Asian stocks take a breather after days of declines

The hard-hit mainland Chinese markets ended the trading day mostly unchanged, with both the Shanghai composite and the Shenzhen composite largely flat at around 2,605.89 and about 1,350.70, respectively. Shares of Softbank, which saw significant declines in the previous trading day, extended losses as it fell 2.09 percent on the day. The ASX 200 in Australia rose 0.42 percent to close at 5,681.50, with almost sectors in positive territory. That was a rebound from Thursday, when the index saw dec


The hard-hit mainland Chinese markets ended the trading day mostly unchanged, with both the Shanghai composite and the Shenzhen composite largely flat at around 2,605.89 and about 1,350.70, respectively. Shares of Softbank, which saw significant declines in the previous trading day, extended losses as it fell 2.09 percent on the day. The ASX 200 in Australia rose 0.42 percent to close at 5,681.50, with almost sectors in positive territory. That was a rebound from Thursday, when the index saw dec
Asian stocks take a breather after days of declines Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-07  Authors: eustance huang
Keywords: news, cnbc, companies, breather, day, days, stocks, australia, asian, declines, gained, shares, saw, index, close, rose, trading


Asian stocks take a breather after days of declines

Shares in Asia were mostly higher on Friday on the back of a report suggesting the U.S. Federal Reserve could consider a slower tempo of increasing interest rates than had been previously expected.

The hard-hit mainland Chinese markets ended the trading day mostly unchanged, with both the Shanghai composite and the Shenzhen composite largely flat at around 2,605.89 and about 1,350.70, respectively.

Meanwhile, the Hang Seng index in Hong Kong traded down by around 0.1 percent as of its final hour of trade.

Japan’s Nikkei 225 rose 0.82 percent to close at 21,678.68 while the Topix index gained 0.61 percent to finish the trading week at 1,620.45.

Shares of Softbank, which saw significant declines in the previous trading day, extended losses as it fell 2.09 percent on the day. The company had earlier announced that there was no change in its earnings and dividend forecasts after a mobile service outage on Thursday.

Over in South Korea, the Kospi gained 0.34 percent to close at 2,075.76, with shares of chipmaker SK Hynix rising 1.21 percent.

The ASX 200 in Australia rose 0.42 percent to close at 5,681.50, with almost sectors in positive territory. That was a rebound from Thursday, when the index saw declines amid a broader sell-off across the Asia Pacific region.

Shares of Australia’s so-called Big Four banks saw gains on the day. Australia and New Zealand Banking Group rose 0.16 percent, Commonwealth Bank of Australia gained 1.00 percent while Westpac advanced 0.23 percent and National Australia Bank climbed up by 0.25 percent.


Company: cnbc, Activity: cnbc, Date: 2018-12-07  Authors: eustance huang
Keywords: news, cnbc, companies, breather, day, days, stocks, australia, asian, declines, gained, shares, saw, index, close, rose, trading


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

A look at past declines in Apple’s stock indicates this rout has further to go

Sacconaghi looked at the last three times in the past decade when Apple’s stock has unperformed. Of the lessons to be learned from prior stock downturns, Sacconaghi said Apple’s stock is “typically anticipatory of estimate declines,” as well as has a high correlation to Wall Street’s “next-12-month EPS estimates.” “Perhaps most importantly, Apple’s stock price has historically bottomed only once sell-side EPS estimates have bottomed,” Sacconaghi said. “We should note that neither our current est


Sacconaghi looked at the last three times in the past decade when Apple’s stock has unperformed. Of the lessons to be learned from prior stock downturns, Sacconaghi said Apple’s stock is “typically anticipatory of estimate declines,” as well as has a high correlation to Wall Street’s “next-12-month EPS estimates.” “Perhaps most importantly, Apple’s stock price has historically bottomed only once sell-side EPS estimates have bottomed,” Sacconaghi said. “We should note that neither our current est
A look at past declines in Apple’s stock indicates this rout has further to go Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-28  Authors: michael sheetz, bernd thissen, afp, getty images
Keywords: news, cnbc, companies, rout, sacconaghi, look, declines, estimates, indicates, cycle, apples, past, stock, wall, earnings, current, iphone, streets


A look at past declines in Apple's stock indicates this rout has further to go

Apple shares have lost more than quarter of their value in less than two months, but one of Wall Street’s top analysts on the stock explained why history is against a turnaround any time soon.

“Sell-side estimates have only been revised downwards by -0.8% so far, and history suggests that the stock is unlikely to inflect until estimates stop coming down,” Bernstein’s Toni Sacconaghi said in a note to investors Wednesday.

Sacconaghi looked at the last three times in the past decade when Apple’s stock has unperformed. The three downturns Sacconaghi identified are tied to the life cycle of iPhone products: The iPhone 5, the iPhone 6S and the beginning of the iPhone X. Of the lessons to be learned from prior stock downturns, Sacconaghi said Apple’s stock is “typically anticipatory of estimate declines,” as well as has a high correlation to Wall Street’s “next-12-month EPS estimates.”

“Perhaps most importantly, Apple’s stock price has historically bottomed only once sell-side EPS estimates have bottomed,” Sacconaghi said.

Apple’s full year 2019 earnings are about $12.34 a share when comparing the current product cycle to the iPhone 6S cycle in 2016, according to Sacconaghi. Those earnings would be about 7 percent below Wall Street’s current consensus for next year, Sacconaghi said.

Bernstein’s analysis does not include any potential hits to Apple from tariffs. The company’s stock slid on Tuesday after President Donald Trump suggested the U.S. could place a 10 percent tariff on iPhones and laptops made in China.

“We should note that neither our current estimates nor our downside scenario incorporates any potential impact from tariffs,” Sacconaghi said.

Apple shares have fallen more than 20 percent this month as of Tuesday’s close of $174.24 a share.

Bottom line: Until analysts are done cutting their earnings expectations on the stock, expect more weakness.

WATCH: Apple’s stock is plunging – Here’s what six experts say investors should know


Company: cnbc, Activity: cnbc, Date: 2018-11-28  Authors: michael sheetz, bernd thissen, afp, getty images
Keywords: news, cnbc, companies, rout, sacconaghi, look, declines, estimates, indicates, cycle, apples, past, stock, wall, earnings, current, iphone, streets


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

LA prosecutor declines felony abuse case against Stormy Daniels’ attorney Michael Avenatti

The Los Angeles district attorney declined to prosecute attorney Michael Avenatti on felony domestic abuse charges on Wednesday and referred allegations that he roughed up his girlfriend to the city attorney for a possible misdemeanor case. A restraining order against Avenatti was issued after actress Mareli Miniutti said he dragged her by the arm across a bedroom floor. A spokeswoman for the district attorney would not say why prosecutors declined to take the case from Los Angeles police. Docum


The Los Angeles district attorney declined to prosecute attorney Michael Avenatti on felony domestic abuse charges on Wednesday and referred allegations that he roughed up his girlfriend to the city attorney for a possible misdemeanor case. A restraining order against Avenatti was issued after actress Mareli Miniutti said he dragged her by the arm across a bedroom floor. A spokeswoman for the district attorney would not say why prosecutors declined to take the case from Los Angeles police. Docum
LA prosecutor declines felony abuse case against Stormy Daniels’ attorney Michael Avenatti Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-21  Authors: getty images
Keywords: news, cnbc, companies, stormy, daniels, attorney, miniutti, los, michael, declines, order, la, district, declined, avenatti, trump, city, prosecutor, felony, case


LA prosecutor declines felony abuse case against Stormy Daniels' attorney Michael Avenatti

The Los Angeles district attorney declined to prosecute attorney Michael Avenatti on felony domestic abuse charges on Wednesday and referred allegations that he roughed up his girlfriend to the city attorney for a possible misdemeanor case.

Avenatti, 47, was arrested on suspicion of felony domestic violence last week after his girlfriend told police he abused her at his Los Angeles apartment following an argument.

A restraining order against Avenatti was issued after actress Mareli Miniutti said he dragged her by the arm across a bedroom floor.

Avenatti, who had called the allegations “completely false” and a fabrication, said in a statement he was thankful the district attorney had rejected the charges and was “especially grateful for justice” at Thanksgiving.

“I am completely innocent. I have absolute faith in the system that I will be fully exonerated,” Avenatti told The Associated Press. “This whole thing is bogus.”

A spokeswoman for the district attorney would not say why prosecutors declined to take the case from Los Angeles police. Documents supporting the decision were not released because the case was referred to the city attorney and was still under investigation.

The city attorney’s office will review the case, a spokesman said.

Avenatti, who is mulling a presidential run, is best known as the attorney for porn actress Stormy Daniels, who has said she had an affair with President Donald Trump in 2006, a claim Trump denies.

As Daniels’ lawyer, Avenatti has pursued the president and those close to him relentlessly for months, taunting Trump in interviews and baiting him and his lawyers in tweets.

Miniutti said in her request for a restraining order that she was wearing only a T-shirt and underwear when Avenatti grabbed her by the arm and dragged her out of the bed. She said she was scratched on her side and leg. Court papers include photographs that appear to show bruises.

The order was granted Monday.

Attorneys for the legal aid group that represents Miniutti declined to comment.

Avenatti said that he would be vindicated once footage from security cameras in the building was reviewed, even though the violence described by Miniutti would not have occurred in the building’s public areas.


Company: cnbc, Activity: cnbc, Date: 2018-11-21  Authors: getty images
Keywords: news, cnbc, companies, stormy, daniels, attorney, miniutti, los, michael, declines, order, la, district, declined, avenatti, trump, city, prosecutor, felony, case


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Cramer: Charts forecast further declines for oil prices and stocks

“You have tons of money managers with staggering losses in, say, the oil futures,” Cramer said on “Mad Money.” Oil prices fell sharply Tuesday on fears of a supply glut and a slowing economy, with U.S. West Texas Intermediate crude hitting a one-year low. Crude futures have dropped dramatically in the last month as U.S. crude prices plunged as much as 30 percent from a four-year high. That’s why Garner’s been warning us nearly all year that lower oil prices could be in the cards,” Cramer said. A


“You have tons of money managers with staggering losses in, say, the oil futures,” Cramer said on “Mad Money.” Oil prices fell sharply Tuesday on fears of a supply glut and a slowing economy, with U.S. West Texas Intermediate crude hitting a one-year low. Crude futures have dropped dramatically in the last month as U.S. crude prices plunged as much as 30 percent from a four-year high. That’s why Garner’s been warning us nearly all year that lower oil prices could be in the cards,” Cramer said. A
Cramer: Charts forecast further declines for oil prices and stocks Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-20  Authors: elizabeth gurdus
Keywords: news, cnbc, companies, crude, charts, cramer, prices, oil, commodity, declines, money, forecast, long, trading, garner, stocks, futures


Cramer: Charts forecast further declines for oil prices and stocks

Extreme volatility in the energy market could be one of the less obvious causes of the stock market’s broad-based sell-off, and there could be more pain to come, CNBC’s Jim Cramer warned Tuesday as the Dow Jones Industrial Average erased its gains for the year.

“You can’t understand this breakdown in the stock market unless you recognize that we’re seeing some spillover from the carnage in the oil futures,” he said after consulting with his top commodity expert, Carley Garner.

“You have tons of money managers with staggering losses in, say, the oil futures,” Cramer said on “Mad Money.” “If their investors want out or they just need to raise capital to meet the broker’s margin calls, they need to sell something, and that often is stocks.”

Oil prices fell sharply Tuesday on fears of a supply glut and a slowing economy, with U.S. West Texas Intermediate crude hitting a one-year low. Crude futures have dropped dramatically in the last month as U.S. crude prices plunged as much as 30 percent from a four-year high.

Garner, the co-founder of DeCarley Trading and author of Higher Probability Commodity Trading, “believes much of the recent weakness in equities can actually be blamed on shortsighted managers liquidating stocks to pay for these commodity market margin calls,” Cramer said. “By the way, that’s why you should never, ever buy anything on margin.”

And Garner doesn’t think oil prices are out of the woods yet. Besides the fact that the end of the year tends to be tough for oil prices, which usually peak in October and hit bottom in January or February, she worried that too many investors are still heavily invested in oil futures.

According to the Commodity Futures Trading Commission’s “Commitments of Traders” report, money managers, small speculators and commercial hedgers still have substantial long positions in West Texas crude futures, she noted.

“This has been a very crowded trade for a long time. That’s why Garner’s been warning us nearly all year that lower oil prices could be in the cards,” Cramer said. “Large speculators were net long roughly 230,000 contracts as of this latest reading. […] That’s down dramatically from 730,000 at the peak — the largest net long position, by the way, in history (how wrong were those people?) — it’s not down enough to make Garner believe we’re ready to bottom.”

Adding to that, the Consensus Bullish Index, a sentiment gauge, suggests that investors could still get more negative on oil, Garner said. Considering the past swings she’s seen in oil prices, she said the commodity still has more downside, with one floor of support at $51 a barrel and another at $42.

“Here’s the problem: despite the recent meltdown, Garner points out that the oil futures, amazingly, are still not oversold, meaning they haven’t actually gone down so far so fast that they’re due for a bounce,” the “Mad Money” host said.

And while Garner doesn’t think it’s very likely that oil prices fall to the low $40s — where Cramer has predicted they could go — she warned that the $51 level will only hold if the fundamentals of the oil space significantly improve.

All in all, her charts “suggest that oil could have some more downside, which therefore could lead to still more … selling of stock because of the margin calls,” Cramer said. “You know what? Maybe this will help the Fed to adopt my one-and-wait stance.”


Company: cnbc, Activity: cnbc, Date: 2018-11-20  Authors: elizabeth gurdus
Keywords: news, cnbc, companies, crude, charts, cramer, prices, oil, commodity, declines, money, forecast, long, trading, garner, stocks, futures


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Cramer explains the Apple-led sell-off and what could stop the declines

The Apple-led sell-off and what could stop the declines 4 Hours Ago | 01:23Stocks will only recover from Monday’s dramatic sell-off if seven key things happen to brighten the outlook for the broader market, CNBC’s Jim Cramer said as the major averages pulled back. “The thinking behind today’s action is surprisingly simple: money managers are buying the winners and selling the losers,” he said on “Mad Money.” “Unfortunately, there are a heck of a lot more losers than winners, and I want to put th


The Apple-led sell-off and what could stop the declines 4 Hours Ago | 01:23Stocks will only recover from Monday’s dramatic sell-off if seven key things happen to brighten the outlook for the broader market, CNBC’s Jim Cramer said as the major averages pulled back. “The thinking behind today’s action is surprisingly simple: money managers are buying the winners and selling the losers,” he said on “Mad Money.” “Unfortunately, there are a heck of a lot more losers than winners, and I want to put th
Cramer explains the Apple-led sell-off and what could stop the declines Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-12  Authors: elizabeth gurdus
Keywords: news, cnbc, companies, winners, stop, unfortunately, declines, explains, appleled, losers, yearhere, unusual, selloff, money, things, cramer, todays


Cramer explains the Apple-led sell-off and what could stop the declines

The Apple-led sell-off and what could stop the declines 4 Hours Ago | 01:23

Stocks will only recover from Monday’s dramatic sell-off if seven key things happen to brighten the outlook for the broader market, CNBC’s Jim Cramer said as the major averages pulled back.

“The thinking behind today’s action is surprisingly simple: money managers are buying the winners and selling the losers,” he said on “Mad Money.” “Unfortunately, there are a heck of a lot more losers than winners, and I want to put that into context because such behavior, frankly, is highly unusual this close to the end of the year.”

Here are the things Cramer says will allow stocks to reverse course:


Company: cnbc, Activity: cnbc, Date: 2018-11-12  Authors: elizabeth gurdus
Keywords: news, cnbc, companies, winners, stop, unfortunately, declines, explains, appleled, losers, yearhere, unusual, selloff, money, things, cramer, todays


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Mark Zuckerberg declines UK parliament request to discuss privacy

Facebook CEO Mark Zuckerberg has declined a request to discuss fake news and data privacy in front of government officials from the U.K. and Canada, officials from those countries said in a signed letter Wednesday. Three more countries are also joining in the call for Zuckerberg to appear. Now, officials from Argentina, Australia and Ireland have joined the call, according to the latest letter, which said Facebook declined the original invitation on Friday. Facebook shared with CNBC the letter i


Facebook CEO Mark Zuckerberg has declined a request to discuss fake news and data privacy in front of government officials from the U.K. and Canada, officials from those countries said in a signed letter Wednesday. Three more countries are also joining in the call for Zuckerberg to appear. Now, officials from Argentina, Australia and Ireland have joined the call, according to the latest letter, which said Facebook declined the original invitation on Friday. Facebook shared with CNBC the letter i
Mark Zuckerberg declines UK parliament request to discuss privacy Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-07  Authors: lauren feiner, tony avelar, bloomberg, getty images
Keywords: news, cnbc, companies, users, request, privacy, mark, zuckerberg, declines, facebook, parliament, lawmakers, officials, declined, discuss, uk, countries, letter


Mark Zuckerberg declines UK parliament request to discuss privacy

Facebook CEO Mark Zuckerberg has declined a request to discuss fake news and data privacy in front of government officials from the U.K. and Canada, officials from those countries said in a signed letter Wednesday. Three more countries are also joining in the call for Zuckerberg to appear.

Late last month, U.K. and Canadian lawmakers called on Zuckerberg to attend a “special joint parliamentary hearing” in London on Nov. 27 for an “international grand committee’ on disinformation and fake news.” Now, officials from Argentina, Australia and Ireland have joined the call, according to the latest letter, which said Facebook declined the original invitation on Friday.

Facebook shared with CNBC the letter it sent to UK and Canadian lawmakers on Nov. 2 declining the request, but declined to comment further.

The letter, which is signed by Facebook’s heads of public policy in the UK and Canada, acknowledges “the seriousness of the Cambridge Analytica issue” and stands by its choice to send senior representatives of the company to confront lawmakers instead of Zuckerberg. Facebook said in the letter it has already submitted written answers to lawmakers’ inquiries and given extensive testimony in the UK Parliament.

“We are very disappointed by this dismissive response,” the signatories wrote. Zuckerberg should give the 170 million collective users in these countries “the same line of accountability” that they gave users in the U.S. and European Union by showing up to confront lawmakers directly, they said, restating their request for the chief executive to attend the hearing.


Company: cnbc, Activity: cnbc, Date: 2018-11-07  Authors: lauren feiner, tony avelar, bloomberg, getty images
Keywords: news, cnbc, companies, users, request, privacy, mark, zuckerberg, declines, facebook, parliament, lawmakers, officials, declined, discuss, uk, countries, letter


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Supreme Court declines to take on net neutrality challenges, in blow to telecom industry

In a setback for industry groups, the U.S. Supreme Court on Monday announced that it would not take up challenges to Obama-era “net neutrality” regulations that barred internet service providers from giving certain customers preferential treatment. The Trump administration overturned those regulations last year, and since June they have not been in effect. But a range of challenges to the regulations remained before the court, brought by groups such as the United States Telecom Association, AT&T


In a setback for industry groups, the U.S. Supreme Court on Monday announced that it would not take up challenges to Obama-era “net neutrality” regulations that barred internet service providers from giving certain customers preferential treatment. The Trump administration overturned those regulations last year, and since June they have not been in effect. But a range of challenges to the regulations remained before the court, brought by groups such as the United States Telecom Association, AT&T
Supreme Court declines to take on net neutrality challenges, in blow to telecom industry Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-05  Authors: tucker higgins, ronen tivony, nurphoto, getty images
Keywords: news, cnbc, companies, internet, regulations, obamaera, washington, challenges, declines, justice, decision, effect, net, neutrality, telecom, industry, blow, court, groups, supreme


Supreme Court declines to take on net neutrality challenges, in blow to telecom industry

In a setback for industry groups, the U.S. Supreme Court on Monday announced that it would not take up challenges to Obama-era “net neutrality” regulations that barred internet service providers from giving certain customers preferential treatment.

The Trump administration overturned those regulations last year, and since June they have not been in effect. But a range of challenges to the regulations remained before the court, brought by groups such as the United States Telecom Association, AT&T and The Internet & Television Association.

The court’s decision will leave in effect a decision from a federal appeals court in Washington upholding the constitutionality of the regulations. That means the decision can be relied on for precedent in the future.

Three of the court’s conservative justices, Clarence Thomas, Samuel Alito and Neil Gorsuch, said they would have vacated that decision. Chief Justice John Roberts and Justice Brett Kavanaugh recused themselves.

Net neutrality has proved divisive, with proponents arguing that it is the “foundation of a free and open internet” and opponents casting it as an unlawful seizure of power by the FCC.

The FCC’s decision to do away with the Obama-era regulations is now facing a court challenge in Washington, brought by a group including Illinois Attorney General Lisa Madigan, a Democrat, as well as the California Public Utilities Commission.


Company: cnbc, Activity: cnbc, Date: 2018-11-05  Authors: tucker higgins, ronen tivony, nurphoto, getty images
Keywords: news, cnbc, companies, internet, regulations, obamaera, washington, challenges, declines, justice, decision, effect, net, neutrality, telecom, industry, blow, court, groups, supreme


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Asian stocks fall after day of declines on Wall Street

Stocks in Asia slipped on Tuesday morning, following a roller coaster session on Wall Street. In Japan, the Nikkei 225 slipped 0.36 percent just after the market open while the Topix index saw a slight decline. Down Under, the benchmark ASX 200 declined 0.34 percent in the morning, with most sectors seeing losses. The heavily weighted financial subindex shed its earlier gains despite shares of Australia’s so-called Big Four banks mostly rising: ANZ shares were up 0.3 percent, Commonwealth Bank a


Stocks in Asia slipped on Tuesday morning, following a roller coaster session on Wall Street. In Japan, the Nikkei 225 slipped 0.36 percent just after the market open while the Topix index saw a slight decline. Down Under, the benchmark ASX 200 declined 0.34 percent in the morning, with most sectors seeing losses. The heavily weighted financial subindex shed its earlier gains despite shares of Australia’s so-called Big Four banks mostly rising: ANZ shares were up 0.3 percent, Commonwealth Bank a
Asian stocks fall after day of declines on Wall Street Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-30  Authors: eustance huang
Keywords: news, cnbc, companies, session, morning, despite, asian, index, open, slipped, japan, stocks, fell, wall, shares, day, street, losses, declines, fall


Asian stocks fall after day of declines on Wall Street

Stocks in Asia slipped on Tuesday morning, following a roller coaster session on Wall Street.

In Japan, the Nikkei 225 slipped 0.36 percent just after the market open while the Topix index saw a slight decline.

The moves in Japan came despite positive news on the economic front: Government data showed that the seasonally adjusted unemployment rate fell to 2.3 percent in September from 2.4 percent in August.

Down Under, the benchmark ASX 200 declined 0.34 percent in the morning, with most sectors seeing losses. The energy sector fell 0.65 percent and materials slipped 0.72 percent.

The heavily weighted financial subindex shed its earlier gains despite shares of Australia’s so-called Big Four banks mostly rising: ANZ shares were up 0.3 percent, Commonwealth Bank added 0.47 percent, Westpac was up 0.11 percent. National Australia Bank, on the other hand, slipped 0.44 percent.

South Korea’s Kospi, meanwhile, fell 0.1 percent in early trade.

Chinese markets, which open at 9:30 a.m. HK/SIN, will be looking to recoup some of their losses after another rough trading session on Monday. It’s been a tough October for mainland shares: The Shanghai index has fallen by almost 9.9 percent while Shenzhen has dropped more than 12.2 percent.


Company: cnbc, Activity: cnbc, Date: 2018-10-30  Authors: eustance huang
Keywords: news, cnbc, companies, session, morning, despite, asian, index, open, slipped, japan, stocks, fell, wall, shares, day, street, losses, declines, fall


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

This market reminds Jim Cramer of some of the worst declines he’s ever seen

And, scary as it sounds, the market action of the past few weeks reminds him of those chaotic moments. “It was portfolio insurance back then; now it’s algorithms and ETFs,” the host of CNBC’s “Mad Money” said. Two hours later, then-Federal Reserve Chairman Alan Greenspan announced an emergency interest rate cut that provided the necessary liquidity to get the stock market back on its feet. The March 2000 crash was a brutal one for investors, but had a “negligible” effect on the economy, the “Mad


And, scary as it sounds, the market action of the past few weeks reminds him of those chaotic moments. “It was portfolio insurance back then; now it’s algorithms and ETFs,” the host of CNBC’s “Mad Money” said. Two hours later, then-Federal Reserve Chairman Alan Greenspan announced an emergency interest rate cut that provided the necessary liquidity to get the stock market back on its feet. The March 2000 crash was a brutal one for investors, but had a “negligible” effect on the economy, the “Mad
This market reminds Jim Cramer of some of the worst declines he’s ever seen Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-29  Authors: elizabeth gurdus
Keywords: news, cnbc, companies, seen, economy, money, cramer, president, worst, declines, mad, reminds, fed, stock, tariffs, market, portfolio, jim, hes


This market reminds Jim Cramer of some of the worst declines he's ever seen

There have only been four times in Jim Cramer’s career when the stock guru and former hedge fund manager sold out of his entire portfolio. And, scary as it sounds, the market action of the past few weeks reminds him of those chaotic moments.

“As much as it pains me to say this, the current situation combines … some of the worst characteristics of those four past breakdowns,” Cramer told investors on Monday as much of the stock market slid into correction territory.

First was the crash of October 1987, a one-day mechanical nosedive that became known as Black Monday. Back then, newly minted S&P 500 futures and insurance instruments that claimed to stem portfolio losses using the futures combined to cause a disastrous bout of selling.

“It was portfolio insurance back then; now it’s algorithms and ETFs,” the host of CNBC’s “Mad Money” said. “They’re like machine guns mowing down any buyers, like we saw today.”

In 1998, Cramer watched as a major hedge fund with huge holdings in the market started pulling out of stocks and threatening the fate of many big banks. He remembers anticipating “a total collapse” and writing a piece telling investors to get out of the market.

Two hours later, then-Federal Reserve Chairman Alan Greenspan announced an emergency interest rate cut that provided the necessary liquidity to get the stock market back on its feet. Cramer said it was the worst professional mistake he ever made, but hoped that today’s Fed would have the same resolve.

The March 2000 crash was a brutal one for investors, but had a “negligible” effect on the economy, the “Mad Money” host recalled. The Nasdaq index had been rallying since 1998, but reached a point where scores of companies were overvalued and there were few buyers to be found.

“The dotcom bomb in 2000 … went off because of reckless underwriting,” Cramer said. “The economy was robust, but the bankers flooded the market with too many low-quality internet IPOs and secondary offerings, then the whole thing collapsed under its own weight.”

Last but not least was the start of the financial crisis in 2008. Cramer’s sources in the business world were signaling that the economy could be on the brink of decline, but the Fed didn’t listen, spurring his famed “They know nothing” rant.

“Right now, the stock market is signaling that the economy’s in for pretty rapid deterioration, just like 2008. We have a Fed that’s lamentably unaware of the danger,” he warned. “Fortunately, there’s no systemic risk here — we’re looking at a normal cyclical downturn, though, linked with some 1987-style overvaluations.”

But “the Fed is making the same mistakes as in 2007. They are. They’re totally misjudging how weak some major parts of the economy are,” he warned. “If the Fed doesn’t reverse course like it did in ’98, then we could continue along … a 1987 road, especially if the president keeps slapping tariffs on the Chinese.”

And despite the pressure President Donald Trump is putting on the traditionally independent Fed to slow their interest rate hikes, Cramer said the burden of preventing economic pain is on the central bank and its leaders.

“My main fear is that we could have a mini version of 2008 if the Fed doesn’t change course,” the “Mad Money” host said. “Our one hope? If Fed chief Jerome Powell actually starts listening to the stock market and wakes up to the damage that tariffs can do to the economy, then maybe he’ll shift gears, just like Greenspan did in ’98. Then we can bottom and even roar higher. But as long as Powell stays committed to the December hike and three more next year, … and the president stays committed to expanding his tariffs, then history says we’ve got more downside no matter what.”


Company: cnbc, Activity: cnbc, Date: 2018-10-29  Authors: elizabeth gurdus
Keywords: news, cnbc, companies, seen, economy, money, cramer, president, worst, declines, mad, reminds, fed, stock, tariffs, market, portfolio, jim, hes


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Bespoke: One-day declines in shares of companies reporting earnings tracks as the worst in 7 years

Sell-off is a positioning trade rather than something economically dire, says Bespoke’s Hickey 4 Hours Ago | 04:02Earnings season so far is “horrible,” and the one-day decline in shares of companies reporting is tracking as the worst since 2011, according to Bespoke Investment Group. “Ever since mid-September, we’ve been seeing a trend of companies reporting earnings [and] have been declining in reaction to their news,” Bespoke co-founder Paul Hickey said Tuesday on CNBC’s “Squawk Box.” For comp


Sell-off is a positioning trade rather than something economically dire, says Bespoke’s Hickey 4 Hours Ago | 04:02Earnings season so far is “horrible,” and the one-day decline in shares of companies reporting is tracking as the worst since 2011, according to Bespoke Investment Group. “Ever since mid-September, we’ve been seeing a trend of companies reporting earnings [and] have been declining in reaction to their news,” Bespoke co-founder Paul Hickey said Tuesday on CNBC’s “Squawk Box.” For comp
Bespoke: One-day declines in shares of companies reporting earnings tracks as the worst in 7 years Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-23  Authors: berkeley lovelace jr
Keywords: news, cnbc, companies, bespoke, earnings, reporting, oneday, companies, hickey, worst, shares, declines, far, sessions, selloff, market, month, tracks


Bespoke: One-day declines in shares of companies reporting earnings tracks as the worst in 7 years

Sell-off is a positioning trade rather than something economically dire, says Bespoke’s Hickey 4 Hours Ago | 04:02

Earnings season so far is “horrible,” and the one-day decline in shares of companies reporting is tracking as the worst since 2011, according to Bespoke Investment Group.

“Ever since mid-September, we’ve been seeing a trend of companies reporting earnings [and] have been declining in reaction to their news,” Bespoke co-founder Paul Hickey said Tuesday on CNBC’s “Squawk Box.”

Hickey, a former analyst for Birinyi Associates and former trader at Salomon Smith Barney, said roughly third-quarters of stocks have traded down on their earnings results so far this season.

For companies that miss expectations on earnings or revenues, or lower guidance, the punishment has been swift with an average decline of about 5 percent, said Hickey.

That scenario was playing out Tuesday morning, with Dow components Caterpillar and 3M getting slammed, down 9 percent and 7 percent respectively.

The markets fell Monday in part on worries about a deluge of corporate earnings reports coming this week. The S&P 500 has fallen for four sessions in a row and 11 of the past 13 sessions. The Dow Jones Industrial Average and Nasdaq are on pace for their worst month since January 2016.

Hickey said that historically a retest of a sharp sell-off, like the one the market had earlier this month, can set up future gains. However, if the market goes down too much further, it may indicate broader weakness, he added.


Company: cnbc, Activity: cnbc, Date: 2018-10-23  Authors: berkeley lovelace jr
Keywords: news, cnbc, companies, bespoke, earnings, reporting, oneday, companies, hickey, worst, shares, declines, far, sessions, selloff, market, month, tracks


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post