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Costco Wholesale — The membership-only retailer saw shares dip about 1% after the company missed expectations for fiscal fourth-quarter revenue. Super Micro Computer — Shares of the artificial intelligence beneficiary slipped 2%, adding to their 12% loss in the previous session. The Wall Street Journal reported that the U.S. Justice Department had opened a probe on the company. Dollar General — Shares fell 2% after Citi downgraded Dollar General to sell from neutral, saying Walmart 's increasing dominance in retail, especially on pricing, has the dollar store "on the wrong side." HP Inc. — The tech hardware stock fell about 2% after a downgrade to neutral from buy at Bank of America.
Persons: Myers Squibb, Costco, Hindenburg, Morgan Stanley, , KeyBanc, — CNBC's Hakyung Kim, Lisa Kailai Han, Yun Li, Sarah Min, Jesse Pound, Samantha Subin, Michelle Fox Organizations: Myers, U.S . Food, Drug Administration, Novo Nordisk —, JPMorgan, Costco Wholesale, Revenue, Street Journal, U.S . Justice Department, U.S . Securities, Exchange Commission, Wynn Resorts, Citi, Walmart, HP Inc, Bank of America, HP Locations: Bristol, U.S, Novo Nordisk — U.S, Danish
China cuts banks' reserve ratio as economic growth sputters
  + stars: | 2024-09-27 | by ( ) www.cnbc.com   time to read: +1 min
The People's Bank of China (PBOC) building in Beijing, China, on Tuesday, April 18, 2023. Source: BloombergChina's central bank said on Friday it would cut the amount of cash that banks must hold as reserves by 50 basis points, the second reduction this year aimed at bolstering faltering economic growth. The People's Bank of China said it would cut the reserve requirement ratio for all banks, except those that have implemented a 5% reserve ratio. "The PBOC has adhered to a supportive monetary policy stance, increased the intensity of monetary policy regulation and control, and improved the precision of monetary policy regulation and control, so as to create a favourable monetary and financial environment for China's stable economic growth," its statement said. But analysts have noted businesses and consumers have little appetite to take on fresh debt given the uncertain economic outlook.
Persons: Pan Gongsheng, Pan Organizations: People's Bank of China, Bloomberg, PBOC, People's Bank of Locations: Beijing, China, People's Bank of China
Russia's central bank says inflation is rising while the nation's economy cools. These are the key ingredients for stagflation, a scenario that's harder to combat than a recession. Go to newsletter preferences Thanks for signing up! download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . AdvertisementAs Russia's GDP and inflation figures move in the wrong direction, the worst-case scenario for any economy looms large over Moscow.
Persons: Organizations: Service, Bloomberg, Business Locations: Moscow
While HYSA rates are dropping, they're still far higher than many traditional savings account rates. With the Fed cutting rates for the first time in four years, many are anticipating a decrease in the interest rates on high-yield savings accounts — finding a high-yield savings account with a 5% interest rate is already getting harder. High-yield savings accounts are low-riskOne major reason to keep your money in a high-yield savings account is that it is a low-risk option. Interest rates still beat other savings accountsOne of the best reasons to keep your money in a high-yield savings account is the higher interest rate compared to traditional bank savings accounts. High-yield savings accounts are still ideal for your emergency fundHigh-yield savings accounts are an excellent choice for short-term (up to a year) and medium-term (one to five years) financial goals.
Persons: they're, Jovan Johnson Jovan Johnson, Jovan Organizations: Barclays Bank, Bank of America, CPA, Instagram Locations: Atlanta , Georgia
These real estate stocks top Bank of America’s buy list
  + stars: | 2024-09-26 | by ( Michelle Fox | ) www.cnbc.com   time to read: +4 min
Investors looking to get in on the recent rise in real estate stocks should focus on quality, according to Bank of America. The real estate sector of the S & P 500 has been moving higher over the past month or so and is now up 10% year to date, after being in the red earlier this year. Real estate investment trusts are also an income play, often paying out attractive dividends. .SPLRCR YTD mountain S & P 500 Real Estate Sector The Federal Reserve started its rate-cutting cycle last week, slashing the federal funds rate by 50 basis points. Health-care real estate is a play on the aging of America , which will see more people seeking medical services and senior housing, Hall said.
Persons: Jill Carey Hall, REITs, Hall, Jeffrey Spector, Welltower, Spector Organizations: Bank of America, Real, Federal Reserve, Communities, American, Federal Realty Investment Trust Locations: America, U.S
Trade will work regardless Yet, reshoring is the one macroeconomic trade that will work no matter who wins the White House, according to Societe Generale. Last year, there were 287,000 reshoring and foreign direct investment job announcements, the second-highest year on record, according to the Reshoring Initiative . "One trade that has worked under both of the last two administrations is our US Reshoring 'beneficiary' equities," Kabra wrote. The company provides industrial automation products and services. The industrial conglomerate has a hand in a range of industries, including industrial automation solutions and building automation.
Persons: Donald Trump, Trump, Kamala Harris, John Deere, Harris, Dan Levy, Manish Kabra, Kabra, reshoring, Morgan Stanley, Blake Moret, Jill Carey Hall, Michael Feinger, Feinger, Peter Matt Organizations: Barclays, Societe Generale, Science, Generale's, China, Reshoring, Trump, Packaging Corporation of America, Cummins, Rockwell Automation, Honeywell, Bank of America, Eaton, Steel Dynamics, United Rentals, Commercial Metals Locations: United States, Mexico, China, U.S, reshoring, Midwest
China central bank cuts medium-term loan rate
  + stars: | 2024-09-25 | by ( ) www.cnbc.com   time to read: +1 min
China's central bank lowered the cost of its medium-term loans to banks on Wednesday in a move consistent with broad policy easing measures announced a day earlier to shore up a flailing economy. China's central bank lowered the cost of its medium-term loans to banks on Wednesday in a move consistent with broad policy easing measures announced a day earlier to shore up a flailing economy. The People's Bank of China said it cut the rate on 300 billion yuan ($42.66 billion) worth of one-year medium-term lending facility loans to some financial institutions to 2.00% from 2.30%. The bid rates in Wednesday's operation ranged from 1.90% to 2.30%, and the total balance of MLF loans now stands at 6.878 trillion yuan, the central bank said in an online statement. A batch of 591 billion yuan worth of MLF loans expired this month.
Organizations: People's Bank of Locations: People's Bank of China, Beijing
Bettina Orlopp, chief financial officer of Commerzbank AG, speaks during a fourth quarter earnings news conference at the bank's headquarters in Frankfurt, Germany, on Thursday, Feb. 13, 2020. Commerzbank announced Tuesday it has picked 10-year veteran, and current Chief Financial Officer Bettina Orlopp to helm the bank as chief executive as it seeks to fend off a potential hostile takeover from Italian bank UniCredit. The bank has been on the defensive as UniCredit looks to become its largest shareholder, signaling the potential for a full takeover. Earlier this month, the Milan-based bank started building its shareholding with a 9% stake in Commerzbank. Senior officials at Commerzbank and the German government, which was the company's largest shareholder until UniCredit stepped in, have both said they oppose a hostile takeover.
Persons: Bettina Orlopp, Commerzbank, UniCredit, Orlopp, Manfred Knof Organizations: Commerzbank AG Locations: Frankfurt, Germany, Milan, Commerzbank
Bank of America says the economy should enter a "recovery" phase as early as next year. So investors may want to consider higher-risk small-caps, which outperform in recovery, BofA says. Below are three higher-risk stocks that are well-positioned to take off next year. Go to newsletter preferences Thanks for signing up! But despite warning signs emerging in the labor market, Bank of America says investors should start to consider adding riskier assets to their portfolio heading into 2025.
Persons: BofA, , Justin Post Organizations: of America, Service, Bank of America, Bank of, Federal Reserve, Business Locations: Bank of America's
Beijing's latest housing-support measures won't fix China's property crisis, JPMorgan wrote. The nation announced this week that it will reduce mortgage rates and downpayment rules. Go to newsletter preferences Thanks for signing up! AdvertisementChina's all-out stimulus package will fail to meaningfully reverse ongoing chaos in the nation's property market, JPMorgan said in new research. Though Beijing committed on Tuesday to reduce mortgage rates and downpayment rules, the bank said these efforts will not bolster housing consumption as hoped.
Persons: , Haibin Zhu Organizations: JPMorgan, Service, Business Locations: Beijing, China
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailForeign investors are diversifying investments in India, says JPMorganKaustubh Kulkarni of the investment bank says the breadth of sectors investors are deploying capital into has "increased in a meaningful manner" in the last three years.
Persons: Kaustubh Kulkarni Locations: India
Investors bought into the interest rate cut. Equity inflows last week were the largest they had been in roughly two years, according to Jill Carey Hall, equity and quant strategist at Bank of America Securities. The Wall Street bank reported its clients snapped up $6.9 billion worth in stocks, the highest level going back to October 2022. XLU YTD mountain Utilities Utilities were the big winner here. On the other hand, investors dumped financials, real estate and energy stocks last week.
Persons: Jill Carey Organizations: Bank of America Securities, Traders, Federal, Dow Jones Industrial, Utilities Utilities, Bank of, Tech Locations: Bank
Smartsheet — Shares surged more than 6% after Blackstone and Vista Equity Partners agreed to buy the software maker for $56.50 a share in cash, or about $8.4 billion . Unless another offer is made, the deal is expected to close by January 2025, pending shareholder approval. China stocks — Shares of Chinese companies soared after China's central bank unveiled a host of stimulus measures . Thor earned $1.68 per share on $2.53 billion in revenue in its fiscal fourth quarter. Flowserve — The stock moved nearly 5% higher after Bank of America reiterated a buy rating, saying its exposure to nuclear power is "underappreciated."
Persons: Alibaba, Li, Thor, LSEG, Morgan Stanley, BioNTech, Guggenheim, Joseph, Alex Harring, Samantha Subin, Lisa Kailai Han, Jesse Pound, Sarah Min Organizations: Bloomberg, Justice Department, Blackstone, Vista Equity Partners, JD.com, PDD Holdings, Li Auto, Thor Industries, Arlo Technologies, Bank of America, GE, Joseph Osha Locations:
Oil prices rose on Tuesday on concerns the intensifying conflict between Israel and Hezbollah may impact supply in the key Middle East producing region and a tropical storm may impact output in the U.S., the world's biggest crude producer, later this week. Oil prices rose on Tuesday on concerns the intensifying conflict between Israel and Hezbollah may impact supply in the key Middle East producing region and a tropical storm may impact output in the U.S., the world's biggest crude producer, later this week. Brent crude futures for November were up 21 cents, or 0.3%, at $74.11 a barrel at 0030 GMT. "The oil market has been concerned that rising tensions in the region were dragging the OPEC oil producer closer to engagement," said ANZ bank said in a note, referring to Iran. U.S. oil producers were evacuating staff from Gulf of Mexico oil production platforms as forecasters predicted the second major hurricane in two weeks could tear through offshore oil producing fields.
Organizations: Brent, Hezbollah, ANZ, U.S, National Hurricane Center Locations: Israel, U.S, Lebanon, Iranian, Hamas, Gaza, Iran, Gulf Coast, Gulf, Mexico, Cuba
UniCredit announced on Monday it had increased its stake in German lender Commerzbank to around 21% and submitted a request to boost the holding to up to 29.9%. The Italian bank acquired the additional Commerzbank shares through financial instruments, it said in a Monday statement. Earlier this month, UniCredit announced it had taken a 9% stake in Commerzbank, confirming that half of this shareholding was acquired from the German government. However, as was the case for UniCredit, such potential requires action for it to be crystalized," the bank said on Monday. Commerzbank shares were down 0.4% by 11:50 a.m. London time, while UniCredit shares fell 2.3%.
Persons: UniCredit, Commerzbank, Berlin Organizations: Federal Locations: Frankfurt, Germany, Commerzbank, London
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
Lennar — The homebuilding stock slipped 3% despite beating analysts' expectations for its fiscal third quarter. Trump Media & Technology Group — Shares traded nearly 5% lower as selling restrictions on former President Donald Trump and other early investors ended. PepsiCo — The snacks and beverage stock slipped 1% following a downgrade at Morgan Stanley to equal weight from overweight. ASML — Shares slipped 2% after Morgan Stanley downgraded the semiconductor manufacturer to equal weight from overweight. Aptiv — Shares of the automobile technology supplier rose more than 1% after an upgrade to overweight from equal weight at Wells Fargo.
Persons: John Donahue, Elliott Hill, Lennar, LSEG, Donald Trump, MillerKnoll, Tesla, Morgan Stanley, Lee Simpson, Piper Sandler, Chewy, Buddy Chester, CNBC's Michelle Fox, Sarah Min, Jesse Pound, Samantha Subin Organizations: Nike —, FedEx —, Trump Media & Technology, , Constellation Energy, Microsoft, — Auto, Mercedes, General Motors, PepsiCo, Contessa Pharmaceuticals, Valero Energy Locations: China, Wells Fargo
The Japanese flag flutters over the Bank of Japan (BoJ) head office building (bottom) in Tokyo on April 27, 2022. The Bank of Japan kept its benchmark interest rate steady at "around 0.25%" — the highest rate since 2008 — at the conclusion of a two-day meeting Friday. Japan's economy has recovered moderately, the central bank said in its official statement, while acknowledging "some weakness has been seen in part." BOJ Governor Kazuo Ueda said last month that the central bank would continue to raise interest rates if the economy and inflation stayed in line with the central bank's projection. On Thursday, The U.S. Federal Reserve cut interest rates by 50 basis points to a range of 4.75% to 5.0%.
Persons: BOJ, Kazuo Ueda Organizations: Bank of Japan, The Bank of Japan, Nikkei, U.S . Federal Reserve Locations: Tokyo
Constellation Energy – Shares surged more than 17% after the company announced plans to restart the Three Mile Island nuclear plant and sell that power to Microsoft to satisfy the energy needs of its data centers. ASML – The semiconductor stock slid 3.4% in the wake of a Morgan Stanley downgrade to equal weight from overweight. Morgan Stanley said the risk-to-reward ratio has been "balancing." Centessa Pharmaceuticals – The biotech stock rose more than 4% after Morgan Stanley upgraded it to overweight from equal weight. Valero Energy – The energy stock declined nearly 3% after a Piper Sandler downgrade to neutral from an overweight rating, citing "less room for outperformance."
Persons: Raj Subramaniam, Elliott Hill, John Danahoe, Eli Lilly's orforglipron, Eli Lilly, Vistra, it's, Donald Trump, Lennar, ASML, Morgan Stanley, Piper Sandler, Buddy Chester, Alex Harring, Brian Evans, Samantha Subin, Yun Li, Lisa Kailai Han, Jesse Pound, Michelle Fox Organizations: FedEx, Nike, Constellation Energy, Microsoft, Novo Nordisk –, Deutsche Bank, Corbus Pharmaceuticals, Novo Nordisk's, Viking Therapeutics, Vision, Trump Media & Technology, Pharmaceuticals, Valero Energy Locations: Novo, Texas
But Wells Fargo cautioned that the pop is detached from reality. However, the benefits of easing policy may not be truly felt until next year due to the uncertainty surrounding the presidential election, Wells said. The Wall Street bank said the S & P 500 is likely to be range bound in the coming months and it is already trading toward the top of the range. Wells sees the S & P 500 finishing 2024 at 5,200, 7% below Wednesday's closing level. Its target is one of the lowest forecasts among Wall Street strategists, who on average project the benchmark ending the year at 5,571, according to CNBC Pro's market strategist survey.
Persons: Stocks, Wells Fargo, Scott Wren, Wells, Wren Organizations: Street, CNBC Locations: U.S
Darden Restaurants — Shares advanced nearly 11% after the restaurant operator announced a multiyear partnership with Uber for on-demand delivery later this year. The company reported weaker-than-expected quarterly earnings and revenue, however, as its sales weakened at Olive Garden and its fine dining restaurants. DoorDash — The food delivery stock rose more than 3% after an upgrade to buy from neutral at BTIG. Alibaba – Shares rose more than 4% after the Chinese e-commerce company launched more than 100 open-source artificial intelligence models and a text-to-video tool. FedEx — Shares rose more than 1% ahead of the shipping giant's first-quarter earnings report due after the bell.
Persons: Uber, Jefferies, chipmakers, FactSet, Alibaba, Max, Stocks, bitcoin, — CNBC's Sean Conlon, Alex Harring, Samantha Subin, Jesse Pound, Brian Evans, Sarah Min, Michelle Fox Theobald Organizations: Darden, Olive, NextEra Energy, Nvidia, Arm Holdings, Micron, Micron Technology, FedEx —
Read previewMorgan Stanley has some disappointing news for investors: your taxes are probably going up in the next few years. But one strategist at Morgan Stanley says it's not that simple. Despite these differences, Morgan Stanley expects tax rates to increase no matter who takes office. And a divided Congress, which Morgan Stanley predicts is very likely in November, will only further reduce the likelihood of dramatic change. Typically, the stock market is more influenced by the business cycle than tax policy or political party, according to Morgan Stanley.
Persons: , Morgan Stanley, Trump, Kamala Harris, it's, Monica Guerra, Morgan Stanley Wealth Management's, Harris, Biden, There's, haven't, Guerra isn't, Guerra Organizations: Service, Business, Morgan Stanley Wealth, US, Trump, Republican, Democratic, Treasurys, New, Equity Locations: New York City
Check out the companies making headlines in midday trading: Tech stocks — Key tech names rallied a day after the Federal Reserve's supersized rate cut decision. Coursera — The online education platform jumped more than 8% on the back of Bank of America's initiation at a buy rating. Uber shares rose 3%. NextEra Energy Partners — The stock rose more than 3% on the heels of Jefferies initiating coverage with a buy rating. Crypto stocks — Stocks tied to bitcoin's price climbed as the cryptocurrency moved more than 4% higher following the Fed's rate cut on Wednesday.
Persons: Tesla, Meta, Coursera, Uber, DoorDash, Jefferies, Stocks, MicroStrategy, Alibaba, Alex Harring, Samantha Subin, Lisa Kailai Han, Pia Singh, Michelle Fox Organizations: Tech, Federal, Nvidia, Therapeutics, Intel, Bank of, Darden, DoorDash, NextEra Energy Partners, JPMorgan Locations: Mobileye, Olive
Dollar catches footing ahead of Fed
  + stars: | 2024-09-18 | by ( ) www.cnbc.com   time to read: +3 min
The dollar steadied on Wednesday as stronger-than-expected U.S. retail sales had traders slightly trimming bets that the U.S. easing cycle will begin with an outsized interest rate cut. The Federal Reserve is expected to make its first interest rate cut in more than four years at 1800 GMT, which will be followed by a news conference half an hour later. A rate cut is fully priced, with interest rate futures implying a 63% chance of a 50 basis point cut, after flirting with 70% a day earlier. Traders say the Fed's tone as well as the size of the rate cut will drive the next moves in the foreign exchange market. China's stock, bond and currency markets resume trade on Wednesday after the mid-autumn festival break, though it is a holiday on Wednesday in Hong Kong.
Persons: Nathan Swami, Swami Organizations: Federal, Traders, Citi, Australian, New Zealand, Sterling, Bank of, ANZ Bank Locations: Buenos Aires, Argentina, Asia, U.S, Japan, Atlanta, Singapore, Hong Kong, Bank of England
Biotechnology stocks offer an under-the-radar and unappreciated way to profit from the central bank's looming campaign to start cutting the cost of borrowing, according to Goldman Sachs. Investors may have already begun to anticipate the effect of lower rates on some biotech companies. IBB .SPX mountain 2024-06-30 The iShares Biotechnology ETF has risen more than twice as much as the S & P 500 this quarter. The iShares Biotech ETF is up 7.7% this quarter while the Nasdaq Biotech Index has advanced 7.4%, more than double the 3.2% gain in the S & P 500 since June 30. Year-to-date, Regeneron is up 30.6% and Vertex by 18.3%, both outperforming the 18.1% rise in the S & P 500.
Persons: Goldman Sachs, John Flood, Goldman, Flood, Regeneron Organizations: Biotechnology, Federal Reserve, Gilead Sciences, Nasdaq Biotechnology, IQVIA Holdings, Regeneron Pharmaceuticals, Amgen, Vertex Pharmaceuticals, iShares Biotech, Nasdaq Biotech Locations: Gilead
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