Tech’s popular ‘FAANG’ stocks have lost $945 billion and counting from highs amid tech rout

Facebook shares have slid 40 percent from their highs, as the company has been the hardest hit of the FAANG stocks. Amazon shares continue a fall begun when it gave a fourth-quarter outlook on Oct. 25 which was much lower than expected. Netflix and Alphabet shares, meanwhile, have largely fallen in lockstep with the rest of the FAANG stocks. Facebook and Alphabet each hit their 52-week highs in July, at $218.62 a share and $1291.44 a share, respectively. Amazon and Apple were the most recent to


Facebook shares have slid 40 percent from their highs, as the company has been the hardest hit of the FAANG stocks. Amazon shares continue a fall begun when it gave a fourth-quarter outlook on Oct. 25 which was much lower than expected. Netflix and Alphabet shares, meanwhile, have largely fallen in lockstep with the rest of the FAANG stocks. Facebook and Alphabet each hit their 52-week highs in July, at $218.62 a share and $1291.44 a share, respectively. Amazon and Apple were the most recent to
Tech’s popular ‘FAANG’ stocks have lost $945 billion and counting from highs amid tech rout Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-20  Authors: michael sheetz
Keywords: news, cnbc, companies, lost, faang, 52week, counting, hit, stocks, highs, xr, popular, share, shares, netflix, alphabet, apple, techs, billion, rout, tech


Tech's popular 'FAANG' stocks have lost $945 billion and counting from highs amid tech rout

Goldman Sachs slashed its Apple price target on Tuesday. The firm said in a note there is a “weakness in demand for Apple’s products in China and other emerging markets,” as well as a disappointing reception for the iPhone XR model.

Facebook shares have slid 40 percent from their highs, as the company has been the hardest hit of the FAANG stocks. A bevy of negative publicity has come since this summer, especially focused on top Facebook executives’ handling of foreign influence on the 2016 U.S. election.

Amazon shares continue a fall begun when it gave a fourth-quarter outlook on Oct. 25 which was much lower than expected. Netflix and Alphabet shares, meanwhile, have largely fallen in lockstep with the rest of the FAANG stocks.

Facebook and Alphabet each hit their 52-week highs in July, at $218.62 a share and $1291.44 a share, respectively. Netflix peaked in June at $123.21 a share. Amazon and Apple were the most recent to hit 52-week highs at $2550.50 a share in September and $233.47 a share in October, respectively.

—With reporting by Dominic Chu.


Company: cnbc, Activity: cnbc, Date: 2018-11-20  Authors: michael sheetz
Keywords: news, cnbc, companies, lost, faang, 52week, counting, hit, stocks, highs, xr, popular, share, shares, netflix, alphabet, apple, techs, billion, rout, tech


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US companies aren’t in a hurry to leave China despite the trade war, analysts say

U.S. companies aren’t leaving China in a big way yet, despite escalating trade tensions between the two economic powerhouses, analysts said. “(I) haven’t seen any significant U.S. companies leaving China,” Rogers said in a phone interview Friday. Many hope the G-20 meeting will diffuse trade tensions between the world’s two largest economies, which this summer began to apply additional tariffs on billions of dollars’ worth of each other’s imports. The tariffs may encourage U.S. companies to step


U.S. companies aren’t leaving China in a big way yet, despite escalating trade tensions between the two economic powerhouses, analysts said. “(I) haven’t seen any significant U.S. companies leaving China,” Rogers said in a phone interview Friday. Many hope the G-20 meeting will diffuse trade tensions between the world’s two largest economies, which this summer began to apply additional tariffs on billions of dollars’ worth of each other’s imports. The tariffs may encourage U.S. companies to step
US companies aren’t in a hurry to leave China despite the trade war, analysts say Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-20  Authors: evelyn cheng, -chris rogers, research analyst at panjiva, -nick marro, the economist intelligence unit
Keywords: news, cnbc, companies, changes, companies, china, arent, hurry, war, analysts, tensions, summit, despite, trade, say, president, rogers, meeting, tariffs, leave


US companies aren't in a hurry to leave China despite the trade war, analysts say

U.S. companies aren’t leaving China in a big way yet, despite escalating trade tensions between the two economic powerhouses, analysts said.

“A lot of companies are talking about making changes, but (are) not actively making changes,” said Chris Rogers, research analyst at Panjiva, a supply chain data company that’s part of S&P Global Market Intelligence.

“Nobody’s going to make any changes until they see how this summit goes between President Trump and President Xi,” he said referring to their upcoming meeting at the G-20 summit in Buenos Aires, Argentina on Nov. 30 and Dec. 1.

“(I) haven’t seen any significant U.S. companies leaving China,” Rogers said in a phone interview Friday.

Many hope the G-20 meeting will diffuse trade tensions between the world’s two largest economies, which this summer began to apply additional tariffs on billions of dollars’ worth of each other’s imports.

The tariffs may encourage U.S. companies to step up a trend of increasing manufacturing operations outside China, analysts said. As labor costs in China rise, many companies — including some Chinese firms — are looking toward Southeast Asian countries as new manufacturing centers.


Company: cnbc, Activity: cnbc, Date: 2018-11-20  Authors: evelyn cheng, -chris rogers, research analyst at panjiva, -nick marro, the economist intelligence unit
Keywords: news, cnbc, companies, changes, companies, china, arent, hurry, war, analysts, tensions, summit, despite, trade, say, president, rogers, meeting, tariffs, leave


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Carlos Ghosn no longer capable of leading Renault says Le Maire

Carlos Ghosn isn’t currently fit to lead Renault following his arrest in Japan, French Finance Minister Bruno Le Maire has said. The Japanese carmaker has said it will recommend that Ghosn be removed from his role and now attention has turned to what position Renault will take. French Finance Minister Bruno Le Maire has said Renault should now set up an interim management structure. “Carlos Ghosn is no longer in a position capable of leading Renault,” Mr Le Maire told France Info radio on Tuesda


Carlos Ghosn isn’t currently fit to lead Renault following his arrest in Japan, French Finance Minister Bruno Le Maire has said. The Japanese carmaker has said it will recommend that Ghosn be removed from his role and now attention has turned to what position Renault will take. French Finance Minister Bruno Le Maire has said Renault should now set up an interim management structure. “Carlos Ghosn is no longer in a position capable of leading Renault,” Mr Le Maire told France Info radio on Tuesda
Carlos Ghosn no longer capable of leading Renault says Le Maire Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-20  Authors: david reid, patrick t fallon, bloomberg, getty images
Keywords: news, cnbc, companies, position, leading, stake, nissan, carlos, longer, arrest, ghosn, french, renault, maire, capable, minister, le


Carlos Ghosn no longer capable of leading Renault says Le Maire

Carlos Ghosn isn’t currently fit to lead Renault following his arrest in Japan, French Finance Minister Bruno Le Maire has said.

Ghosn, who acts as CEO of Renault and chairman of both Renault and Nissan, was placed under arrest in Japan on Monday after he allegedly violated Japanese financial law. The arrest followed an investigation by a select number of people at Nissan.

The Japanese carmaker has said it will recommend that Ghosn be removed from his role and now attention has turned to what position Renault will take.

The French government has a 15 percent stake in Renault, which in turn holds a 43.4% stake in Nissan. French Finance Minister Bruno Le Maire has said Renault should now set up an interim management structure.

“Carlos Ghosn is no longer in a position capable of leading Renault,” Mr Le Maire told France Info radio on Tuesday.

Le Maire added that the French government had already investigated Ghosn’s tax affairs but had found nothing wrong.


Company: cnbc, Activity: cnbc, Date: 2018-11-20  Authors: david reid, patrick t fallon, bloomberg, getty images
Keywords: news, cnbc, companies, position, leading, stake, nissan, carlos, longer, arrest, ghosn, french, renault, maire, capable, minister, le


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Gold edges down in slow trading, muted dollar supports

Spot gold inched 0.2 percent lower to $1,221.26 per ounce at 0422 GMT. “The dollar has come under some pressure giving some support to gold.” “Great signal for gold prices which should see the dollar struggle into year-end while gold will continue to feed off Brexit and trade war risk.” Meanwhile, holdings SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose 0.16 percent to 760.86 tonnes on Monday. Palladium was up 0.2 percent to $1,164.49 per ounce, platinum slipped 0.7 p


Spot gold inched 0.2 percent lower to $1,221.26 per ounce at 0422 GMT. “The dollar has come under some pressure giving some support to gold.” “Great signal for gold prices which should see the dollar struggle into year-end while gold will continue to feed off Brexit and trade war risk.” Meanwhile, holdings SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose 0.16 percent to 760.86 tonnes on Monday. Palladium was up 0.2 percent to $1,164.49 per ounce, platinum slipped 0.7 p
Gold edges down in slow trading, muted dollar supports Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-20  Authors: getty images
Keywords: news, cnbc, companies, edges, rate, trading, dollar, slipped, weak, muted, precious, gold, ounce, supports, support, slow, pressure


Gold edges down in slow trading, muted dollar supports

Gold inched lower on Tuesday, trading in a tight range ahead of a U.S. holiday, but the metal held above the 1,220 level as the dollar was pressured by weak U.S. economic data and a clouded interest rate outlook.

Spot gold inched 0.2 percent lower to $1,221.26 per ounce at 0422 GMT.

U.S. gold futures were down 0.3 percent at $1,222.1 per ounce.

“The market is very quiet today and appears to be in a holiday mood ahead of the U.S. Thanksgiving,” said Peter Fung, head of dealing at Wing Fung Precious Metals in Hong Kong.

“The dollar has come under some pressure giving some support to gold.”

The dollar index, which measures the greenback against a basket of six major currencies, was trading near an over one-week low that it hit in the previous session.

The currency came under pressure as U.S. Federal Reserve officials cautioned on the global growth outlook and weak data at home, pointing to a potentially slower pace of rate hikes.

The Fed is still expected to raise interest rates again next month and three times next year, but a strong majority of economists polled by Reuters over the past week say the risk is it will slow that pace down.

“The Feds have changed the landscape to a more dovish terrain suggesting that they too are turning a little bit risk-averse,” Stephen Innes, APAC trading head at OANDA in Singapore, said in a note.

“Great signal for gold prices which should see the dollar struggle into year-end while gold will continue to feed off Brexit and trade war risk.”

A weaker greenback makes dollar-denominated gold cheaper for holders of other currencies.

Spot gold may test a support at $1,211 per ounce, a break below which could cause a loss to $1,202, said Reuters technical analyst Wang Tao.

Meanwhile, holdings SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose 0.16 percent to 760.86 tonnes on Monday.

Among other precious metals, silver slipped 0.7 percent to $14.33 an ounce.

Palladium was up 0.2 percent to $1,164.49 per ounce, platinum slipped 0.7 percent to $847.30 per ounce.


Company: cnbc, Activity: cnbc, Date: 2018-11-20  Authors: getty images
Keywords: news, cnbc, companies, edges, rate, trading, dollar, slipped, weak, muted, precious, gold, ounce, supports, support, slow, pressure


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The NBA is China’s most popular sports league. Here’s how it happened

“If there’s a second center of the basketball universe, it’s China,” Scott O’Neil, CEO of the 76ers told CNBC. The NBA has grown to become China’s most popular sports league. It’s formed partnerships with some of the country’s biggest tech companies and opened NBA stores and new experience concept stores inside malls. According to the league, more than 300 million people in China play basketball. Meanwhile, the NBA is the most followed sports league on social media with more than 150 million fol


“If there’s a second center of the basketball universe, it’s China,” Scott O’Neil, CEO of the 76ers told CNBC. The NBA has grown to become China’s most popular sports league. It’s formed partnerships with some of the country’s biggest tech companies and opened NBA stores and new experience concept stores inside malls. According to the league, more than 300 million people in China play basketball. Meanwhile, the NBA is the most followed sports league on social media with more than 150 million fol
The NBA is China’s most popular sports league. Here’s how it happened Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-20  Authors: uptin saiidi, lintao zhang, getty images
Keywords: news, cnbc, companies, popular, league, heres, philadelphia, stores, chinas, million, oneil, happened, china, nba, game, nbas, basketball


The NBA is China's most popular sports league. Here's how it happened

It was the week before the start of this year’s National Basketball Association season.

Mark Cuban, the billionaire owner of the Dallas Mavericks walked onto a basketball court before the game began and a loud applause greeted him as he took his courtside seat.

But Cuban was not in Dallas, Texas. He was in Shenzhen, China for a preseason game where the Mavericks competed against the Philadelphia 76ers in front of tens of thousands of Chinese fans.

Here in the world’s most populous country, basketball is a massive business and the NBA’s fan base has grown.

It was the first time the two teams were playing in China, but it was the 26th game to take place in the country, since the NBA began bringing games there in 2004.

“If there’s a second center of the basketball universe, it’s China,” Scott O’Neil, CEO of the 76ers told CNBC.

The NBA has grown to become China’s most popular sports league. It’s formed partnerships with some of the country’s biggest tech companies and opened NBA stores and new experience concept stores inside malls.

According to the league, more than 300 million people in China play basketball. Meanwhile, the NBA is the most followed sports league on social media with more than 150 million followers.

“The world is getting flatter and flatter. You can interchange someone from Philadelphia and Shanghai, you can rotate them, and no one will know the difference,” O’Neil said. “We listen to the same music, we watch the same basketball, we follow the same trends, it’s pretty incredible.”

The NBA’s history in China dates back to the late 1980s when its commissioner at that time, David Stern, met with China’s state run television network CCTV to get games on air.

By 1994, all the NBA finals were shown live in China.


Company: cnbc, Activity: cnbc, Date: 2018-11-20  Authors: uptin saiidi, lintao zhang, getty images
Keywords: news, cnbc, companies, popular, league, heres, philadelphia, stores, chinas, million, oneil, happened, china, nba, game, nbas, basketball


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Goldman Sachs on 2019: Raise cash, get defensive and look out below if more tariffs happen

Goldman Sachs is not feeling very bullish about stocks in 2019, according to its official outlook report to clients out this week. Here are some of the investment bank’s predictions for next year:The S&P 500 will rise just 5 percent to 3,000 by year-end 2019 (after closing 2018 at 2850). Base forecast: Stocks return 7 percent, T-bills return 3 percent and Treasuries return 1 percent in 2019. “We forecast the S&P 500 index will generate a modest single-digit absolute return in 2019. The S&P 500 c


Goldman Sachs is not feeling very bullish about stocks in 2019, according to its official outlook report to clients out this week. Here are some of the investment bank’s predictions for next year:The S&P 500 will rise just 5 percent to 3,000 by year-end 2019 (after closing 2018 at 2850). Base forecast: Stocks return 7 percent, T-bills return 3 percent and Treasuries return 1 percent in 2019. “We forecast the S&P 500 index will generate a modest single-digit absolute return in 2019. The S&P 500 c
Goldman Sachs on 2019: Raise cash, get defensive and look out below if more tariffs happen Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-20  Authors: john melloy
Keywords: news, cnbc, companies, probability, 500, investors, return, look, sachs, goldman, cash, stocks, recession, earnings, market, tariffs, raise, 2019, defensive, sp, happen


Goldman Sachs on 2019: Raise cash, get defensive and look out below if more tariffs happen

Goldman Sachs is not feeling very bullish about stocks in 2019, according to its official outlook report to clients out this week.

Here are some of the investment bank’s predictions for next year:

The S&P 500 will rise just 5 percent to 3,000 by year-end 2019 (after closing 2018 at 2850).

Households, mutual funds and pension funds should raise cash: “Cash will represent a competitive asset class to stocks for the first time in many years.”

Investors should buy defensive sectors and stocks to ride out a tough year where fears of a recession increase. Goldman raised utilities sector to “overweight” in the report.

Base forecast: Stocks return 7 percent, T-bills return 3 percent and Treasuries return 1 percent in 2019.

But the market could be in for big trouble from tariffs: “If the full 25 percent tariffs are levied on all imports from China the earnings impact could be significant, potentially eliminating any profit growth next year,” the report said.

Goldman generally believes the bull market will continue next year but it could get choppier as the year continues and investors begin to worry about a recession in 2020. The bank puts a 30 percent probability on a market “downside scenario” where fears of a recession and tariffs drive the market earnings valuation to contract and the S&P 500 to end the year down at 2500. (They give a 50 percent probability to their S&P 500 3,000 base case and just a 20 percent probability for the 3,400 upside case.)

“For equity investors, risk is high and the margin of safety is low because stock valuations are elevated compared with history,” wrote Chief Equity Strategist David Kostin and team in a note to clients Monday. “We forecast the S&P 500 index will generate a modest single-digit absolute return in 2019. Perhaps more important, the prospective risk-adjusted return to equities will be less than one-half the long-term average and cash will represent a competitive asset class to stocks for the first time in many years.”

The bank’s economic team said earlier this week that economic growth will slow to a crawl in the second half of next year.

The S&P 500 closed Monday at 2,690.73, little changed for 2018 and down 8.5 percent from its record reached earlier in the year. The market headed for more losses on Tuesday as investors continued to dump their technology stock winners. An earnings miss from retailer Target also added to the negative sentiment on Tuesday.


Company: cnbc, Activity: cnbc, Date: 2018-11-20  Authors: john melloy
Keywords: news, cnbc, companies, probability, 500, investors, return, look, sachs, goldman, cash, stocks, recession, earnings, market, tariffs, raise, 2019, defensive, sp, happen


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Goldman slashes Apple price forecast, sees stock going nowhere for a year

Weaker demand for Apple products as well as a lackluster reception for the iPhone XR outside of the United States will prevent shares from advancing at all over the next year, according to Goldman Sachs. “In addition to weakness in demand for Apple’s products in China and other emerging markets it also looks like the balance of price and features in the iPhone XR may not have been well-received,” Goldman analyst Rod Hall wrote Tuesday. “Our estimates remain at the lower end of Apple’s guidance r


Weaker demand for Apple products as well as a lackluster reception for the iPhone XR outside of the United States will prevent shares from advancing at all over the next year, according to Goldman Sachs. “In addition to weakness in demand for Apple’s products in China and other emerging markets it also looks like the balance of price and features in the iPhone XR may not have been well-received,” Goldman analyst Rod Hall wrote Tuesday. “Our estimates remain at the lower end of Apple’s guidance r
Goldman slashes Apple price forecast, sees stock going nowhere for a year Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-20  Authors: thomas franck, marlene awaad, bloomberg, getty images
Keywords: news, cnbc, companies, products, hall, demand, xr, slashes, goldman, going, range, iphone, wrote, price, sees, apples, apple, wellreceived, stock, forecast


Goldman slashes Apple price forecast, sees stock going nowhere for a year

Weaker demand for Apple products as well as a lackluster reception for the iPhone XR outside of the United States will prevent shares from advancing at all over the next year, according to Goldman Sachs.

“In addition to weakness in demand for Apple’s products in China and other emerging markets it also looks like the balance of price and features in the iPhone XR may not have been well-received,” Goldman analyst Rod Hall wrote Tuesday.

“Our estimates remain at the lower end of Apple’s guidance range at this point as we believe the company likely included this more negative scenario in its provided range,” Hall added.


Company: cnbc, Activity: cnbc, Date: 2018-11-20  Authors: thomas franck, marlene awaad, bloomberg, getty images
Keywords: news, cnbc, companies, products, hall, demand, xr, slashes, goldman, going, range, iphone, wrote, price, sees, apples, apple, wellreceived, stock, forecast


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Saudi foreign minister says CIA assessment on Khashoggi murder is false

Saudi Arabia’s foreign minister said on Tuesday that claims, including by the CIA, that Crown Prince Mohammed bin Salman gave the order to kill journalist Jamal Khashoggi were false, according to an Arabic-language newspaper interview. News outlets, including Reuters, reported the CIA’s finding over the weekend in a case that has sparked an international outcry against the world’s top oil exporter. This was the most definitive U.S. assessment to date tying Saudi Arabia’s de facto ruler directly


Saudi Arabia’s foreign minister said on Tuesday that claims, including by the CIA, that Crown Prince Mohammed bin Salman gave the order to kill journalist Jamal Khashoggi were false, according to an Arabic-language newspaper interview. News outlets, including Reuters, reported the CIA’s finding over the weekend in a case that has sparked an international outcry against the world’s top oil exporter. This was the most definitive U.S. assessment to date tying Saudi Arabia’s de facto ruler directly
Saudi foreign minister says CIA assessment on Khashoggi murder is false Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-20  Authors: fayez nureldine, afp, getty images
Keywords: news, cnbc, companies, murder, saudi, cia, crown, prince, foreign, minister, leaks, including, newspaper, evidence, false, khashoggi, assessment


Saudi foreign minister says CIA assessment on Khashoggi murder is false

Saudi Arabia’s foreign minister said on Tuesday that claims, including by the CIA, that Crown Prince Mohammed bin Salman gave the order to kill journalist Jamal Khashoggi were false, according to an Arabic-language newspaper interview.

News outlets, including Reuters, reported the CIA’s finding over the weekend in a case that has sparked an international outcry against the world’s top oil exporter. This was the most definitive U.S. assessment to date tying Saudi Arabia’s de facto ruler directly to the killing and contradicted Saudi government assertions that he was not involved.

“We in the kingdom know that such allegations about the crown prince have no basis in truth and we categorically reject them, whether through leaks or not,” Foreign Minister Adel al-Jubeir was quoted as saying in Saudi-owned Al Sharq Al Awsat newspaper in the first Saudi official comment on the CIA report.

“They are leaks that have not been officially announced, and I have noticed that they are based on an assessment, not conclusive evidence,” he added.

A source familiar with the CIA’s assessment said it was based largely on circumstantial evidence relating to the prince’s central role in running the Saudi government.


Company: cnbc, Activity: cnbc, Date: 2018-11-20  Authors: fayez nureldine, afp, getty images
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Tech shares are selling off in Asia after getting slammed on Wall Street

In Japan, shares of conglomerate Softbank declined by 4.77 percent while Nintendo dropped 5.02 percent. The report also said China would deepen its investigation into the three companies, which are the largest memory-chip manufacturers in the world. In Tuesday afternoon trade, Samsung’s stock declined by 2.18 percent while SK Hynix saw losses of 3.58 percent. In Hong Kong, shares of Chinese tech behemoth Tencent fell 3.16 percent by the end of the morning session. Electronics maker Xiaomi, on th


In Japan, shares of conglomerate Softbank declined by 4.77 percent while Nintendo dropped 5.02 percent. The report also said China would deepen its investigation into the three companies, which are the largest memory-chip manufacturers in the world. In Tuesday afternoon trade, Samsung’s stock declined by 2.18 percent while SK Hynix saw losses of 3.58 percent. In Hong Kong, shares of Chinese tech behemoth Tencent fell 3.16 percent by the end of the morning session. Electronics maker Xiaomi, on th
Tech shares are selling off in Asia after getting slammed on Wall Street Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-20  Authors: eustance huang
Keywords: news, cnbc, companies, getting, shares, declined, stock, saw, sk, hynix, chinese, wall, tech, slammed, selling, report, fell, street, electronics, asia


Tech shares are selling off in Asia after getting slammed on Wall Street

In Japan, shares of conglomerate Softbank declined by 4.77 percent while Nintendo dropped 5.02 percent.

South Korea’s Samsung Electronics and SK Hynix also fell on the back of a report from the Financial Times that Chinese authorities have alleged “massive evidence” of antitrust violations by the two chipmakers and Micron Technology. The report also said China would deepen its investigation into the three companies, which are the largest memory-chip manufacturers in the world.

In Tuesday afternoon trade, Samsung’s stock declined by 2.18 percent while SK Hynix saw losses of 3.58 percent.

In Hong Kong, shares of Chinese tech behemoth Tencent fell 3.16 percent by the end of the morning session. Electronics maker Xiaomi, on the other hand, saw its stock gain 4.71 percent after the company reported that it had swung to a net profit in the third quarter.

— CNBC’s Michael Sheetz and Reuters contributed to this report.


Company: cnbc, Activity: cnbc, Date: 2018-11-20  Authors: eustance huang
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Dollar bulls wary after cautious Fed comments, weak homebuilder report

The dollar index, a gauge of its value versus six major peers, traded marginally lower at 96.17 on Tuesday. “William’s comments are justified but are not as dovish as the comments made by Clarida and Kaplan last week. Attrill added that safe-haven buying can return to the dollar if global equities keep correcting and their volatility continues to rise. “If we see the VIX (volatility index) at 25, I would expect the dollar to pick up steam.” The pound is seen likely to trade sideways until the ma


The dollar index, a gauge of its value versus six major peers, traded marginally lower at 96.17 on Tuesday. “William’s comments are justified but are not as dovish as the comments made by Clarida and Kaplan last week. Attrill added that safe-haven buying can return to the dollar if global equities keep correcting and their volatility continues to rise. “If we see the VIX (volatility index) at 25, I would expect the dollar to pick up steam.” The pound is seen likely to trade sideways until the ma
Dollar bulls wary after cautious Fed comments, weak homebuilder report Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-20  Authors: matt cardy, getty images
Keywords: news, cnbc, companies, fed, comments, homebuilder, currency, dollar, index, weak, bulls, trade, report, data, week, interest, yen, cautious, wary


Dollar bulls wary after cautious Fed comments, weak homebuilder report

The dollar hovered near a two-week low against its peers on Tuesday as cautious comments by Federal Reserve officials over the global outlook and weak data at home raised questions over whether the U.S. central bank will slow down its rate increases.

Overnight, New York Fed President John Williams told a Q&A event that “We will be likely raising interest rates somewhat, but it is really in the context of a very strong economy.”

Williams noted that the Fed is not on a pre-set course and will adjust monetary policy to keep the economy strong with low inflation.

Last week, Fed Vice Chair Richard Clarida and Dallas Fed President Robert Kaplan raised concerns over a potential global slowdown that has seen markets betting heavily that the rate-hike cycle is on its last legs, even as the senior Fed officials signaled more interest rate increases.

The Fed executives’ remarks led some traders to question whether the dollar’s rally was nearing its end, with the benchmark U.S. 10 year treasury yields pulling back slightly.

The dollar index, a gauge of its value versus six major peers, traded marginally lower at 96.17 on Tuesday. The index fell nearly half a percent last week, its biggest weekly drop since late September.

However, some analysts believe the dollar can stage a comeback.

“William’s comments are justified but are not as dovish as the comments made by Clarida and Kaplan last week. The market may rethink whether it read Friday’s comments as overly dovish which may lead to a reversal in dollar weakness,” said Ray Attrill, head of currency strategy at NAB.

Attrill added that safe-haven buying can return to the dollar if global equities keep correcting and their volatility continues to rise.

“If we see the VIX (volatility index) at 25, I would expect the dollar to pick up steam.” The index is currently at 20.10.

Economists polled by Reuters still expect the Fed will raise interest rates again next month and three times next year, but a strong majority say the risk is it will slow that pace down.

The greenback was also weighed by surprisingly weak housing data, which pushed down U.S. 10 year bond yields.

U.S. homebuilders’ sentiment recorded its steepest one-month drop in over 4-1/2 years, suggesting that rising borrowing costs are squeezing the real estate sector.

Goldman Sachs strategists said in an outlook for 2019 that the greenback may decline as much as 6 percent against major peers with the U.S. economy slowing as the boost from tax cuts and easy credit fades through the year.

The Japanese yen traded flat to quote at 112.55. It had hit 112.38 earlier in the trading session, its highest level in November. But analysts think that further strength in the yen is unlikely.

“We are not seeing Japanese investors retreat from the U.S. and foreign markets…flow numbers show that Japan remains close to fully invested abroad,” said Attrill.

“This gives support to dollar/yen.”

The yen has strengthened over the last two sessions as traders rushed to the currency in the uncertainty around U.S.-China trade talks, Brexit worries, and the Italian budget standoff.

Nonetheless, the euro was well bid in early Asian trade at $1.1456. The single currency has gained two percent versus the dollar over the last five trading sessions despite the ongoing standoff between the European Union and Italy over its free-spending budget, which breaks EU fiscal norms.

Analysts have been concerned about an economic slowdown in the euro area and will be keeping a close eye on the French and German manufacturing performance data later this week.

“Recent evidence suggests that the Eurozone economy is slowing and there’s a very good chance the PMIs will confirm that. However, the single currency could easily hit 1.1500 before the data is released,” said Kathy Lien, managing director of currency strategy at BK Asset Management in a note.

Meanwhile, sterling gained 0.1 percent to trade at $1.2860.

The pound is seen likely to trade sideways until the market gets more clarity on progress in the Brexit deal.

The Australian dollar traded marginally lower at $0.7289. Minutes of the Reserve Bank of Australia’s (RBA) November policy meeting on Tuesday showed policy makers expect above-trend growth this year and next, helped by interest rates at a record low 1.50 percent.


Company: cnbc, Activity: cnbc, Date: 2018-11-20  Authors: matt cardy, getty images
Keywords: news, cnbc, companies, fed, comments, homebuilder, currency, dollar, index, weak, bulls, trade, report, data, week, interest, yen, cautious, wary


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