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Massive stimulus from central banks in the U.S., China and elsewhere is driving bubble-like stock returns and could head off a global recession, according to Bank of America. "It's the bubble dream," BofA chief investment strategist Michael Hartnett wrote in his weekly "Flow Show" breakdown of where investors are putting their money. "Fed slashing, oil crashing, China inflating ... and if this China stimulus don't work then geopolitical risks [are] going to soar." But while some indicators do point to a slowing in global growth, the abundant forecasts for recession have eased. "Fed cutting into recession is negative for risk assets, but Fed cutting with no recession is positive and investors firmly of view Fed + China is sufficient policy easing to short-circuit recession risk," Hartnett wrote.
Persons: Michael Hartnett, Hartnett Organizations: Bank of America, Federal Reserve, People's Bank of China, Investors Locations: U.S, China
The Fed effectively cut rates to zero during the pandemic plunge, and the S & P had an extraordinary bull market. How to play it Consider PDD Holdings . PDD Holdings Inc. is a multinational commerce group that owns and operates several online platforms. PDD YTD mountain PDD Holdings, YTD The share price is nearly 44% below the all-time highs of early 2021. If you're looking for a single stock to get involved with to hitch your wagon to PBOC's train, consider PDD Holdings.
Persons: you've, I've, PDD Organizations: Fed, People's Bank of China, Holdings, PDD Holdings Inc, Pinduoduo, PDD Holdings, CNBC, NBC UNIVERSAL Locations: U.S, United States, China
Read previewAll couples, whether they're thinking of marriage or already wed, want a union that lasts. But based on his experience, Sexton shared some of the things he recommends couples try before diving into an expensive divorce process. One person might feel like their partner isn't doing enough to make them feel loved, so they refuse to do anything to make their partner feel loved, either. In his experience with couples who divorce over infidelity, he's noticed a pattern with some couples: "The deception is happening because every time that there's an honest sharing, it results in attacking." AdvertisementOn the other side of the coin, couples might have overly negative views of marriage based on old stereotypes.
Persons: , James J, Sexton, we're, isn't, it's, he's Organizations: Service, Business
Appaloosa Management's David Tepper said investors should believe the Federal Reserve when it says it will lower interest rates because the central bank has now to keep credibility. "Probably two or three interest rates, 25 basis point cuts, they have to do, or they lose credibility," Tepper said. You know, another 25, 25, 25 seems like it's going to have to be done." The super-sized rate cut last week came despite most economic indicators looking fairly solid. "It was around the 90s in that market where the where the Fed cut rates into Y2K in a good economy," he said.
Persons: David Tepper, Tepper, " Powell, Jerome Powell, Rich, " Tepper Organizations: Federal Reserve, Gross, Atlanta Fed, U.S, National Football League's Carolina Panthers Locations: U.S, China
But as other pandemic Zoomtowns continue to see increases in prices and rents, Austin stands alone in its change of fortune. Housing in Austin has been through so many extreme distortions that nobody really knows what "normal" even means anymore. All told, Austin's housing stock has ballooned by more than 76,000 units since 2020, an 8.34% increase that includes single-family homes, condos, and townhomes. Considering the size of the Austin market, moving the stock of homes by nearly 10% is a colossal feat. Related storiesNobody watching the Austin market should be having flashbacks to the Great Recession.
Persons: Austin, homebuyers, homebuilders, Zillow, Elon Musk, Joe Rogan, Homebuyers, Keith Hughes, I'd, That's, Jason Lewris, Lewris, Doreen Sidney, Austin wasn't, Austin's homebuilders, Freddie, Sean Kelly, Rand, Freddie Mac, Jenny Schuetz, homebuilding, Kelly, he's Organizations: Austin, Oracle, Facebook, Google, Elon, Census, Parcl Labs, Federal Reserve, San Antonio —, Austin ., Freddie Mac, Brookings Institution Locations: California, Austin, Real, Texas, Francisco, San Francisco, San Antonio, Boston
The stock market runs a bigger risk of an unsustainable melt-up, according to Ed Yardeni. AdvertisementStocks run the risk of seeing an unsustainable, dot-com style melt-up, thanks to the Federal Reserve's recent rate cut, according to market veteran Ed Yardeni. That move sparked a rally in stocks to fresh records —but it's also raised the odds of a stock market melt-up, he said, meaning investors are now facing the risk of an unsustainable market boom. And while inflation has cooled from its highs several years ago, it is still a risk, Yardeni noted. Advertisement"If they get to overheat the economy and get to create a bubble in the stock market, yeah they're creating some issues," Yardeni added.
Persons: Ed Yardeni, , Stocks, it's, Yardeni, Michelle Bowman, haven't Organizations: Service, Bloomberg, Yardeni, Labor Department, Atlanta Fed
Five days ago, I did something revolutionary for a Gen Zer: I deleted all the social media apps from my phone. Social media dependency is a real problem, recent data shows. So much of my free time throughout the day was consumed by mindless scrolling on the social media platform X and Instagram. Disconnecting allows time for a self-auditGoing on a 30-day silent retreat is a much greater challenge than ditching social media for a few days. One commonality between social media detoxes and silent retreats is that Jerjian and Liu also weren't able to access social media during the retreats — where the use of phones wasn't allowed outside of emergencies.
Persons: George Jerjian, Weiting Liu, Arc.Dev, Liu, Jerjian, He's, It's Organizations: CNBC
Georgia voter Christine Nguyen and John King in Decatur, Georgia CNNRebel Teahouse is in Decatur, in reliably blue suburban DeKalb County just outside Atlanta. It is one of the places that helped Biden to his stunning, razor-thin 2020 Georgia win and is now a key test of whether Harris can assemble a similar winning coalition. “Absolutely no,” was Gardner’s answer when we asked whether the switch from Biden to Harris would make him rethink. Republican George W. Bush won 66% in Gwinnett in 2004; in 2020, Biden carried the county with 58%. CNNLike Ngyuen, Hallmon sometimes finds herself in debates over whether Harris or Trump is better for small business and the overall economy.
Persons: Kamala Harris, Christine Nguyen, , ” Nguyen, That’s, Nguyen, Joe Biden, Donald Trump, Harris, , John King, Biden, Trump, Biden’s, Kamala, ” Harris, , Jan Gardner, ” John King, Suresh Sharma, CNN Suresh Sharma, ” Sharma, Sharma, Republican Mitt Romney, Cobb, , Harris Chantá Villano, Willis, Villano, I’ve, ” Villano, ” Willis, ” Kim Cavaliere, Republican George W, Bush, Cavaliere, ” Cavaliere, ” Hallmon, Hallmon, ’ Hallmon, Martin Luther King Jr, Lakeysha Hallmon, that’s Organizations: Georgia CNN, Biden, Trump, Democratic, Decatur , Georgia CNN, Black, White, CNN, Statewide, American, Pacific Islanders, NASA, General Electric, Republican, Republican Party, Washington, Retail, Sears, Ward Locations: Decatur, Georgia, battlegrounds, Decatur , Georgia, DeKalb County, Atlanta, United States, India, Jamaica, Vietnam, Marietta, Cobb County, Mexico, Powder Springs, MAGA, cryptocurrencies . Georgia, Powder Springs , Georgia, Massachusetts, Gwinnett County, Gwinnett, Ponce City, Atlanta’s
Four worries that should keep market bulls awake at night
  + stars: | 2024-09-23 | by ( Sean Conlon | ) www.cnbc.com   time to read: +2 min
Investors are still expressing signs of concern despite the stock market hitting all-time highs, according to Deutsche Bank. The S & P and the Dow weren't alone in their milestones. Gold prices also notched a new all-time high following the supersized Fed cut, crossing the $2,600 per ounce level on Friday. Allen also highlighted that traditional valuation metrics are "elevated" considering the "relentless" nature of the market in 2024. Year to date, the S & P has gained nearly 20%, and has risen in 24 of this year's 38 weeks, according to FactSet.
Persons: Dow, Henry Allen, Allen Organizations: Deutsche Bank, Federal Reserve, Dow Jones, Nasdaq, ECB Locations: Ukraine
Read previewNASA's James Webb Space Telescope floored astronomers and spectators across the globe when it released its first full-color images. Even those preliminary snapshots revealed countless stars, galaxies, and fine details that hadn't been seen before. A side-by-side collage of the same area taken by Hubble and the James Webb Space Telescope in its very first image. In the JWST image, you can see galaxies in the background that were invisible to HubbleA few galaxies that are clearly visible in the JWST image, but not the Hubble image. The JWST image also revealed the stellar nurseries created as galaxies mergeThe JWST image shows a region of gas compressed between merging galaxies.
Persons: , James Webb, Webb, Joseph DePasquale, JWST, hadn't, Eric Smith, Hubble, STScI Webb, Mark McCaughrean, McCaughrean, Amber Straughn, Jane Rigby, we've Organizations: Service, Business, NASA, ESA, CSA, Hubble, James Webb Space, Hubble Heritage, European Space Agency Locations: JWST
Lynch was associated with British, American and other intelligence services through his various companies, including the cyber security company he founded, Darktrace. The chef, whose body was found outside the vessel, died by drowning, the coroner said. Local prosecutor Ambrogio Cartosio said no personal effects, including computers, jewelry or Lynch’s hard drives had been recovered from the vessel. The vessel did not have a traditional black box or voyage data recorder to record navigation data or audio on the bridge. The costs of raising the ship will fall to its owner, Lynch’s widow, as is mandated by Italian maritime law.
Persons: Rome, Mike Lynch, Lynch, Thoma, David Cameron, Theresa May, ” Francesco Venuto, Hannah, Chris Morvillo, Neda, Jonathan Bloomer, Judy, Recaldo Thomas, Bloomer, Lynch’s, Angela Bacares, James Cutfield, Lynch “, Morvillo, Hewlett Packard, Raffaele Cammarano, Stephen Chamberlain —, Darktrace —, Cutfield, Chamberlain, Ambrogio Cartosio Organizations: Rome CNN —, CNN, Italian Prosecutors, Thoma Bravo, Revtom, Fire Brigade, Civil Protection Agency, Hewlett, Autonomy, Local, Italian Locations: Sicily, British, Chicago, Russia, China, American, Italy
Reptiles are astonishingly diverse, with extraordinary adaptations such as a tiny lizard in Costa Rica that has evolved a way to “scuba dive,” according to new research. Fantastic creaturesUsing the air bubble helps the anole to stay underwater longer, and the technique may help the tiny lizard hide from predators, researchers say. This ability allows the lizard to stay underwater for a prolonged period of time. Across the universeAn artist's concept depicts NASA's Voyager 1 spacecraft entering interstellar space, or the space between stars. Along the way, Voyager 1 found a thin ring around Jupiter and two new Jovian moons as well as five new moons orbiting Saturn.
Persons: Lindsey Swierk, Kaspar Hauser, , Hauser, Butch Wilmore, Suni Williams, Vincent van Gogh, ” Timothy A, Clary, Vincent van Gogh’s, It’s, King Ramses II, — Helga, Zohar, Artemis, Ashley Strickland, Katie Hunt Organizations: CNN, NASA, JPL, Caltech, NASA’s, International, Getty, Orion, Artemis, CNN Space, Science Locations: Costa Rica, Costa Rica’s, Nuremberg, Germany, Bristol, England, AFP, China, France, Egypt
He's also outperformed the S&P 500 over that time by returning 14% per year on average versus the index's 13.8% annualized gains. Between July and September 1999, Buffett shared his outlook for the market in a series of talks that were summarized by Fortune's Carol Loomis in November of that year. AdvertisementSince then, however, investors have enjoyed 15 years of ultra-low interest rates and growing corporate profits — a fact that has Smead worried. "The only problem is it's a curse on long-term S&P 500 performance," Smead said of the 15-year run. Related storiesBaked into Smead's outlook is an against-consensus view that inflation is set to surge again as the Fed cuts interest rates.
Persons: , Bill Smead, Warren Buffett, Charlie Munger, Smead, Munger, He's, Buffett, Fortune's Carol Loomis Organizations: Service, Business, Morningstar, Apple, Bank of America
Scroll to play video Muted Blake McClellan Blake McClellan Melinda Hicks Melinda Hicks Blake McClellan Blake McClellan Rev. Dr. Cynthia L. Hale Blake McClellan Blake McClellan Yesenia Mohammad Yesenia Mohammad Rev. Scroll to play video Muted October Zahou October Zahou Blake McClellan Blake McClellan Mike Wood Mike Wood Melinda Hicks Melinda Hicks Blake McClellan Blake McClellan October Zahou October Zahou Rev. Scroll to play video Muted Yolanda Alvarado Sanchez Yolanda Alvarado Sanchez October Zahou October Zahou Yolanda Alvarado Sanchez Yolanda Alvarado Sanchez October Zahou October Zahou Yolanda Alvarado Sanchez Yolanda Alvarado Sanchez October Zahou October Zahou Yolanda Alvarado Sanchez Yolanda Alvarado Sanchez October Zahou October Zahou Yolanda Alvarado Sanchez Yolanda Alvarado Sanchez “For me, the most important issue “For me, the most important issue is definitely immigration.” is definitely immigration.” “I tell my students all the time, where I grew up, “I tell my students all the time, where I grew up, everybody looked like me. Dr. Cynthia L. Hale October Zahou October Zahou Blake McClellan Blake McClellan Bruce Leonard Bruce Leonard “I believe in choice.
Persons: Biden, Kamala Harris, Blake McClellan Blake McClellan Melinda Hicks Melinda Hicks Blake McClellan Blake McClellan Rev, Dr, Cynthia L, Hale Rev, Hale Blake McClellan Blake McClellan Yesenia Mohammad Yesenia Mohammad Rev, Hale, Mike Wood Mike Wood Yesenia Mohammad Yesenia Mohammad Bruce Leonard Bruce Leonard Melinda Hicks Melinda Hicks Yolanda Alvarado Sanchez Yolanda Alvarado Sanchez Blake McClellan Blake McClellan, Yesenia Mohammad Yesenia Mohammad Mike Wood Mike Wood Bruce Leonard Bruce Leonard, , , “ I’ve, ” “ I’ve, ” “, It’s, , ” “ Joe Rogan, Mr, Donald J, Trump, Zahou Blake McClellan Blake McClellan Mike Wood Mike Wood Melinda Hicks Melinda Hicks Blake McClellan Blake McClellan, Rev, Hale “, Kemp, Scigliano, it’s, Alena, Heather Breslin, ” Heather Breslin It’s, Melinda Hicks Melinda Hicks Sang, Zahou Blake McClellan Blake McClellan “ I’m, “ I’m, Zippora Fleming, Chanel Kho Chanel Kho, Kho, you’ll, Yolanda Alvarado Sanchez Yolanda Alvarado Sanchez, Yolanda Alvarado Sanchez Yolanda Alvarado Sanchez “, ” It’s, We’ve, Harris, Arturo Foster, Chris Lipski, Zahou Blake McClellan Blake McClellan Bruce Leonard Bruce Leonard “, Let’s, ” Let’s, Robyn, “ It’s Organizations: Voters, NPR, Prosecutors, Republican, Mr, Atlanta, Labor, ” Labor, America, Colombian, Trump Locations: Georgia, Atlanta, Metro Atlanta, , “ Atlanta, California, New York, Fayette County, Philippines, Mexico, , America, United States, Decatur
HSBC in a Sept. 17 report examined the relationship between Fed rate cuts and copper and aluminum prices over the past 30 years. In its base case, Citi sees copper prices averaging $9,000 per ton for the rest of this year, citing U.S. election uncertainty and weak manufacturing sentiment. Energy Citi anticipates that oil will suffer renewed price weakness in 2025, with Brent falling to around $60 a barrel. Based on what happened in 2019, trade tariffs lowered global oil demand growth by 0.2 million barrels a day. A slowdown in China, among the world's largest importer and consumer of oil, has been blamed on slowing global oil demand.
Persons: annualized, it's, that's, Brent Organizations: U.S . Federal Reserve, Citi, HSBC, Commodities, Energy Citi Locations: China, U.S, Europe, Iran
But that means investors once again exposed to risks of a tech bubble inflating anew. Hartnett says investors should allocate to bonds and gold to hedge bubble risk. But it means investors will have to chase the stock market surge as bubble risks bounce back, he added. AdvertisementHartnett has previously warned of the potential for a tech bubble as investment in AI has soared. Amid further AI investment and easing policy, Hartnett says the best way to position portfolios is with allocations to bonds and gold, which hedge against growth and inflation risks.
Persons: BofA's Michael Hartnett, Hartnett, , Michael Hartnett Organizations: Service, Federal Reserve, Bank of America, Nvidia, Broadcom, ASML, Meta, Treasury
Stifel warns of a sharp stock market correction by year-end, with the S&P 500 potentially dropping 12%. "Our instruments tell us to expect an S&P 500 correction to the very low 5,000s by 4Q24," Bannister said. AdvertisementInvestors should prepare for a sharp and quick correction in the stock market before the end of the year, according to Stifel. In a note on Thursday, chief equity strategist Barry Bannister of Stifel warned that the S&P 500 could trade 12% lower in the fourth quarter. "Our instruments tell us to expect an S&P 500 correction to the very low 5,000s by 4Q24," Bannister said.
Persons: Stifel, Barry Bannister, Bannister, Organizations: Service
Read previewIf you have a tendency to say "everything's fine" at work and brush things under the rug, you might be "glossing." Glossing is a form of toxic positivity — in which people suppress and deny their negative emotions — and it could be holding you back. AdvertisementIt's not rocket scienceRinne said some signs of a glossing workforce are people not talking about tough issues at all or talking only behind their manager's back. If that's happening, leaders need to do some self-reflection, Rinne said, and ask themselves if they've been glossing. "You get more when people feel safe and feel engaged than if they're punching that clock and glossing for hours," Rinne said.
Persons: , Leena Rinne, Rinne, don't, they've, it's, There's Organizations: Service, Business, People
AI stocks surged after the Federal Reserve's 50 basis point rate cut. Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. The tech-heavy Nasdaq 100 soared nearly 3% on Thursday, while the underlying AI trade saw even bigger gains. Investors in the stock market's AI trade can thank Fed chairman Jerome Powell for Thursday's risk-on surge in tech, according to Wedbush analyst Dan Ives. AdvertisementIves said that while the AI trade has mainly been focused on Nvidia and Microsoft, other companies are starting to join in on the fun.
Persons: Dan Ives, , Jerome Powell, Ives Organizations: Federal, Nasdaq, Nvidia, Broadcom, Service, Federal Reserve, Investors, Big Tech, Microsoft, Oracle, Dell, IBM, APple Locations: Asia
Passengers said a pressurization issue on a Delta Air Lines flight Sunday left them with bloody noses and ears. A spokesperson for the airline company said that Flight 1203 from Salt Lake City to Portland, Oregon, was unable to pressurize above 10,000 feet. Passenger Jaci Purser told NBC affiliate KSL-TV of Salt Lake City that she felt her ear pop and then bubble because of the pressure in the cabin. It's not clear what caused the pressurization issue but Delta technicians were able to fix it. The plane was briefly taken out of service Sunday morning and went back into service the following day, Delta said.
Persons: Purser, Caryn Allen, Allen, Delta Organizations: Delta Air Lines, SLC, NBC, KSL, Boeing Locations: Salt Lake City, Portland , Oregon
CNBC Daily Open: Hoping for a half-point cut
  + stars: | 2024-09-18 | by ( Yeo Boon Ping | ) www.cnbc.com   time to read: +2 min
Anna Moneymaker | Getty Images News | Getty ImagesThis report is from today's CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Without any warning signs flashing red, it's difficult for the Fed to justify lowering rates by more than a quarter point. That's why some economists and analysts hope the Fed will cut by half a point. "But I suspect they'll cut 25," Zandi added.
Persons: Anna Moneymaker, Mark Zandi, they'll, Zandi, Hope, Jeff Cox, Hakyung Kim, Samantha Subin Organizations: Federal Reserve, Getty, CNBC, Dow, Moody's Locations: Washington , DC, U.S
CNBC Daily Open: Hoping for a 50-basis-point cut
  + stars: | 2024-09-18 | by ( Yeo Boon Ping | ) www.cnbc.com   time to read: +2 min
Anna Moneymaker | Getty Images News | Getty ImagesThis report is from today's CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Without any warning signs flashing red, it's difficult for the Fed to justify lowering rates by more than a quarter point. That's why some economists and analysts hope the Fed will cut by half a point. "But I suspect they'll cut 25," Zandi added.
Persons: Anna Moneymaker, Mark Zandi, they'll, Zandi, Hope, Jeff Cox, Hakyung Kim, Samantha Subin Organizations: Federal Reserve, Getty, CNBC, Dow, Moody's Locations: Washington , DC, U.S
Market disconnectsSpeaking of mistakes in the market, Rosenthal thinks the current composition of the market is untenable and due for a correction. "We don't think the equal-weighted S&P or any kind of index ex the Mag Seven is at an extremely low valuation," Rosenthal said. Rosenthal holds CVS (CVS) in his portfolio. Nippon Sanso (NPXYY) is a Japanese oil and gas company that Rosenthal believes is undervalued. Combined with the structural tailwind of corporate reforms within Japan, Rosenthal believes this Japanese company's stock is well-positioned to appreciate in the coming years.
Persons: , Scott Rosenthal, Rosenthal, Rosenthal's, it's Organizations: Service, Hotchkis & Wiley Capital Management, Wiley Global Value Fund, Business, Econ, CVS, Nippon Locations: Japan
New York CNN —With its line-up of sweet snacks, Hershey isn’t known as a purveyor of diet foods. As the use of weight-loss drugs — notably Ozempic and Wegovy — grows, the 130-year-old confectionery company is adjusting to this new era by pushing further into the wellness category with protein powders and energy drinks in popular candy flavors. Hershey’s namesake milk chocolate and Reese’s peanut butter and chocolate will soon be sold as protein powders and its Jolly Rancher candies will be turned into bubbly energy drinks. Energy drinks, which are most often bought by millennial and Gen Z customers, have “a lot of affinity” with Hershey’s products, Cunningham told CNN. C4 has already had success with using flavors from Skittles, Starburst and Popsicle for its other energy drinks.
Persons: Hershey, , , , Doss Cunningham, Red Bull, Cunningham, ” Cunningham, Andrea Hernández, Hernández, Hershey’s Organizations: New, New York CNN, Hershey Company, C4 Energy, Red, Energy, CNN, Kroger, Walmart, Hershey, One Locations: New York, , United States, Amazon
Ben Higgins tried to parlay his Bachelor success into a political career, but the campaign didn't last long. The focus on Bachelor Nation also makes sense given the franchise's viewership is dominated by one of the most crucial swing votes of recent elections: white women. In the past two presidential elections, white women were the most closely split demographic subgroup tracked by major exit polls. In 2016, Donald Trump won over 52% of white women against Hillary Clinton's 43%, exit polls found, while Trump bested Joe Biden in 2020 among white women 55% to 44%. The overlap between the swingiest demographic and the "Bachelor" audience suggests Bachelor Nation has value to those who seek to lead our nation.
Persons: Ben Higgins, Charming, Higgins, He's, that's, Acierto, Young Sheldon, Joey Graziadei's, Graziadei, Doug Emhoff, Kamala Harris, Chad Kultgen, Lizzy Pace, Pace, Harris, Kultgen, Joey Graziadei, John Fleenor, Walz, Big, YouGov, Donald Trump, Hillary Clinton's, Trump, Joe Biden, Hulu —, they're, Natasha Scott, Reichel, Rose, Scott, Claire Fallon —, , Becca Kufrin's, Fallon, Emma Gray, Garrett Yrigoyen, Kufrin, Yrigoyen, — Colton Underwood, — Fallon, Matt James, Rachael Kirkconnell, James ', Chris Harrison, it's, Justine Kay, Charity Lawson —, Joe Biden's, he's, Juliana Kaplan, Andy Kiersz Organizations: Disney, ABC, NFL, Valentine's, White, Daily, Nation, Pew Research, Trump, Hulu, Girls, Bachelor Nation Locations: American, Colorado, America, Atlanta, Quinnipiac, Georgia, North Carolina, Hulu, Washington
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