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European stocks are on course for a lower open Thursday, continuing a negative trend this week as global markets come under pressure from rising bond yields. Equity market gloom has been mirrored globally, as expectations that interest rates will be higher for longer have driven up bond yields — generally a harmful move for stocks. First to release will be the euro zone, amid uncertainty over how how many times the European Central Bank will cut interest rates this year beyond its expected first cut at its June meeting next week. That will be followed by the U.S. personal consumption expenditures price index report, the Federal Reserve's preferred inflation gauge. The minutes from the Fed's most recent meeting and recent comments from policymakers have seen money markets fully price in just one rate cut from the world's biggest central bank this year.
Organizations: Equity, European Central Bank, U.S, Federal Locations: Asia, Pacific
Big oil shareholders could get a lot richer
  + stars: | 2024-05-30 | by ( Nicole Goodkind | ) edition.cnn.com   time to read: +7 min
New York CNN —Big oil just got bigger, and shareholders could soon be getting richer. Dollar Tree will reopen these stores with its own products under its brand beginning in the fall, reports my colleague Nathaniel Meyersohn. Dollar Tree, a national company with mostly suburban locations, primarily offers discretionary merchandise like party supplies and home goods. Dollar Tree also owns Family Dollar, based mostly in cities. Family Dollar has underperformed Dollar Tree and other discount chains in recent years, and it’s closing 975 stores.
Persons: Stewart Glickman, , “ it’s, Stewart, Hess, McDonald’s, Joe Erlinger, , Danielle Wiener, Bronner, they’re, Chris Kempczinski, ” Read, Nathaniel Meyersohn Organizations: CNN Business, Bell, New York CNN, ConocoPhillips, Marathon, Diamondback, Endeavor Energy Partners, , McDonald’s, America, Mac, Locations: New York, multibillion, McDonald’s USA, U.S, Arizona , California , Nevada, Texas, Virginia, West Coast
Patriotism, Diversity and the Election
  + stars: | 2024-05-30 | by ( David Leonhardt | ) www.nytimes.com   time to read: +1 min
Student debt. One is the contrast between the country’s most heated political debates and the top concerns of most voters. Student debt and housing costs make for a useful comparison. Student debt, a subject that the Biden administration has emphasized, may seem like the ultimate pocketbook issue. In reality, it’s more niche: Only 18 percent of U.S. adults have any federal student debt.
Persons: Biden Organizations: Democratic Locations: Gaza, U.S
Zero-down mortgages are making a comeback
  + stars: | 2024-05-30 | by ( Matt Egan | ) edition.cnn.com   time to read: +8 min
That massive roadblock is being removed by a new zero-percent down mortgage program launched two weeks ago by one of the nation’s largest mortgage lenders. ‘Demand has been huge’These mortgages are only open to first-time homebuyers and those making no more than 80% of the area’s median income. That’s because in order to refinance at a lower rate, the homeowner would need to fully pay off that second mortgage. For instance, Bank of America launched a zero-down payment mortgage program in 2022 for first-time homebuyers in certain Black and Hispanic neighborhoods. “These mortgages are going to be ticking time bombs – just like subprime mortgages –unless home prices continue to increase very substantially,” Kelleher said.
Persons: Mat Ishbia, homebuyers, Christian Petersen, refinances, UWM, ” Alex Elezaj, they’d, , Patricia McCoy, McCoy, won’t, Bankrate, , Anneliese Lederer, ” Lederer, ” Dennis Kelleher, ” Kelleher, Jonathan Adams, ” UWM, Elezaj, , ” Elezaj, ” It’s, “ We’re, Greg McBride, Adams, ” Adams Organizations: CNN, United Wholesale Mortgage, Phoenix Suns NBA, Phoenix Suns, NBA, Oklahoma City, Footprint Center, Boston College Law School, Consumer Financial Protection Bureau, Federal Reserve, Bank of America, US Department of Agriculture, US Department of Veterans Affairs, Center for Responsible, Better, Saint Joseph’s University, Bankrate, , Wall Street Locations: Phoenix , Arizona
A new women's basketball league has attracted a star-studded roster of investors from the media and sports world at a time when ratings and general interest in the WNBA and other professional women's leagues is rising. Unrivaled, the pro women's basketball league founded last year by New York Liberty's Breanna Stewart and Minnesota Lynx's Napheesa Collier of the WNBA, said Thursday that it had closed on a seed funding round ahead of its January launch. Athletes will be given equity in the new league, and Unrivaled said it will also feature contract opportunities that will offer the highest average salary in women's pro sports league history. Many female athletes play in other countries when the WNBA season ends to boost their earnings potential. Unrivaled's season will run from January to March and feature 30 of the top women's basketball players across six teams for a 3-on-3, compressed full court style of play on a soundstage in Miami.
Persons: Napheesa Collier, New York Liberty's Breanna Stewart, John Skipper, Turner, David Levy, Ann Sarnoff, Star Carmelo Anthony, Alex Morgan, David, Skipper, Alex Bazzell, Stewart, Collier Organizations: Minnesota Lynx, New York Liberty, Target, New York, ESPN, Warner Bros, NBA, U.S, soccer, Meadowlark Media, WNBA Locations: Minneapolis , Minnesota, New, Minnesota, U.S, Miami
This report is from this week's CNBC's "Inside India" newsletter which brings you timely, insightful news and market commentary on the emerging powerhouse and the big businesses behind its meteoric rise. Separately, the stock market will also deliver its verdict when markets open on Monday. Nervousness among investors over the results has meant that the India VIX index, the market's so-called fear gauge, has shot up by more than 135% since its April lows. However, some equity strategists point out that even a landslide victory for Modi's BJP could potentially sour the stock market. Meanwhile, Gautam Chhaochharia, head of global markets for India at UBS, said foreign investors are in a "wait and watch mode" ahead of India's election results despite economic fundamentals looking "very, very strong."
Persons: Narendra Modi's, Modi, Bradley Saunders, Saunders, Venugopal Garre, , Garre, Fitch, SRH, Mark Mobius, Gautam Chhaochharia Organizations: Bloomberg, Getty, BJP, Traders, " Bank of America, Capital Economics, Modi's BJP, , Reuters, Kolkata Knight Riders, IPL, Sunrisers, Knight Riders, CNBC, UBS Locations: Delhi, India, Kolkata, Sunrisers Hyderabad
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWhy Wedbush's Dan Ives is staying bullish on Salesforce despite first revenue miss since 2006Dan Ives, Managing Director of Equity Research at Wedbush, discusses Salesforce's stock plunge following its first revenue miss since 2006.
Persons: Dan Ives Organizations: Equity Research, Wedbush
Those searching for pockets of opportunities in the region can look to Goldman Sachs' selection of "alpha" stock opportunities. Goldman Sachs' list of opportunities include stocks with "deep value" and "defensive growth" characteristics. The company's shares are traded in the First Trust United Kingdom AlphaDEX Fund (1.2% weight) and Goldman Sachs ActiveBeta Europe Equity ETF (0.3%). 'Strong top-line prospects' Growth stocks the Wall Street bank is bullish on include those "with strong top-line prospects at reasonable growth-adjusted valuations." ASML: Goldman said the company has a "multi-decade competitive moat in High NA, which will be extremely difficult to replicate for the next 10-20 years at least."
Persons: Goldman Sachs, JD, Goldman, ASML, CNBC's Michael Bloom Organizations: Alpha, Sports Fashion, International Consolidated Airlines Group, ISS, First, United, AlphaDEX Fund, Equity, U.S . Global Jets ETF, NA, Euronext Amsterdam, Nasdaq Locations: U.S, Danish, Europe, Adyen
Trump and Musk’s growing courtshipFor much of President Biden’s time in the White House, his relations with Elon Musk have been tense. They may be about to plunge to a new low after Biden’s re-election campaign hit out at reports that Donald Trump could make Musk an adviser if the Republican were to win in November. The president’s campaign sees mileage in targeting Trump’s ties to moguls. Musk and Trump met in March at the billionaire investor’s Palm Beach, Fla., estate, where the advisory role discussions took place. Peltz and Musk have also briefed Trump on a plan to invest in a project to prevent the possibility of voter fraud.
Persons: Trump, Biden’s, Elon Musk, Donald Trump, ” James Singer, DealBook, he’s, Musk, David Sacks, Peter Thiel, Steven Mnuchin, Rupert Murdoch, Nelson Peltz, hasn’t, Don Lemon, “ Let’s, , Biden, Tesla Organizations: Elon, Republican, Wall Street, Trump, Los Locations: Los Angeles, Palm Beach, Fla
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailBond market is 'in the driver seat' for the equity market right now, says Schwab's Liz Ann SondersLiz Ann Sonders, Charles Schwab chief investment strategist, joins 'Squawk on the Street' to discuss if history's reliable to count on the stock market, what's getting called into question, and more.
Persons: Liz Ann, Liz Ann Sonders, Charles Schwab, what's
Investor darling Nvidia is dominating headlines once again after its earnings last week surpassed expectations on the back of the artificial intelligence boom. Morgan Stanley notes that the reaction to Nvidia's first quarter results is "very telling on how much buying power still exists in the market." Here are seven of Morgan Stanley's overweight-rated stocks to play these AI themes: Overweight-rated stocks Among Morgan Stanley's list of AI stock opportunities are South Korean tech giant SK Hynix and Taiwanese chipmaker Taiwan Semiconductor Manufacturing Company . SK Hynix stocks are held in the iShares MSCI South Korea ETF (8.4% weight) and Franklin FTSE South Korea ETF (8.3% weight). Shares in TSMC are included in the iShares MSCI Taiwan ETF (25.1% weight) and Franklin FTSE Taiwan ETF (22.2% weight) Beyond the headline-makers, Morgan Stanley also sees potential in Japanese manufacturer Advantest Corp .
Persons: Morgan Stanley, Nvidia's, Hopper, Morgan Stanley's, Morgan, Goldman Sachs, — CNBC's Michael Bloom Organizations: Nvidia, SK Hynix, Taiwan Semiconductor Manufacturing Company, Korea ETF, Franklin FTSE, Franklin FTSE South Korea ETF, Advantest Corp, Japan Equity, JPMorgan BetaBuilders Japan, Alchip Technologies, Technology, Memory Technology, Micronics Locations: Asia, Korean, Korea, Franklin FTSE South, Taiwan, Franklin FTSE Taiwan
After finally dropping below 7% earlier this month, 30-year mortgage rates have been holding relatively steady in the mid-to-high 6% range, according to Zillow data. Once the Fed is able to start lowering rates, mortgage rates are expected to fall. Mortgage rates are expected to go down this year, but they might not drop as much as initially expected. 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, Consumer, Mortgage, Zillow, Association, Sky Locations: March's, Chevron
These "forever renters" vary widely in their reasons for not pursuing home ownership. Others prefer the flexibility to move and freedom from ownership costs that renters enjoy. Homeownership and renting have numerous pros and cons, making it hard to say whether forever renters are acting shrewdly or making a big mistake. Renters avoid large down payments and the varying costs of homeownership, such as mortgage payments, taxes, maintenance, and repairs. It's also cheaper to change the place you're renting than the place you're buying because of real-estate agent fees."
Persons: , Grant Wilson, Eunjee Kwon, David Brasington, Kautz, There's, Colin Lizieri, they've Organizations: Service, Business, University of Regina, University of Cincinnati, University of Cambridge Locations: Germany, Switzerland
The documentary chronicles the rise and fall of the movie-ticket-subscription company MoviePass, and is based on award-winning reporting from Business Insider . The big storyRetirement mathGetty Images;Alyssa Powell/BIFor some millennials, the reality of their retirement plans is that they're a fantasy. AdvertisementIt's not the first time we've gotten troubling data about millennials' retirement plans. But it's not just a lack of savings working against millennials' plans of riding off into the retirement sunset. AdvertisementAnd if you're hoping for a Hail Mary in the form of a fat inheritance to jumpstart your retirement plans, that's not looking great either.
Persons: , MovieCrash, Alyssa Powell, Jacob Zinkula, William Edwards, we've, it's, millennials, Hail Mary, that's, Juliana Kaplan, It's, Johannes Simon, Neel Kashkari, Sam Altman, Justin Sullivan, Oliver Mulherin, Scarlett Johansson, Altman, Jensen Huang, Adam Neumann, Neumann, WeWork, Moviegoing, there's, BI's Peter Kafka, Sheryl Sandberg, Dan DeFrancesco, Jordan Parker Erb, Hallam Bullock, George Glover Organizations: Service, HBO, Max, Business, Hail, Reserve Survey, Consumer, Wall, Minneapolis, UBS, Google, Nvidia, BI, Hollywood, HP Locations: Swiss, BI Denmark, New York, London
The data does not include older Americans who have taken on student loan debt on behalf of their children. That includes about 14.9% of workers aged 55 to 64 and 17.3% of workers aged 65 and over, according to the research. The middle 40% of earners — with incomes between $54,600 and $192,000 — owe an average debt of $48,174. For older workers aged 55 to 64, it may take an average of 11 years to pay off their student loans, according to the research. "Older workers do not have decades of future potential work that younger workers have to repay their loans," Manickam said.
Persons: Karthik Manickam, Manickam Organizations: Schwartz, for Economic, New School for Social Research, Federal Reserve, Consumer Finance, Finance, Workers
U.S. stock futures fell Wednesday night as shares of Salesforce slid on a quarterly revenue miss and soft guidance. S&P 500 futures slid 0.3% and Nasdaq-100 futures fell 0.4%. The company's earnings and revenue outlook for the second quarter also fell short of the Street's estimates, as did full-year revenue guidance. The S&P 500 declined 0.7%, and the Dow slid nearly 1.1%. More than 400 stocks in the S&P 500 were negative on the day, and all 11 sectors tumbled.
Persons: Salesforce, Dow, Ross Mayfield, Baird, Mayfield, Nordstrom Organizations: New York Stock Exchange, Dow Jones, Nasdaq, American Eagle Outfitters, Nvidia, Treasury, Federal, Dell Technologies, Costco
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWe are entering an era where current smartphones without AI will look dumb, says BofA's Wamsi MohanWamsi Mohan, BofA Securities senior equity research analyst, joins 'Squawk on the Street' to discuss what to expect from Apple's next launch event, how the new technology will differ from what's currently available, and if Apple will charge more for its AI services.
Persons: BofA's Wamsi Mohan Wamsi Mohan Organizations: BofA Securities, Apple
This signal could be good news for the stock market
  + stars: | 2024-05-29 | by ( Nicole Goodkind | ) edition.cnn.com   time to read: +7 min
Some analysts think that means good news for stocks in the second half of the year. While [gross domestic product] and the labor market seem to be slowing, earnings are accelerating,” wrote the Bank of America analysts. That means an improving manufacturing cycle but slowing services can lead to a divergence between market performance and economic performance. “We’ve witnessed records repeatedly break in both stock and housing markets over the past year.”In addition to unrelentingly high home prices, the housing market is also grappling with a chronic lack of homes on the market and elevated mortgage rates. Put together, it has resulted in a tough housing market, especially first-time buyers.
Persons: Dow, PMIs, , Brian Luke, “ We’ve, Read, Apple’s Siri, Siri, Samantha Murphy Kelly, Tim Cook, ” Read Organizations: CNN Business, Bell, New York CNN, Federal Reserve, Institute for Supply Management, PMI, Bank of America, Dell, Marvell, Costco, Dow Jones, Developers Conference, Google, Samsung, ” Apple Locations: New York, San Diego , New York, Cleveland, Los Angeles
Clean energy stocks may be underperforming in the public market, but there is still great appetite for companies focused on decarbonization in private markets — with Clean Energy Ventures' new fund serving as the latest example. The climate tech firm said Wednesday that it raised $305 million for its second fund, five years after closing its first fund. This latest fund was oversubscribed — the initial target stood at $200 million — but interest from limited partners including The Grantham Foundation, Builders Vision and Carbon Equity led to a higher raise. The firm is already putting the new money to work, focusing on technologies that go beyond the traditional green investments of solar and wind. Co-founder and managing partner Daniel Goldman identified industrial decarbonization as one compelling vertical — specifically emissions-reducing technology for the cement and steel industries.
Persons: Daniel Goldman Organizations: Clean Energy Ventures, The Grantham Foundation, Builders Vision, Carbon Equity, CNBC
Royal Mail's parent company International Distributions Services said on Wednesday it had agreed to a 3.57 billion pound ($4.55 billion) formal takeover offer by Czech billionaire Daniel Kretinsky. The offer valued IDS, which owns Royal Mail and international parcels network GLS, at 370 pence per share. Royal Mail has been trying to transform itself into a parcel-led business as letter volumes declined sharply over the years. Kretinsky has said that private investment in Royal Mail was crucial given its challenging situation with poor service delivery, slow transformation and increasing competition. Any takeover bid for Royal Mail would be subject to "normal" national security scrutiny but it would not be opposed in principle, Finance Minister Jeremy Hunt said earlier.
Persons: Daniel Kretinsky, Keith Williams, Kretinsky, Jeremy Hunt, Jonathan Reynolds Organizations: International, Services, Royal Mail, Service, Government, IDS, Labour, VESA Equity Locations: Czech, London
Berkshire Hathaway looks like an attractive investment, according to Argus. "On valuation, the stock is trading at 21-times our 2024 operating EPS forecast, below the current S & P 500 multiple of 24-times," Heal wrote. This discounted valuation comes even as Berkshire Hathaway Class A shares are up 12% for the year, outpacing the broad market index. Heal pointed out that Berkshire has consistently shown strong performance, with its stock returns doubling those of the S & P 500 since 1965. To be sure, Heal pointed to several risks Berkshire faces, including the cyclicality of many of its fully-owned businesses.
Persons: Berkshire Hathaway, Warren Buffett, Kevin Heal, Heal, Chubb Organizations: Berkshire Hathaway, Berkshire Locations: Argus, Berkshire
In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailDick’s Sporting Goods raises guidance, says shoppers are spending more on sneakers and athletic gearMichael Lasser, UBS equity research analyst, joins 'Squawk Box' to break down Dick's Sporting Goods' quarterly earnings results.
Persons: Michael Lasser Organizations: UBS, Sporting Goods
This means there's a lag time when selling private shares, unlike stocks that can be sold within a millisecond of hitting a button. AdvertisementFinally, when a company goes public, there's a lock-up period. Depending on the platform the shares were purchased through, pre-IPO holders may still sell their shares to others within the platform, Endoso said. One example of a private AI company that recently went public in late March is Astera Labs (ALAB), which was trading near $69 as of Tuesday. 5 early-stage AI companiesAs for forward-looking AI investment opportunities with IPO prospects, Endoso pointed to five promising companies he's excited about.
Persons: , scurrying, Russell, It's, Joe Endoso, it's, Endoso, there's, Anthropic, Claude, Elon Musk Organizations: Service, Business, Venture, Cambridge Associates, Venture Capital, Securities and Exchange Commission, Astera Labs, Endoso, Bloomberg, Elon, Nvidia
Investors searching for income can find some bargains in dividend stocks, according to Ben Kirby, co-head of investments at Thornburg Investment Management. Now investors have an added benefit in that dividend stocks are selling at a big discount, he said. When looking for the right dividend stock, Kirby wants companies offering solid balance sheets and free-cash-flow, as well as competitive advantages and sustainable profit margins. Here are some of the stocks Kirby owns in his funds and that he particularly likes right now. If the reductions continue, coupled with the stock's dividend yield, "that alone will drive a pretty competitive return," Kirby said.
Persons: Ben Kirby, Kirby, Jane Fraser, we're, Fraser Organizations: Thornburg Investment Management, Kirby, Depot, Citigroup, JPMorgan Chase, CNBC, Citi, Time Warner
Legendary investor John Hussman says the latest stock rally is rooted in the extreme fear of missing out. FOMO factors have surged in markets, and stock prices could fall 50%-70% this cycle. Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. The legendary bear, famed for predicting the 2000 and 2008 crashes, reiterated that equities could drop as much as 70% this cycle. "Even the more conventional (but less reliable) S&P 500 price/forward operating earnings multiple is at levels that have no rivals except surrounding the 2000 and 2022 peaks," Hussman said.
Persons: John Hussman, , Hussman, Dow Organizations: Service, Hussman Investment Trust
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