US Jobs Report November 2019: 266,000 payrolls added, 3.5% unemployment

The jobs growth was the best since January’s 312,000 and well clear of the November 2018 total of 196,000. The jobs market turned in a stellar performance in November, with nonfarm payrolls surging by 266,000 and the unemployment rate falling to 3.5%, according to Labor Department numbers released Friday. “The unemployment rate is at a 50-year low and wages are increasing. The unemployment rate of 3.5%, down from 3.6% in October, is back to the 2019 low and matches the lowest jobless rate since


The jobs growth was the best since January’s 312,000 and well clear of the November 2018 total of 196,000.
The jobs market turned in a stellar performance in November, with nonfarm payrolls surging by 266,000 and the unemployment rate falling to 3.5%, according to Labor Department numbers released Friday.
“The unemployment rate is at a 50-year low and wages are increasing.
The unemployment rate of 3.5%, down from 3.6% in October, is back to the 2019 low and matches the lowest jobless rate since
US Jobs Report November 2019: 266,000 payrolls added, 3.5% unemployment Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-06  Authors: jeff cox, fred imbert
Keywords: news, cnbc, companies, 2019, added, 266000, rate, gains, market, payrolls, economy, growth, unemployment, report, jobs, steady, rose, recession


US Jobs Report November 2019: 266,000 payrolls added, 3.5% unemployment

The jobs growth was the best since January’s 312,000 and well clear of the November 2018 total of 196,000. While hopes already were up, much of that was based on the return of General Motors workers following a lengthy strike. That dynamic indeed boosted employment in motor vehicles and parts by 41,300, part of an overall 54,000 gain in manufacturing. The vehicles and parts sector had fallen by 42,800 in October.

“Bottom line, America is working,” Larry Summers, director of the National Economic Council, told CNBC’s ” Squawk on the Street .” “These are very strong numbers. These are happy numbers, these are sunny Friday numbers.”

Those totals easily beat the Wall Street consensus. Economists surveyed by Dow Jones had been looking for solid job growth of 187,000 and saw the unemployment rate holding steady from October’s 3.6%. The decline in November’s jobless rate came amid a corresponding 0.1 percentage point drop in the labor force participation rate, to 63.2%.

The jobs market turned in a stellar performance in November, with nonfarm payrolls surging by 266,000 and the unemployment rate falling to 3.5%, according to Labor Department numbers released Friday.

However, the job gains were spread among a multitude of sectors. Health care added 45,000 positions after contributing just 12,000 in October.

Leisure and hospitality increased by 45,000 and professional and business services rose by 31,000; the two sectors respectively are up 219,000 and 278,000 over the past 12 months. Wage gains also were a touch better than expectations.

Average hourly earnings rose by 3.1% from a year ago, while the average workweek held steady at 34.4 hours.

Economists had been looking for wage gains of 3%. A separate gauge of unemployment that includes discouraged workers and the underemployed declined as well, falling to 6.9%, one-tenth of a percentage point below October.

In addition to the robust November gains, revisions brought up totals from the two previous months. September’s estimate went up 13,000 to 193,000 and the initial October count increased by 28,000 to 156,000. Those changes added 41,000 to the previous tallies and brought the 2019 monthly average to 180,000, compared with 223,000 in 2018.

“This is a blowout number and the U.S. economy continues to be all about the jobs,” Tony Bedikian, head of global markets for Citizens Bank said in a note. “The unemployment rate is at a 50-year low and wages are increasing. Business owners may be getting more cautious due to trade and political uncertainty and growth may be slow, but consumers keep spending and the punch bowl still seems full.”

The unemployment rate of 3.5%, down from 3.6% in October, is back to the 2019 low and matches the lowest jobless rate since 1969. The U.S. economy needs to create about 107,000 jobs a month to keep the unemployment rate steady, according to calculations from the Atlanta Federal Reserve.

“Today’s job report, more than any other report in recent months, squashed any lingering concerns about an imminent recession in the US economy,” said Gad Levanon, head of the Conference Board’s Labor Market Institute. “Employment growth also shows no signs of slowing further despite the historically low unemployment rate.”

The news was not all good. As the holiday shopping season accelerated, retail companies added just 2,000 net hires as gains in general merchandise of 22,000 and motor vehicle and parts dealers of 8,000 were offset by an 18,000 loss in clothing and clothing accessories.

Mining also showed a loss of 7,000 positions, bringing to 19,000 the total jobs lost since May.

The strong jobs report comes amid a challenging year for the U.S. economy. Recession fears surged in late-summer amid worries that a global slowdown would spread to American shores. The back-and-forth lobbing of tariffs between the U.S. and China also raised fears of instability, and the bond market sent what has been a reliable recession indicator when short-term government yields rose above their longer-term counterparts. The Fed reacted by cutting its benchmark interest rate three times, part of what officials deemed insurance against a potential slowdown.

Those recession fears have ebbed recently, though, as consumer and business sentiment remains high, spending remains resilient and the stock market scales new highs.

The Fed meets next week, and officials have been clear that they plan no further rate changes unless conditions change significantly.


Company: cnbc, Activity: cnbc, Date: 2019-12-06  Authors: jeff cox, fred imbert
Keywords: news, cnbc, companies, 2019, added, 266000, rate, gains, market, payrolls, economy, growth, unemployment, report, jobs, steady, rose, recession


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Goldman Sachs has a simple ‘laggard’ stocks strategy for early 2020 that tends to beat the market

Buy 2019’s laggards as they will likely be 2020’s early leaders, Goldman Sachs said. The strategy to pick up battered stocks in the beginning of a given year has a good track record of beating the market, according to Goldman. In 2019, this laggard trade outperformed the S&P 500 by 3.7 percentage points, Goldman said. Under Armour, Etsy, Twilio, Westlake Chemical and GoDaddy are among the names on that list. Petrochemical manufacturing company Westlake Chemical and web hosting company GoDaddy bo


Buy 2019’s laggards as they will likely be 2020’s early leaders, Goldman Sachs said.
The strategy to pick up battered stocks in the beginning of a given year has a good track record of beating the market, according to Goldman.
In 2019, this laggard trade outperformed the S&P 500 by 3.7 percentage points, Goldman said.
Under Armour, Etsy, Twilio, Westlake Chemical and GoDaddy are among the names on that list.
Petrochemical manufacturing company Westlake Chemical and web hosting company GoDaddy bo
Goldman Sachs has a simple ‘laggard’ stocks strategy for early 2020 that tends to beat the market Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-05  Authors: yun li
Keywords: news, cnbc, companies, strategy, beat, market, 500, westlake, stocks, 2019, trade, tends, armour, sachs, simple, chemical, goldman, laggard, laggards, early, performance


Goldman Sachs has a simple 'laggard' stocks strategy for early 2020 that tends to beat the market

Traders work on the floor at the New York Stock Exchange, October 25, 2019.

Buy 2019’s laggards as they will likely be 2020’s early leaders, Goldman Sachs said.

The strategy to pick up battered stocks in the beginning of a given year has a good track record of beating the market, according to Goldman. The prior year’s bottom-third stocks have outperformed the S&P 500 in the first quarter for 11 times out of the past 17 years with an average 1.4% extra return on the benchmark, the bank said. In 2019, this laggard trade outperformed the S&P 500 by 3.7 percentage points, Goldman said.

Among the bottom third of the S&P 500 in terms of 2019 performance, the bank recommended buying the laggards that its analysts have out-of-consensus buy ratings and above-consensus estimates.

Westlake Chemical, L Brands, Terex, Yelp, Cree and Under Armour are some of the “buy-rated laggards” of 2019 where the majority of the Street has neutral or sell ratings but Goldman analysts recommend buying.

Goldman also likes laggards where the bank’s price targets are at least 5% above consensus in 2020. Under Armour, Etsy, Twilio, Westlake Chemical and GoDaddy are among the names on that list.

Under Armour is up only 5% on the year and Etsy fell 11% in 2019, both significantly lagging the S&P 500’s 24% gain. Petrochemical manufacturing company Westlake Chemical and web hosting company GoDaddy both are up about 1% this year.

To be sure, this year’s record-setting rally created a different set-up for this strategy as even the laggards are up year to date. So Goldman is advising clients against blindly piling into all of them.

“2019 has seen the strongest YTD absolute performance for laggards in over 5 years,” Alex Meintel, Goldman’s analyst said in a note to clients on Monday. “It underscores the importance of a selective approach to playing this year’s group of laggards.”

Stocks rebounded from a three-day slide on Wednesday and on track for another up day on Thursday on renewed trade optimism. The S&P 500 is on pace for its best annual performance since 2013.

“While the relative performance of laggards is in line with history, absolute performance is actually positive so far this year (+1% and +6% average and median, respectively), something that has happened just two other times since 2002,” said Meintel.

Energy and Discretionary laggards are down the most this year, underperforming the market by 32% and 30%, respectively, the analyst said.


Company: cnbc, Activity: cnbc, Date: 2019-12-05  Authors: yun li
Keywords: news, cnbc, companies, strategy, beat, market, 500, westlake, stocks, 2019, trade, tends, armour, sachs, simple, chemical, goldman, laggard, laggards, early, performance


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Here’s when newlyweds will face a ‘marriage tax penalty’

If you tied the knot this year (or plan to this month), it’s worthwhile evaluating what getting married will mean for your 2019 tax situation. No matter when you get married during the year, you’ll be required to file your 2019 tax return next spring as a married couple. There also are other parts of the tax code that can cost married couples more. Singles with modified adjusted gross income above $200,000 pay the tax, while married couples filing jointly pay it if their income exceeds $250,000.


If you tied the knot this year (or plan to this month), it’s worthwhile evaluating what getting married will mean for your 2019 tax situation.
No matter when you get married during the year, you’ll be required to file your 2019 tax return next spring as a married couple.
There also are other parts of the tax code that can cost married couples more.
Singles with modified adjusted gross income above $200,000 pay the tax, while married couples filing jointly pay it if their income exceeds $250,000.
Here’s when newlyweds will face a ‘marriage tax penalty’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-05  Authors: sarah obrien
Keywords: news, cnbc, companies, couples, taxes, penalty, 2019, pay, newlyweds, marriage, rate, tax, heres, single, married, face, filing, income


Here's when newlyweds will face a 'marriage tax penalty'

Ah, the joys of new marital bliss. Now … about those tax returns. If you tied the knot this year (or plan to this month), it’s worthwhile evaluating what getting married will mean for your 2019 tax situation. While many couples will see their taxes drop, some will face a “marriage penalty” — paying more than if they had remained unmarried and filed as single taxpayers. In simple terms, the penalty comes into play when tax-bracket thresholds, and deductions or credits, are not double the amount allowed for single filers.

Digital Vision | Photodisc | Getty Images

So, depending on your income, where you live and the deductions or credits you use, a bigger tax bill could be part of your married future. “Marriage penalties exist for both high- and low-income couples, but are most common when two individuals with equal incomes marry,” said DeAnna D’Attilio, director at Acorn Tax Planning in Reston, Virginia. Roughly 2.2 million marriages take place in the U.S. each year, according to government data. Most of them — 78% — occur between May and October, separate information from TheKnot.com shows. While this year’s newlyweds generally won’t face a tax deadline until next April, the sooner you know what to expect, the more time you’ll have to plan accordingly. No matter when you get married during the year, you’ll be required to file your 2019 tax return next spring as a married couple. (Filing separate tax returns as a married couple rarely makes financial sense.)

For high earners, a bigger tax bill can come from a few different sources. For starters, the top federal rate of 37% kicks in at taxable income of $510,300 for single filers in 2019. Yet for married couples, that rate gets applied to income of $612,350 and higher. As an example: Two individuals who each have income of $500,000 would pay the second-highest rate, 35%, on their income if they filed as single taxpayers. However, as a married couple with combined income of $1 million, they would pay 37% on $387,650 of that (the difference between their income and the $612,350 threshold for the highest rate). That would mean paying about $7,750 more in income taxes. There also are other parts of the tax code that can cost married couples more. For instance, while an individual can have up to $200,000 in income before the Medicare surtax of 0.9% kicks in, the limit for married couples is $250,000. Likewise, the income threshold for when a 3.8% investment-income tax kicks in is not doubled. Singles with modified adjusted gross income above $200,000 pay the tax, while married couples filing jointly pay it if their income exceeds $250,000. (The tax applies to things such as interest, dividends, capital gains and rental or royalty income.) Additionally, the limit on the deduction for state and local taxes — also known as SALT — is not doubled for married couples. The $10,000 cap applies to both single filers and married filers. (Married couples filing separately get $5,000 each for the deduction). However, the deduction only is available to taxpayers who itemize. More from Personal Finance:

The top 10 college majors American students regret the most

Here’s where employers stand on 2019 bonuses

Everything you need to know to help save on taxes in 2020 Another potential snag can arise if you’re repaying federal student loans. If one, or both, of you are on an income-based repayment plan — except the Revised Pay as You Earn option — they should consider whether filing separately would make sense in order to avoid the other spouse’s income being used in the repayment calculation, said certified financial planner Jake Northrup. “This is especially applicable when there’s a large discrepancy between the incomes of the spouses,” said Northrup, founder of Experience Your Wealth in Bristol, Rhode Island. Likewise, newlyweds should be cognizant of limits applying to deductions and contributions for traditional and Roth individual retirement accounts, because income from both spouses feeds the equation. “Often, IRA contributions are done earlier in the year, so they should revisit what their joint income will likely look like and whether any changes to their 2019 IRA contributions should be made,” Northrup said.


Company: cnbc, Activity: cnbc, Date: 2019-12-05  Authors: sarah obrien
Keywords: news, cnbc, companies, couples, taxes, penalty, 2019, pay, newlyweds, marriage, rate, tax, heres, single, married, face, filing, income


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Macy’s president Hal Lawton is stepping down to become CEO of Tractor Supply

Honoree Hal Lawton accepts award on stage during the 2019 Fashion Scholarship Fund Awards Gala on January 10, 2019 in New York City. Macy’s said Thursday that the president of the department store chain, Hal Lawton, is resigning, effective Friday. Lawton will be leaving to join Tractor Supply as its CEO, succeeding Greg Sandfort, effective Jan. 13. He will also join Tractor Supply’s board. Before joining Macy’s in 2017, Lawton, 45, was a senior vice president of North America for eBay.


Honoree Hal Lawton accepts award on stage during the 2019 Fashion Scholarship Fund Awards Gala on January 10, 2019 in New York City.
Macy’s said Thursday that the president of the department store chain, Hal Lawton, is resigning, effective Friday.
Lawton will be leaving to join Tractor Supply as its CEO, succeeding Greg Sandfort, effective Jan. 13.
He will also join Tractor Supply’s board.
Before joining Macy’s in 2017, Lawton, 45, was a senior vice president of North America for eBay.
Macy’s president Hal Lawton is stepping down to become CEO of Tractor Supply Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-05  Authors: lauren thomas
Keywords: news, cnbc, companies, holiday, ceo, effective, macys, hal, tractor, supply, 2019, sales, lawton, president, stepping, join


Macy's president Hal Lawton is stepping down to become CEO of Tractor Supply

Honoree Hal Lawton accepts award on stage during the 2019 Fashion Scholarship Fund Awards Gala on January 10, 2019 in New York City.

Macy’s said Thursday that the president of the department store chain, Hal Lawton, is resigning, effective Friday.

Lawton will be leaving to join Tractor Supply as its CEO, succeeding Greg Sandfort, effective Jan. 13. He will also join Tractor Supply’s board.

Before joining Macy’s in 2017, Lawton, 45, was a senior vice president of North America for eBay.

“Hal has made significant contributions to the business over the past two years, including improving the Macy’s operational cadence,” CEO Jeff Gennette said in a statement. “Hal also helped us build an excellent team and, with their leadership, I’m confident that Macy’s will continue strong execution through Holiday 2019 and beyond.”

Lawton’s resignation comes in the midst of the all-important holiday shopping season. Macy’s didn’t name an immediate replacement in its press release.

Lawton has been president of Macy’s since September 2017. During his tenure, the landscape for U.S. department stores has grown increasingly difficult. Macy’s has struggled to find ways to grow sales, with more shoppers turning to the internet or going directly to brands to buy things, bypassing trips to traditional malls.

During its latest quarter, Macy’s said same-store sales declined for their first time in two years. The company also slashed its full-year profit outlook, on the heels of the dismal results.

Macy’s shares have fallen roughly 50% this year.


Company: cnbc, Activity: cnbc, Date: 2019-12-05  Authors: lauren thomas
Keywords: news, cnbc, companies, holiday, ceo, effective, macys, hal, tractor, supply, 2019, sales, lawton, president, stepping, join


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Here’s where employers stand on 2019 bonuses

About 2 in 3 companies anticipate giving workers a year-end bonus or perk, according to new data from Challenger, Gray & Christmas. Consider that a quarter of the HR professionals polled anticipate rewarding select workers with a year-end performance bonus, Challenger found. Depending on the size of the payment, getting a bonus could bump you into an even higher income tax bracket. By deferring receipt of the money, you lower your income tax obligation for 2019. Withhold moreThe IRS has been ban


About 2 in 3 companies anticipate giving workers a year-end bonus or perk, according to new data from Challenger, Gray & Christmas.
Consider that a quarter of the HR professionals polled anticipate rewarding select workers with a year-end performance bonus, Challenger found.
Depending on the size of the payment, getting a bonus could bump you into an even higher income tax bracket.
By deferring receipt of the money, you lower your income tax obligation for 2019.
Withhold moreThe IRS has been ban
Here’s where employers stand on 2019 bonuses Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-05  Authors: darla mercado
Keywords: news, cnbc, companies, bonuses, taxes, gift, control, stand, 2019, workers, pay, westley, yearend, bonus, tax, heres, employers, income


Here's where employers stand on 2019 bonuses

Charles Taylor | Getty Images

There are less than four weeks left in the year, and your chances of a holiday gift at work are looking pretty good. About 2 in 3 companies anticipate giving workers a year-end bonus or perk, according to new data from Challenger, Gray & Christmas. The Chicago-based recruiting firm polled 250 human resources executives online from Nov. 10 through Dec. 1. Truth be told, those gifts might be nothing to write home about. Three in 10 participants said they would give workers either a monetary award of $100 or less, or a nonmonetary gift — such as a gift basket or extra vacation day. Others might be in line for something a little more substantial. Consider that a quarter of the HR professionals polled anticipate rewarding select workers with a year-end performance bonus, Challenger found. Wall Street employees, for instance, received an average bonus of $153,700 in 2018, according to the New York State Comptroller’s office. Large bonuses can come with hefty taxes, so here’s how to manage.

When it pays to wait

krisanapong detraphiphat | Moment | Getty Images

For some taxpayers, pushing off the bonus into next year might be a good call. Depending on the size of the payment, getting a bonus could bump you into an even higher income tax bracket. “With bonuses, there’s generally some control or no control over when it’s paid,” said Robert Westley, a CPA and member of the American Institute of CPAs’ financial literacy commission. See below for your 2019 brackets. Here are your 2020 brackets. “If there is some control, you can ask if they can pay it to you in January instead of December,” Westley said. By deferring receipt of the money, you lower your income tax obligation for 2019. You can also ask about spreading your bonus over multiple pay periods, he added. Meet with your tax preparer to better gauge where your taxes stand for 2020.

Withhold more

The IRS has been banging the drum on fine-tuning the amount of income tax withheld from your pay. Now is the time to listen. Bonuses are taxed at a different rate than your wages. Employers can either withhold taxes from your bonus at a flat 22% or give you the bonus with your salary and calculate the withholding based on the aggregate. If you don’t withhold the right amount now, you could end up with a smaller refund when you file your 2019 taxes next spring. Worse, you might owe the IRS. “The 22% might not line up with your true tax bracket,” said Westley. “So either request extra withholding at year-end or make an estimated payment to cover the shortfall.”

Be charitable

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If you itemize on your tax return, you can boost your charitable giving and nab a deduction. You can give directly to your favorite charity or you can contribute to a donor-advised fund — a tax-favored account that you can use to direct grants to charities. “Bunch” multiple years’ of donations into one year to boost your deduction. “For most people, the deductible expense they have the most control over is the charitable contribution,” said Brian Ellenbecker, senior financial planner at Robert W. Baird in Milwaukee. Work with your financial advisor or accountant on this one, as some assets — highly appreciated stock, for instance — are more tax-efficient than cash.

Save more


Company: cnbc, Activity: cnbc, Date: 2019-12-05  Authors: darla mercado
Keywords: news, cnbc, companies, bonuses, taxes, gift, control, stand, 2019, workers, pay, westley, yearend, bonus, tax, heres, employers, income


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Here’s how to find out which songs and artists you listened to most on Spotify in 2019

(Photo by Tim Mosenfelder/Getty Images)Spotify just rolled out the 2019 version of a popular feature called Spotify Wrapped, which shows the songs and artists you listened to most throughout the year. Spotify Wrapped also also how much time you spent on the service and where the artists you listen to are from. I listened for almost 27,000 minutes and was called a “world citizen” because I listened to artists from 37 countries. This year’s Spotify Wrapped also breaks down your favorite podcasts o


(Photo by Tim Mosenfelder/Getty Images)Spotify just rolled out the 2019 version of a popular feature called Spotify Wrapped, which shows the songs and artists you listened to most throughout the year.
Spotify Wrapped also also how much time you spent on the service and where the artists you listen to are from.
I listened for almost 27,000 minutes and was called a “world citizen” because I listened to artists from 37 countries.
This year’s Spotify Wrapped also breaks down your favorite podcasts o
Here’s how to find out which songs and artists you listened to most on Spotify in 2019 Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-05  Authors: william feuer
Keywords: news, cnbc, companies, listened, artists, 2019, music, starting, spotify, songs, played, heres, wrapped, called


Here's how to find out which songs and artists you listened to most on Spotify in 2019

Jerry Garcia of the Grateful Dead performs at Shoreline Amphitheatre on May 24, 1992 in Mountain View, California. (Photo by Tim Mosenfelder/Getty Images)

Spotify just rolled out the 2019 version of a popular feature called Spotify Wrapped, which shows the songs and artists you listened to most throughout the year. Spotify has done this several times in the past, and it’s always a fun recap of the year for people who use the music streaming service a lot.

Spotify Wrapped also also how much time you spent on the service and where the artists you listen to are from.

I listened for almost 27,000 minutes and was called a “world citizen” because I listened to artists from 37 countries. It also breaks down your favorite genres. I’m “genre-fluid,” but my top genre was rock.

This year’s Spotify Wrapped also breaks down your favorite podcasts on the app, and tells you your artist of the decade. Mine was the Grateful Dead.

Here’s how to use it:

Visit Spotifywrapped.com from your phone or computer.

Log into Spotify.

Spotify will start to show you info on the music you played in 2019, starting with how your music taste changed with the seasons throughout the year.

Tap the down arrow to move through all of your stats. There are about 15 different pages.

The final one will show you the artists and songs you listened to most, as well as your top genre and minutes spent listening.

Here’s a little bonus: You can listen to the top songs you played in 2019 by opening the Spotify app and tapping the home tab. You’ll see a playlist called “Your Top Songs 2019,” which is sorted starting with the songs you played the most.

There’s also a “Tastebreakers” list that has a whole collection of songs that are similar to ones Spotify knows you like. This year, you can also enjoy a a “Best of the decade for you” list of 100 songs.

CNBC’s Todd Haselton contributed to this post.


Company: cnbc, Activity: cnbc, Date: 2019-12-05  Authors: william feuer
Keywords: news, cnbc, companies, listened, artists, 2019, music, starting, spotify, songs, played, heres, wrapped, called


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51% of 2019 net ETF inflows have gone into fixed income

“Net cash flow in ETFs this year [is] $271 billion, but 51% of that into fixed-income ETFs,” Yones said Monday on CNBC’s “ETF Edge.” Much of it has favored high-yielding fixed-income investments as well as international fixed-income plays, Yones said. Aggregate Bond ETF (AGG), the Vanguard Total Bond Market ETF (BND) and its international counterpart, (BNDX), the iShares iBoxx USD High Yield Corporate Bond ETF (HYG) and the iShares 20+ Year Treasury Bond ETF (TLT). We’ve seen tremendous inflows


“Net cash flow in ETFs this year [is] $271 billion, but 51% of that into fixed-income ETFs,” Yones said Monday on CNBC’s “ETF Edge.”
Much of it has favored high-yielding fixed-income investments as well as international fixed-income plays, Yones said.
Aggregate Bond ETF (AGG), the Vanguard Total Bond Market ETF (BND) and its international counterpart, (BNDX), the iShares iBoxx USD High Yield Corporate Bond ETF (HYG) and the iShares 20+ Year Treasury Bond ETF (TLT).
We’ve seen tremendous inflows
51% of 2019 net ETF inflows have gone into fixed income Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-05  Authors: lizzy gurdus
Keywords: news, cnbc, companies, market, 2019, inflows, weve, etf, yones, fixedincome, think, seen, gone, net, fixed, etfs, income, bond, international


51% of 2019 net ETF inflows have gone into fixed income

This year, investors are getting their fix in fixed income.

Net cash flows into U.S.-based exchange-traded funds have risen to $271 billion for 2019, putting inflows on track for their second-largest year on record, according to ETF.com.

Just over half is flowing into fixed-income ETFs, a “fascinating” trend that is likely to continue, according to Douglas Yones, head of exchange-traded products for the New York Stock Exchange.

“Net cash flow in ETFs this year [is] $271 billion, but 51% of that into fixed-income ETFs,” Yones said Monday on CNBC’s “ETF Edge.” “So, we continue to see the asset-gathering.”

That accumulation adds to the record $4 trillion in U.S. ETF assets under management this year. Much of it has favored high-yielding fixed-income investments as well as international fixed-income plays, Yones said.

Some of the most popular fixed-income ETFs on the market include the iShares Core U.S. Aggregate Bond ETF (AGG), the Vanguard Total Bond Market ETF (BND) and its international counterpart, (BNDX), the iShares iBoxx USD High Yield Corporate Bond ETF (HYG) and the iShares 20+ Year Treasury Bond ETF (TLT). All of them are up modestly year to date.

“High yield’s been volatile. We’ve seen tremendous inflows and then also tremendous outflows throughout the year, but it’s also in international,” Yones said. “We’ve seen almost $8 billion this year in international fixed income come in. But the primary movers, I think, have been in the short term.”

Yones attributed the short-term moves to investors reversing their assumptions that the Federal Reserve would embark on a rate-hiking cycle, as the central bank suggested it might do late last year. The Fed, however, backed off its rate-hike plans and instead cut interest rates three times over the course of 2019 before apparently deciding to pause indefinitely.

What’s interesting about the rush to typically risky high-yield plays is investors’ apparent preference for ETFs over mutual funds, Yones said.

Every time high-yield comes back into favor, “it seems like people are choosing an ETF and not necessarily a mutual fund,” he said. “We continue to see ETFs provide the exact thing they’re supposed to provide: immediate liquidity for those that want access to it, but for those that don’t — they want to be a buy-and-hold, long-term investor — the ETF wrapper provides some extra efficiencies. They tend to be a little bit more tax-efficient. They tend to have lower costs.”

Andrew McOrmond, managing director of ETF trading solutions at WallachBeth Capital, links the fixed-income dash to market newcomers.

“I attribute it to new users: insurance companies, large institutions putting money into play. It’s a dividend. They could trade it. It’s easily put on the balance sheet,” McOrmond said in the same “ETF Edge” interview.

As for high-yield ETFs, McOrmond said their inherent risk wasn’t as amplified this year as it has been in years past.

“They’re volatile, but I don’t think as overall risky as they might’ve been a few years back,” he said. “We’re in a better Fed cycle, much better than last year, so I think that’s a big difference.”

At the same time, Chris Hempstead, director of institutional business development at IndexIQ, a division of New York Life Investments, found the stock market to be “very healthy right now for equity allocations.”

“I think we’re going to see that all month long in December,” Hempstead said on Monday’s show.

For those invested in bond-based funds, Hempstead suggested cementing “your thoughts … on the shape of the yield curve,” the spread between the U.S. 2-Year and 10-Year Treasury yields.

“Despite the fact that we’ve identified all the different areas where you can invest in fixed income or not invest, you also have to assess what your time horizon looks like. Are you playing the short end of the curve or the long end of the curve?” he said. “The structure of ETFs … has held up phenomenally well with all of these inflows and even the ones that have had outflows, and there’s been quite a few big ETFs that have seen big outflows while others have been the recipients.”


Company: cnbc, Activity: cnbc, Date: 2019-12-05  Authors: lizzy gurdus
Keywords: news, cnbc, companies, market, 2019, inflows, weve, etf, yones, fixedincome, think, seen, gone, net, fixed, etfs, income, bond, international


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Medical expenses come with tax benefits. Here’s how to maximize yours this year

Hero Images | Hero Images | Getty ImagesThe three most common planning opportunities for health-care costs involve flexible spending accounts, health savings accounts and the tax deduction for medical expenses. First, though, be aware that you must itemize your deductions to use the one for medical expenses. Additionally, even you do itemize, you can only deduct medical expenses that exceed 10% of your adjusted gross income (up from 7.5% last year). You can also include the medical expenses of a


Hero Images | Hero Images | Getty ImagesThe three most common planning opportunities for health-care costs involve flexible spending accounts, health savings accounts and the tax deduction for medical expenses.
First, though, be aware that you must itemize your deductions to use the one for medical expenses.
Additionally, even you do itemize, you can only deduct medical expenses that exceed 10% of your adjusted gross income (up from 7.5% last year).
You can also include the medical expenses of a
Medical expenses come with tax benefits. Here’s how to maximize yours this year Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-05  Authors: sarah obrien
Keywords: news, cnbc, companies, money, come, deduction, 2019, savings, salvini, tax, health, benefits, hsa, expenses, heres, maximize, medical


Medical expenses come with tax benefits. Here's how to maximize yours this year

Before the calendar flips to 2020, you might want to see if there are some moves you can make to take advantage of the tax breaks for medical expenses. Experts say it’s worth exploring, as the cost of health care continues its upward climb. The U.S. spent about $3.5 trillion on health care in 2017, or about $11,000 per person. By 2027, that outlay is expected to climb to $6 trillion, or about $17,000 per person, according to the Centers for Medicare and Medicaid Services. Additionally, Fidelity Investments estimates that the average couple turning 65 in 2019 will spend $285,000 on health care during the remainder of their lives.

Hero Images | Hero Images | Getty Images

The three most common planning opportunities for health-care costs involve flexible spending accounts, health savings accounts and the tax deduction for medical expenses.

The flex-spending factor

If you have a health flexible spending account, or FSA, at work, your pre-tax contributions generally come with a use-it-or-lose-it provision when the year ends. “Definitely use your FSA first to pay for expenses because it doesn’t carry over year to year,” said CPA Brooke Salvini, a member of the American Institute of CPAs’ Personal Financial Planning Executive Committee. While many employers provide either a grace period of up to 2½ extra months to use the funds for eligible medical expenses or allow you to carry over $500 to the next year, it’s important to make sure you don’t end up forfeiting that tax-advantaged money.

The 2019 contribution limit for FSAs is $2,700, although many people don’t max out. For 2020, the maximum you can put in is $2,750. Generally speaking, if you have already depleted your FSA (or don’t have one), the next consideration is whether your 2018 medical expenses will get you a deduction on your tax return.

The tax break

While the federal tax deduction for medical expenses will likely be used by fewer people this year — due to a higher hurdle for qualifying — it’s worth checking whether you can take advantage. First, though, be aware that you must itemize your deductions to use the one for medical expenses. “That means that you would have to have total deductions that exceed the [2019] standard deduction of $12,200 for single filers or $24,400 for married couples filing jointly,” said certified financial planner Katrina Soelter, director of wealth management for KCS Wealth Advisory in Los Angeles. Additionally, even you do itemize, you can only deduct medical expenses that exceed 10% of your adjusted gross income (up from 7.5% last year). So for someone with income of $50,000 and medical expenses of, say, $7,000, only the amount above $5,000 — the 10% threshold — would be eligible for the deduction ($2,000).

The basic principle is that there’s no double-dipping for taxes. If you use pre-tax dollars for medical expenses, you can’t also deduct them. Brooke Salvini member of the American Institute of CPAs’ Personal Financial Planning Executive Committee

If you’re close to the 10% threshold based on your adjusted gross income, and you know you’re going to itemize your deductions, you might want to accelerate expenses into 2019 so they can count toward the deduction. “If you’re thinking of getting of getting some medical work done in January or February, maybe you should do it in December,” Salvini said. If you do that with hopes of deducting your associated costs on your 2019 return, make sure the bill is paid this year. Also be aware that because only unreimbursed medical expenses count toward the deduction, any expenses covered by money from FSAs or health savings accounts — both of which already are tax-advantaged — is excluded. (More on health savings accounts further down.) “The basic principle is that there’s no double-dipping for taxes,” Salvini said. “If you use pre-tax dollars for medical expenses, you can’t also deduct them.” More from Personal Finance:

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How these multimillionaires are avoiding a 40% tax hit

Avoid digging yourself deeper in debt this holiday season Assuming you used after-tax money, many expenses count toward the deductible — including co-pays, co-insurance, dental work, travel costs for health care and, generally speaking, insurance premiums. And If you write a check in December to cover any January premiums, that money also counts toward your 2019 deduction. You can also include the medical expenses of a non-dependent — say, an elderly parent. Even if your charge has too much income for you claim them as a dependent, you can generally count your share of their medical expenses toward your deduction.

The HSA consideration

If you have a health savings account, or HSA, which is offered in conjunction with high-deductible health-care plans, you don’t have to spend your contributions the way you do with an FSA. That means whatever you sock away in an HSA — plus any growth if your money is invested — can sit there for as long as you want it to. Gains grow tax-free and, as long as withdrawals are used for qualifying medical expenses, tapping those funds also comes with no tax. Basically, this means that if you can afford to pay your medical expenses out of pocket now, you could consider leaving your HSA money alone. Then at any point in the future — next month, next year or even down the road in retirement — you can withdraw the money for qualifying health-care costs. “I’m a big fan of contributing to an HSA and not using it right away,” Salvini said.


Company: cnbc, Activity: cnbc, Date: 2019-12-05  Authors: sarah obrien
Keywords: news, cnbc, companies, money, come, deduction, 2019, savings, salvini, tax, health, benefits, hsa, expenses, heres, maximize, medical


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Make 4 moves to get the best year-end deal on a new car

The average discount off the sticker price has peaked in December every year but one since 2012, according to data from Autotrader. In December of 2018, the average discount was 6.7%, up from 6.3% the month before. With an average car price of $36,718, that means a December car buyer may have saved about $2,500 off the manufacturer suggested retail price (MSRP), or sticker price. That shakes out to roughly $8,200 off the sticker price for the 2019 model of Ford’s flagship pickup truck, almost do


The average discount off the sticker price has peaked in December every year but one since 2012, according to data from Autotrader.
In December of 2018, the average discount was 6.7%, up from 6.3% the month before.
With an average car price of $36,718, that means a December car buyer may have saved about $2,500 off the manufacturer suggested retail price (MSRP), or sticker price.
That shakes out to roughly $8,200 off the sticker price for the 2019 model of Ford’s flagship pickup truck, almost do
Make 4 moves to get the best year-end deal on a new car Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-04  Authors: ben jay
Keywords: news, cnbc, companies, price, average, montoya, 2019, model, youre, discount, car, sticker, yearend, deal, best, cars, moves


Make 4 moves to get the best year-end deal on a new car

Prices on new cars tend to be at their lowest in December. The average discount off the sticker price has peaked in December every year but one since 2012, according to data from Autotrader. In December of 2018, the average discount was 6.7%, up from 6.3% the month before. By January 2019, the discount dropped back to 6.3%. With an average car price of $36,718, that means a December car buyer may have saved about $2,500 off the manufacturer suggested retail price (MSRP), or sticker price. Deals vary widely by make and model, and the older 2019s offer far greater potential savings than the 2020s. The 2019 versions of the Hyundai Sonata and the Ford F-150 are discounted by averages of about 14% and 16%, respectively, according to car comparison site Edmunds. That shakes out to roughly $8,200 off the sticker price for the 2019 model of Ford’s flagship pickup truck, almost double the savings on the 2020 model. “In general, the end of the year is a good time to buy a car, especially a new car, because dealers want to get the 2020 model cars on their lots and out front,” says Brian Moody, executive editor of Autotrader. Add in cold weather and less foot traffic on lots as people focus on holiday celebrations and shopping for gifts, and dealerships are often eager to cut deals, he says. Here’s what to do to maximize those end-of-year savings.

Buy a 2019 model

The main reason dealers discount a car is because they want to clear the lot to make way for newer vehicles. As 2019 comes to a close, more buyers are going to want 2020 models and dealers need to make room for them. “If you can find a 2019 [Toyota Camry], our data shows an average discount of 9%, or $2,721 off MSRP. There are deals on the 2020s as well, though you’d pay roughly $1,000 more for the newer models,” says Ronald Montoya, senior consumer advice editor at Edmunds. “There have been some minor changes to the 2020, like adding Apple CarPlay, so it’s up to the consumer to determine if those features are worth the added cost.”

Don’t be picky about the car you want

You can save even more if you’re willing to be flexible with the make and model you want. Cars with more customization options also tend to have greater price flexibility, and as a result, discounts can be steeper, Montoya says. For example, the Toyota Yaris — which has few customization options and only a $300 difference in price between levels — typically has discounts of just 2.2%, according to Edmunds. Meanwhile, the Toyota Camry, with its 12 trim levels (including three hybrids and two V6 versions), has a $10,000 difference between the cheapest and priciest sticker prices, and typical discounting of about 9%. It also helps to be flexible on brand. For example, Montoya says buyers looking at the Camry should also consider the Hyundai Sonata, which has a longer warranty and an average discount of 14%, or $3,533 off the sticker price. “The earlier you shop, the more selection you’re gonna have, but obviously, the prices won’t be as good,” says Montoya. If you wait until the final days of the year, there won’t be a lot of options left to pick from, but the cars that are still there will be quite a bit cheaper. “So keep an eye on inventory within the dealerships that you’re looking at in your area,” he says. “And see if you feel like you’re running out of cars, and especially in the ones you want, then you may want to pull the trigger on that vehicle much earlier.”

Start planning early …

Even though the deals will be better toward the end of the month, attempting to do the entire car-buying process in one day can be overwhelming. “Start to do your search earlier on in the month,” says Montoya. “Then close the deal towards the end of the month.” Spreading out the process lets you avoid the crowds and do more of your negotiating on the phone in advance.

… but wait to make your dealership visit


Company: cnbc, Activity: cnbc, Date: 2019-12-04  Authors: ben jay
Keywords: news, cnbc, companies, price, average, montoya, 2019, model, youre, discount, car, sticker, yearend, deal, best, cars, moves


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Billionaire businessman Ken Langone talks about stocks he likes, including JP Morgan and GE

Billionaire businessman Ken Langone told CNBC that he used Tuesday’s stock market drop as a buying opportunity. “Where else can you go to get some kind of a decent rate of return, than equities,” Langone said. Langone said Parker-Hannifin is “extremely well run,” and the company has raised its dividend every year for 63 years. After spending time with Culp, Langone said he was persuaded to buy back in. Boston-based GE, at one time America’s most valuable company, now has a stock market value bel


Billionaire businessman Ken Langone told CNBC that he used Tuesday’s stock market drop as a buying opportunity.
“Where else can you go to get some kind of a decent rate of return, than equities,” Langone said.
Langone said Parker-Hannifin is “extremely well run,” and the company has raised its dividend every year for 63 years.
After spending time with Culp, Langone said he was persuaded to buy back in.
Boston-based GE, at one time America’s most valuable company, now has a stock market value bel
Billionaire businessman Ken Langone talks about stocks he likes, including JP Morgan and GE Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-04  Authors: jessica bursztynsky
Keywords: news, cnbc, companies, tuesdays, stocks, culp, highs, ken, 2019, morgan, company, businessman, parkerhannifin, talks, market, stock, langone, including, likes


Billionaire businessman Ken Langone talks about stocks he likes, including JP Morgan and GE

Billionaire businessman Ken Langone told CNBC that he used Tuesday’s stock market drop as a buying opportunity.

“Where else can you go to get some kind of a decent rate of return, than equities,” Langone said. “Balance sheets are in pretty good shape. I think the economy has got 1.5% to 2% in it next year.”

U.S. stocks were strongly higher on Wednesday, tracking to break a three-session losing streak.

“Yesterday, I was adding to my positions,” Langone, co-founder of Home Depot, said on “Squawk Box” on Wednesday. “I have so much Depot it’s not prudent” to buy more.

“I added to my J.P. Morgan position,” he continued.

Shares of the $412 billion New York banking behemoth fell nearly 1.3% on Tuesday. But they’re up nearly 35% in 2019, hitting an all-time high last week.

Langone also said he added to his Parker-Hannifin position.

Cleveland-based Parker-Hannifin, with a stock market value of more than $25 billion, makes engineering components and technologies used in products in a wide range of industries, including aerospace, electronics and power generation.

Langone said Parker-Hannifin is “extremely well run,” and the company has raised its dividend every year for 63 years. In fiscal year 2019, the company increased its annual dividend payout by 13%.

Shares of Parker-Hannifin, about 5% shy of early 2018 all-time highs, are up more than 30% in 2019. The stock dropped for five straight sessions as of Tuesday’s close.

Also in the industrial sector, Langone said he likes General Electric. He said he got back into GE, where he once served as a director, earlier this year, following billionaire investor Stanley Druckenmiller into the stock.

“Stan made a big bet,” said Langone, also founder of investment bank Invemed Associates.

Druckenmiller told CNBC on Aug. 15 that he brought GE shares during the stock’s double-digit plunge brought about by a report from Madoff-whistleblower Harry Markopolos accusing the conglomerate of an Enron-like fraud.

The company has denied those accusations.

“I think Culp is doing a hell of a job,” Langone said Wednesday, referring to Larry Culp, the third CEO of embattled GE in a little over two years. Culp was a GE board member before getting the top job. He was previously CEO of Danaher.

After spending time with Culp, Langone said he was persuaded to buy back in.

That’s a turnaround from comments in December 2018, a couple months after Culp was appointed, when Langone called the company’s performance an unfortunate “disaster” and a prime example of “bad governance.”

Shares of GE, while down about 80% from all-time highs in 2000, are up about 45% in 2019, recently hitting several new 52-week highs. As of Tuesday’s close, the stock was on a five-session losing streak.

Boston-based GE, at one time America’s most valuable company, now has a stock market value below $100 billion.


Company: cnbc, Activity: cnbc, Date: 2019-12-04  Authors: jessica bursztynsky
Keywords: news, cnbc, companies, tuesdays, stocks, culp, highs, ken, 2019, morgan, company, businessman, parkerhannifin, talks, market, stock, langone, including, likes


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