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☆ Buy these dividend-paying stocks as worries of a slowing economy linger, Wolfe says
▼ + stars: | 2023-08-29 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +3 min

Wall Street anticipates upside of 16%, based on the average price target. Skyworks Solutions , which pays a dividend yield of about 2.5%, is on Wolfe's list. About 44% of the analysts covering the stock rate it a buy or a strong buy, according to Refinitiv. About 74% of the analysts covering the stock rate it a buy or a strong buy, per Refinitiv. The average analyst price target calls for upside of 16%.

Persons: Wolfe, Jerome Powell, CenterPoint, Harsh Kumar, Piper Sandler, Skyworks, McDonald's, Chris O'Cull, — CNBC's Michael Bloom Organizations: Wolfe Research, Federal, Kansas City, Skyworks Locations: Jackson Hole , Wyoming, Refinitiv

☆ Muni bonds are cheap, but they may hide a tax surprise. How to prepare
▼ + stars: | 2023-08-23 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +4 min

High-income investors, especially those in the 32% marginal federal income tax bracket, appreciate that munis offer income that's exempt from federal levies. Paying for a discount Bond yields and prices move opposite to each other. That means municipal bonds are trading at discounts, which can come with tax ramifications if they're too cheap versus the bond's par value, or the amount the issuer will repay the investor at maturity. Consider an investor who is purchasing a 10-year municipal bond with a par value of $10,000, trading at $9,750. Investors also shouldn't overlook the fact that the muni bond is still providing them with tax-free income in their portfolios.

Persons: Bond, Cooper Howard, Charles Schwab, Tim Steffen, Baird, Steffen Organizations: Federal Reserve, Bond, SEC, Investors

☆ Bitcoin abruptly tumbles as much as 9% to just over $26,000 late Thursday
▼ + stars: | 2023-08-17 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +1 min

Bitcoin slipped sharply on Thursday evening, tumbling by as much as 9% to just over $26,000. The cryptocurrency last traded at $26,593.68, reflecting a decline of more than 8%, according to Coin Metrics data. The fall in bitcoin followed several hours after The Wall Street Journal reported that SpaceX, which is helmed by Elon Musk, wrote down the value of its bitcoin holdings by a total of $373 million in 2022 and 2021, and that the space travel company had sold the virtual currency. "This is one of the most brutal minute-by-minute selloffs we've seen in the history of bitcoin," Ryan Rasmussen, a researcher at Bitwise Asset Management, told CNBC. In 2022, Tesla, which Musk also leads as CEO, announced that it sold about 75% of its bitcoin holdings after investing $1.5 billion in the flagship cryptocurrency.

Persons: Bitcoin, Elon Musk, Ryan Rasmussen, Elon, Tesla, Musk Organizations: Street Journal, SpaceX, Bitwise Asset Management, CNBC Locations: bitcoin

☆ The tried and true 60/40 portfolio is making a comeback this year after cratering in 2022
▼ + stars: | 2023-08-17 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +4 min

The balanced portfolio — reported by many to have died in 2022 — is experiencing a revival. The iShares Core Growth Allocation ETF (AOR) that mimics the strategy lost 15.6% in 2022, including reinvested dividends. Investors sitting tight were rewarded, however, as 2023's run-up in stocks helped lift the 60/40 model. "And thanks to higher interest rates, investors are getting much higher compensation for taking interest rate risk compared to 2021-2022." A 60/40 portfolio isn't right for all investors and their situations, but it does create a foundation for sound investments, said Preston Cherry, CFP and founder of Concurrent Financial Planning.

Persons: —, Seema Shah, Ryan Salah, Salah, US6M, Preston Cherry, bode, Cherry Organizations: Asset Management, Capital Financial Partners, Federal, CFP, CNBC

☆ This bank will now pay 5% yield on your savings
▼ + stars: | 2023-08-14 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +1 min

A new bank has joined the 5% club, handing savings account depositors a hefty yield on their idle cash. Bread Financial is the latest bank to offer 5% annual percentage yield to its savings account clients, hiking its rate 10 basis points. Bread's move to boost its yield makes it the first online bank under Wells Fargo's coverage to reach 5%, said analyst Michael Kaye. Marcus by Goldman Sachs also recently raised its online savings account rate 15 basis points, now offering a yield of 4.3% on savings accounts. "We still expect online bank rates will continue climbing even after the Fed stops raising its rates," wrote Vincent Caintic, analyst at Stephens.

Persons: Michael Kaye, Marcus, Goldman Sachs, Vincent Caintic, Stephens, Michael Bloom Organizations: Federal Reserve, Popular, CIT Bank, Fed Locations: Wells, 2H23

☆ Stocks making the biggest moves after hours: Discover Financial, Lennar, Getty Images and more
▼ + stars: | 2023-08-14 | by ( Samantha Subin | ) www.cnbc.com time to read: +1 min

Discover Financial Services — The financial services stock fell more than 5% after announcing the resignation of its CEO. Horton , Lennar a nd NVR rose in extended trading after regulatory filings revealed Warren Buffett's Berkshire Hathaway added new positions in the stocks during the second quarter. Horton rose 2.7%. Getty Images — Shares of the content creation company tumbled about 15% in extended trading after it issued preliminary second-quarter results. Getty Images posted a loss of 1 cent per share, compared with the 9 cents per share earned in the year-ago period.

Persons: Roger Hochschild, John Owen, D.R, Lennar, Warren Buffett's Berkshire Hathaway, NVR, Horton, —, Darla Mercado Organizations: Discover Financial, Getty, Revenue Locations: Horton

☆ Soft landing hopes are drawing money back into this risky asset that’s paying 8% yield. How to navigate
▼ + stars: | 2023-08-10 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +4 min

High yield mutual funds and exchange traded funds saw inflows of $1.9 billion in July, Barclays said, citing Lipper data. High yield bonds are corporate issues that are rated below BBB, meaning they have a higher risk of default compared to their investment-grade counterparts. "When we are in junk and high yield names, we prefer loans – more senior loan positions rather than high yield." Novak added outside of high yield loans, the firm's other big fixed income play is higher quality investment grade bonds. "We don't think taking a heroic position [in high yield] makes a whole lot of sense in our view," he said.

Persons: Dow Jones, Bill Zox, it's, Zox, Bryan Novak, Novak, Brandywine's Zox, nonbank financials, Bill Ahmuty, Lawrence Gillum, Michael Bloom Organizations: Barclays, Fitch, Management, Brandywine Global, SEC, Astor Investment Management, Corporate, State, LPL

☆ Guggenheim predicts a moderate recession in 2024. Here are three steps to shore up your portfolio
▼ + stars: | 2023-08-09 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +2 min

A soft landing for the economy is looking unlikely, and now is the time to prepare your portfolio for a rocky 2024, according to Maria Giraldo of Guggenheim Investments. Contrary to the soft landing — and interest rate cuts — expected by many investors, Guggenheim sees a moderate recession looming in the new year. Instead, Guggenheim predicts both an economic downturn and lower interest rates in 2024. "We're seeing the impact of higher interest rates and higher funding costs on banks." She noted that investment-grade corporate bonds are yielding 5.5% to 6%.

Persons: Maria Giraldo, Guggenheim, Giraldo, Schwab Organizations: Guggenheim Investments, SEC

☆ This bank just hiked the rate on its 1-year CD to 5.5%
▼ + stars: | 2023-08-07 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +2 min

"We expect more rate action in the weeks ahead," wrote Michael Kaye, analyst at Wells Fargo in a Friday report on deposit trends. Marcus and Synchrony each hiked yields by 5 basis points to 4.4% and 4.35%, respectively. However, customers who've already snapped up a CD are effectively locked into that rate for that stated term. That's different from a high-yield savings account, wherein the bank can change the rate at any time. "Even though the market doesn't expect any more rate hikes this cycle, we expect deposit costs to keep rising until the Fed cuts rates," she said.

Persons: Sallie Mae, Marcus, Goldman Sachs, Michael Kaye, Synchrony, Morgan Stanley, Betsy Graseck, — CNBC's Michael Bloom Organizations: Federal Reserve, Synchrony, Analysts, Wells, Fed

☆ Get nearly 5% on your idle cash at this brokerage firm
▼ + stars: | 2023-08-04 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +2 min

If you're hoping to earn a return on cash that's merely sitting in your investment account, a handful of brokerage firms have sweetened the yields on your idle dollars. Whether you're buying short-term Treasurys or locking money into a certificate of deposit, you stand to make money on your cash. Robinhood Gold, a subscription service for retail investors, is now paying an annual percentage yield of 4.9% on money in cash sweep accounts. Cash sweep balances in Robinhood Gold have grown to $11 billion, more than doubling since the beginning of the year. Other firms hike their yields on cash as they aim to attract more deposits, which seems to be the case at Robinhood. "

Persons: we've, Vlad Tenev, IBKR, HOOD, Craig Siegenthaler, — CNBC's Michael Bloom Organizations: Federal Reserve, Fidelity, Vanguard, Bank of America, LPL, Interactive Brokers

☆ The Federal Reserve is likely to keep rates high. Here's a strategy to generate income and reduce risk
▼ + stars: | 2023-08-03 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +2 min

Near-dated Treasurys have seen a sizeable boost since the Federal Reserve has embarked on its rate-hiking campaign, and a strategy that allows investors to generate income in the short term is taking off. To that effect, the firm this week launched a trio of Treasury bond laddering strategies: six-month, 12-month and 24-month offerings, managed by its Wasmer Schroeder Strategies team. "There are two bond investors: total return and income," Lafferty said. "For income investors, those higher yields are still at the shorter end, and these might be people who are pulling income out of their portfolio or retirees who need to spend their current income," he added. For investors who are thinking longer term, Schwab offers 5-year to 15-year ladders, as well as a 1-year to 5-year variety.

Persons: Bond, Charles Schwab, Warren Buffett, US3M, David Lafferty, Schroeder, Lafferty, Schwab Organizations: Federal Reserve, Schwab Asset Management, Treasury

☆ Stocks making the biggest moves after hours: Apple, Amazon, Airbnb, Coinbase and more
▼ + stars: | 2023-08-03 | by ( Alex Harring | ) www.cnbc.com time to read: +4 min

Amazon reported earnings of 65 cents a share, ahead of the 35 cents expected by analysts, per Refinitiv. Airbnb — Shares slid 1% after the company reported its second-quarter earnings. Dropbox — The online collaboration platform advanced 3% on the back of strong second-quarter earnings. Square — Shares of the payments tech company dipped more than 4% in after-hours trading even after the firm reported second-quarter earnings and revenue above expectations. Square reported earnings of 39 cents per share, versus analysts' 36 cents estimate per Refinitiv.

Persons: Refinitiv, Fortinet, DraftKings, Airbnb, Coinbase, Dropbox, — Redfin, Redfin, Darla Mercado, Hakyung Kim, Sarah Min, Samantha Subin, Yun Li Organizations: Apple, Refinitiv, Revenue, Holdings, Booking Holdings, Analysts, Tagger Media

☆ Stocks making the biggest moves after hours: PayPal, Robinhood, Qualcomm, Clorox, DoorDash and more
▼ + stars: | 2023-08-02 | by ( Brian Evans | ) www.cnbc.com time to read: +3 min

The company is calling for revenue ranging between $610 million and $645 million, while analysts called for $632 million, per Refinitiv. Qualcomm posted $8.44 billion in adjusted revenue, while analysts polled by Refinitiv forecast $8.5 billion. Zillow forecasts revenue of $458 million to $486 million, while analysts polled by FactSet are calling for revenue of $488.1 million. The company reported revenue of $494 million in the second quarter, while analysts polled by Refinitiv anticipated $473 million. The company posted $533 million in revenue, while analysts polled by Refinitiv sought $518 million.

Persons: Vlad Tenev, Baiju Bhatt, Etsy, DoorDash, FactSet, Qorvo, Refinitiv, Tripadvisor, Darla Mercado Organizations: Refinitiv, Qualcomm —, Qualcomm, MGM Resorts, MGM, PayPal, Refinitiv . Revenue, Unity Locations: New York City

☆ Fitch downgrades U.S. long-term rating to AA+ from AAA
▼ + stars: | 2023-08-01 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +2 min

Fitch Ratings downgraded the United States' long-term foreign currency issuer default rating to AA+ from AAA on Tuesday, pointing to "expected fiscal deterioration over the next three years," an erosion of governance and a growing general debt burden. U.S. stock futures opened lower after the rating agency issued its downgrade, with Dow futures sliding about 100 points. In May, the agency placed the nation's AAA rating on negative watch, blaming the debt ceiling fight. President Joe Biden signed the debt ceiling bill on June 2, just days away from the "X-date" on June 5. This isn't the first time a rating agency has downgraded the U.S. Standard & Poor's cut the nation's credit rating to AA+ from AAA in 2011 after Washington managed to avoid a default.

Persons: Biden, Fitch, Washington butted, Joe Biden, Karine Jean, Pierre said, CNBC's Christina Wilkie Organizations: Service Police, Lafayette, Fitch, United, AAA, Dow, U.S . Standard, Washington Locations: Washington , DC, United States, Washington, States

☆ Banks kicked off the last two weeks of July with higher rates on CDs. Where to find solid yields
▼ + stars: | 2023-08-01 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +1 min

Good news for income-centric investors: Higher yields in the certificate of deposit market will continue through the remainder of 2023. Banks hiked rates on CDs through the last two weeks of July, with the average one-to-12-month rate rising by 11 basis points to 4.6%, according to Morgan Stanley analyst Betsy Graseck. See below for some of the institutions in Morgan Stanley's coverage that are also offering attractive rates. Graseck noted that over the past two weeks, rates on CDs in the 13-to-36-month range have fallen by 4 basis points. "We also expect banks to continue shortening the duration of their highest CD offers to position for a potential Fed rate cut in 1H24," she wrote.

Persons: Banks, Morgan Stanley, Betsy Graseck, AXP, Graseck, — CNBC's Michael Bloom Organizations: DFS, Morgan Locations: 1H24

☆ Stock futures fall after Fitch downgrades U.S. rating, earnings season continues: Live updates
▼ + stars: | 2023-08-01 | by ( Sarah Min | ) www.cnbc.com time to read: +2 min

Dow Jones Industrial Average futures slid by 75 points, or 0.2%. S&P 500 and Nasdaq-100 futures dipped 0.3% and 0.4%, respectively. Of the S&P 500 companies that have reported, about 82% have posted positive surprises, according to FactSet data. Brands and Humana are set to report earnings before the open Wednesday. Economists polled by Dow Jones expect a 175,000 increase, which would be lower than the 497,000 rise in the prior month.

Persons: Fitch, Adam Parker, CNBC's, Parker, Dow Jones, —, Darla Mercado Organizations: New York Stock Exchange, Dow Jones Industrial, Nasdaq, Fitch, AAA, SolarEdge Technologies, Dow Jones, Dow, CVS, Brands, Humana, Traders Locations: New York City . U.S

☆ Citi raises year-end S&P 500 price target to 4,600, sees higher probability of a soft landing
▼ + stars: | 2023-07-28 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +1 min

Citi U.S. equity strategist Scott Chronert raised his year-end 2023 S & P 500 price target to 4,600, citing stronger odds of a soft landing. "The near-term hurdles we envisioned into Q3 are now behind," Chronert wrote in a report late Friday. "The new targets reflect increased probability of a soft landing in our scenario approach." (See where Wall Street stands on the 2023 outlook for the S & P 500 here .) "Growth cluster valuations are high but supported by fundamental drivers," Chronert wrote.

Persons: Scott Chronert, Chronert, — CNBC's Michael Bloom Organizations: Citi

☆ This bank just raised yields on its 2-year CD — here’s where you can lock in 5%
▼ + stars: | 2023-07-28 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +1 min

Since the central bank embarked on its rate-hiking campaign in March 2022, yields on fixed income instruments, ranging from Treasurys to money market funds and bank deposit products, have become more attractive. Some strategists have suggested income-focused investors begin locking in higher rates so they can keep earning good yields once the central bank shifts gears. Capital One recently pushed up the annual percentage yield on its 2-year CD 5 basis points to 4.35%. As a result, a handful of institutions now offer yields of 5% or close to it for 2-year CDs. See below for a table of 2-year CDs.

Persons: Michael Kaye, Ally Financial, — CNBC's Michael Bloom Organizations: Federal Reserve, Financial, Delta Community Credit Union Locations: Wells

☆ Use this strategy to generate portfolio income from your stocks as markets rise
▼ + stars: | 2023-07-27 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +5 min

An options strategy that's done just right will let you capture appreciation as stocks rise and generate some portfolio income. Enter covered calls. With covered calls, rising markets introduce an element of risk: Sell a covered call against a stock that takes off on a hot streak, and you miss an opportunity. "The Nasdaq 100 has had some incredible runs, and investors missed out on those if they were in the covered calls strategy," Armour said. "In a year like 2022, I'm not sure the Nasdaq 100 covered calls strategy would feel defensive."

Persons: Randy Frederick, Frederick, Bryan Armour, It's, Armour, I'm Organizations: Schwab Center, Financial Research, Corporation, Tech, Nvidia, Meta, Morningstar, JPMorgan Equity, Global, Nasdaq Locations: North America

☆ Fed recap: Details from the Federal Reserve's July hike and Powell's market-moving comments
▼ + stars: | 2023-07-26 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +1 min

"We now believe that the Fed is on a prolonged 'hawkish hold,'" she said. "In our base case, their next move will likely be a cut but it will take until 2024 until we see it. That said, Powell will have no choice but to keep the threat of hikes alive, lest he encourage markets to prematurely price in cuts and re-ignite inflation expectations." "Indeed, throughout this coming extended pause, the risk to our base case will likely almost always be for one last hike to cement the disinflationary trend," she added. — Tanaya Macheel

Persons: Frances Donald, Powell Organizations: Fed, Manulife Investment Management

☆ The Fed’s expected rate hike is about to sweeten yields on these investments
▼ + stars: | 2023-07-26 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +4 min

The Federal Reserve is widely expected to boost interest rates by another quarter percentage point Wednesday afternoon – and that's terrific news for fixed income investors hoping to grab a little more yield. Since March 2022, the central bank has raised rates 10 times – with July's expected hike marking the 11 th increase – to cool inflation. Consider that during the week of March 11, 2022, the rate on the 2-year Treasury note was 1.75%, according to Refinitiv. Investors who wish to squeeze a little more interest income from their cash holdings have opted for Treasury bills, with the 6-month bill yielding 5.5%. By buying multiple notes of different maturities, investors can "ladder" these Treasurys and reinvest the proceeds from maturing bonds into longer-dated issues.

Persons: Greg McBride, maturities, tradeoffs, McBride, SLM —, Sallie Mae —, Nick Wells Organizations: Federal Reserve, Investors, Treasury, Bank of Locations: Bank of Indiana, Treasurys

☆ Stocks making the biggest moves after hours: Meta Platforms, Chipotle Mexican Grill, ServiceNow and more
▼ + stars: | 2023-07-26 | by ( Samantha Subin | ) www.cnbc.com time to read: +4 min

Check out the companies making headlines after the bell:Meta Platforms – Shares of Meta Platforms jumped nearly 6% on stronger-than-expected quarterly results. Chipotle reported adjusted earnings of $12.65 a share on $2.51 billion in revenue. The entertainment technology company reported adjusted earnings of 26 cents a share. Lam posted adjusted earnings of $5.98 per share, beating estimates by 91 cents per share, per Refinitiv. L3Harris reported adjusted earnings of $2.97 a share on $4.69 billion in revenue, and lifted earnings and revenue guidance.

Persons: Chipotle, Refinitiv, Lam, — ServiceNow, FactSet, Sunnova, Richard Dickson, L3Harris, Aerojet, Macheel, Sarah Min, Darla Mercado Organizations: Meta, Revenue, Lam, eBay, Energy, Technology, Mattel –, Mattel, Seagate Technology, Technologies, Federal Trade Commission, L3Harris Locations: FactSet, Refinitiv

☆ How to boost the cash flow even more from your fixed income investments
▼ + stars: | 2023-07-20 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +3 min

With interest rates peaking, now might be a good time to boost the cash flow you're generating in your fixed income portfolio. A core and satellite approach to boost cash flow For liquidity, UBS recommends a core-satellite approach. You also know when you'll be getting your income payments from the bonds, which generally pay interest twice a year. The first is "everyday cash," which means investors should be stashing money that they can readily withdraw if needed. The second tier is "savings cash" for money that you can afford to lock up for a short period of time.

Persons: US1Y, Marianna Mamou, you'll, Mamou, Michael Bloom Organizations: UBS, Bread Financial, Bread, Investors, SEC

☆ CNBC Daily Open: Markets care more about expectations than numbers
▼ + stars: | 2023-07-20 | by ( Yeo Boon Ping | ) www.cnbc.com time to read: +2 min

Michael Nagle | Bloomberg | Getty ImagesThis report is from today's CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Prior to the start of the second-quarter earnings season, investor relations departments and analysts massaged expectations downwards. More than three quarters of S&P companies that have reported results have exceeded expectations, according to FactSet data. "Right now, short-term optimism is higher than we've seen since December 2021, right before the start of the 2022 bear market."

Persons: Goldman Sachs, Michael Nagle, Goldman, Darla Mercado, Gina Francolla, Tom De Luca, De Luca, we've Organizations: Bloomberg, Getty, CNBC, Dow Jones, Nasdaq, Vanguard Locations: New York

☆ Stocks making the biggest moves after hours: CSX, PPG Industries, Knight-Swift Transportation and more
▼ + stars: | 2023-07-20 | by ( Alex Harring | ) www.cnbc.com time to read: +3 min

Earnings per share for the quarter were in line with expectations at 49 cents. The company posted adjusted earnings of $3.52 per share on revenue of $9.01 billion for the second quarter. The company also raised current-quarter and full-year earnings expectations. Knight-Swift Transportation — The transportation company tumbled 3% after missing analysts' consensus estimates on earnings in the second quarter and giving weak guidance. Analysts were expecting 55 cents in earnings per share and a quarterly revenue of $1.60 billion, according to Refinitiv.

Persons: Refinitiv, FactSet, Refinitiv ., Swift, Darla Mercado Organizations: CSX, Refinitiv, PPG, Systems, Swift Transportation, Management, Werner Enterprises, Scholastic Locations: Refinitiv

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