GE was once America’s most valuable company. Today it is fighting junk-bond status.

GE’s stock market value has slipped to just below $70 billion, about $300 billion less than where it was in 2005, when it was last America’s most valuable company, according to S&P Dow Jones Indices. GE stock fell more than 2 percent and was trading below $8 Friday. GE stock has cratered to levels it reached during the financial crisis. To me, GE was a single A-rated name that may or may not end up high yield for completely idiosyncratic reasons,” Mikkelsen said. He expects to see the corporate


GE’s stock market value has slipped to just below $70 billion, about $300 billion less than where it was in 2005, when it was last America’s most valuable company, according to S&P Dow Jones Indices. GE stock fell more than 2 percent and was trading below $8 Friday. GE stock has cratered to levels it reached during the financial crisis. To me, GE was a single A-rated name that may or may not end up high yield for completely idiosyncratic reasons,” Mikkelsen said. He expects to see the corporate
GE was once America’s most valuable company. Today it is fighting junk-bond status. Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-16  Authors: patti domm, simon dawson, bloomberg, getty images
Keywords: news, cnbc, companies, status, debt, junkbond, junk, today, yield, bbb, americas, market, grade, stock, billion, valuable, ge, high, company, fighting


GE was once America's most valuable company. Today it is fighting junk-bond status.

Once-mighty General Electric is fighting to stay off the junk heap.

GE’s stock has become a sliver of its former self, and its bonds are now trading as if they are already junk-rated. That puts pressure on new CEO Larry Culp to quickly raise cash and cut debt to keep its debt rating from falling further to sub-investment grade junk status, otherwise known as high-yield.

“When the market begins to price you to junk status, you have a very limited time to clear that up before you become junk,” said Thomas Tzitzouris, director and head of fixed income research at Strategas. “Whether their plan is viable or not, they’re running out of time.”

Tzitzouris said GE is not even close to becoming high-yield rated yet, but it will have to prove it deserves to stay investment grade. The company’s goal is to regain its A rating after S&P cut it to BBB-plus last month. But should GE become a ‘fallen angel,’ its debt service costs would rise and it would face a new round of selling pressure on both its stock and bonds.

GE’s stock market value has slipped to just below $70 billion, about $300 billion less than where it was in 2005, when it was last America’s most valuable company, according to S&P Dow Jones Indices.

Six weeks ago, Culp replaced John Flannery, who was viewed as too slow at fixing what ailed the conglomerate after he took over from long time CEO Jeff Immelt. Culp was once CEO of Danaher Corp., a science and technology conglomerate

This week GE moved to sell $3.7 billion of its stake in oil field services company Baker Hughes. On Friday, GE took another step toward its previous announced planned $25 billion reduction in GE Capital assets with the sale of its $1.5 billion healthcare equipment finance portfolio to TIAA Bank.

But GE needs to continue to show results and too many questions remain, strategists say.

Goldman Sachs equity analysts Friday cut their target on GE shares to $9 from $12, and said they do not “see GE as inexpensive given its leverage profile… and tail risk associated with GE Capital.”

GE stock fell more than 2 percent and was trading below $8 Friday. Goldman analysts said it is still unclear how much of a capital infusion GE Capital will need. They said the funding gap could be as much as $20 billion through 2020, which could be filled by asset sales and an equity infusion from its parent.

The Goldman analysts also said GE’s power business sales continue to decline, and they expect 2019 to be another down year.

These are the type of doubts swirling around both GE’s stock and debt.

“What investors generally don’t like is uncertainty and lack of direction. We’re transitioning through that period right now,” Jonathan Duensing, director investment grade corporate debt at Amundi Pioneer. “The more clarity and the more action the management team can deliver on, that will start to really repair the situation, not only for the business itself but from a confidence standpoint. A lot of this is because investors’ confidence has been shaken.”

Culp said, in an interview this week, that he feels the “urgency” to reduce the company’s leverage and will do so through asset sales. He said there could be a possible IPO of the company’s health care business.

“We have no higher priority right now than bringing those leverage levels down,” Culp said Monday in an interview on “Squawk on the Street” with CNBC’s David Faber.

GE has about $115 billion in debt, which it easily built up when it was one of just a few blue chips with a coveted triple-A standing. But GE lost that crown in 2009. The company has a mix of debt, and has access to $40 billion in revolving credit lines.

Once beloved for its healthy dividend and earnings consistency, GE found it no longer could afford the quarterly payout and recently reduced it to just a penny to free up cash. GE stock has cratered to levels it reached during the financial crisis. On top of that, the SEC has been investigating its accounting, including the $22 billion non-cash charge it took in the third quarter related to acquisitions in its power business.

GE’s ripples were felt across the bond market this week, and its woes are one reason for the jump in spreads in corporate and high-yield debt. Investment grade spreads widened out by about 10 basis points and high yield by about 40 through Thursday.

“The big fear in the market all year has been that you have a lot of very large BBB rated structures and eventually some of these could be downgraded into high yield. Then comes GE. GE obviously is an ongoing story but now recently they actually got downgraded to BBB. GE is a very large BBB rated structure and it’s pricing like high yield,” said Hans Mikkelsen, head of high grade credit structure at Bank of American Merrill Lynch. Mikkelsen said he’s not an expert on GE but the market views it as having downgrade risk.

A big credit sliding into the junk bond world would pressure yields in that market and trigger forced selling in the downgraded credit.

“Is this the beginning of a downgrade to high yield? My view is no. This is not that story. To me, GE was a single A-rated name that may or may not end up high yield for completely idiosyncratic reasons,” Mikkelsen said.

Mikkelsen said other factors were also moving the market this week, including the steep drop in oil, and the turbulence in bonds of PG&E, the California utility which said earlier this week its insurance may not cover its potential liabilities related to fires. He expects to see the corporate debt market stabilize and firm up into year end.

GE BBB-plus senior debt is now three steps above junk, and it is also part of the largest BBB tier in the $5 trillion investment grade debt market. Half the investment grade market is now rated BBB, another concern in the market.

Mikkelsen said GE has about $50 billion in debt that is BBB rated, which is equal to about 0.8 percent of the investment grade market but would be 3.9 percent of the roughly $1.2 trillion high yield market. It is 1.5 percent of BBBs.

“Our view is that GE is small enough, and the story sufficiently idiosyncratic, to leave other large BBB capital structures relatively little affected as this story plays out,” Mikkelsen noted.

But strategists say GE has to clarify where it is going. In the interview, Culp said the troubled power business was close to bottoming.

Duensing also said GE is not representative of trouble for the BBB tier of the market. “It’s not a BBB thing. This is a company that has been struggling to manage their overall business platforms from an operational standpoint, and now it’s in a situation where it’s not only impacting the equity price, it’s impacting the debt spreads because credit agencies moved on the credit rating and investors have lost confidence,” he said. “That’s a more specific issue.”

But still, GE is a big new member of the BBB ranks, at a time when interest rates are rising and investors are concerned about where potential problems may be found in the next economic downturn.


Company: cnbc, Activity: cnbc, Date: 2018-11-16  Authors: patti domm, simon dawson, bloomberg, getty images
Keywords: news, cnbc, companies, status, debt, junkbond, junk, today, yield, bbb, americas, market, grade, stock, billion, valuable, ge, high, company, fighting


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Gold prices hit one-week high amid Brexit turmoil

Gold prices rose on Friday, having hit a one-week high earlier in the session, as investors sought safe-haven assets amid fears of a chaotic departure for Britain from the European Union. “The issues around Brexit have invigorated a little bit of safe-haven buyingin the market … Spot gold was up 0.2 percent at $1,215.07 per ounce, as of 0445 GMT. Among other precious metals, palladium edged 0.3 percent lower to $1,153.50 per ounce, having hit a record high of $1,178.30 per ounce in the previou


Gold prices rose on Friday, having hit a one-week high earlier in the session, as investors sought safe-haven assets amid fears of a chaotic departure for Britain from the European Union. “The issues around Brexit have invigorated a little bit of safe-haven buyingin the market … Spot gold was up 0.2 percent at $1,215.07 per ounce, as of 0445 GMT. Among other precious metals, palladium edged 0.3 percent lower to $1,153.50 per ounce, having hit a record high of $1,178.30 per ounce in the previou
Gold prices hit one-week high amid Brexit turmoil Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-16  Authors: getty images
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Gold prices hit one-week high amid Brexit turmoil

Gold prices rose on Friday, having hit a one-week high earlier in the session, as investors sought safe-haven assets amid fears of a chaotic departure for Britain from the European Union.

U.K. Prime Minister Theresa May’s draft Brexit plan ran into dispute after the resignation of key ministers from her government and eurosceptic lawmakers stepped up efforts to topple her, provoking fears the country could crash out of the EU without a divorce deal.

“The issues around Brexit have invigorated a little bit of safe-haven buyingin the market … The focus of the market has turned slightly to geopolitical issues at the moment,” said ANZ analyst Daniel Hynes.

Spot gold was up 0.2 percent at $1,215.07 per ounce, as of 0445 GMT. Earlier in the session, the bullion hit $1,216.79, its highest since Nov. 9.

U.S. gold futures were flat at $1,215.3 per ounce.

“Gold should continue to find demand on dips, provided the U.S. dollar remains in check,” Stephen Innes, APAC trading head at OANDA in Singapore said in a note.

The dollar index, which measures the greenback against a basket of six major currencies, was at 97, not far from a 16-month high of 97.69 hit at the start of the week.

A softer dollar, GBP notwithstanding and the U.S. Federal Reserve triggering some early warning signals about global growth risk in 2019, combined with political tensions are being viewed in a positive light for the gold market, Innes added.

Investors also kept an eye on the U.S.-China trade tensions as they looked for concrete signs the economic powers were seeking to de-escalate their dispute.

Spot gold may edge up to $1,223 per ounce, to complete a bounce triggered by a channel support around $1,192, said Reuters technical analyst Wang Tao.

Among other precious metals, palladium edged 0.3 percent lower to $1,153.50 per ounce, having hit a record high of $1,178.30 per ounce in the previous session.

Palladium is on track to mark its biggest weekly gain since Sept. 21 having risen over 3 percent so far.

Silver was little changed at $14.29 per ounce. The metal rose about 1 percent so far this week.

Platinum climbed 0.1 percent to $842.30 an ounce and was down about 1 percent for the week so far.


Company: cnbc, Activity: cnbc, Date: 2018-11-16  Authors: getty images
Keywords: news, cnbc, companies, turmoil, amid, prices, brexit, dollar, having, ounce, gold, market, high, session, hit, oneweek, tensions, far


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Gold edges up as dollar drifts away from multi-month high

Gold prices inched up on Wednesday as the U.S. dollar retreated from a 16-month high touched earlier in week, easing amid a surge in the euro and sterling on a draft Brexit agreement. Spot gold was up about 0.1 percent at $1,202.55 per ounce at 0101 GMT. The dollar index, which measures the greenback against a basket of six major currencies, was down about 0.3 percent. SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.11 percent to 761.16 tonnes on T


Gold prices inched up on Wednesday as the U.S. dollar retreated from a 16-month high touched earlier in week, easing amid a surge in the euro and sterling on a draft Brexit agreement. Spot gold was up about 0.1 percent at $1,202.55 per ounce at 0101 GMT. The dollar index, which measures the greenback against a basket of six major currencies, was down about 0.3 percent. SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.11 percent to 761.16 tonnes on T
Gold edges up as dollar drifts away from multi-month high Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-14
Keywords: news, cnbc, companies, president, prime, dollar, brexit, gold, high, united, edges, talks, away, draft, minister, european, multimonth, tonnes, drifts


Gold edges up as dollar drifts away from multi-month high

Gold prices inched up on Wednesday as the U.S. dollar retreated from a 16-month high touched earlier in week, easing amid a surge in the euro and sterling on a draft Brexit agreement.

Spot gold was up about 0.1 percent at $1,202.55 per ounce at 0101 GMT.

U.S. gold futures were up 0.1 percent at $1,203 per ounce.

The dollar index, which measures the greenback against a basket of six major currencies, was down about 0.3 percent.

U.S. President Donald Trump’s top economic adviser said on Tuesday that the United States welcomed the resumption of talks with China on trade, while Vice President Mike Pence warned Beijing to change its behavior so as to avoid a new cold war with the United States.

U.S. inflation expectations were unchanged in October from a month ago, even while Americans expected to spend and earn more, according to a Federal Reserve Bank of New York survey published on Tuesday.

Britain struck a draft divorce deal with the European Union after more than a year of talks, thrusting Prime Minister Theresa May into a perilous battle over Brexit that could shape her country’s prosperity for generations to come.

The British cabinet will meet at 1400 GMT on Wednesday to consider the draft withdrawal agreement, a Downing Street spokesman said after Irish and British media were leaked details of the agreement on the text.

The Italian government will maintain its deficit and economic growth forecasts for 2019 despite European Commission demands for the budget plan to be revised, Deputy Prime Minister Matteo Salvini said late on Tuesday.

SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.11 percent to 761.16 tonnes on Tuesday from 762.00 tonnes on Monday.

Gold broker and storage company GoldCore said on Tuesday it had opened a gold vault in Dublin, aiming to attract investors looking for an alternative to London after Brexit.


Company: cnbc, Activity: cnbc, Date: 2018-11-14
Keywords: news, cnbc, companies, president, prime, dollar, brexit, gold, high, united, edges, talks, away, draft, minister, european, multimonth, tonnes, drifts


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Wells Fargo turns positive on gold, here’s how high bull sees it going

With gold trading around one-month lows, the Wells Fargo Investment Institute is getting bullish. John LaForge, the firm’s head of real asset strategy, sees gold regaining its luster and delivering profits for investors. The U.S. dollar index, which hit 52-week highs this week, is also a key element of his refreshed forecast. However, LaForge doesn’t believe it’ll create enough momentum to push gold back above its record high of $1,891.90 hit in 2011. “We’re still working off all the excesses fr


With gold trading around one-month lows, the Wells Fargo Investment Institute is getting bullish. John LaForge, the firm’s head of real asset strategy, sees gold regaining its luster and delivering profits for investors. The U.S. dollar index, which hit 52-week highs this week, is also a key element of his refreshed forecast. However, LaForge doesn’t believe it’ll create enough momentum to push gold back above its record high of $1,891.90 hit in 2011. “We’re still working off all the excesses fr
Wells Fargo turns positive on gold, here’s how high bull sees it going Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-14  Authors: stephanie landsman, michael nagle, bloomberg, getty images, dario pignatelli, andrew harrer, gari garaialde, david a grogan
Keywords: news, cnbc, companies, turns, gold, kind, positive, going, stock, heres, yellow, wells, sees, laforge, dollar, getting, bull, hit, high, fargo, ounce


Wells Fargo turns positive on gold, here's how high bull sees it going

With gold trading around one-month lows, the Wells Fargo Investment Institute is getting bullish.

John LaForge, the firm’s head of real asset strategy, sees gold regaining its luster and delivering profits for investors.

“When your stock corrections are in the 10 to 15 percent level, which is kind of what we’re in now, what we often find is that investors go out and search for some kind of insurance,” he said Tuesday on CNBC’s “Futures Now.” “They typically will buy gold — even on a bounce in stocks.”

LaForge’s bullish case is built on more than just the stock market cycle. The U.S. dollar index, which hit 52-week highs this week, is also a key element of his refreshed forecast.

“The dollar is a little too high. It has to back off,” he said.

Typically, gold and the greenback move in opposite directions. So, as the dollar softens, it should provide a positive catalyst for the yellow metal.

However, LaForge doesn’t believe it’ll create enough momentum to push gold back above its record high of $1,891.90 hit in 2011. Rather, he predicts $1,300 an ounce within the next 12 months, an 8 percent gain from current levels.

“$1,200 [an ounce currently] is not so bad when you look around at all these different assets prices getting crushed,” he said.

Gold is down more than 8 percent so far this year. LaForge cites a glut in the precious for much of the sluggishness.

“We’re still working off all the excesses from when gold was at $1,900,” LaForge said. “When that happens, when you have excess supply like we do in the system, your bounces just don’t become as meaningful.”


Company: cnbc, Activity: cnbc, Date: 2018-11-14  Authors: stephanie landsman, michael nagle, bloomberg, getty images, dario pignatelli, andrew harrer, gari garaialde, david a grogan
Keywords: news, cnbc, companies, turns, gold, kind, positive, going, stock, heres, yellow, wells, sees, laforge, dollar, getting, bull, hit, high, fargo, ounce


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Apple, bellwether for technology stocks across Wall Street, falls into bear market territory

Shares of Apple, a bellwether for the technology sector, entered a bear market on Wednesday as the decline from its recent all-time high now totals more than 20 percent. Apple, which fell more than 2 percent Wednesday, was last seen trading around $186.70 per share. Investors have grown concerned that the Cupertino, California-based company, renowned for years of innovative technology, will suffer declines in iPhone unit sales over the next couple of years. “It’s like Tim Cook opened up Pandora’


Shares of Apple, a bellwether for the technology sector, entered a bear market on Wednesday as the decline from its recent all-time high now totals more than 20 percent. Apple, which fell more than 2 percent Wednesday, was last seen trading around $186.70 per share. Investors have grown concerned that the Cupertino, California-based company, renowned for years of innovative technology, will suffer declines in iPhone unit sales over the next couple of years. “It’s like Tim Cook opened up Pandora’
Apple, bellwether for technology stocks across Wall Street, falls into bear market territory Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-14  Authors: thomas franck, michel porro, getty images
Keywords: news, cnbc, companies, unit, bellwether, territory, expectations, wall, falls, high, yearsapple, bear, street, iphone, shipments, apples, technology, market, stocks, shares, apple


Apple, bellwether for technology stocks across Wall Street, falls into bear market territory

Shares of Apple, a bellwether for the technology sector, entered a bear market on Wednesday as the decline from its recent all-time high now totals more than 20 percent.

Apple, which fell more than 2 percent Wednesday, was last seen trading around $186.70 per share. Shares are off their record high of $233.47, clinched on Oct. 3; Apple’s value has dropped to about $886 billion from $1.13 trillion at those October highs.

Investors have grown concerned that the Cupertino, California-based company, renowned for years of innovative technology, will suffer declines in iPhone unit sales over the next couple of years.

Apple began the month by reporting that iPhone shipments missed Wall Street expectations for the quarter and said that it will no longer report how many iPhones it sells, a move some took as a tacit sign that the company’s largest segment by revenue may be set for weaker growth.

“It’s like Tim Cook opened up Pandora’s Box by pulling the unit metrics on iPhone shipments,” Daniel Ives, analyst at Wedbush Securities, told CNBC on Wednesday. “As there’s less transparency in the story, investors have feared that Apple’s trying to hide decelerating unit growth. When you see general nervousness across the tech space, combined with expectations that Apple was going to carry the weight of the FANG names … it’s kind of been a perfect storm.”


Company: cnbc, Activity: cnbc, Date: 2018-11-14  Authors: thomas franck, michel porro, getty images
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Dollar hovers near 16-month high, yen pares intraday gains

The dollar traded slightly below a 16-month high versus a basket of peers on Tuesday, benefiting from save-haven flows sparked by political uncertainties in Europe and fears of a global economic slowdown. The dollar index, a gauge of its value versus six major peers, traded at 97.5, sitting shy of its 16-month high of 97.69 hit on Monday. The Japanese yen traded at 113.99 on Tuesday, as the greenback gained 0.1 percent versus the yen. “The yen will now have a greater safe haven pull than the dol


The dollar traded slightly below a 16-month high versus a basket of peers on Tuesday, benefiting from save-haven flows sparked by political uncertainties in Europe and fears of a global economic slowdown. The dollar index, a gauge of its value versus six major peers, traded at 97.5, sitting shy of its 16-month high of 97.69 hit on Monday. The Japanese yen traded at 113.99 on Tuesday, as the greenback gained 0.1 percent versus the yen. “The yen will now have a greater safe haven pull than the dol
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Company: cnbc, Activity: cnbc, Date: 2018-11-13
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Dollar hovers near 16-month high, yen pares intraday gains

The dollar traded slightly below a 16-month high versus a basket of peers on Tuesday, benefiting from save-haven flows sparked by political uncertainties in Europe and fears of a global economic slowdown.

Investor confidence has been eroded by bitter trade tensions between the United States and China, fears of a no-deal Brexit, and a standoff between Rome and the European Union over Italy’s deficit-deepening budget.

Added to that litany is a view that corporate earnings growth has peaked amid rising borrowing costs.

Shares on Wall Street tumbled on Monday, with falls led by technology stocks.

The bearish mood crept into Asian trade as well with the MSCI ex-Japan index falling 0.87 percent to trade at 477.5 on Tuesday.

The U.S. Federal Reserve is set to raise rates by 25 basis points in December, with two more hikes to follow by mid-2019, as wage pressures build in a booming economy.

The CME group’s FedWatch tool puts the probability of a December rate hike at 75 percent.

The dollar index, a gauge of its value versus six major peers, traded at 97.5, sitting shy of its 16-month high of 97.69 hit on Monday.

“The dollar has broken out of a 17-month range on the back of safe-haven buying, led by falling equity prices as well as the heavy sell-offs in the euro and sterling,” said Nick Twidale, chief operating officer at Rakuten Securities.

The Japanese yen traded at 113.99 on Tuesday, as the greenback gained 0.1 percent versus the yen. The yen touched a six-week low of 114.20 on Monday.

The dollar has been preferred over the yen due to the diverging monetary policies of the Fed and the Bank of Japan, which is expected to retain its ultra-loose monetary policy settings for some time in the face stubbornly sluggish inflation.

But analysts believe that the yen will strengthen if global risk sentiment worsens, thanks to its safe-haven status.

“The yen will now have a greater safe haven pull than the dollar if equities witness a further correction. We see dollar/yen downside in that scenario,” added Twidale.

Sterling staged a mild relief rally in Asian to trade at $1.2879, gaining 0.28 percent. It has slipped against the dollar in the last three trading sessions and posted its largest percentage decline versus the dollar since Sept. 21 on Monday.

“Sterling was a bit oversold and much of last night’s move occurred in thin liquidity. The lack of follow-through in Asia has led some to take profits on their shorts,” said Stephen Innes, head of trading, APAC at Oanda.

Investor sentiment has weakened as doubts grow over Prime Minister Theresa May’s ability to win the backing of the European Union or her own party for a Brexit deal.

With less than five months before Britain is due to leave the EU on March 29, negotiations are still stuck over how to prevent a return to a hard border between British-ruled Northern Ireland and EU member Ireland.

However, sterling traders got some encouragement after the European Union’s chief Brexit negotiator said the main elements of an exit treaty text were ready to present to the British cabinet on Tuesday.

The euro gained 0.2 percent to trade at $1.1243 on Tuesday, after tumbling more than one percent versus the dollar on Monday.

The standoff between Rome and Brussels over Italy’s free-spending budget and wide fiscal deficit has put immense strain on the single currency, which has lost 5.9 percent of its value over the last six months.

The European Commission rejected Italy’s 2019 budget last month, saying it flouted a previous commitment to lower the country’s deficit.

Italy is expected to submit a revised version of its budget on Tuesday, keeping euro traders active.


Company: cnbc, Activity: cnbc, Date: 2018-11-13
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Dollar stands tall, inches closer to its 16-month high

The dollar built on last week’s gains and rose towards as 16-month high on Monday as traders expect the U.S. Federal Reserve to keep tightening monetary policy. The dollar index gained 0.12 percent on Monday, changing hands at 97.02, sitting a little below its 16-month high of 97.2 hit on Oct. 31. The dollar index has strengthened four weeks in row, gaining 0.37 percent last week. “The dollar index was firm all last week, bouncing back after the mid-term election results. The dollar has been pre


The dollar built on last week’s gains and rose towards as 16-month high on Monday as traders expect the U.S. Federal Reserve to keep tightening monetary policy. The dollar index gained 0.12 percent on Monday, changing hands at 97.02, sitting a little below its 16-month high of 97.2 hit on Oct. 31. The dollar index has strengthened four weeks in row, gaining 0.37 percent last week. “The dollar index was firm all last week, bouncing back after the mid-term election results. The dollar has been pre
Dollar stands tall, inches closer to its 16-month high Cached Page below :
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Dollar stands tall, inches closer to its 16-month high

The dollar built on last week’s gains and rose towards as 16-month high on Monday as traders expect the U.S. Federal Reserve to keep tightening monetary policy.

The Fed has reaffirmed its plan to raise interest rates by 25 basis points in December, followed by two more potential rate hikes by mid-2019 on the back of an upbeat economy and rising wage pressures.

The greenback has also benefited from a safe haven bid as market participants moved away from riskier assets due to U.S.-Sino trade tensions, an economic slowdown in China, Brexit uncertainty, and the standoff between Rome and the European Union over Italy’s plan for a big-spending budget and wide fiscal deficit.

The dollar index gained 0.12 percent on Monday, changing hands at 97.02, sitting a little below its 16-month high of 97.2 hit on Oct. 31. The dollar index has strengthened four weeks in row, gaining 0.37 percent last week.

“The dollar index was firm all last week, bouncing back after the mid-term election results. Looking ahead, moves will be driven by the developments around the Italian budget and Brexit politics,” said Sim Moh Siong, currency strategist at Bank of Singapore.

The dollar gained 0.1 percent on the Japanese yen which quoted at 113.94 on Monday, near a 5-week low of 114.08. The dollar has been preferred over the yen because of the diverging monetary policies of the Fed and the Bank of Japan.

While the Fed is on track to raise interest rates, the BOJ is expected to keep its monetary policy ultra-loose in the face of slow growth and inflation.

The widening interest rate differential between U.S. and Japanese bonds has made the dollar a more attractive bet than the yen, which is often a funding currency for carry trades.

The British pound lost 0.25 percent to $1.2941 on Monday. Sterling has been weighed down by Brexit fears, with investors yet to see an orderly exit plan.

Less than five months before Britain is due to leave the EU on March 29, negotiations are still stuck over a backup plan for the land border between British-ruled Northern Ireland and EU member Ireland, should they fail to clinch a long-term deal.

Four British ministers who back remaining in the European Union are on the verge of quitting Theresa May’s government over Brexit, the Sunday Times reported, adding to the political uncertainty.

“Eventually, the EU and May will come to a deal. Both parties want to conclude the deal, but the only risk is whether May will still be Prime Minister. I expect sterling to remain choppy in its recent wide range,” added Sim Moh Siong.

The euro traded at $1.1322 on Monday, down 0.11 percent. The single currency lost ground versus the dollar in the previous three trading sessions as investor confidence weakened due to the standoff over Italy’s budget.

The European Commission (EU) rejected Italy’s 2019 budget last month, saying it flouted a previous commitment to lower the country’s deficit. The EU gave Rome until Tuesday to present a revised version of the budget.

The EU also cut its forecasts for Italian growth last week, adding to investor concerns over Italy’s debts and economic outlook.


Company: cnbc, Activity: cnbc, Date: 2018-11-12  Authors: beawiharta
Keywords: news, cnbc, companies, fed, monetary, interest, 16month, plan, italys, inches, high, yen, brexit, dollar, index, tall, stands, closer, eu


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The young and financially independent share best tips to retire early

“I don’t want to retire,” she said, “but I want to make sure my finances are in as order as much as possible. lives in New York City, where the cost of living is high but her salary is not. “People assume I’m living this horrible, deprived life, but I really don’t think I’m deprived,” she said. To manage life on a $62,500 salary, she has a roommate, bringing her share of the total $1,690 rent to $810 a month. Her initial goal was to save as near as possible to $100,000 by age 30, which she hit t


“I don’t want to retire,” she said, “but I want to make sure my finances are in as order as much as possible. lives in New York City, where the cost of living is high but her salary is not. “People assume I’m living this horrible, deprived life, but I really don’t think I’m deprived,” she said. To manage life on a $62,500 salary, she has a roommate, bringing her share of the total $1,690 rent to $810 a month. Her initial goal was to save as near as possible to $100,000 by age 30, which she hit t
The young and financially independent share best tips to retire early Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-12  Authors: jill cornfield, source, dylin redling, allison toms
Keywords: news, cnbc, companies, early, best, dont, living, independent, high, salary, possible, share, life, im, financially, retire, young, money, save, points, tips


The young and financially independent share best tips to retire early

Not everyone is pursuing financial independence for an early retirement.

H.N. (she asked that her initials be used so her employers do not know about her finances) said it’s expensive to be sick. The 29-year-old has multiple disabilities and was diagnosed with an autoimmune disease last summer. “I don’t want to retire,” she said, “but I want to make sure my finances are in as order as much as possible. The permanent disability rate of my condition is very high.”

H.N. lives in New York City, where the cost of living is high but her salary is not.

To cope, she manages her money carefully to make room for the things that are important to her. “People assume I’m living this horrible, deprived life, but I really don’t think I’m deprived,” she said.

To manage life on a $62,500 salary, she has a roommate, bringing her share of the total $1,690 rent to $810 a month.

Her initial goal was to save as near as possible to $100,000 by age 30, which she hit this year.

Rents are high in her area but food is good and quite cheap. Her monthly grocery bill runs between $300 and $500 a month, and she eats out infrequently, keeping it to $20, including tax and tips. That generally means going without appetizers and desserts.

While many FIRE people love to leverage credit card points to save on travel, H.N. and her partner don’t spend enough money to accumulate points and miles. For a recent trip to Europe, she sprang for $3,000 business class seats. The extra rest and comfort made the cost worth it so she wouldn’t arrive exhausted and possibly ill.


Company: cnbc, Activity: cnbc, Date: 2018-11-12  Authors: jill cornfield, source, dylin redling, allison toms
Keywords: news, cnbc, companies, early, best, dont, living, independent, high, salary, possible, share, life, im, financially, retire, young, money, save, points, tips


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Cramer: ‘Apple has to find its footing’ for the tech correction to end

(FAANG, a term coined by Cramer, stands for Facebook, Apple, Amazon, Netflix, and Google-parent Alphabet.) The tech-heavy Nasdaq led Wall Street lower, with Apple shares falling more than 4 percent after one of the iPhone-maker’s suppliers cut its outlook. “Apple has to find its footing” in order to declare the tech correction over, said Cramer, the host of “Mad Money.” “This is a very serious correction,” Cramer said. While there are a lot of good things to say about many of the tech companies,


(FAANG, a term coined by Cramer, stands for Facebook, Apple, Amazon, Netflix, and Google-parent Alphabet.) The tech-heavy Nasdaq led Wall Street lower, with Apple shares falling more than 4 percent after one of the iPhone-maker’s suppliers cut its outlook. “Apple has to find its footing” in order to declare the tech correction over, said Cramer, the host of “Mad Money.” “This is a very serious correction,” Cramer said. While there are a lot of good things to say about many of the tech companies,
Cramer: ‘Apple has to find its footing’ for the tech correction to end Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-12  Authors: michelle fox
Keywords: news, cnbc, companies, facebook, intraday, cramer, footing, nasdaq, apple, shares, tech, high, end, market, correction


Cramer: 'Apple has to find its footing' for the tech correction to end

Expert: Sell-off in FANG pulling down the rest of Nasdaq stocks too 6 Hours Ago | 03:52

Apple and other big tech names need to recover for the overall stock market to rebound, CNBC’s Jim Cramer said Monday.

“FAANG cannot keep rolling over,” Cramer said on “Fast Money: Halftime Report.” (FAANG, a term coined by Cramer, stands for Facebook, Apple, Amazon, Netflix, and Google-parent Alphabet.)

The tech-heavy Nasdaq led Wall Street lower, with Apple shares falling more than 4 percent after one of the iPhone-maker’s suppliers cut its outlook.

“Apple has to find its footing” in order to declare the tech correction over, said Cramer, the host of “Mad Money.”

The tech slide that began last month has been broad and persistent, with almost 73 percent of the once high-flying sector in correction levels or worse.

Case in point, shares of Amazon dipped into bear market territory Monday, a little over two months after eclipsing a market value of more than $1 trillion.

Amazon is down about 20 percent from its intraday all-time high on Sept. 4. Apple is down nearly 17 percent from its Oct. 3 intraday all-time high. Facebook is down more than 35 percent from its 52-week high.

“This is a very serious correction,” Cramer said. “We shouldn’t be having a correction right now. I mean, we’re finished with all the bad news until the G-20” summit of world leaders in Argentina later this month.

While there are a lot of good things to say about many of the tech companies, Apple is harder, Cramer said. “The bears have gotten control. And the momentum was the last nail in the coffin.”

Cramer’s charitable trust owns shares of Apple.

Disclaimer


Company: cnbc, Activity: cnbc, Date: 2018-11-12  Authors: michelle fox
Keywords: news, cnbc, companies, facebook, intraday, cramer, footing, nasdaq, apple, shares, tech, high, end, market, correction


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Amazon closes in bear market a little more than two months after hitting $1 trillion market cap

Amazon, which topped $1 trillion in market capitalization on Sept. 4, is now worth $809 billion. Almost 73 percent of the technology sector is in correction levels (10 percent off a security’s 52-week high) or worse. As the stock market resumes its sell-off, investors are taking profits on some of the most successful trades of the bull market, including Amazon and the other FANG members. Twenty-six of the 66 technology stocks in the S&P 500 are in bear market territory, including Advanced Micro


Amazon, which topped $1 trillion in market capitalization on Sept. 4, is now worth $809 billion. Almost 73 percent of the technology sector is in correction levels (10 percent off a security’s 52-week high) or worse. As the stock market resumes its sell-off, investors are taking profits on some of the most successful trades of the bull market, including Amazon and the other FANG members. Twenty-six of the 66 technology stocks in the S&P 500 are in bear market territory, including Advanced Micro
Amazon closes in bear market a little more than two months after hitting $1 trillion market cap Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-12  Authors: thomas franck, getty images
Keywords: news, cnbc, companies, hitting, amazon, stock, stocks, share, technology, intraday, sector, cap, bear, closes, trillion, market, high, little, sept, months


Amazon closes in bear market a little more than two months after hitting $1 trillion market cap

Amazon shares closed in a bear market Monday as the e-commerce giant added to a 20 percent decline from all-time highs reached back in September.

At Monday’s close of $1,636.85 per share, the stock had fallen 20.1 percent from an intraday high of $2,050 per share hit on Sept. 4, 2018. Amazon, which topped $1 trillion in market capitalization on Sept. 4, is now worth $809 billion.

Amazon’s stock fell 4.4 percent on Monday, down more than 18 percent since the start of the fourth quarter, but slightly off its lows of the day. Almost 73 percent of the technology sector is in correction levels (10 percent off a security’s 52-week high) or worse.

As the stock market resumes its sell-off, investors are taking profits on some of the most successful trades of the bull market, including Amazon and the other FANG members.

Twenty-six of the 66 technology stocks in the S&P 500 are in bear market territory, including Advanced Micro Devices, Micron, Nvidia, Qualcomm, Symantec, Broadcom. The Technology Select Sector SPDR ETF, which tracks the performance of a variety of technology-related stocks, dropped 3 percent Monday.

Apple, the largest public company in the U.S., is 16 percent off its own Oct. 3 intraday high; Intel is off 19 percent from its own 52-week high.

— CNBC’s Gina Francolla contributed reporting.


Company: cnbc, Activity: cnbc, Date: 2018-11-12  Authors: thomas franck, getty images
Keywords: news, cnbc, companies, hitting, amazon, stock, stocks, share, technology, intraday, sector, cap, bear, closes, trillion, market, high, little, sept, months


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