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☆ Analysts are bailing on this auto parts retailer after a massive earnings miss
▼ + stars: | 2023-06-01 | by ( Brian Evans | ) www.cnbc.com time to read: +2 min

Advance Auto Parts ' massive earnings miss has drawn strong analyst concern. Both Goldman Sachs and JPMorgan downgraded Advance Auto Parts to neutral Thursday. Advance Auto Parts reported an adjusted 72 cents per share, far below analysts polled by Refinitiv's expectations of $2.57. AAP YTD mountain Advance Auto Parts stock is down more than 50% in 2023. Bank of America also downgraded Advance Auto Parts to neutral Thursday and slashed its price target to $85 from $178.

Persons: Goldman Sachs, Christopher Horvers, Horvers, Kate McShane, Elizabeth Suzuki, — CNBC's Michael Bloom Organizations: JPMorgan, AAP, Bank of America

☆ Stocked up on short-term T-bills? Here’s why it might be time to buy longer-term bonds
▼ + stars: | 2023-05-26 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +4 min

Short-term Treasury bills have garnered investors' attention as yields pop amid the Federal Reserve's rate hiking campaign and debt ceiling tensions in Washington. This doesn't necessarily mean it's time to cut bait on your short-term bond holdings, however. Issues with longer duration are likely to see greater price fluctuation in response to changes in interest rates. The inverted yield curve also resulted in higher yields for short-term issues, but sharp price declines. Some investors built ladders — that is, a portfolio of bonds with different maturities — to take advantage of those higher yields.

Persons: Paul Olmsted, Bonds, Olmsted, we've, Brenna McLoughlin, Kevin Brady, Callie Cox, Cox Organizations: Morningstar, Treasury, Wealthstream Advisors, Wealthspire Advisors Locations: Washington

☆ Charles Schwab's director of trading shares the 3 key factors to look for when picking stocks in 2023 — but says investors may be better off buying bonds
▼ + stars: | 2023-05-18 | by ( Lisa Kailai Han | ) www.businessinsider.com time to read: +6 min

He shares three key factors investors should look for when buying stocks in 2023. But in fact, investors may actually be too optimistic right now, according to Joe Mazzola, Charles Schwab's director of trading and education. At this point, Mazzola believes it's pretty clear the Federal Reserve is planning to pause its rate-hiking cycle in June. One key metric Mazzola tracks is the earnings yield spread, or earnings divided by asset price — the inverse of the more widely followed price-to-earnings ratio. Fundamentally, the earnings yield shows an investor how much they're paying for potential earnings, Mazzola explained.

☆ How to protect your investments in the debt ceiling standoff
▼ + stars: | 2023-05-17 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +5 min

But even if that’s the case, between now and then bond investors should expect volatility. Bond investors are all about pricing in the risk that they may not be paid back on debt they buy — either on time or at all. But the lack of a deal to raise lawmakers’ self-imposed debt ceiling so close to the X-date is introducing unwanted risk into each investor’s calculus. “We’ve already seen some pricing stress around short-term bills, Treasury bills, and a little bit of change in the… sovereign credit default swap spreads,” said Gary Gensler, chair of the Securities and Exchange Commission, at an event on Monday. Right now, yields on one-month T bills are well above the yields for 10-year and 30-year Treasury bonds.

☆ After prison, getting banking services is hard. This startup wants to change that.
▼ + stars: | 2023-05-15 | by ( Paige Hagy | ) www.businessinsider.com time to read: +6 min

FRSH is a banking solution for the formerly incarcerated community. "We are justice-impacted and we know this is the best solution," Sam told Insider. FRSH offers banking products and services to help returning citizens — those who have been released from jails and prisons, per the US Department of Justice — establish financial stability. Sam, Daniel Feldman, and Chris Heckler, all of whom were formerly incarcerated, founded the fintech. The startup also trains caseworkers and case managers to teach financial-education courses and offer FRSH as a banking solution for returning citizens.

☆ Washington is at an impasse on the debt ceiling. Here’s what that might mean for your portfolio
▼ + stars: | 2023-05-11 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +5 min

Income-focused investors seeking yield and safety in Treasury bills are likely nervous as debt ceiling rhetoric heats up in Washington, but they should take a breather before they dump these assets. In the short-term Treasury market, investors are already showing some signs of anxiety. In that case, holders of short-term T-bills could see declines in their portfolio values as yields spike, he added. Review your holdings Now could be a good time to review your bond holdings, particularly the short-term T-bills that are seeing a big jump in yields. But the longer-term advice is to snap up longer-dated bonds to prepare for the day the Federal Reserve starts to dial back its tight monetary policy.

Persons: Joe Biden, Biden, Kevin McCarthy, Hakeem Jeffries, Janet Yellen, Yellen, Kathy Jones, Gustavo Schwenkler, Jones, Thomas McLoughlin, McLoughlin, Christine Benz, Jamie Hopkins, — CNBC's Michael Bloom Organizations: Treasury, Schwab Center, Financial Research, Santa Clara University Leavey School of Business, Federal Reserve, UBS, Morningstar, Carson Group Locations: Washington, D, U.S

☆ The chief investment strategist of JPMorgan Global Wealth explains why the worst thing investors can do right now is sit on cash — and shares 5 other high-conviction investment ideas
▼ + stars: | 2023-05-10 | by ( Lisa Kailai Han | ) www.businessinsider.com time to read: +6 min

But his highest-conviction idea is that investors should rotate out of cash into fixed income. But despite these factors, risk assets are currently fully valued and fully priced into the market. While most investors have some equity exposure, they've also raised a lot of cash in the past two years. 5 other high-conviction investment ideasWithin equities, at the sector level Kennedy currently favors industrial and reasonably-priced technology stocks. Finally, Kennedy also listed China A-shares as an attractive investment, pointing to the economic reopening, a surge in consumption, supportive monetary policies, and increased exports and investment growth as catalysts.

☆ US debt limit default could hit in early June to early August -think tank
▼ + stars: | 2023-05-09 | by ( David Lawder | ) www.reuters.com time to read: +3 min

WASHINGTON, May 9 (Reuters) - The U.S. government will begin defaulting on its payment obligations between early June and early August without an increase in the federal debt limit, the Bipartisan Policy Center said on Tuesday, flagging pressure from a drop in tax revenue. The Bipartisan Policy Center (BPC), which closely monitors debt limit disputes in Congress, had estimated in February the X-date could come between summer and early fall, but now sees a default hitting much earlier if Congress fails to raise the $31.4 trillion U.S. borrowing cap. "The coming weeks are critical for assessing the strength of government cash flows," Shai Akabas, BPC director of economic policy. The think tank's latest estimate roughly agrees with the Congressional Budget Office's revised assessment that there is now a "significantly greater risk" of an early June default. Later on Tuesday, President Joe Biden is scheduled to meet with U.S. House of Representatives speaker Kevin McCarthy and other congressional leaders to discuss options to resolve the debt limit standoff between Democrats and Republicans.

I started my SEP IRA at 30, but I wondered if there were other, nontraditional options for retirement. I asked financial planners how their millionaire clients saved. I'm happy to be saving for retirement now, but I still wonder if I could retire comfortably without saving into a traditional retirement account. To find out, I asked financial experts if any of their millionaire clients had retired without traditional retirement funds. They didn't take on debtIt turns out you can retire as a millionaire without robust traditional retirement funds.

☆ ECB to stop reinvesting cash in largest bond scheme
▼ + stars: | 2023-05-04 | by ( ) www.reuters.com time to read: +2 min

"The Governing Council will keep reducing the Eurosystem’s asset purchase programme portfolio at a measured and predictable pace," it said. "In line with these principles, the Governing Council expects to discontinue the reinvestments under the APP as of July 2023." Redemptions fluctuate, but about 148 billion euros' worth of debt held under the APP expires in the second half of the year. That means a halt to reinvestment would see an extra 58 billion euros' worth of maturities on top of the currently scheduled 15 billion euros per month. At 7.7 trillion euros, the ECB's balance sheet is already more than a trillion euros below its peak size but remains well above its historical average.

☆ Investing Club mailbag: Should I reinvest my dividends or take the cash?
▼ + stars: | 2023-05-04 | by ( Zev Fima | ) www.cnbc.com time to read: +4 min

Does your charitable trust reinvest dividends it receives from Club holdings back into the stock that issued the dividend? Investors who took dividends as cash with a 0% return had a the total return of 24.52%. Over five years, an investor who reinvested dividends had a return of 56.77%, versus 56.64% took dividends as cash. Over 10 years, reinvesting dividends generated a total return of 226.12%, compared to 204.71% for an investor who keep dividends in cash. As a charitable trust, all dividends and realized capital gains are distributed to charity at the end of the year.

Biden called Republican House Speaker Kevin McCarthy in Jerusalem, where he is on a diplomatic trip, to invite him to a May 9 White House meeting. Biden also extended invitations to House Democratic leader Hakeem Jeffries, Senate Majority Leader Chuck Schumer and Republican leader Mitch McConnell. Biden has steadfastly said he will not negotiate over the debt ceiling increase, but will discuss budget cuts after a new limit is passed. A White House official said Biden, who had previously said he wouldn't meet McCarthy at all to discuss the debt limit, would "stress that Congress must take action to avoid default without conditions" on May 9. The bill has no chance of passing the Democrat-controlled Senate and the White House has said Biden would veto the legislation if it did.

House Republicans passed a bill to raise the debt limit last week that includes steep spending cuts which the Democratic-controlled Senate and Biden say they will not approve. Biden has steadfastly said he will not negotiate over the debt ceiling increase, but will discuss budget cuts after a new limit is passed. In 2011, a similar debt ceiling fight took the country to the brink of default and prompted a downgrade of the country's top-notch credit rating. The Republican bill would implement $4.5 trillion in spending cuts - or about 22% - in exchange for a $1.5 trillion increase in the U.S. debt limit. It has no chance of passing the Democrat-controlled Senate and the White House has said Biden would veto the legislation.

Jefferies says it's time to "hitch a ride" on Uber shares. "We believe UBER's dominant scale and network effect support greater reinvestment into customer experience/ adoption, which should spur frequency/stickiness and grow market share over time," he continued. This expansion will help boost growth in its Delivery segment, says Jefferies, which has already doubled since pre-pandemic levels. Uber could lose its market share to its direct competitors in the Mobility and Delivery spaces — which could drive down shares. Uber shares were up 0.4% Monday before the bell.

☆ Exclusive: Calls grow for quick end to ECB bond-scheme reinvestment
▼ + stars: | 2023-04-14 | by ( Balazs Koranyi | ) www.reuters.com time to read: +3 min

It is already letting 15 billion euros worth of these bonds expire each month. The sources said the ECB should not implement a hard stop, however, and could stay flexible to react to episodes like last month's banking sector volatility. But when markets are calm, like now, the ECB should let all maturing debt expire, they said. Redemptions fluctuate but about 148 billion euros' worth of debt expires in the second half of the year, so a full reinvestment stop would see an extra 58 billion euros' worth of maturities on top of the currently scheduled 15 billion euros per month. The sources said that once these reinvestments end, the next discussion would be about reinvestments in the 1.68 trillion euro Pandemic Emergency Purchase Programme, which are set to continue until the end of 2024.

☆ Evercore ISI upgrades says it's time to buy this retail giant on improving traffic trends
▼ + stars: | 2023-03-30 | by ( Samantha Subin | ) www.cnbc.com time to read: +3 min

Evercore ISI thinks it's time for investors to consider scooping up shares of Walmart . Analyst Greg Melich upgraded the retail stock to outperform from in-line, citing normalizing inventory and improving traffic trends. "The traffic turn appears to be building, and with consumers across the demographic spectrum making wallet allocation choices after several years of record nominal retail spending, Walmart is poised to regain share." "We might be early, as the April analyst day could pose a risk if management tries to bludgeon the Street to their guidance range," Melich wrote. "That said, with traffic momentum and margin expansion likely amidst a decelerating Retail world we like Walmart's scale, balance sheet and stability."

☆ Office Doom Loop: Landlords Face a Reckoning As Companies Move to Fancy Offices
▼ + stars: | 2023-03-30 | by ( Daniel Geiger | ) www.businessinsider.com time to read: +14 min

The Gas Company Tower in downtown Los Angeles has a sterling pedigree, but even that can't save it from the doom loop facing many older office towers. A huge swath of America's office market is vulnerable to these twin threats of being under-equipped with amenities and underwater financially. This behavioral shift has deeply cut into demand for office space. The amount of sublease space nationally more than doubled from 118.5 million square feet at the end of 2019 to 242.8 million square feet at the end of 2022, Colliers stated. Lenders are often reluctant, he said, to seize office buildings because of the costs and expertise required to operate the properties.

☆ Banks are sweetening the interest rates on their CDs. Here’s what you should know before you jump in
▼ + stars: | 2023-03-12 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +4 min

Bank CDs are among the fixed-income investments that are enjoying a surge in popularity as the Federal Reserve raises interest rates. Lately, CDs from online banks are seeing higher rates on 1-year instruments. Another key benefit of bank CDs: At a time when Silicon Valley Bank's failure highlighted the safety of bank deposits, it's worth noting that bank CDs are protected by the Federal Deposit Insurance Corp. See below for the latest rates on 1-year CDs from online banks as of March 10, according to the firm. When rates fall, you can rely on longer-dated CDs that have already locked in the higher yield.

☆ Biden wants to kill junk fees — here's what could change and how you can minimize fees right now
▼ + stars: | 2023-03-08 | by ( Jason Stauffer | Elizabeth Gravier | ) www.cnbc.com time to read: +9 min

But you don't have to wait for the government to take action to reduce your exposure to junk fees. Comparison shop (as well as you can) Ferreting out junk fees can be tricky and different products and services have their own red flags. The CFPB wants to limit credit card late fees and the Biden Administration is pushing for Congress to pass the Junk Fee Prevention Act, which addresses four types of junk fees. Credit card late fees The CFPB has proposed a new rule to limit credit card late fees to $8. While it doesn't come with a welcome bonus or a 0% intro APR period, it also doesn't charge any fees — including late fees.

☆ Goldman Sachs downgrades Yeti as growth slows, consumer demand softens
▼ + stars: | 2023-02-24 | by ( Samantha Subin | ) www.cnbc.com time to read: +1 min

The growth outlook for Yeti Holdings looks murky in the months ahead, according to Goldman Sachs. Analyst Brooke Roach downgraded shares of the cooler company to neutral from buy, citing a tougher sales backdrop and softening consumer demand that should hinder growth near term. YETI YTD mountain Yeti shares this year The stock fell 2% before the bell Friday. Shares of Yeti are down about 5% this year and have tumbled 57% since Goldman Sachs initiated coverage with a buy rating. Yeti also faces rising competitive pressures in the drinkware market, and higher selling, general and administrative expenses should hamper margin improvement, Roach said.

☆ UBS says these stocks posted high-quality earnings this season
▼ + stars: | 2023-02-22 | by ( Sarah Min | ) www.cnbc.com time to read: +3 min

Now that Wall Street is about to close the books on yet another earnings season, it's time to see which names posted higher-quality earnings than others, according to UBS. In the S & P 500, about 86% of companies reported quarterly earnings thus far, according to FactSet data. However, UBS' strategist Keith Parker worries that earnings quality is an "overhang," saying the divide between earnings and operating cash flow for companies points to roughly 15% earnings-per-share downside for at-risk stocks. These stocks are in the S & P 1500, have a market cap greater than $3 billion, excluding stocks in financial, real estate and utilities. Meanwhile, Humana demonstrated strong earnings quality because of its leading position in the Medicare Advantage market, according to UBS analyst Kevin Caliendo.

☆ Premarket stocks: How oil and gas companies think about their shareholders
▼ + stars: | 2023-02-21 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +10 min

Two days later, a report found that the soaring energy prices could push 141 million people worldwide into extreme poverty. High prices have swelled profits for energy companies, leaving them flush with cash. Commitment to shareholders has certainly helped bolster stock prices — the S&P 500 ended 2022 down nearly 20%, while the energy sector grew by about 60%. And how do companies navigate appeasing shareholders who want immediate profit while also thinking about ways to invest in sustainable energy? GDP, inflation and retail earnings: What investors are watching this week▸ Investors have a busy week of new data readings ahead of them.

☆ As demand for Covid vaccines falls, AstraZeneca lines up 'blockbuster' products for 2023
▼ + stars: | 2023-02-09 | by ( Hannah Ward-Glenton | ) www.cnbc.com time to read: +1 min

AstraZeneca has "blockbuster" projects in development that are set to make billions of dollars, according to its CFO. Demand for Covid-19 vaccines has dropped as the pandemic enters its fourth year, but AstraZeneca says it has "blockbuster" projects in development that are set to make billions of dollars. "We expect to start 30 phase three clinical trials this year, of which we expect to hopefully land more than 10 products that will be blockbuster products, or products that will hopefully achieve more than a billion in revenue," Chief Financial Officer Aradhana Sarin told CNBC's "Squawk Box Europe" Thursday. "Really it's the revenue growth on the top line but also the reinvestment in the business that continues to fuel innovation and continues to fuel long term growth," she added. The British-Swedish pharmaceutical company forecast growth in earnings and revenue for 2023 Thursday, with its underlying businesses helping the company to post $901 million in net profit for the fourth quarter.

☆ Communities struggling with banking access give banks on wheels a spin
▼ + stars: | 2023-02-08 | by ( Rebecca Picciotto | ) www.cnbc.com time to read: +12 min

Banks on wheels are an attempt to repair the gaps within the U.S. banking landscape, which disproportionately impact Black and Hispanic communities. Banks on wheels aim to offer at least a partial solution to the increasingly deserted banking landscapes in minority communities. BankonBuffalo's mobile branch is an attempt to bridge those access gaps. Bank deserts are any areas where there are no bank branches within 10 miles of its center, according to the U.S. Census Bureau. The borough currently has 123 bank branches, according to a national bank branch location database, down from 144 in 2018.

☆ European Central Bank raises rates by 50 basis points, pledges further hike in March
▼ + stars: | 2023-02-02 | by ( Jenni Reid | ) www.cnbc.com time to read: +2 min

Christine Lagarde, president of the European Central Bank speaks at an event. The move follows four hikes in 2022 which brought euro zone rates out of negative territory for the first time since 2014. It said keeping rates at restrictive levels would control price rises by dampening demand and keeping inflation expectations under constrained. The European Central Bank on Thursday confirmed expectations of a 50 basis point interest rate increase, taking its key rate to 2.5%. Euro zone inflation fell for the third straight month in January, flash figures published Wednesday showed, but headline inflation remained high at 8.5%.

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