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Stock futures edged higher in overnight trading Sunday as the market is set to enter the last week of trading in September with big losses. S&P 500 futures and Nasdaq 100 futures both inched up 0.2%. Stocks have struggled this month as the Federal Reserve signaled higher interest rates for longer, sending bond yields rising. The market also contended with a rally in crude oil and a winning streak in the dollar during the seasonally weak trading month. The S&P 500 has fallen 4.2% this month, on pace for its second straight losing month and its worst month since December.
Persons: Stocks, Dow, Adam Turnquist Organizations: Dow Jones Industrial, Nasdaq, Federal Reserve, Treasury, LPL, Lawmakers Locations: Washington, U.S
The Federal Reserve sent a strong signal this week that interest rates will stay higher for longer. "Interest rates are to the prices of all assets like gravity is to the function of the earth," the Berkshire Hathaway CEO said in a 2012 interview. "Everything is based off interest rates... Buffett, the so-called "Oracle of Omaha," believes that when interest rates are low, they make any stream of earnings from investments worth more. "The most important item over time and in valuation is obviously interest rates," Buffett once said.
Persons: Warren Buffett, Berkshire Hathaway, Buffett, I'd, You've Organizations: Federal Reserve, Berkshire, Tokyo, Treasury Locations: It's, Omaha
REUTERS/Dado Ruvic/Illustration Acquire Licensing RightsBRUSSELS, Sept 22 (Reuters) - Intel (INTC.O) was fined 376 million euros ($400 million) on Friday in an EU antitrust case stemming from actions the U.S. chipmaker took between 2002 and 2006. An initial record fine of 1.06 billion euros in 2009 was thrown out last year by the Luxembourg-based General Court, Europe's second highest. The court, however, agreed with the European Commission that Intel illegally excluded rivals from the market which prompted the EU antitrust watchdog to re-open the case. "The General Court confirmed that Intel's naked restrictions amounted to an abuse of dominant market position under EU competition rules," the European Commission said in a statement. The Commission has appealed the General Court's ruling last year at the EU Court of Justice, Europe's top court.
Persons: Dado Ruvic, chipmaker, Court's, Europe's, Bart Meijer, Jane Merriman, Jason Neely Organizations: REUTERS, Rights, Intel, European Commission, Devices, HP, Lenovo, HK, EU, Justice, Thomson Locations: Rights BRUSSELS, Luxembourg
BRUSSELS, Sept 22 (Reuters) - Agreements between companies not to hire each other's employees have recently attracted regulatory scrutiny, a senior EU antitrust official said on Friday, amid concerns that such practices may unlawfully restrict workers' job opportunities. The U.S. Justice Department has in recent years stepped up enforcement over no-poach and non-solicitation agreements, with individuals launching litigation. That could soon change, said Olivier Guersent, director general at the European Commission's antitrust unit. Antitrust lawyers say no-poach deals can be seen as agreements to restrict competition in labour markets. They say competition watchdogs in Portugal, France, Spain, Croatia, the Netherlands, Hungary, Poland, Greece, Lithuania, Romania and Germany have examined or acted against such deals.
Persons: Olivier Guersent, we're, Foo Yun, Bill Berkrot 私 Organizations: U.S . Justice Department, Antitrust, EU, Union Locations: BRUSSELS, Europe, New York, Portugal, France, Spain, Croatia, Netherlands, Hungary, Poland, Greece, Lithuania, Romania, Germany
European flags fly outside the European Commission headquarters in Brussels, Belgium September 20, 2023. REUTERS/Yves Herman/File photo Acquire Licensing RightsCompanies Arcelik AS FollowWhirlpool Corp FollowBRUSSELS, Sept 21 (Reuters) - EU antitrust regulators will decide by Oct. 23 whether to clear Turkish domestic appliances maker Arcelik's (ARCLK.IS) proposed purchase of Whirlpool's (WHR.N) European domestic appliances business, an European Commission filing showed on Thursday. Under the deal announced in January, the companies will set up a new entity made up of Arcelik's European units such as major domestic appliances, small domestic appliances and consumer electronics and Whirlpool's European business. The EU competition watchdog can either clear the deal with or without seeking remedies after its preliminary review or it can open a four-month investigation if it has serious concerns. The UK competition agency is also assessing the deal, with a decision due by Sept. 28.
Persons: Yves Herman, Arcelik, Blomberg, Foo Yun, Mark Potter Organizations: European Commission, REUTERS, Whirlpool, Commission, EU, Zenith, Thomson Locations: Brussels, Belgium, BRUSSELS, Arctic, Altus, Grundig
Chip Somodevilla | Getty Images News | 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. What you need to know todayThe bottom lineAs expected, the Federal Reserve declined to increase interest rates. In June, the Federal Open Market Committee forecast four rate cuts next year, totaling one percentage point. Despite the prognostications of robust economic growth, markets focused on the "higher rates for longer" part of the dot plot, seeing the glass as half empty.
Persons: Jerome Powell, Chip Somodevilla, That's, Powell, we'll, , Jeff Cox, Yun Li Organizations: Federal Reserve, Getty, CNBC, Federal, Fed, Dow Jones Industrial, Nasdaq Locations: Washington ,, U.S
High-profile investors Jeff Smith and Alex Sacerdote hit home runs after Cisco 's buyout of cybersecurity software company Splunk sent shares surging. The move marked a big win for the two hedge fund investors with big stakes in Splunk. Splunk was Smith's Starboard Value's third-biggest holding at the end of June, with a bet worth more than $430 million. The stock, Whale Rock's fifth-biggest stock bet as of the end of June, has soared more than 66% this year. Sacerdote also had a big bet on another cybersecurity company like Splunk, Fortinet .
Persons: Jeff Smith, Alex Sacerdote, Splunk, Smith, Sacerdote, Fortinet Organizations: Cisco, Rock Capital Management, Acacia Research, Big Tech, Microsoft, Meta, Nvidia, Netflix, Guggenheim Locations: Splunk, Wix.com
REUTERS/Dado Ruvic/Illustration Acquire Licensing RightsBRUSSELS/STOCKHOLM, Sept 21 (Reuters) - European Union lawmaker Brando Benifei, who is leading negotiations on artificial intelligence rules, on Thursday urged EU countries to compromise in key areas in order to reach agreement with the bloc's executive by the end of the year. The thorniest issues are biometric surveillance and copyrighted material used by ChatGPT and other generative AI. Lawmakers want a ban on AI use in biometric surveillance but EU countries led by France want exceptions for national security, defence and military purposes. Lawmakers also want AI legislation to cover copyrighted material used by companies like OpenAI, backed by Microsoft Corp (MSFT.O), while EU countries say the bloc's current copyright rules offer sufficient protection. Copyright should be dealt with in the copyright law," she told Reuters, chiming with EU countries on the second matter.
Persons: Dado Ruvic, Brando Benifei, Benifei, Alexandra van Huffelen, Svenja Hahn, Guillaume Couneson, Linklaters, Foo Yun Chee, Martin Coulter, Kirsten Donovan Organizations: REUTERS, Union, European Commission, Microsoft Corp, Reuters, UN, Assembly, Global Tech Sector, Thomson Locations: BRUSSELS, STOCKHOLM, France, Europe, New York, Spain, London
The median price for existing homes — which include single-family homes, townhomes, condominiums and co-ops — was $407,100 last month. The median price in August was the highest price of any August on record and the fourth highest of any month. August marked the third consecutive month the median sales price was over $400,000. Sales of existing homes fell short of expectations and were down 0.7% from July to August to a seasonally adjusted annual rate of 4.04 million units. Annually, August sales were down 15.3% from a year ago when the sales pace was 4.77 million units.
Persons: , ” Lawrence Yun Organizations: DC CNN, National Association of Realtors, NAR Locations: Washington, Northeast, Midwest, South
Sales of previously owned homes fell 0.7% in August from July to a seasonally adjusted, annualized rate of 4.04 million units, according to the National Association of Realtors. "Mortgage rate changes will have a big impact over the short run, while job gains will have a steady, positive impact over the long run." There were just 1.1 million units for sale at the end of August, down 0.9% for the month and down just more than 14% year over year. Sales continue to be weakest on the lower end of the market, where there is the least supply. "This is true not only in tech hubs like Austin and San Francisco, but also affordable markets like Columbus, Ohio."
Persons: Lawrence Yun, Yun, Danielle Hale Organizations: National Association of Realtors, NAR, Homeowners, It's Realtors Locations: Arlington , Virginia, Austin, San Francisco, Columbus , Ohio
LOS ANGELES (AP) — Sales of previously occupied U.S. homes fell for the third month in a row in August, as higher mortgage rates, rising prices and a dearth of properties on the market shut out many would-be homebuyers. Would-be homebuyers are also seeing their purchasing power diminish as mortgage rates push higher. Mortgage rates have been echoing moves in the 10-year Treasury yield, which lenders use as a guide to pricing loans. The yield has been climbing amid expectations that the Federal Reserve will keep short-term interest rates higher for longer to fight inflation. “It's possible mortgage rates may go up to 8% in the short run,” Yun said.
Persons: , Lawrence Yun, Yun, Freddie Mac, , ” Yun Organizations: ANGELES, National Association of Realtors, , Buyers, NAR, Treasury, Federal Reserve, Federal Locations: U.S, It’s
Traders on the floor of the New York Stock Exchange, Aug. 4, 2022. Stock futures were flat in overnight trading Thursday as the market is poised to end the week with steep losses. S&P 500 futures and Nasdaq 100 futures were also flat. The benchmark 10-year Treasury yield popped 15 basis point to hit a high of 4.498%, its highest level since 2007. Investors also became concerned about a government shutdown, which could dent consumer confidence and slow down the economy further.
Persons: Bond, George Goncalves Organizations: New York Stock Exchange, Stock, Dow Jones, Nasdaq, Federal Reserve, Dow, Treasury, House Republican
[1/2] Marshall Islands' President David Kabua arrives to address the 78th Session of the U.N. General Assembly in New York City, U.S., September 20, 2023. REUTERS/Eduardo Munoz Acquire Licensing RightsUNITED NATIONS, Sept 20 (Reuters) - The president of the Marshall Islands said on Wednesday his Pacific island nation was "cautiously optimistic" it could soon finalize a deal on future ties with the United States, but repeated a call for Washington to address the legacy of massive nuclear testing in the 1940s and 50s. The Marshall Islands is one of three sparsely populated Pacific island nations covered by so-called Compacts of Free Association (COFAs) with the United States. The foreign minister of the Marshall Islands called in July for more U.S. money to deal with the nuclear legacy to enable the renewal of its COFA, the economic terms of which expire on Sept. 30. Chief U.S. negotiator Joseph Yun has proposed Congress approve the total amount by Sept. 30, even without a final agreement with the Marshall Islands.
Persons: David Kabua, Eduardo Munoz, MOUs, Joseph Yun, East Asia Daniel Kritenbrink, Joe Biden, David Brunnstrom, Lincoln Organizations: General Assembly, REUTERS, UNITED NATIONS, Marshall, Free Association, Pacific, United Nations General Assembly, Chief, East Asia, Marshall Islanders, U.S, White, Thomson Locations: Marshall, New York City, U.S, United States, Washington, Micronesia, Palau, China, Pacific, New York, Bikini
Steve Eisman, the investor who called and profited from the subprime mortgage crisis, said Thursday that he's staying away from bank stocks due to risks from crimped margins and tougher regulations. "I happen to think the whole bank sector is uninvestable," Eisman, senior portfolio manager at Neuberger Berman, said on CNBC's " Squawk Box. " Uncertainty caused by the collapse of Silicon Valley Bank earlier this year triggered outflows at other regional banks and larger institutions. With short-term rates spiking higher than long-term rates, bank margins have been hurt. The SPDR S & P Regional Banking ETF , which tracks 140 regional banks, has fallen more than 33% this year.
Persons: Steve Eisman, he's, Eisman, Neuberger Berman, Eisman's, Banks, Michael Lewis Organizations: Federal, Regional Banking ETF Locations: Silicon
Chip Somodevilla | Getty Images News | 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. What you need to know todayThe bottom lineAs expected, the Federal Reserve declined to increase interest rates. In June, the Federal Open Market Committee forecast four rate cuts next year, totaling one percentage point. Despite the prognostications of robust economic growth, markets focused on the "higher rates for longer" part of the dot plot, seeing the glass as half empty.
Persons: Jerome Powell, Chip Somodevilla, That's, Powell, we'll, , Jeff Cox, Yun Li Organizations: Federal Reserve, Getty, CNBC, Federal, Fed, Dow Jones Industrial, Nasdaq Locations: Washington ,, U.S
Federal Reserve Board Chair Jerome Powell speaks during a news conference following a Federal Open Market Committee meeting at the Federal Reserve in Washington, D.C., on July 26, 2023. The Federal Reserve stayed put on Wednesday but forecast it will raise interest rates one more time this year, according to the central bank's projections released Wednesday. The rate-setting Federal Open Market Committee projected two rate cuts in 2024, which is two fewer than its forecast in June. The change to fewer projected rate cuts next year has more to do with Fed officials' optimism about economic growth than concerns about stubborn inflation, Fed Chair Jerome Powell said in a press conference. "Broadly, stronger activity means we have to do more with rates, and that's what that meeting is telling you," Powell said.
Persons: Jerome Powell, Powell Organizations: Federal Reserve, Washington , D.C, Fed Locations: Washington ,
Klaviyo — Klaviyo shares jumped more than 9% after the marketing automation company surged to $36.75 after its New York Stock Exchange initial public offering. Stellantis — Shares rose about 1.7% after sales in Europe of brands such as Peugeot and Opel surged more than 6% in August. On Holding — The shoe stock rose finished lower ever after Needham initiated coverage with a buy rating. Lululemon — The athleisure clothing company rose nearly 2% after Needham initiated coverage with a buy rating, saying it expects double-digit top-line growth as accelerating technical innovation drives demand. Davidson initiated coverage on the stock at a buy.
Persons: Instacart, Steelcase, Jefferies, Davidson, Mills, Coty, Morgan Stanley, Chewy, Oppenheimer, Needham, Goldman Sachs, Azul, it's, , Alex Harring, Hakyung Kim, Jesse Pound, Michelle Fox, Sarah Min, Yun Li, Lisa Kailai Han Organizations: Nasdaq, New York Stock Exchange, Bausch Health, , Health, Peugeot, Opel, Chrysler, United Auto Workers, Citi, D.A, LSEG, Coty, Technologies, Textron — Textron, Berkshire Hathaway, Cessna Citation, Azul, JPMorgan, First, Bank Locations: Europe, U.S
UNITED NATIONS (Reuters) - The president of the Marshall Islands said on Wednesday his Pacific island nation was "cautiously optimistic" it could soon finalize a deal on future ties with the United States, but repeated a call for Washington to address the legacy of massive nuclear testing in the 1940s and 50s. The Marshall Islands is one of three sparsely populated Pacific island nations covered by so-called Compacts of Free Association (COFAs) with the United States. The foreign minister of the Marshall Islands called in July for more U.S. money to deal with the nuclear legacy to enable the renewal of its COFA, the economic terms of which expire on Sept. 30. Marshall Islands President David Kabua told the annual United Nations General Assembly in New York his country wanted to continue its free association with the United States but Washington "must realize that the Marshallese people require that the nuclear issue will be addressed." Chief U.S. negotiator Joseph Yun has proposed Congress approve the total amount by Sept. 30, even without a final agreement with the Marshall Islands.
Persons: David Kabua, MOUs, Joseph Yun, East Asia Daniel Kritenbrink, Joe Biden, David Brunnstrom, Lincoln Organizations: UNITED NATIONS, Reuters, Marshall, Free Association, Pacific, United Nations General Assembly, Chief, East Asia, Marshall Islanders, U.S, White Locations: United States, Washington, Marshall, U.S, Micronesia, Palau, China, Pacific, New York, Bikini
DoubleLine Capital CEO Jeffrey Gundlach said Wednesday the Federal Reserve is more likely to raise rates again in light of the recent jump in oil prices. "I think the probability of rate hikes is higher than what I thought before this oil spike happened," Gundlach said on CNBC's "Closing Bell. " Oil prices have jumped since July, with West Texas Intermediate crude topping $90 a barrel, as expectations of a tighter supplies grew. "So I think the chance of a rate hike is higher because these oil prices are going to be a real problem." "I think it's quite likely there's going to be rate cuts in the first half of next year.
Persons: Jeffrey Gundlach, Gundlach Organizations: DoubleLine, Federal Reserve, West Texas, Consumer, Fed Locations: Texas
Ark Invest CEO Cathie Wood says she believes that Tesla is the "biggest AI opportunity in the world" today. She says that Tesla's autonomous taxi opportunity "is going to be a winner." "Again, this isn't the biggest AI project in the world right now. Wood gave Tesla a $2,000 price target by 2027 – representing potential upside of a whopping 650% from Tuesday's close. AI is the biggest catalyst," Wood said.
Persons: Cathie Wood, Tesla, CNBC's, Wood, Elon Musk, we're, , Yun Li Organizations: Reuters, Innovation Locations: United States, Tuesday's
Despite a recent slump, home prices are expected to continue to rise in 2024, according to a number of research firms that specialize in real estate forecasts, including Freddie Mac, Zillow and the National Association of Realtors. That's because homes aren't being built fast enough to keep up with demand, which puts upward pressure on prices, says Lawrence Yun, NAR chief economist at the National Association of Realtors. With too few homes for too many buyers, NAR expects home prices to rise by 2.6% in 2024. "There are simply not enough homes for sale," Yun said in a recent report. "The market can easily absorb a doubling of inventory."
Persons: Freddie Mac, Lawrence Yun, Yun, Freddie Mac's Organizations: National Association of Realtors, NAR Locations: United States
BRUSSELS, Sept 20 (Reuters) - European Union's second-top court on Wednesday backed an EU competition regulator's decision against a 700-million-euro ($748 million) Belgian tax scheme for 55 multinationals, in a major win for EU antitrust chief's crackdown on sweetheart tax deals. The Luxembourg-based General Court had in 2019 annulled Margrethe Vestager's decision after Belgium and about 30 of the companies challenged it. Beneficiaries of the Belgian scheme that dated from 2005 included U.S. manufacturer Magnetrol, oil company BP (BP.L), chemical producer BASF (BASFn.DE), Wabco, Cellio, Atlas Copco (ATCOa.ST) and Belgacom, now Proximus (PROX.BR) . The EU Court of Justice, Europe's top court, in 2021 however sided with the EU competition enforcer and referred the case back to the lower tribunal. Belgium can still appeal to the EU Court of Justice.
Persons: Margrethe Vestager's, Atlas, Europe's, Foo Yun Chee, Bart Meijer, Tomasz Janowski Organizations: Belgian, EU, BP, BASF, Justice, Belgian Finance Ministry, Thomson Locations: BRUSSELS, EU, Luxembourg, Belgium, Brussels, Amsterdam
First Citizens BancShares , the institution that bought a large chunk of failed Silicon Valley Bank, is set to benefit from these assets tied to financial innovation, according to JPMorgan. The Wall Street firm initiated coverage of First Citizens BancShares at overweight with a $1,850 price target for December 2024. Founded in 1898, First Citizens has been led by the Holding family for more than 100 years, and it has grown to a top 20 bank with $210 billion assets, JPMorgan said. The analyst noted that First Citizens is trading at a 16% discount to its peers despite the strong rally this year. "While the key to SVB's long-term success will eventually be the culture of the former company being resurrected, we find many similarities between the legacy SVB culture and the First Citizens culture," Alexopoulos wrote.
Persons: BancShares, SVB, Steven Alexopoulos, Alexopoulos, — CNBC's Michael Bloom Organizations: Bank, JPMorgan, First, First Citizens, Citizens Locations: Tuesday's, SVB, U.S
Pinterest — Shares climbed more than 3% during premarket trading after management said at the company's first investor day that it expects year-over-year revenue growth to accelerate following a slowdown in 2022 and 2023. General Mills — The Cheerios and Yoplait maker rose 1% during premarket trading after reporting fiscal first-quarter results that were slightly above Wall Street expectations and reiterating its outlook for fiscal 2024. Instacart — Shares of the grocery delivery company were down nearly 4% one day after its stock market debut. Coty — The cosmetics maker gained nearly 6% during premarket trading after raising its full-year outlook for 2024, citing momentum in fragrances at its prestige brands, including Burberry, Calvin Klein and Gucci. Bausch Health — The pharmaceutical stock gained more than 5% before the market open after Jefferies upgraded it to buy and raised its price target to $16.
Persons: Davidson, Mills —, Instacart, Coty, Calvin Klein, Gucci, Bausch, Goldman Sachs, , Yun Li, Tanaya Macheel, Pia Singh, Samantha Subin Organizations: Dollar, JPMorgan, Citi, D.A, Burberry, Bausch Health, Jefferies, Bloomberg
GM, led by CEO Mary Barra, tends to be the U.S. automaker most affected by strikes, historically speaking. During past work stoppages, GM has experienced 94% of total lost worker days among the Big Three U.S. auto manufacturers, Barclays said. The trading pattern for GM shares during walkouts has been somewhat predictable. GM has so far followed this trend, with shares barely changed on the year, compared with a 15% gain for the S & P 500 . in the eventual agreement that create an amount in excess of this would likely negatively impact post-strike stock performance," Levy said.
Persons: Mary Barra, Dan Levy, Levy Organizations: Motors, Barclays, GM, Big, United Auto Workers, UAW Locations: U.S, walkouts
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