Dow falls 170 points, snaps 3-day winning streak

The major indexes fell to their session lows in the final minutes of the trading session as Treasury yields declined as well. Netflix shares pulled back 3.4%. Bank shares such as Citigroup, Bank of America and J.P. Morgan Chase all traded lower as Treasury yields pulled back. The benchmark 10-year yield fell about 5 basis points on Tuesday, or 0.05 percentage points, to 1.54%. Equities rose sharply on Monday — with the Dow rallying nearly 250 points — as bond yields paused their recent and sizab


The major indexes fell to their session lows in the final minutes of the trading session as Treasury yields declined as well. Netflix shares pulled back 3.4%. Bank shares such as Citigroup, Bank of America and J.P. Morgan Chase all traded lower as Treasury yields pulled back. The benchmark 10-year yield fell about 5 basis points on Tuesday, or 0.05 percentage points, to 1.54%. Equities rose sharply on Monday — with the Dow rallying nearly 250 points — as bond yields paused their recent and sizab
Dow falls 170 points, snaps 3-day winning streak Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-20  Authors: fred imbert
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Dow falls 170 points, snaps 3-day winning streak

The Dow Jones Industrial Average fell for the first time in four sessions on Tuesday, paring some of the strong gains from the previous session as recession fears lingered.

The 30-stock index closed 173.35 points lower, or 0.7%, at 25,962.44. The S&P 500 pulled back 0.8% to end the day at 2,900.51. The Nasdaq Composite slid 0.7% to 7,948.56. The major indexes fell to their session lows in the final minutes of the trading session as Treasury yields declined as well.

Home Depot helped keep losses in check. Shares of the home improvement retailer rose 4.4% on better-than-expected earnings. However, Home Depot warned tariffs could hit consumer spending and cut its full-year revenue outlook.

Still, the Dow has recovered a large chunk of its 800-point drop from Wednesday while the S&P 500 and Nasdaq have also regained some of their losses from that day.

“When you’re on a roller coaster, the only thing you can be sure of is you’ll end up back where you started,” said Brian Nick, chief investment strategist at Nuveen, noting the market is back where it was a year ago. “We haven’t gone much of anywhere because the economy is moving ahead, but the trade war is setting up these intermittent potholes and the global economy keeps slowing in the background.”

Chip stocks, which are sensitive to trade news, contributed to Tuesday’s decline. Micron Technology and Advanced Micro Devices dipped 1.7% and 2.4%, respectively. Netflix shares pulled back 3.4%.

Bank shares such as Citigroup, Bank of America and J.P. Morgan Chase all traded lower as Treasury yields pulled back. The benchmark 10-year yield fell about 5 basis points on Tuesday, or 0.05 percentage points, to 1.54%.

“I think yields moving down, just kind of got them going. For the past two weeks whenever yields move down, stocks move down,” said Art Cashin, director of NYSE floor operations at UBS.

Equities rose sharply on Monday — with the Dow rallying nearly 250 points — as bond yields paused their recent and sizable decline, temporarily easing ongoing recession fears.

The White House stepped in the ongoing debate over whether the U.S. economy will soon enter into recession mode, highlighting the strength in the U.S. economy.


Company: cnbc, Activity: cnbc, Date: 2019-08-20  Authors: fred imbert
Keywords: news, cnbc, companies, treasury, pulled, 3day, falls, snaps, winning, streak, yields, economy, shares, session, dow, recession, 170, points, fell


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US 30-year Treasury yield falls to new historic low

The yield on the 30-year Treasury bond dropped to a record low in the morning of Asian trading hours on Thursday, breaching the 2% level for its first time, according to Reuters. That came just a day after the 30-year Treasury bond touched record lows on Wednesday, amid market fears after the closely watched yields on the 10-year Treasury note and the 2-year inverted. After dipping to levels below 2%, the yield on the 30-year Treasury bond was last at 1.9689%. The yield on the 30-year Japanese g


The yield on the 30-year Treasury bond dropped to a record low in the morning of Asian trading hours on Thursday, breaching the 2% level for its first time, according to Reuters. That came just a day after the 30-year Treasury bond touched record lows on Wednesday, amid market fears after the closely watched yields on the 10-year Treasury note and the 2-year inverted. After dipping to levels below 2%, the yield on the 30-year Treasury bond was last at 1.9689%. The yield on the 30-year Japanese g
US 30-year Treasury yield falls to new historic low Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-15  Authors: eustance huang thomas franck, eustance huang, thomas franck
Keywords: news, cnbc, companies, market, bond, falls, traders, treasury, yield, yellen, yields, 30year, low, historic, strategists, recent


US 30-year Treasury yield falls to new historic low

Traders work on the floor at the New York Stock Exchange.

The yield on the 30-year Treasury bond dropped to a record low in the morning of Asian trading hours on Thursday, breaching the 2% level for its first time, according to Reuters.

That came just a day after the 30-year Treasury bond touched record lows on Wednesday, amid market fears after the closely watched yields on the 10-year Treasury note and the 2-year inverted.

After dipping to levels below 2%, the yield on the 30-year Treasury bond was last at 1.9689%. Still, that was higher than the yields on 30-year bonds elsewhere globally. The yield on the 30-year Japanese government bond was at 0.15%, while the rate of the 30-year German bund was at -0.201%.

“Rates are very low by recent standards, but it still makes sense to have some exposure in US Treasuries given the highly uncertain outlook. Moreover, USD rates remain attractive compared to developed market peers,” strategists at Singapore’s DBS Bank wrote in a Thursday note.

“Investors should also bear in mind that the bond market rally looks stretched. An overweight duration stance is vulnerable to any good news that has been sorely lacking in recent months,” the strategists said.

Commenting on the recent main yield curve inversion in the U.S., former Federal Reserve Chair Janet Yellen said Wednesday that “it may be a less good signal ” this time around.

“The reason for that is there are a number of factors other than market expectations about the future path of interest rates that are pushing down long-term yields,” Yellen said on Fox Business Network.

Long-term yields have swooned this month as worries about U.S.-China trade developments and GDP growth — coupled with expectations for lackluster inflation and more aggressive central bank action — have sent traders in search of safer investments.

— CNBC’s Maggie Fitzgerald contributed to this report.


Company: cnbc, Activity: cnbc, Date: 2019-08-15  Authors: eustance huang thomas franck, eustance huang, thomas franck
Keywords: news, cnbc, companies, market, bond, falls, traders, treasury, yield, yellen, yields, 30year, low, historic, strategists, recent


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10-year Treasury yield falls to three-year low below 1.5%, 30-year rate declines to record low

Investors clamored into the safety of U.S. government bonds, sending the 30-year Treasury bond yield below 2% for the first time ever and the 10-year Treasury note yield below 1.5%, a three-year low. The 2-year Treasury yield was 1.467%, its lowest level since Oct. 2017. The inversion of this key part of the yield curve has previously been a reliable indicator of economic recessions. “The yield curve inverted which created a temporary ‘pile on’ effect in the bond markets,” wrote Tom Essaye of Th


Investors clamored into the safety of U.S. government bonds, sending the 30-year Treasury bond yield below 2% for the first time ever and the 10-year Treasury note yield below 1.5%, a three-year low. The 2-year Treasury yield was 1.467%, its lowest level since Oct. 2017. The inversion of this key part of the yield curve has previously been a reliable indicator of economic recessions. “The yield curve inverted which created a temporary ‘pile on’ effect in the bond markets,” wrote Tom Essaye of Th
10-year Treasury yield falls to three-year low below 1.5%, 30-year rate declines to record low Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-15  Authors: maggie fitzgerald sam meredith, maggie fitzgerald, sam meredith
Keywords: news, cnbc, companies, curve, declines, bond, low, note, falls, threeyear, rate, 30year, yield, 15, markets, treasury, risk, record, 10year


10-year Treasury yield falls to three-year low below 1.5%, 30-year rate declines to record low

Investors clamored into the safety of U.S. government bonds, sending the 30-year Treasury bond yield below 2% for the first time ever and the 10-year Treasury note yield below 1.5%, a three-year low.

Around 2:00 p.m. ET, the yield on the benchmark 10-year Treasury note, which moves inversely to price, hit a three-year low of 1.475%, while the yield on the 30-year Treasury bond was at 1.944%, after earlier falling to 1.941% for the first time ever. The 2-year Treasury yield was 1.467%, its lowest level since Oct. 2017.

The historic drop in long-term U.S. bond yields comes shortly after interest rates on the closely watched 10-year and 2-year Treasurys inverted. The inversion of this key part of the yield curve has previously been a reliable indicator of economic recessions.

“The yield curve inverted which created a temporary ‘pile on’ effect in the bond markets,” wrote Tom Essaye of The Sevens Report. “We have absolutely not seen what we wanted to out of the Fed. We had hoped for a rally in the 10-year yield and a widening of the 10s-2s spread. The exact opposite has occurred, and at this point currency and bond markets are no longer flashing ‘caution’ signs on the U.S.-global economy and risk assets, they are flashing a ‘warning’ sign —loudly.”

That part of the curve was positively sloping again on Thursday but only slightly.

“The 30-year yield in itself is historic given that it is moving to massive lows but the curve inversion is typically the signal, one of the better signals you can get, that there is increased risk of recession,” said Bank of America technical strategist Stephen Suttmeier.


Company: cnbc, Activity: cnbc, Date: 2019-08-15  Authors: maggie fitzgerald sam meredith, maggie fitzgerald, sam meredith
Keywords: news, cnbc, companies, curve, declines, bond, low, note, falls, threeyear, rate, 30year, yield, 15, markets, treasury, risk, record, 10year


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GE falls the most in 11 years after Madoff whistleblower calls it a ‘bigger fraud than Enron’

Markopolos alleges that GE has a “long history” of accounting fraud, dating to as early as 1995, when it was run by Jack Welch. A website has been set up to disseminate the report, www.GEfraud.com , where Markopolos calls it “a bigger fraud than Enron.” A year after the Enron scandal broke, long-distance phone company WorldCom, filed for bankruptcy after revelations of an accounting fraud. Separately, he goes on to find issues with GE’s accounting on its oil and gas business Baker Hughes. Addres


Markopolos alleges that GE has a “long history” of accounting fraud, dating to as early as 1995, when it was run by Jack Welch. A website has been set up to disseminate the report, www.GEfraud.com , where Markopolos calls it “a bigger fraud than Enron.” A year after the Enron scandal broke, long-distance phone company WorldCom, filed for bankruptcy after revelations of an accounting fraud. Separately, he goes on to find issues with GE’s accounting on its oil and gas business Baker Hughes. Addres
GE falls the most in 11 years after Madoff whistleblower calls it a ‘bigger fraud than Enron’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-15  Authors: john melloy kate rooney, john melloy, kate rooney
Keywords: news, cnbc, companies, ge, billion, markopolos, insurance, enron, calls, ges, company, madoff, whistleblower, accounting, 11, financial, report, bigger, fraud, falls


GE falls the most in 11 years after Madoff whistleblower calls it a 'bigger fraud than Enron'

Enron, which had more than $63 billion in assets at the time, declared bankruptcy on December 2001 in what was then the largest corporate collapse in U.S. history . Roughly 4,000 Enron employees lost their jobs following its collapse. The energy company’s downfall began with the discovery of accounting irregularities. Twenty-one people, including former CEO Jeffrey Skilling, were convicted in the scandal, and accounting firm Arthur Andersen was forced out of business after it was found guilty of obstruction of justice.

Culp said the fact that Markopolos never talked to company officials before publishing the report “goes to show that he is not interested in accurate financial analysis, but solely in generating downward volatility in GE stock so that he and his undisclosed hedge fund partner can personally profit.”

“GE will always take any allegation of financial misconduct seriously. But this is market manipulation – pure and simple,” Lawrence Culp, chairman and CEO of GE said in a statement. “Mr. Markopolos’s report contains false statements of fact and these claims could have been corrected if he had checked them with GE before publishing the report.”

The stock closed 11% lower in its biggest drop since April 2008, ending the day at $8.01 per share.

“It’s going to make this company probably file for bankruptcy,” Markopolos told CNBC’s ” Squawk on the Street . ” “WorldCom and Enron lasted about four months. … We’ll see how GE does.”

“My team has spent the past 7 months analyzing GE’s accounting and we believe the $38 Billion in fraud we’ve come across is merely the tip of the iceberg,” Markopolos said in the 175-page report. Markopolos alleges that GE has a “long history” of accounting fraud, dating to as early as 1995, when it was run by Jack Welch.

A website has been set up to disseminate the report, www.GEfraud.com , where Markopolos calls it “a bigger fraud than Enron.” The financial investigator, who was probing GE for an unidentified hedge fund, writes that after more than a year of research he has discovered “an Enronesque business approach that has left GE on the verge of insolvency.”

General Electric shares saw their biggest drop in more than a decade Thursday after Madoff whistleblower Harry Markopolos targeted the conglomerate in a new report, accusing it of issuing fraudulent financial statements to hide the extent of its problems.

A year after the Enron scandal broke, long-distance phone company WorldCom, filed for bankruptcy after revelations of an accounting fraud. It had $107 billion in assets at the time.

One area of Markopolos’ case focuses on GE’s long-term care insurance unit, for which the company had to boost reserves by $15 billion last year. By examining the filings of GE’s counterparties in this business, he alleges that GE is hiding massive losses that will only increase as policyholders grow older. He claims that GE has filed false statements to regulators on the unit. Separately, he goes on to find issues with GE’s accounting on its oil and gas business Baker Hughes.

The Wall Street Journal first reported on Markopolos’ findings.

Markopolos is a Boston-based accounting expert who gained attention after pointing out irregularities with Bernie Madoff’s investment strategy, and how it was impossible to generate the returns the fraudster claimed years before the Ponzi scheme was exposed. He was largely ignored at the time. More recently, Markopolos helped uncover a foreign currency trading scandal at a group of banks.

The Markopolos group looking into GE includes forensic accounting veteran John McPherson, co-founder of MMS Advisors, which specializes in the insurance industry.

“GE has been running a decades long accounting fraud by only providing top line revenue and bottom line profits for its business units and getting away with leaving out cost of goods sold, SG&A, R&D and corporate overhead allocations,” the report said.

GE’s market value as of Wednesday’s close was $78.8 billion. With Thursday morning’s skid, the market cap was down to $69.9 billion. Markopolos told the paper the insurance unit would need to raise reserves by more than $18.5 billion. He estimates GE’s already hefty debt-to-equity ratio of 3:1 would skyrocket all the way to 17:1 if the company restates its actual results.

Here are the main points Markopolos makes in the report which are now available to read online:

“This is my accounting fraud team’s ninth insurance fraud case in the past nine years and it’s the biggest, bigger than Enron and WorldCom combined. In fact, GE’s $38 Billion in accounting fraud amounts to over 40% of GE’s market capitalization, making it far more serious than either the Enron or WorldCom accounting frauds.”

“GE utilizes many of the same accounting tricks as Enron did, so much so that we’ve taken to calling this the GEnron case.”

“Of the $29 Billion in new LTC reserves that GE needs, $18.5 Billion requires cash immediately while the remaining $10.5 Billion is a non-cash GAAP charge which accounting rules require to be taken no later than 1QTR 2021. These impending losses will destroy GE’s balance sheet, debt ratios and likely also violate debt covenants.”

“When you benchmark GE to a responsible insurance carrier using going concern accounting such as Prudential (PRU), GE needs $18.5 Billion in additional reserves in order to be able to pay claims. We compare GE’s LTC policies to Prudential and Unum, two insurers with similar pre-mid-2000’s vintage LTC policies, but whose policies have much lower risk characteristics than GE’s. Prudential’s 2018 loss ratio on similar policies was 185% and they’re reserving $113,455 per policy while GE’s loss ratios are several times higher and they’re only reserving $79,000 per policy. Just to match Prudential’s level of reserves would require an immediate $9.5 Billion increase in reserves.”

“GE would change its reporting formats every 2-4 years to prevent analysts from being able to make comparisons across time horizons! In other words, GE went out of its way to make it impossible to analyze the performance of their business units.

“Why would a company do that? We could only think of two reasons: 1) to conceal accounting fraud or 2) because they’re so incompetent they’re not capable of keeping proper books and records. I’m not sure which reason is worse because both are bad and each is a path to bankruptcy.”

GE is already under investigation by the Justice Department and SEC for potential accounting practices. That includes a $22 billion charge the company took in the third quarter related to acquisitions made in its power business.

The struggling industrial conglomerate abruptly removed its former CEO and chairman John Flannery last year after only a year on the job and installed Culp, former Danaher CEO, as his successor.

Flannery had been appointed in August 2017, taking the reins from Jeff Immelt as GE’s stock steadily eroded. The company’s value had continued set new lows as investors remain unconvinced by Flannery’s turnaround vision. Last summer, GE was kicked out of the Dow Jones Industrial Average. It had been the longest-serving component of the blue chip index at 111 years.

Long-term care policies typically pay for end-of-life costs, like nursing homes or assisted living. It’s known as one of the more costly and unpredictable parts of the insurance market — especially as the average American lifespan rises. In January 2018, GE reported a $6.2 billion charge based on liabilities in its long-term care business, which is run by the company’s financial services unit, GE Capital. To make up for the costs, GE Capital said it needed to set aside $15 billion to hold against potential losses, and stopped paying a dividend to its parent company for the “foreseeable future.”

The costs prompted an investor lawsuit and prompted an investigation by the Securities and Exchange Commission, which GE has said it is cooperating with.

GE pointed out that Markopolos gave an unnamed hedge fund he is working with access to the report ahead of time. Markopolos said he has given the report to securities regulators and that certain information he has uncovered has been given to law enforcement only, and is not in the public report.

A disclaimer on the website read: “Prior to the initial distribution of this Report on August 15, 2019, the Company entered into an agreement with a third-party entity to review an advanced copy of the Report in exchange for later-provided compensation. That compensation is based on a percentage of the profits resulting from the third-party entity’s positions in the securities, derivatives, and other financial instruments of, and/or relating to, General Electric Company (“GE”) (NYSE: GE). Those positions taken by the third-party entity are designed to generate profits should the price of GE securities decrease.”

GE reported better-than-expected second-quarter earnings and gave an upbeat outlook for its industrial cash flow — a key metric watched by investors. GE also announced that long-time executive Jamie Miller, who has been with GE since 2008, was stepping down. She was appointed as CFO in 2017 under Flannery.

GE said its power unit is showing “signs of stabilization” but the segment’s orders remained sluggish, with $4.9 billion in booked orders, representing a drop of 22% from a year earlier. Revenue fell by 25% year over year in the second quarter, while power barely reported a profit of $100 million.

Here is the full GE statement to CNBC:

“We have never met, spoken to or had contact with this person. While we can’t comment on the detailed content of a report that we haven’t seen, the allegations we have heard are entirely false and misleading. It’s widely known and the WSJ has previously reported that he works for and is compensated by unnamed hedge funds. Such funds are usually financially motivated to try to generate short selling in a company’s stock to create unnecessary volatility.

GE stands behind its financials. We operate to the highest-level of integrity in our financial reporting and we have clearly laid out our financial obligations in great detail.

We remain focused on running our business every day and following the strategic path we have laid out. We will not be distracted by this type of meritless, misguided and self-serving speculation and neither should anyone in the investor community. ”

Addressing Mr. Markopolos’s allegations: GE Insurance: We believe that our current reserves are well-supported for our portfolio characteristics, and we undertake rigorous reserve adequacy testing every year. The future implementation of the GAAP insurance accounting standard, which will be highly dependent on a number of variables, will not affect statutory accounting, which drives our funding requirements.

BHGE accounting: As a majority shareholder of BHGE, we are required to report consolidated earnings (under U.S. GAAP law), contrary to what Mr. Markopolos alleges. Further, consolidation of BHGE by GE includes additional disclosure of BHGE’s results made through BHGE segment results reporting in the notes to GE’s consolidated financial statements. BHGE is also a stand-alone SEC registrant with its own separate SEC filings under Form 10-Q and 10-K as a separate company. In the most recent 10Q, GE disclosed the loss upon deconsolidation of BHGE from a sale of our interest (taking us below our current majority position) would be approximately $7.4B as of 7/26/19. GE’s liquidity: Contrary to Mr. Markopolos’s allegations, GE continues to maintain a strong liquidity position, committed credit lines, and several executable options to monetize assets. The Company ended the second quarter with $16.9B of Industrial Cash excluding Baker Hughes GE, $12.5B of liquidity at GE Capital and access to $35B of credit facilities. As it relates to GE’s leverage targets, as the Company has previously stated during 2Q earnings, it expects to make significant progress towards these goals by the end of 2020.

Read the entire report here.

Correction: An earlier version misstated the years when GE was removed from the Dow Jones Industrial Average and when GE reported a $6.2 billion charge.


Company: cnbc, Activity: cnbc, Date: 2019-08-15  Authors: john melloy kate rooney, john melloy, kate rooney
Keywords: news, cnbc, companies, ge, billion, markopolos, insurance, enron, calls, ges, company, madoff, whistleblower, accounting, 11, financial, report, bigger, fraud, falls


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Saudi Aramco’s first-half net income falls 12% to $47 billion

An Aramco oil tank is seen at the Production facility at Saudi Aramco’s Shaybah oilfield in the Empty Quarter, Saudi Arabia. Saudi Aramco, the world’s top oil producer, reported first-half net income of $46.9 billion on Monday, down from $53.02 billion a year earlier. By comparison, Apple Inc, the world’s most profitable listed company, made $31.5 billion in the first six months of its financial year. In its earnings report, Aramco partly attributed the decline in net income to a 4% fall in the


An Aramco oil tank is seen at the Production facility at Saudi Aramco’s Shaybah oilfield in the Empty Quarter, Saudi Arabia. Saudi Aramco, the world’s top oil producer, reported first-half net income of $46.9 billion on Monday, down from $53.02 billion a year earlier. By comparison, Apple Inc, the world’s most profitable listed company, made $31.5 billion in the first six months of its financial year. In its earnings report, Aramco partly attributed the decline in net income to a 4% fall in the
Saudi Aramco’s first-half net income falls 12% to $47 billion Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-12  Authors: reuters with cnbccom
Keywords: news, cnbc, companies, saudi, income, company, 47, worlds, billion, 12, nasser, net, aramcos, firsthalf, aramco, crude, falls, oil


Saudi Aramco's first-half net income falls 12% to $47 billion

An Aramco oil tank is seen at the Production facility at Saudi Aramco’s Shaybah oilfield in the Empty Quarter, Saudi Arabia.

Saudi Aramco, the world’s top oil producer, reported first-half net income of $46.9 billion on Monday, down from $53.02 billion a year earlier.

By comparison, Apple Inc, the world’s most profitable listed company, made $31.5 billion in the first six months of its financial year.

Aramco said total revenues including other income related to sales were at $163.88 billion in the first half of this year, down from $167.68 billion a year earlier, on lower oil prices and reduced production.

In its earnings report, Aramco partly attributed the decline in net income to a 4% fall in the average realized price of crude oil compared to the same period in 2018, from $69 to $66 per barrel.

Aramco President and CEO Amin Nasser said the company had continued to deliver on its “downstream growth strategy” through acquisitions both domestically and in international markets.

“These acquisitions are expected to enhance dedicated crude placement, increase refining and chemicals capacity, capture value from integration and diversify our operations,” Nasser said.


Company: cnbc, Activity: cnbc, Date: 2019-08-12  Authors: reuters with cnbccom
Keywords: news, cnbc, companies, saudi, income, company, 47, worlds, billion, 12, nasser, net, aramcos, firsthalf, aramco, crude, falls, oil


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Uber falls to all-time low as investors grow more skeptical

Shares of Uber continued to sink on Monday, posting their lowest close ever, after the company reported disappointing second-quarter results last week. Since its debut on the public markets in May, Uber shares have shed about 18% of their value from the company’s IPO price of $45 per share. The company reported a per-share loss of $4.72 on revenue of $3.17 billion, both of which missed analysts’ estimates. Investors continue to remain skeptical about whether or not Uber can achieve profitability


Shares of Uber continued to sink on Monday, posting their lowest close ever, after the company reported disappointing second-quarter results last week. Since its debut on the public markets in May, Uber shares have shed about 18% of their value from the company’s IPO price of $45 per share. The company reported a per-share loss of $4.72 on revenue of $3.17 billion, both of which missed analysts’ estimates. Investors continue to remain skeptical about whether or not Uber can achieve profitability
Uber falls to all-time low as investors grow more skeptical Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-12  Authors: annie palmer
Keywords: news, cnbc, companies, falls, reported, alltime, shares, uber, company, ridehailing, loss, tusk, price, stock, investors, grow, results, low, skeptical


Uber falls to all-time low as investors grow more skeptical

Dara Khosrowshahi, chief executive officer of Uber Technologies Inc., listens during a panel discussion at the Bloomberg Global Business Forum in New York, U.S., on Wednesday, Sept. 26, 2018.

Shares of Uber continued to sink on Monday, posting their lowest close ever, after the company reported disappointing second-quarter results last week.

The stock dropped 7.6% to $37.00, falling below its previous low of $37.10 on May 13. Since its debut on the public markets in May, Uber shares have shed about 18% of their value from the company’s IPO price of $45 per share.

Uber posted a staggering $5.2 billion loss in its latest quarterly results, driven primarily by stock-based compensation costs. The company reported a per-share loss of $4.72 on revenue of $3.17 billion, both of which missed analysts’ estimates.

In an interview with CNBC’s “Squawk on the Street” on Friday, CEO Dara Khosrowshahi characterized the losses as a “once-in-a-lifetime” hit as he tries to steer the company toward profitability.

Investors continue to remain skeptical about whether or not Uber can achieve profitability in the future. Those concerns have put Uber and rival ride-hailing firm Lyft’s shares under pressure in the months since their respective IPOs. Shares of Lyft fell 4.9% on Monday.

Early Uber investor Bradley Tusk told CNBC on Monday that the company needs to dominate in more areas than just Uber Eats and ride-hailing in order to become profitable.

“They’ve got to be that A-to-Z for transportation,” Tusk said. “Whether you’re getting yourself to A-to-B on a bike, scooter, or a car, bus, whether furniture being shipped on a truck, or a burrito from a messenger, they’ve got to be the default for all of that.”

Correction: This story has been updated with the correct percentage fall of Uber’s stock from IPO price.


Company: cnbc, Activity: cnbc, Date: 2019-08-12  Authors: annie palmer
Keywords: news, cnbc, companies, falls, reported, alltime, shares, uber, company, ridehailing, loss, tusk, price, stock, investors, grow, results, low, skeptical


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Square falls 7% after forecasting lower-than-expected guidance

Shares of Square dropped as much as 8% in after-hours trading Thursday after the payments company issued weaker-than-expected guidance. Here’s how Square did compared with what Wall Street was looking for:Earnings: 21 cents per share, vs. 17 cents forecast by Refinitiv. The company updated investors on its popular peer-to-peer Cash App — largely seen as a competitor to PayPal’s Venmo. Square also launched a debit card for businesses in January, which the CFO said was “driving daily utility” on S


Shares of Square dropped as much as 8% in after-hours trading Thursday after the payments company issued weaker-than-expected guidance. Here’s how Square did compared with what Wall Street was looking for:Earnings: 21 cents per share, vs. 17 cents forecast by Refinitiv. The company updated investors on its popular peer-to-peer Cash App — largely seen as a competitor to PayPal’s Venmo. Square also launched a debit card for businesses in January, which the CFO said was “driving daily utility” on S
Square falls 7% after forecasting lower-than-expected guidance Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-01  Authors: kate rooney
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Square falls 7% after forecasting lower-than-expected guidance

Jack Dorsey, co-founder and chief executive officer of Twitter Inc., speaks during an interview in New York, U.S., on Monday, May 1, 2017.

Shares of Square dropped as much as 8% in after-hours trading Thursday after the payments company issued weaker-than-expected guidance. The company still beat analysts’ earnings and revenue expectations for the second quarter.

Here’s how Square did compared with what Wall Street was looking for:

Earnings: 21 cents per share, vs. 17 cents forecast by Refinitiv.

Adjusted revenue: $563 million vs. $557.1 million, forecast by Refinitiv.

Adjusted third-quarter earnings per share guidance came in below expectations. The company forecasted a range of between 18 cents and 20 cents per share, compared to 22 cents analysts had expected. Square did not update its full-year guidance.

“The third quarter is an important time for us to invest,” Square CFO Amrita Ahuja said on a call with reporters. “We expect these investments to benefit us and to drive growth in the future.”

Adjusted revenue rose to $563 million in the second quarter, a 46% jump year over year. Gross payment volume came in at $26.8 billion vs. the $26.9 billion Wall Street had expected. More than half of Square’s payment volume came from larger sellers.

The company updated investors on its popular peer-to-peer Cash App — largely seen as a competitor to PayPal’s Venmo. Excluding bitcoin trading, which launched on the app last January, revenue on the app came in at $135 million for the second quarter. That’s up from “negligible” revenue when the app first launched three years ago, Ahuja said on a call with analysts.

Square also launched a debit card for businesses in January, which the CFO said was “driving daily utility” on Square as customers “increasingly used the cash card as a spending tool.” In June, Square said in its shareholder letter that roughly 3.5 million people used the card for daily purchases like food, groceries, transportation or at big box retailers.

Square also announced a deal to sell its food delivery company Caviar to DoorDash for $410 million. The acquisition will be a mix of cash and DoorDash preferred stock and is expected to close at the end of this year. According a securities filing, Square bought Caviar for $44.3 million in 2014.

CEO Jack Dorsey, who also runs Twitter, said in the move was meant to increase Square’s focus on its business and consumer ecosystems.

“We have seen a lot of opportunity to strengthen both these ecosystems but those opportunities require more focus and more investment,” Dorsey said on a call with analysts. “To increase our focus, we decided to sell our Caviar business to DoorDash.”

Square’s stock had been on a tear this year with a more than 40% rally since January, compared to a 20% rise in the S&P 500.

The San Francisco-based company is best known for its credit card processor, payment hardware and growing Cash App. Square also facilitates small business loans through Square Capital. During the second quarter, Square facilitated 78,000 loans totaling $528 million — a 36% jump year over year.

The company also applied for a special industrial loan company license that allows less traditional financial firms to accept government-insured deposits. When asked on the call, Square said it did not have an update on the status of its banking application.


Company: cnbc, Activity: cnbc, Date: 2019-08-01  Authors: kate rooney
Keywords: news, cnbc, companies, lowerthanexpected, card, cash, app, company, revenue, forecasting, million, second, falls, cents, square, guidance, quarter


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Chipmaker AMD falls after reporting revenue decline

AMD reported earnings of 8 cents per share and revenue of $1.53 billion, compared to estimates of $1.52 billion, according to Refinitiv. AMD revenue was down 13% compared to the same quarter last year, although it is up 20% from the previous quarter. AMD shares have risen 66.1% over the period, falling behind Inphi Corporation on the index. AMD said revenue was lower in both its computing and graphics and enterprise, embedded and semi-custom segments. Watch: AMD shares slide after hours after co


AMD reported earnings of 8 cents per share and revenue of $1.53 billion, compared to estimates of $1.52 billion, according to Refinitiv. AMD revenue was down 13% compared to the same quarter last year, although it is up 20% from the previous quarter. AMD shares have risen 66.1% over the period, falling behind Inphi Corporation on the index. AMD said revenue was lower in both its computing and graphics and enterprise, embedded and semi-custom segments. Watch: AMD shares slide after hours after co
Chipmaker AMD falls after reporting revenue decline Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-31  Authors: lauren feiner
Keywords: news, cnbc, companies, lower, revenue, su, semicustom, billion, segments, decline, reporting, second, falls, chipmaker, shares, amd, quarter


Chipmaker AMD falls after reporting revenue decline

Shares of chipmaker Advanced Micro Devices fell 10.1% Wednesday following its second quarter earnings report. The drop shaved $3.76 billion from AMD’s market cap, bringing it to $32.9 billion.

The company met analyst estimates for earnings per share and beat revenue expectations. AMD reported earnings of 8 cents per share and revenue of $1.53 billion, compared to estimates of $1.52 billion, according to Refinitiv. AMD revenue was down 13% compared to the same quarter last year, although it is up 20% from the previous quarter.

AMD has still seen huge success over the past year, remaining the second-best performing stock on the PHLX Semiconductor index over the past 12 months. AMD shares have risen 66.1% over the period, falling behind Inphi Corporation on the index.

AMD said revenue was lower in both its computing and graphics and enterprise, embedded and semi-custom segments. Computing and graphics revenue was down 13% year over year at $940 million. The company blamed decline in the segment’s revenue on lower graphics channels sales, but said its 13% increase from the last quarter was mainly due to higher GPU sales.

Revenue for AMD’s enterprise, embedded and semi-custom segment was also down 12% year over year at $591 million for the quarter. AMD said the segment’s dip was mainly due to lower semi-custom product revenue but that its 34% increase from last quarter was due to higher semi-customer and EPYC processor sales.

AMD provided revenue guidance of $1.8 billion for the third quarter, plus or minus $50 million, lower than analyst estimates of about $1.95 billion.

In an interview on CNBC’s “Squawk on the Street, ” AMD CEO Lisa Su said changes in the gaming market impacted its lowered revenue guidance.

“As we look forward in the year, yes we did revise guidance a little bit downward due to game consoles,” Su said. “And if you think about it, game consoles are a great overall market, however Microsoft and Sony just announced their new consoles just here a couple months ago and that’s caused a little bit of a pause in demand. But if you look at overall, I think we feel really really good about the markets and particularly about our new products. ”

Su said the trade situation in China is “fluid” and AMD is closely watching it along with the rest of the semiconductor industry.

“We have stopped shipping some products to a couple of our customers that are on the U.S. entities list and that is a little bit of a headwind into the second half of the year, but we have great products that are backstopping some of that and so we feel really good about the growth prospects into the second half,” Su said.

For its full year 2019, AMD provided guidance of a mid-single digit percent increase in revenue compared to 2018, where it reported revenue of $6.48 billion. AMD expects the growth of its new Ryzen, EPYC and Radeon processors to fuel its growth for the year.

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Watch: AMD shares slide after hours after company projects lower revenue


Company: cnbc, Activity: cnbc, Date: 2019-07-31  Authors: lauren feiner
Keywords: news, cnbc, companies, lower, revenue, su, semicustom, billion, segments, decline, reporting, second, falls, chipmaker, shares, amd, quarter


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Dow drops more than 100 points on fears of a less aggressive Fed next week, Facebook falls

“I think they’re concerned that maybe the fed might be backing off,” said Art Cashin, director of floor operations at UBS. Fed expectations were also dinged after ECB President Mario Draghi said there was not a significant risk of a recession in the region. Some traders took this to mean the central bank would not be as aggressive in its easing measures and that the Fed could follow suit. Gregory Faranello, head of U.S. rates at AmeriVet Securities, thinks both central banks will be aggressive i


“I think they’re concerned that maybe the fed might be backing off,” said Art Cashin, director of floor operations at UBS. Fed expectations were also dinged after ECB President Mario Draghi said there was not a significant risk of a recession in the region. Some traders took this to mean the central bank would not be as aggressive in its easing measures and that the Fed could follow suit. Gregory Faranello, head of U.S. rates at AmeriVet Securities, thinks both central banks will be aggressive i
Dow drops more than 100 points on fears of a less aggressive Fed next week, Facebook falls Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-25  Authors: fred imbert
Keywords: news, cnbc, companies, points, ecb, sp, falls, reserve, drops, week, central, aggressive, 100, policy, facebook, nasdaq, scheduled, fed, dow, fears, rates


Dow drops more than 100 points on fears of a less aggressive Fed next week, Facebook falls

Stocks fell on Thursday as investors worried that the Federal Reserve will not be as dovish as expected in its monetary policy announcement next week following strong economic data and remarks from the top European Central Bank official.

The Dow Jones Industrial Average closed 128.99 points lower, or 0.5%, at 27,140.98. The S&P 500 also pulled back 0.5% to close at 3,003.67. The Nasdaq Composite lagged, sliding 1% to 8,238.54. Both the S&P 500 and Nasdaq hit record highs in the previous session.

“I think they’re concerned that maybe the fed might be backing off,” said Art Cashin, director of floor operations at UBS. “Durable goods were much better than expected. That’s got some people talking about possibly revising GDP forecasts.”

Durable goods orders rose 2% in April, the Commerce Department said Thursday. The U.S. GDP report for the second quarter is scheduled for release Friday at 8:30 a.m. ET.

“This is an environment where you really have to look at the growth number.” said Don Tonwswick, director of equity strategy at Conning. “If that were to surprise to the upside, then it could get the market out of its doldrums.”

Fed expectations were also dinged after ECB President Mario Draghi said there was not a significant risk of a recession in the region. Some traders took this to mean the central bank would not be as aggressive in its easing measures and that the Fed could follow suit. The Fed is scheduled to meet Tuesday and Wednesday.

Draghi’s comments came after the ECB left rates unchanged on Thursday, but opened the door for a rate cut later this year in its policy announcement.

Gregory Faranello, head of U.S. rates at AmeriVet Securities, thinks both central banks will be aggressive in their stimulative measures, however. He noted the ECB is “throwing the kitchen sink at their current economic situation.”

“This is clearly setting the stage for what we’re going to see next week from the Federal Reserve,” he added. “We’re in an environment in which central banks are defending their home turf.”


Company: cnbc, Activity: cnbc, Date: 2019-07-25  Authors: fred imbert
Keywords: news, cnbc, companies, points, ecb, sp, falls, reserve, drops, week, central, aggressive, 100, policy, facebook, nasdaq, scheduled, fed, dow, fears, rates


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Gold falls from one-week high on robust US data

Gold eased off a one-week peak on Thursday as robust U.S. economic data outweighed the European Central Bank’s decision to hew to an accommodative monetary policy, with investor focus on next week’s Federal Reserve meeting. Spot gold was down 0.72% at $1,415.51 per ounce. People want to be long heading into the meeting,” Haberkorn said. “The current global economic headwinds and a dovish tilt by central banks globally is one of the most bullish environments for gold,” analysts from Bank of Ameri


Gold eased off a one-week peak on Thursday as robust U.S. economic data outweighed the European Central Bank’s decision to hew to an accommodative monetary policy, with investor focus on next week’s Federal Reserve meeting. Spot gold was down 0.72% at $1,415.51 per ounce. People want to be long heading into the meeting,” Haberkorn said. “The current global economic headwinds and a dovish tilt by central banks globally is one of the most bullish environments for gold,” analysts from Bank of Ameri
Gold falls from one-week high on robust US data Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-25
Keywords: news, cnbc, companies, high, slid, falls, gold, haberkorn, central, week, monetary, data, meeting, robust, oneweek, traders, banks, ounce


Gold falls from one-week high on robust US data

Gold eased off a one-week peak on Thursday as robust U.S. economic data outweighed the European Central Bank’s decision to hew to an accommodative monetary policy, with investor focus on next week’s Federal Reserve meeting.

Spot gold was down 0.72% at $1,415.51 per ounce. U.S. gold futures fell 0.55% to $1,415.6.

Earlier, prices rose as much as 0.5% to $1,433.46, a one-week high, after the ECB left benchmark rates unchanged, with the bank’s chief sounding the need for a “significant degree of monetary stimulus” down the road.

“Gold sold off on good news out of the U.S. with the fact that we are going into the Fed meeting next week,” said Bob Haberkorn, senior market strategist at RJO Futures.

Weekly U.S. jobless claims number fell to a three-month low last week, pointing to strength in the labor market, while new orders for key U.S. made capital goods surged 1.9 % in June.

“However, these two numbers will pass by as the day goes on and traders will be back to being focused on the Fed next week. People want to be long heading into the meeting,” Haberkorn said.

Market participants are now looking ahead to the U.S. central bank’s July 30-31 monetary policy meeting where it is expected to trim its interest rate by at least 25 basis points.

“The current global economic headwinds and a dovish tilt by central banks globally is one of the most bullish environments for gold,” analysts from Bank of America Merrill Lynch said in a note.

“If the U.S. central bank disappoints on rate cuts, gold could decline quickly, with volatility potentially exacerbated by elevated long positions.”

Among other precious metals, spot palladium edged up 0.1% to $1,541.09 per ounce, while platinum slid 0.5% to $871.22, after touching its highest in nearly three months earlier in the session.

Gains in platinum was due to bargain hunting as it is cheaper than gold by about $550, with traders taking the opportunity to narrow the wide spread between the two, RJO’s Haberkorn added.

Silver slid 0.6% to $16.50 per ounce. It has gained about 16% since a near six-month low of $14.25 hit in late May.

“The key element that has been fueling the recent rally in silver was the stretched levels of the gold-silver ratio which suggested to many traders that silver was cheap relative to gold,” Julius Baer analyst Carsten Menke said, adding that profit-taking was now occurring.


Company: cnbc, Activity: cnbc, Date: 2019-07-25
Keywords: news, cnbc, companies, high, slid, falls, gold, haberkorn, central, week, monetary, data, meeting, robust, oneweek, traders, banks, ounce


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