidia Locations: China, India

☆ The S&P 500 could climb 23% next year if Treasury yields fall and AI momentum stays strong, research firm says
▼ + stars: | 2024-06-03 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +3 min

Falling yields and continuing excitement for AI could boost the S&P 500 to 6,500, the firm said. "This expectation that AI hype will increase and that Treasury yields will fall underpins our long-standing forecast for the S&p 500 to hit 6,500 by end-2025." But narrow stock market rallies have the potential to last years, Rielly said, suggesting the stock market run-up could continue for now. Warnings of a market bubble have proliferated as the S&P 500 notched a series of record-highs this year. Capital Economics has also warned of a stock market correction akin to the 1929 and dot-com crashes, which could begin in early 2026.

Persons: That's, —, Reilly, that's, Rielly Organizations: Capital Economics, Service, Treasury, Street, NVIDIA, Capital

☆ Home prices are falling at the fastest pace since 2022 as stubborn interest rates slash demand
▼ + stars: | 2024-06-03 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +1 min

Home prices are dropping thanks to high mortgage rates weighing on demand. The 30-year fixed mortgage rate edged up last week, hovering above 7%. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . AdvertisementHome prices are falling at the fastest pace in over a year, thanks to demand plunging amid stubbornly high mortgage rates, according to Redfin. That's the highest percentage of sellers that have slashed prices since November 2022, when the 30-year fixed mortgage rate spiked past 7% for the first time in more than 20 years.

Persons: — Organizations: Service, Business

☆ 2 Yale researchers are pulling back the curtain on Russia's sanctions-stricken economy — and it's landed them on a list of Putin's enemies
▼ + stars: | 2024-05-25 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +6 min

Read previewJeffrey Sonnenfeld and Steven Tian, two researchers at the Yale School of Management, have been targeted for their views on Russia's economy since the war in Ukraine began. Soaring prices and ailing consumer sentiment have hit key sectors in Russia's economy, and Moscow is paying a huge cost to keep its war machine running. Steven Tian Courtesy of Steven TianAt that time, Tian and Sonnenfeld began noticing cracks forming in Russia's economy. "Putin has no grand strategy other than to hope Trump wins and cuts a favorable deal with Russia," Tian said. Positive forecasts on Russia's economy are based on a lack of visibility, Sonnenfeld and Tian say.

Persons: —, Jeffrey Sonnenfeld, Steven Tian, they've, Vladimir Putin's, Tian, Putin, he'd, Sonnenfeld, I've, Biden, Steven Organizations: Service, Yale School of Management, Business, Yale, IMF, Trump Locations: Ukraine, Moscow, Russia

☆ Why one analyst sees a 20% drop for Nvidia stock in the next 18 months
▼ + stars: | 2024-05-24 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +3 min

Nvidia stock can't keep climbing forever, according to DA Davidson analyst Gil Luria. The Wall Street veteran sees a decline of as much as 20% in Nvidia stock in the next few years. That trend will falter, Luria predicts, and he says he's anticipating a double-digit decline for the chip maker's stock within the next 18 months. Advertisement"My estimates for 2026 are the lowest on the Street," Luria said. AdvertisementLuria has warned of a long-term decline for Nvidia stock for months, though investors are still feeling pretty bullish.

Persons: Gil Luria, —, who's, Luria, It's, Tesla Organizations: Wall Street, Nvidia, Service

☆ There's a 'buy' signal flashing for investors in the stock market right now as the long-term bull market pushes on, market vet says
▼ + stars: | 2024-05-24 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +2 min

The stock market is in a great spot for investors to jump in, Ed Yardeni says. The market vet still thinks stocks are in the midst of a long-term bull market that could last through 2030. AdvertisementThe latest pullback in stocks could represent a big "buy" signal for investors, according to market veteran Ed Yardeni. Consumers have pulled back on goods spending, but they're spending more money on services, which is propping up the economy, Yardeni noted. Yardeni has been making the case for months that stocks are still in a long-term bull market and could soar through the rest of the decade.

Persons: Ed Yardeni, Stocks, Yardeni, —, he's Organizations: Service, Yardeni, Dow, Bloomberg, Fed, Dow Jones

☆ From more inventory to lower prices, here are 3 signs the housing market may be getting better for buyers
▼ + stars: | 2024-05-23 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +4 min

Read previewThe housing market may be starting to turn a corner, offering frustrated buyers a chance to jump back into the market after a long stretch of dismal prospects. "We think the housing market is going to improve over the next half of a year," Glenn Kelman, the CEO of Redfin, in a recent interview. Inventory is risingMore inventory is finally trickling into the housing market, which could help push prices down. Elevated mortgage rates are a key problem in today's housing market, as they deter both buyers and sellers from making deals. Rates dropping to 5%-6% would make the housing market "explode," but even a 6.5% 30-year mortgage rate would be enough to make the housing market "very strong," Reffkin said.

Persons: —, Glenn Kelman, That's, Robert Reffkin, Reffkin, Freddie Mac, Redfin's Kelman, Kelman, Compass's Reffkin Organizations: Service, Business, National Association of Realtors, CNBC Locations: Reffkin, Texas, Florida

☆ Stock market today: Indexes slip as traders await Nvidia's earnings report
▼ + stars: | 2024-05-22 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +2 min

US stocks traded lower as investors waited for Nvidia's first-quarter earnings report after the close. Investors also took in comments from Fed officials, which suggested rate cuts weren't imminent. AdvertisementUS stocks slid lower on Wednesday as traders took looked ahead to Nvidia's highly anticipated first-quarter earnings report and took in the latest commentary from Federal Reserve speakers. All three benchmark indexes traded lower, while bond yields ticked higher. Markets have been dialing back their expectations for Fed rate cuts all year.

Persons: Nvidia's, —, Susan Collins, Loretta Mester Organizations: Investors, Service, Federal Reserve, Treasury, Nvidia, Bloomberg, Boston, Cleveland Fed, Fed, Here's

☆ De-dollarization is 'a myth,' and there's no big shift taking place away from the US currency, commodities expert says
▼ + stars: | 2024-05-21 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +4 min

Practically no one is phasing out the dollar for trade or foreign reserves, he said. No one is dumping dollars," Christian said of de-dollarization in a recent presentation. Its closest competitor, the euro, accounted for just 19% of all central bank reserves in 2022, down from around 29% several decades ago. Advertisement"There has been a diversification of central bank foreign exchange holdings, but it's not at the expense of the dollar, and it's not away from the dollar," Christian said. "Clearly people are buying dollars in a much greater volume than they are selling dollars," Christian said.

Persons: Jeffrey Christian, —, Christian, it's, Chris Wallace, Wallace Organizations: CPM, Service, Bank of International Settlements, Monetary Fund, Federal Locations: Russia, China

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