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☆ Cash is all the rage as yields pop, but stocks are the way to go long term, BofA says
▼ + stars: | 2023-06-27 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +2 min

Over the long term, stocks are the way to grow wealth, according to Bank of America. Some $5.43 trillion is in money market funds, as of the week ending June 21 , according to the Investment Company Institute. "That's another way of saying that the S & P 500 is one of the world's best wealth-generating machines ever constructed," she added. Further, financial crises tend to be followed by economic and earnings growth cycles, along with sustained price gains for stocks. "All of the above are powerful structural forces for future long-term earnings growth — and key reasons not to rebalance too far in the direction of money market funds," Sanfilippo wrote.

Persons: Lauren Sanfilippo, Sanfilippo, — CNBC's Michael Bloom Organizations: Bank of America, Investment Company Institute . Retail

☆ Analysis: Latin America, after record tightening, could lead way on rate cuts
▼ + stars: | 2023-06-26 | by ( Marion Giraldo | ) www.reuters.com time to read: +5 min

The small South American country of Uruguay has already cut rates, by 25 basis points in April. Chile's central bank kept its key interest rate on hold at 11.25% last week, but said if recent positive trends continue, it could begin cutting the rate in the short term. Forecasts are pointing to a rate cut next month, said Cesar Guzman, macroeconomic analyst at Santiago-based Grupo Securities. Even there, however, the central bank opted to hold rates steady in June as monthly inflation slowed for the first time in half a year. "Colombia and Mexico will be the last ones to cut rates, possibly in the fourth quarter."

Persons: Joan Domene, Reuters Graphics Goldman Sachs, Alberto Ramos, Cesar Guzman, Luiz Inacio Lula da Silva, Kimberley Sperrfechter, Andres Pardo, Marion Giraldo, Natalia Ramos, Fabian Cambero, Nelson Bocanegra, Anthony Esposito, Jonathan Oatis Organizations: MEXICO CITY, U.S . Federal Reserve, European Central Bank, Bank of England, America, Oxford, Reuters Graphics, Grupo Securities, Reuters, Capital Economics, XP Investments, Thomson Locations: MEXICO, Chile, Brazil, Mexico, American, Uruguay, Santiago, COLOMBIA, America, Argentina, Colombia, Bogota

☆ Stock futures rise slightly as investors await economic data in run-up to month, quarter end
▼ + stars: | 2023-06-26 | by ( Alex Harring | ) www.cnbc.com time to read: +2 min

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, May 30, 2023. Stock futures were modestly higher Monday night as investors looked toward the next batch of economic data and readied for the end of June and the second quarter. S&P 500 futures and Nasdaq-100 futures each also gained around 0.2%Those moves follow a losing day on Wall Street. The Nasdaq Composite led the way down, dropping nearly 1.2% as investors took profits on some technology stocks. The S&P 500 closed down by about 0.5%, while the Dow was finished slightly below flat.

Persons: Tesla, Dow, Friday's, Scott Ladner, Russell Organizations: New York Stock Exchange, Stock, Dow Jones, Nasdaq, Nvidia, Dow, Horizon Investments, Walgreens Locations: New York City, Russia

☆ Investors watch for quarter-end rebalancing in US stocks, bonds and options
▼ + stars: | 2023-06-26 | by ( Saqib Iqbal Ahmed | ) www.reuters.com time to read: +2 min

NEW YORK, June 26 (Reuters) - Investors are watching a large hedged-equity fund's quarterly refresh of its options positions and quarter-end rebalancing by portfolio managers to potentially influence U.S. stock moves as the first half of the year winds down this week. The nearly $16 billion JPMorgan Hedged Equity Fund , which holds a basket of S&P 500 (.SPX) stocks along with options on the benchmark index, is expected to roll its options positions on Friday. While the trade is anticipated by many market participants, it can exacerbate or suppress daily stock market moves, especially during times of poor market liquidity, analysts said. For now, the trade may be helping suppress volatility in stocks. That may help curb market volatility, analysts said.

Persons: Brent Kochuba, Michael Purves, Saqib Iqbal Ahmed, Ira Iosebashvili, Matthew Lewis Organizations: YORK, JPMorgan Hedged Equity Fund, Bloomberg, JPMorgan, Tallbacken Capital Advisors, Thomson Locations: U.S, New York

☆ Watch CNBC's investment committee discuss the market
▼ + stars: | 2023-06-26 | 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 EmailWatch CNBC's investment committee discuss the marketAnastasia Amoroso, Joe Terranova, Sarat Sethi, and Steve Weiss, join 'Halftime Report' to discuss the market fundamentals, portfolio rebalancing out of equities into taxable fixed income, and low call option volatility.

Persons: Anastasia Amoroso, Joe Terranova, Sarat Sethi, Steve Weiss Organizations: Watch

☆ Lots of portfolios have too much tech exposure, says DCLA's Sarat Sethi
▼ + stars: | 2023-06-26 | 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 EmailLots of portfolios have too much tech exposure, says DCLA's Sarat SethiAnastasia Amoroso, Joe Terranova, Sarat Sethi, and Steve Weiss, join 'Halftime Report' to discuss the market fundamentals, portfolio rebalancing out of equities into taxable fixed income, and low call option volatility.

Persons: DCLA's Sarat Sethi Anastasia Amoroso, Joe Terranova, Sarat Sethi, Steve Weiss

Bret: I’d have a much easier time accepting affirmative action if the principal criterion was class, not race. Gail: You can’t leave race out, but yes, it’s important to mix it with other parts of a biography. Diversity is also about making sure universities don’t become ideological monocultures where people look different but share nearly all the same opinions and assumptions. Gail: To me, diversity is a very, very important goal — you don’t want to be living in a world in which all the folks of one race or class never interact with folks from another. Bret: Diversity can be a virtue, but it doesn’t have to apply in every conceivable setting or override other considerations, especially academic excellence.

Persons: Bret, I’d, Gail Locations: East, South Asia

☆ Investors are buying this ETF as a bet that the stock market rally will broaden out
▼ + stars: | 2023-06-23 | by ( Jesse Pound | In Jesse-Pound | ) www.cnbc.com time to read: +2 min

The fund puts an equal amount of money into each stock in the S & P 500 and is rebalanced quarterly, diluting the effect of the biggest companies. Through Thursday, the RSP was up about 4.6% in June compared with 4.5% for the SPDR S & P 500 ETF Trust (SPY) . "Despite what many consider the market's limited participation, the A/D index for the S & P has reached an all-time high [recently]. Here is the full list of top five ETFs by fund flows over the past week, according to FactSet. Similarly, the Vanguard Intermediate-Term Corporate Bond ETF (VCIT) brought in more than $400 million over the past week.

Persons: it's, Wellington, Frank Gretz Organizations: Nvidia, Microsoft, RSP, Trust, Wellington Shields, Corporate

☆ Friday could offer a once-in-a-year chance to cash in on tech gains
▼ + stars: | 2023-06-23 | by ( Bob Pisani | ) www.cnbc.com time to read: +5 min

Following on the rebalancing of S & P indexes last week, on Friday the Russell indexes will do their annual rebalancing. FTSE Russell also has a vast suite of products indexed to benchmarks like the small-cap Russell 2000 , the large-cap Russell 1000 , and the Russell 1000 Growth and Value indexes. FTSE Russell estimates that about $12.1 trillion is currently benchmarked to the FTSE Russell indexes. On average, about 12% of the Russell 2000 (about 242 stocks) turns over every year since 2006, according to FTSE Russell. This year, about 15% of the Russell 2000 will turnover, and about 2% of the Russell 1000, according to Wells Fargo.

Persons: Russell, It's, Wells Fargo, Chris Harvey, Mike O'Rourke, Wells Fargo's Harvey Organizations: Russell, Technology, Apple, Microsoft, Nvidia, Investors, Netflix, Google, FTSE Russell, Jones, Amazon Locations: Wells Fargo, Freeport McMoRan .

☆ Ron Baron says Tesla shares will hit $500 in 2025
▼ + stars: | 2023-06-23 | by ( Michelle Fox | ) www.cnbc.com time to read: +1 min

Tesla shares will hit $500 in 2025, longtime investor Ron Baron predicted Friday. TSLA 5Y mountain Tesla's 5-year performance Baron Capital now holds 17.5 million shares of Tesla, accounting for slightly less than 10% of the portfolio, he said. Tesla shares have been on a tear, rallying more than 114% so far in 2023. That runup led longtime Tesla bull Adam Jonas, an analyst at Morgan Stanley, to downgrade the stock to equal weight from overweight Thursday. Tesla shares sank 65% last year.

Persons: Tesla, Ron Baron, Baron, runup, Adam Jonas, Morgan Stanley, he's Organizations: Ford, General Motors, Tesla, Baron Capital

☆ Bank of Canada to gauge need for further rate hikes based on data - minutes
▼ + stars: | 2023-06-21 | by ( ) www.reuters.com time to read: +2 min

On June 7 the central bank, which had been on hold since January, raised its overnight rate to 4.75%. The governing council discussed whether or not it should signal a rate increase and then execute it in July, but decided that there was enough data to act immediately, the minutes said. The council then agreed to "assess the need for further policy rate increases based on the incoming data", the minutes said. The governing council said it expected that second quarter growth would outpace the 1% annualized pace it forecast in April, according to the minutes. "Governing Council agreed that the economy remained clearly in excess demand and that the rebalancing of supply and demand was likely to take longer than previously expected", the minutes said.

Persons: Steve Scherer, David Ljunggren OTTAWA, David Ljunggren Organizations: Bank of Canada, Thomson Locations: Canada

☆ Main Street's labor problem is weighing on business owners as summer hiring picks up
▼ + stars: | 2023-06-21 | by ( Kate Rogers | ) www.cnbc.com time to read: +2 min

Alison Schuch owns Fells Point Surf Co., with locations in Maryland and Delaware. As summer arrives, Schuch is down about ten workers at her two beach locations as a perfect storm of reasons drive a post-pandemic hiring crunch. With summer hiring season in full swing, small business owners like Schuch have lingering concerns about filling roles to meet consumer demand. Labor quality was the most important problem for nearly a quarter of National Federation of Independent Business members surveyed in May, according to the small business advocacy organization. While owners have concerns about future business conditions and a potential recession, they're still trying to hire and raise wages to entice workers.

Persons: Alison Schuch, Schuch, It's, they're, Brendan McCluskey, he's, McCluskey Organizations: Co, Dewey, Goods, Labor, National Federation of Independent Business, Trident Builders Locations: Maryland, Delaware, Fells Point , Maryland, Dewey Beach , Delaware, Bethany Beach , Delaware, Baltimore , Maryland

☆ Opinion | Dobbs Could Mark the End of the American Bargain
▼ + stars: | 2023-06-21 | by ( Katherine Miller | ) www.nytimes.com time to read: +3 min

The proof of the existence of this bargain is the way people talk about prospective trades: Would you give up this for that? But the table feels like it’s tilting like that in the 21st century, the bargain rebalancing in unpredictable ways, even when unwanted by the public. Governors who sign laws that reverse older laws sometimes stay quiet; Republican presidential candidates remain vague about what policy should look like. We didn’t know if we’d be fined,” a Florida woman told CNN. A Republican participant said, “If they are demanding control here, where does it end?”

Persons: Roe, Wade, we’d, something’s, ”, “ Organizations: South, Republican, ”, CNN, Arizona Republican, Politico Locations: Kansas, Michigan, Ohio, Florida, Arizona

☆ Tesla returns to S&P 500 ESG index with more environmental disclosures
▼ + stars: | 2023-06-21 | by ( Ross Kerber | ) www.reuters.com time to read: +2 min

REUTERS/Mike BlakeJune 21 (Reuters) - Tesla Inc (TSLA.O) has returned to the S&P 500 ESG index, the sustainable investing-focused market index, after the electric car maker added environmental disclosures. The re-inclusion of Tesla is largely symbolic because only about $8 billion in assets track the S&P 500 ESG index, a tiny fraction of the $15.6 trillion in assets that track the S&P 500 index, according to its provider, part of S&P Global (SPGI.N). Tesla was among 39 companies added to the S&P 500 ESG index effective May 1 as part of an annual rebalancing. Other companies added included Chevron (CVX.N) and Fox (FOXA.O), while 23 companies were removed including Exxon (XOM.N) and Oracle (ORCL.N). S&P said it has a review underway that "relates to racial discrimination in Tesla factories," which could impact future scores.

Persons: Mike Blake, Tesla, Elon Musk, Todd Rosenbluth, Ross Kerber, Lisa Shumaker Organizations: Tesla, REUTERS, Tesla Inc, P, Chevron, Fox, Exxon, Oracle, Thomson Locations: Long Beach , California, U.S

☆ Goldman says these stocks will grow profitability, while the rest of corporate America struggles
▼ + stars: | 2023-06-20 | by ( John Melloy | ) www.cnbc.com time to read: +2 min

Corporate profitability has likely bottomed in this tough economy, but don't expect companies to expand margins and profits significantly in the next 12 months, a Goldman Sachs' analysis shows. "Looking forward, although S & P 500 ROE has potentially troughed, substantial ROE growth appears unlikely in the near term. Goldman looked at companies where its own analysts expect ROE to expand the most over the next 12 months. Here are some of the stocks in the basket: Disney will increase ROE by 21% over the next 12 months, Goldman expects. Over the long term, Goldman believes a new phenomenon could help get overall profits growing again: artificial intelligence.

Persons: Goldman Sachs, Goldman, David Kostin, ROE Organizations: Facebook

☆ Today is the day stock options and index futures expire, so expect a lot of volume
▼ + stars: | 2023-06-16 | by ( Bob Pisani | ) www.cnbc.com time to read: +1 min

Today is expiration day, so expect a lot of volume. Two things happen today: the so-called triple witching, or the quarterly expiration of stock and index options and index futures, and the S & P 500 quarterly rebalancing, where additions and deletions to the S & P are done. The effect of the triple witching has been greatly reduced due to the tremendous growth of weekly and monthly options that have been big competition for the quarterly expiration. The S & P rebalancing will see Palo Alto Networks go into the S & P 500, and Dish Network relegated to the small-cap S & P 600. This is also the day when index funds — such as S & P 500 index funds run by Vanguard, State Street, iShares, etc.

Organizations: Palo Alto Networks, Dish Network, Vanguard, Apple, ExxonMobil, Meta, Nvidia Locations: Palo Alto, iShares, Chevron , Berkshire

It's focused on maximizing your after-tax yield with a diverse, low-cost blend of bond ETFs. Read our review Read Our Review A looong arrow, pointing rightWhy you should consider an automated bond portfolioWealthfront's automated bond portfolio pays a 5.59% yield, which is higher than Wealthfront's own cash account that pays 4.55% to 5.05%. Also, the automated bond portfolio may be tax-advantaged, but there's no guarantee that it will work. But neither platform offers automated investing specifically for bond ETFs, so passive investors are better off with Wealthfront. It also invests in a blend of commission-free bond ETFs and iShares bond ETFs.

Persons: Wealthfront, —, Charles Schwab, you'll Organizations: Bond, Service, SEC, Reading Chevron, Treasury, Fidelity, Wealthfront

☆ Stock futures are little changed as Wall Street looks toward winning week: Live updates
▼ + stars: | 2023-06-15 | by ( Alex Harring | ) www.cnbc.com time to read: +3 min

S&P 500 futures and Nasdaq-100 futures also both traded down almost 0.1%. The moves follow a winning session on Wall Street as investors bet interest rate hikes were coming to an end after the Federal Reserve announced it would not increase rates at its meeting this week. Up nearly 3%, the S&P 500 is on pace to notch its best weekly performance since March. However, expiration week often tends to be higher during bull markets and lower in bear markets, according to the Stock Trader's Almanac. That may bode well at least for the S&P 500 and Nasdaq Composite, which are posting strong weeks thus far.

Persons: Dow, Sam Stovall, bode Organizations: New York Stock Exchange, Stock, Federal Reserve, Dow Jones Industrial, Nasdaq, Virgin Galactic, Adobe, Wall, CFRA Locations: New York City, UnitedHealth

It's focused on maximizing your after-tax yield with a diverse, low-cost blend of bond ETFs. Here's everything you need to know about the new Wealthfront automated bond portfolio. Read our review Read Our Review A looong arrow, pointing rightWhy you should consider an automated bond portfolioWealthfront's automated bond portfolio pays a 5.48% yield, which is higher than Wealthfront's own cash account that pays 4.55% to 5.05%. Also, the automated bond portfolio may be tax-advantaged, but there's no guarantee that it will work. It also invests in a blend of commission-free bond ETFs and iShares bond ETFs.

Persons: Wealthfront, —, Charles Schwab, you'll Organizations: Bond, Service, SEC, Reading Chevron, Treasury, Fidelity, Wealthfront

☆ What comes next for ESG funds after the political backlash
▼ + stars: | 2023-05-29 | by ( Jesse Pound | In Jesse-Pound | ) www.cnbc.com time to read: +6 min

Surging energy stocks in 2022 hurt the performance of many of the largest funds, and political backlash has gained traction with several states moving to block state funds from being invested in ESG products. According to AllianceBernstein, there were $12.1 billion of outflows from ESG funds in North America during the first quarter, although that was due to large outflows from a handful of funds. "This was primarily driven by redemptions from a few large passive ESG funds (e.g., iShares ESG Aware MSCI USA ETF ) due to underlying investors rebalancing their factor exposure. Clearly the political backlash against ESG also weighed on sentiment and demand for ESG products in North America," AllianceBernstein's Zhihan Ma said in an early May note to clients. There were $2.7 billion of inflows into ESG funds in Western Europe during the first quarter, according to Bernstein.

☆ A fund manager for institutional clients shares the offensive and defensive strategies she uses to build portfolios that can navigate all conditions and last generations — plus what all investors can
▼ + stars: | 2023-05-22 | by ( Laila Maidan | ) www.businessinsider.com time to read: +7 min

Menon has discretion over several institutional clients' portfolios including endowments, foundations, pensions, and healthcare institutions. Regardless of expectations, Menon emphasizes that it's hard to build a portfolio around any particular macroeconomic outcome. This means creating a portfolio that prioritizes offensive assets through equities while adding defensive securities, she noted. When it comes to defensive positions, the two most important things a portfolio needs protection against are inflation and deflation. "Private equity would fall more in the space of offense in terms of generating long-term growth in a portfolio," Menon said.

☆ The Great Resignation is giving way to the 'Big Stay' as job-hopping slows down
▼ + stars: | 2023-05-13 | by ( Madison Hoff | ) www.businessinsider.com time to read: +6 min

It may be accurate to say the quitting situation is evolving into the "Big Stay," per ADP's chief economist. "The Big Quit of 2022 could be easing into the Big Stay of 2023," Richardson wrote in her recent commentary. "A year later, all three of these dynamics are abating, and the great resignation itself is looking like a thing of the past." Pollak said that "to the extent that there is a big stay, it is not taking place across the economy." Even if the Great Resignation might not be prevalent in all areas of the economy right now, it could emerge again.

☆ Dow futures slip after Disney shares stumble on weak subscriber growth: Live updates
▼ + stars: | 2023-05-10 | by ( Hakyung Kim | ) www.cnbc.com time to read: +1 min

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, May 10, 2023. U.S. stock futures remained relatively flat on Wednesday night after Disney posted its latest quarterly results and investors look toward Thursday's Producer Price Index report. S&P 500 futures rose 0.07%, while Nasdaq-100 futures ticked up 0.02%. While higher prices helped its streaming division to narrow its losses, it dealt a harsh blow to subscriber growth. The weekly jobless claims numbers from the prior week will be announced, as well as the data from April's Producer Price Index, which measures price changes in goods used by producers.

☆ Concerns over the debt ceiling could lead to a sell-off, says Destination Wealth's Michael Yoshikami
▼ + stars: | 2023-05-09 | 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 EmailConcerns over the debt ceiling could lead to a sell-off, says Destination Wealth's Michael YoshikamiMichael Yoshikami, CEO of Destination Wealth Management, joins 'The Exchange' to discuss opportunities in short-term and fixed income markets, rebalancing portfolio strategies, and big cap tech names to invest in.

☆ Euro zone companies are slowing price hikes - ECB poll
▼ + stars: | 2023-05-05 | by ( ) www.reuters.com time to read: +1 min

FRANKFURT, May 5 (Reuters) - Euro zone companies are raising prices at a more moderate pace as their costs stabilise, demand cools and competition mounts, although growing wages remain a concern, according to a European Central Bank survey published on Friday. read moreThe central bank's latest poll of 61 large euro zone companies from outside the financial sector may give it some comfort, with companies reporting slower price growth, albeit with differences among sectors. Labour costs were rising, with wages expected to rise by 5% this year -- unchanged from the previous survey round in February. This meant that service providers, which are particularly sensitive to labour costs, continued to anticipate strong price hikes. By contrast, companies that sell consumer goods, particularly non-essential ones, saw price hikes "becoming more difficult".

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