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☆ It's too early to call a bottom for the stock market because there's more pain coming for regional banks, BlackRock strategist says
▼ + stars: | 2023-03-20 | by ( Morgan Chittum | ) www.businessinsider.com time to read: +3 min

The banking crisis hasn't fully played out so it's too soon to call a market bottom, a BlackRock strategist said. In particular, there's "more pain" headed towards smaller banks, Gargi Chaudhuri told Bloomberg TV. She added that looming regulatory changes for the banking system would likely impact stock prices. There's also "more pain to be felt" for smaller banks, the strategists said, adding that this will lead to lower credit growth — and slower economic growth as well. "The bottom line is that we think this is exactly how bear markets end," the chief equity strategist said in a note.

☆ Downstream capital is the biggest headwind to startups, says Harlem Capital's Henri Pierre-Jacques
▼ + stars: | 2023-03-17 | by ( ) www.cnbc.com time to read: 1 min

In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailDownstream capital is the biggest headwind to startups, says Harlem Capital's Henri Pierre-JacquesHenri Pierre-Jacques, Harlem Capital managing partner, joins 'Squawk on the Street' to discuss SVB and startups.

☆ Positive economic data and bank fallout will remove monetary tightening headwind, says Vital's Crisafulli
▼ + stars: | 2023-03-16 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailPositive economic data and bank fallout will remove monetary tightening headwind, says Vital's CrisafulliVital Knowledge’s Adam Crisafulli joins 'Closing Bell: Overtime' to discuss the latest market reactions and trends as well as what he thinks the Fed will do following the SVB collapse.

☆ Oil plunge is bad for energy stocks but actually good for other areas of our portfolio
▼ + stars: | 2023-03-15 | by ( Zev Fima | ) www.cnbc.com time to read: +6 min

The extent of the decline in West Texas Intermediate crude — down 5.5% to under $67 per barrel — seems overdone in an energy market that remains structurally undersupplied. Bad for energy stocks For now, we're holding onto our three oil exploration and production (E & P) stocks — Coterra Energy (CTRA), Devon Energy (DVN) and Pioneer Natural Resources (PXD) — because their breakeven levels are around $40 per barrel. The big question is whether the federal government will make good on its signals to replenish the nation's Strategic Petroleum Reserve (SPR) at WTI prices below $70 per barrel. In turn, higher energy costs eat into discretionary spending budgets. Now, with energy costs coming down, we would expect these input costs to subside a bit.

☆ These 23 bank stocks offer upside after Silicon Valley Bank's stunning collapse sent the whole sector plummeting, according to Bank of America
▼ + stars: | 2023-03-14 | by ( James Faris | ) www.businessinsider.com time to read: +4 min

The sudden collapse of Silicon Valley Bank has caused panic in the banking sector. One of the biggest scares for the banking sector since the financial crisis came late last week when Silicon Valley Bank (SIVB), which was the 16th-largest bank in the nation just days ago, imploded nearly overnight. Stocks swooned and market volatility spiked when it became clear that Silicon Valley Bank was going under. Although the US government pledged to protect individuals and businesses who made deposits at Silicon Valley Bank, fears about the potential for widespread collapse carried into this week. Shares of small- and mid-sized regional banks got crushed on Monday in what seemed to be a crisis of confidence.

☆ As the market digests the banking crisis, Morgan Stanley is a buy. But investors should sit tight on Wells Fargo
▼ + stars: | 2023-03-13 | by ( Kevin Stankiewicz | ) www.cnbc.com time to read: +6 min

Unlike Wells Fargo, Morgan Stanley's business model doesn't really depend on collecting deposits and issuing loans, which is the bread and butter of conventional banking. "We think we own the best with Morgan Stanley and Wells Fargo," Jim said. A compression of NIM can put downward pressure on overall earnings at a bank like Wells Fargo. For Wells Fargo and other consumer-oriented banks, investors aren't concerned that startup cash burn will cause deposit levels to decline. Pedestrians pass a Wells Fargo bank branch in New York, U.S., on Thursday, Jan. 13, 2022.

☆ SVB Financial issues are unlikely to spread to other banks, Wall Street analysts say
▼ + stars: | 2023-03-10 | by ( Jesse Pound | ) www.cnbc.com time to read: +3 min

The capital issues at SVB Financial sparked a sell-off among bank stocks on Thursday, but the tech-focused bank's woes will likely not be a preview of wider issues in the banking system, according to Wall Street analysts. KBWB 5D mountain Bank stocks fell sharply on Thursday. Morgan Stanley analysts Manan Gosalia and Betsy Graseck echoed that sentiment, saying in a note that the issues at hand appeared to specific to SVB. "Current pressures facing SIVB are highly idiosyncratic and should not be viewed as a read-across to other banks we cover. RBC analyst Gerard Cassidy said that banks without large retail customer bases could be in for a rocky period.

☆ Here’s our fourth-quarter earnings report card for all the stocks in our portfolio
▼ + stars: | 2023-03-10 | by ( Zev Fima | ) www.cnbc.com time to read: +20 min

Fourth-quarter earnings season is in the rearview mirror and most Club stocks reported results ahead of, or in line with, analysts' forecasts. Moreover, excluding foreign exchange fluctuations, this marked the ninth quarter in a row of 20% or better annual earnings growth. Nvidia (NVDA) reported a very strong quarter and better-than-expected guidance for the current quarter . Eli Lilly 's (LLY) fourth-quarter results came up a bit short on revenue but delivered a strong bottom line. Despite missing on top-line expectations, Wells Fargo 's (WFC) earnings came in better-than-expected, as the bank realized the benefits of higher interest rates .

☆ We have a buyer's mentality heading into Friday's highly anticipated jobs report
▼ + stars: | 2023-03-09 | by ( Zev Fima | ) www.cnbc.com time to read: +8 min

Stocks accelerated to the downside late in the session as worries resurfaced about how Friday's employment report might influence Fed policy. Depend on the data Powell's testimony Tuesday before a Senate panel and Wednesday before a House panel was lengthy and covered a broad range of issues, including rates, inflation, the debt ceiling and cryptocurrency regulation. That includes the government's February nonfarm payrolls report on Friday and the latest readings on consumer inflation and wholesale inflation next week. Economists estimate that 207,500 nonfarm jobs were created in February — less than half of January's much stronger-than-expected 517,000 additions . As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade.

Equities lost ground right after Powell's prepared remarks were released ahead of his testimony and sank further as the session wore on. Powell told U.S. lawmakers the Fed is prepared to move in larger steps if economic data suggests tougher measures are needed to control rising prices. Data the Fed will use to influence its rate hiking path will include Friday's non-farm payroll numbers. Meanwhile, the yield on two-year Treasury notes , which best reflects short-term rate expectations, hit 5% for the first time since July 2007. Dick's Sporting Goods (DKS.N) was up 9.6% after the retailer forecast annual earnings above Wall Street estimates and more than doubled its quarterly dividend.

☆ Hawkish Powell puts 50 bp Fed rate hikes back on table
▼ + stars: | 2023-03-07 | by ( ) www.reuters.com time to read: +6 min

"Powell makes it clear the Fed would react accordingly if the data suggests that inflation continues to move in the wrong direction. It was very clear to the market that the Fed is not going to equivocate in terms of data that suggests inflation continues to climb higher or remain sticky." "Six percent (terminal rate) would be a little higher than it is likely. ROBERT PAVLIK, SENIOR PORTFOLIO MANAGER, DAKOTA WEALTH, FAIRFIELD, CONNECTICUT"The focus of the Fed is trying to get inflation down to 2%. "I prefer just one more 25 basis point rate hike, but probably we're going to get three 25 basis point rate hikes."

☆ Goldman's technology team names a clear top pick for the rest of 2023
▼ + stars: | 2023-03-07 | by ( Tanaya Macheel | ) www.cnbc.com time to read: +3 min

Goldman Sachs has highlighted several opportunities for investors to play an uncertain environment now that the fourth quarter earnings season is over. With that in mind, Goldman highlighted Amazon as its top pick for the remainder of the year, among several other large cap, buy-rated stocks. Here are some of Goldman's other tech picks: The firm has a $145 price target on Amazon, which implies upside of about 54% from Monday's closing price. In gaming, Goldman names Take-Two Interactive its top pick. Goldman has a $155 price target on Take-Two, which is almost 34% above where it closed Monday.

☆ Snap stock surges as Congress renews efforts to ban TikTok
▼ + stars: | 2023-03-07 | by ( Catherine Thorbecke | ) edition.cnn.com time to read: +2 min

Virginia Democratic Sen. Mark Warner is expected to unveil bipartisan legislation Tuesday afternoon that expands President Joe Biden’s authority to ban TikTok and other suspected information technology risks from the United States, a person familiar with the matter told CNN. Angelo Zino, senior equity analyst CFRA Research, wrote in a note Monday that the “biggest beneficiaries of a TikTok ban” would be Snapchat, Facebook-parent Meta, and YouTube. “TikTok’s emphasis on short-form videos has increased engagement/time spent by consumers and has upended the entire industry, creating a headwind for META/SNAP,” Zino wrote. Shares of YouTube’s parent company Alphabet were essentially flat on Tuesday. A TikTok ban, or the possibility of it, may just be one more positive for Meta’s stock this year.

☆ Jerome Powell's testimony is rattling markets. Here's what 4 strategists are saying about the Fed's hawkish stance.
▼ + stars: | 2023-03-07 | by ( Phil Rosen | ) www.businessinsider.com time to read: +4 min

On the first day of testimony to lawmakers, Jerome Powell said the Fed will likely raise rates higher than expected. Traders are pricing in higher odds of a 50 basis-point move this month after Powell's comments. Charlie Ripley, senior investment strategist, Allianz Investment Management"Unsurprisingly, Chairman Powell delivered a message with hawkish undertones in his testimony to Congress. Higher rates and inflation should prove a headwind for P/E expansion, so investors should expect total return to derive from earnings and income." Jeffrey Roach, chief economist, LPL Financial"Rates will likely be higher than expected, but inflation is still the wild card as the Fed remains data-dependent.

☆ Wells Fargo hikes its UPS price target, says delivery giant could see big earnings growth
▼ + stars: | 2023-03-03 | by ( Alex Harring | ) www.cnbc.com time to read: +2 min

United Parcel Service ' earnings growth potential is underappreciated by investors, Wells Fargo said. Analyst Allison Poliniak-Cusic reiterated the package delivery stock as overweight while raising her target share price to $221 from $195. "In 2024 not only should those investment headwinds fade, but they should generate incremental profit." And despite earnings growth largely being a 2024 story for the company, Poliniak-Cusic said the company could see upside earlier. But she also noted that productivity improve can generate downside support and create operating leverage, which can help accelerate profit growth in a period of recovery.

☆ Costco's quarterly results show why we're long-term investors, despite softer sales
▼ + stars: | 2023-03-02 | by ( Jeff Marks | ) www.cnbc.com time to read: +7 min

After factoring in tonight's move lower, Costco shares have gained roughly 3.3% year-to-date, compared to a 3.7% increase in the S & P 500 . While it's a positive development to see Costco's margins expand from last year, it's also important to note that management doesn't run the business for profit margins. On the post-earnings conference call with analysts and investors, Costco management broke down all the levers of the quarterly margin performance. Costco's 2% reward program was a two-basis-point headwind on both sides due to more sales coming from Costco's executive members. February sales Alongside its fiscal second-quarter results Wednesday, Costco provided comparable sales for the four-week period ended Feb 26.

☆ The US dollar is at a crossroads
▼ + stars: | 2023-03-02 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

New York CNN —Wall Street investors are reaching for their neck braces in preparation for yet another volatile swing in stock markets: A surging US dollar. What’s happening: The US dollar “finds itself at a significant crossroads yet again,” said Krosby. Don’t forget the debt ceiling: Another significant threat to the dollar is looming in Congress — the ongoing debt ceiling fight. “It would certainly undermine the role of the dollar as a reserve currency that is used in transactions all over the world. Initial claims have come in lower than expected in recent weeks and remain well below their pre-pandemic levels.

☆ The Fed's own economists are warning of a 19.5% housing correction and more rate hikes could set off a 'domino effect'
▼ + stars: | 2023-03-01 | by ( Phil Rosen | ) www.businessinsider.com time to read: +5 min

For more on that, I recommended reading my colleague Dan DeFrancesco's excellent 10 Things on Wall Street newsletter. And for today, let's see why the Fed's own economists are warning of a nearly 20% housing correction. They argued US home prices would have to tumble nearly 20% to bring the housing market back to fundamentals — and additional Fed rate hikes could lead to an even worse housing correction. Have you entered or exited the housing market in the last year? These four charts explain the troubling state of the housing market right now.

The yield on two-year Treasury notes , which closely tracks short-term interest rate expectations, rose to 4.9%, its highest level since 2007. "You also got a tick up in the ISM prices paid, which means that prices generally are rising now for manufacturing. That's higher than where Fed policymakers in December signaled they would need to raise the policy rate. Money market traders see an about 80% chance of a 25-basis-point rate hike later this month, but the odds of a bigger 50 bps rate hike have grown recently. The main U.S. benchmarks ended February with losses as investors braced for the possibility that the Fed will hike rates more than initially thought on signs of resilience in the economy.

☆ Man Group shares surge on bumper performance fees
▼ + stars: | 2023-02-28 | by ( Nell Mackenzie | ) www.reuters.com time to read: +2 min

A September rout in British gilt markets drove many UK pension funds to scour for cash, after investments into liability-driven investment (LDI) funds resulted in billions of pounds worth of collateral calls. Many pension funds reached for profitable investments they had elsewhere, like hedge funds as well as investments into collateralised loan obligations. Some of the strategies from which investors withdrew money were posting double digit returns at the time, he added. He declined to say how much money he'd seen back from pension schemes this quarter. Separately, Man said its chairman John Cryan had decided to retire from the board towards the end of 2023.

☆ Man Group beats AUM expectations, posts higher performance fees
▼ + stars: | 2023-02-28 | by ( Nell Mackenzie | ) www.reuters.com time to read: +2 min

The company posted full year core pretax profit of $779 million, up 18% on the previous year. It recorded a core net management fee growth of 6% collecting $779 million of core performance fees. "An increase in volatility and higher dispersion meant higher alpha generation. The firm recorded net inflows of $3.1 billion for 2022, down 77% against a year earlier, although this was 5.3% higher than the average posted by the UK hedge fund industry. Many pension funds reached for profitable investments they had elsewhere, like hedge funds as well as investments into collateralised loan obligations.

☆ Home price gains weakened sharply to end 2022, according to S&P Case-Shiller
▼ + stars: | 2023-02-28 | by ( Diana Olick | In Dianaolick | ) www.cnbc.com time to read: +2 min

Higher mortgage rates weighed on home price gains at the end of 2022. While prices were still higher than they were a year earlier, the rate of increase slowed quickly, according to data released Tuesday. Home prices in December were 5.8% higher than the previous December, according to the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index. For all of 2022, the 5.8% price gain was the 15th best performance in the index's 35-year history, but was well below 2021's record-setting 18.9% gain. Weekly data on buyer activity indicates that homebuyers may be watching mortgage rates closely.

☆ UAW leadership faces historic upheaval ahead of union negotiations with Detroit automakers
▼ + stars: | 2023-02-28 | by ( Michael Wayland | ) www.cnbc.com time to read: +3 min

DETROIT – As the United Auto Workers prepares for what are expected to be highly contentious negotiations with the Detroit automakers later this year, the union's leadership is undergoing its largest upheaval in decades. The shuffle follows a years-long federal investigation that uncovered systemic corruption involving bribery, embezzlement and other crimes among the top ranks of the organized labor group. A reform group called UAW Members United has successfully campaigned to elect five new representatives to the 14-member board, but not all seats are settled. For investors, UAW negotiations are typically a short-term headwind every four years that result in higher costs. Canadian union Unifor will also be simultaneously negotiating this year with the Detroit automakers, adding even more complexity and competition for investments and jobs.

☆ Here's an exclusive look at the 21-slide pitch deck Gable, a hybrid workforce management startup, used to raise $12 million in Series A funding from Foundation Capital and SemperVirens
▼ + stars: | 2023-02-28 | by ( Stephanie Palazzolo | ) www.businessinsider.com time to read: +3 min

Gable helps distributed companies manage flexible office spaces for their workforces. The startup connects employees with coworking spaces to book and helps execs manage office budgets. Gable recently raised $12 million in Series A funding, led by SemperVirens and Foundation Capital. Additionally, the startup will launch new products in the upcoming months, including event management and headquarter management tools, she added. Here's an exclusive look at the 21-slide pitch deck that landed Gable $12 million in Series A funding from SemperVirens, Foundation Capital, and others:

☆ US home prices fell in December for the sixth-straight month
▼ + stars: | 2023-02-28 | by ( Anna Bahney | ) edition.cnn.com time to read: +2 min

Washington, DC CNN —US home prices fell for the sixth month in a row in December, as rising mortgage rates pushed prospective buyers out of the housing market, according to the latest S&P CoreLogic Case-Shiller US National Home Price Index, released Tuesday. Compared to prices from the year before, US home prices nudged higher in December, but the pace of that growth slowed from prior months. The cities with the strongest price appreciation were all in the Southeast, with Miami, up 15.9% from last year, seeing the strongest prices for the fifth-straight month. In November, prices in San Francisco had fallen on a year-over-year basis and the city’s decline worsened in December, with prices down 4.2% year-over-year. “Given these prospects for a challenging macroeconomic environment, home prices may well continue to weaken.”This story is developing and will be updated.

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