Chipotle shares rise after RBC upgrades the stock and predicts 20% rally

“After a 19 percent retreat from recent highs, we believe Chipotle shares offer a compelling risk/reward heading into 2019 and 2020,” David Palmer wrote in a note. In addition to the stock upgrade, the analyst raised his 12-month price target on Chipotle shares to $510 from $450, representing 19 percent upside from Friday’s close. Shares of Chipotle rose 1.7 percent in premarket trading following the RBC upgrade. Niccol joined Chipotle following a successful track record at Taco Bell. “We’re not


“After a 19 percent retreat from recent highs, we believe Chipotle shares offer a compelling risk/reward heading into 2019 and 2020,” David Palmer wrote in a note. In addition to the stock upgrade, the analyst raised his 12-month price target on Chipotle shares to $510 from $450, representing 19 percent upside from Friday’s close. Shares of Chipotle rose 1.7 percent in premarket trading following the RBC upgrade. Niccol joined Chipotle following a successful track record at Taco Bell. “We’re not
Chipotle shares rise after RBC upgrades the stock and predicts 20% rally Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-22  Authors: thomas franck, getty images, source, chipotle mexican grill
Keywords: news, cnbc, companies, digital, shares, investors, 20, predicts, following, chipotle, food, stock, safety, upgrades, rbc, restaurant, offerings, rise, rally


Chipotle shares rise after RBC upgrades the stock and predicts 20% rally

New management at Chipotle Mexican Grill will grow sales at the burrito chain through an improved menu, digital and delivery offerings and other marketing successes, according to RBC Capital Markets, which upgraded shares to outperform.

But investors may need to wait until next year before they see the actual results in the chain, which has been trying to emerge from a series of health scares.

“After a 19 percent retreat from recent highs, we believe Chipotle shares offer a compelling risk/reward heading into 2019 and 2020,” David Palmer wrote in a note. “We believe there is a favorable stock set-up into 2019 given menu innovation, digital initiatives, and a focus on improving restaurant margins.”

Third-quarter results are expected to be just “lackluster,” the analyst said in a note to clients Monday, but sales should improve next year under CEO Brian Niccol’s push for food innovation and customers remain loyal despite prior food safety concerns.

In addition to the stock upgrade, the analyst raised his 12-month price target on Chipotle shares to $510 from $450, representing 19 percent upside from Friday’s close. Shares of Chipotle rose 1.7 percent in premarket trading following the RBC upgrade.

Much of Palmer’s newfound conviction on Chipotle shares came from a new RBC survey in which more than 1,000 respondents answered questions about their recent visits, or lack thereof, to a CMG restaurant.

Source: RBC Capital Markets

The analyst said the survey resulted in four key findings: Chipotle remains in the top three favorite chains of all quick-service restaurants, there’s a sizable opportunity to increase awareness of its digital capabilities, existing and lapsed customers are willing to try new offerings and food safety is only a small reason why customers do not eat at Chipotle.

“What has sometimes been lost upon investors over the last three years has been that Chipotle continues to have one of the most loyal followings across all consumer brands,” Palmer said. “Chipotle ranks behind only Chick-Fil-A and Panera Bread in restaurant popularity among all respondents of the survey.”

Any progress is likely welcome news to investors including Pershing Square activist Bill Ackman, who has leveraged his stake in the company to promote ideas like drive-thrus and breakfast offerings following a pullback in shares in the wake of the food safety incidents.

Ackman applauded the appointment of Niccol as chief executive officer earlier this year. Niccol joined Chipotle following a successful track record at Taco Bell.

“We’re not just betting on a recovery from the food safety issue,” Ackman told CNBC in November. “This is one of the least optimized of the quick-service restaurants.”

Shares of the casual Mexican restaurant are up 48 percent since January.


Company: cnbc, Activity: cnbc, Date: 2018-10-22  Authors: thomas franck, getty images, source, chipotle mexican grill
Keywords: news, cnbc, companies, digital, shares, investors, 20, predicts, following, chipotle, food, stock, safety, upgrades, rbc, restaurant, offerings, rise, rally


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Longtime bull Jeremy Siegel urges caution, says stocks could see a flat 2019

Why stocks will be best performing asset for 3-5 years: Wharton’s Jeremy Siegel 2 Hours Ago | 03:02Longtime stock bull Jeremy Siegel is urging investors to be cautious, saying numerous headwinds will keep stock prices muted for 2019. However, Siegel said he still favors stocks long term, adding it will be the best performing asset for investors looking out three to four years from now. “The sell-off in emerging markets has presented unbelievable value” in the near term, Siegel said. The S&P and


Why stocks will be best performing asset for 3-5 years: Wharton’s Jeremy Siegel 2 Hours Ago | 03:02Longtime stock bull Jeremy Siegel is urging investors to be cautious, saying numerous headwinds will keep stock prices muted for 2019. However, Siegel said he still favors stocks long term, adding it will be the best performing asset for investors looking out three to four years from now. “The sell-off in emerging markets has presented unbelievable value” in the near term, Siegel said. The S&P and
Longtime bull Jeremy Siegel urges caution, says stocks could see a flat 2019 Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-22  Authors: berkeley lovelace jr
Keywords: news, cnbc, companies, performing, caution, nasdaq, sp, siegel, investors, term, 2019, urges, month, rates, stock, bull, jeremy, longtime, flat, stocks


Longtime bull Jeremy Siegel urges caution, says stocks could see a flat 2019

Why stocks will be best performing asset for 3-5 years: Wharton’s Jeremy Siegel 2 Hours Ago | 03:02

Longtime stock bull Jeremy Siegel is urging investors to be cautious, saying numerous headwinds will keep stock prices muted for 2019.

“There are challenges that we face now,” including rising interest rates, the midterm elections and U.S.-China trade tensions, the Wharton School finance professor said in a CNBC “Squawk Box” interview on Monday. “I’m looking flattish” for the coming year, he added.

However, Siegel said he still favors stocks long term, adding it will be the best performing asset for investors looking out three to four years from now.

“The sell-off in emerging markets has presented unbelievable value” in the near term, Siegel said.

U.S. stock were higher in early trading Monday. Last week, the Dow Jones Industrial Average and S&P 500 managed to break three-week losing streaks, but the Nasdaq fell for a third straight week.

The S&P and Nasdaq are on pace to post their largest monthly losses since January 2016 after the Oct. 10-11 plunge.

Concerns that Federal Reserve Chairman Jerome Powell might raise rates more than forecast has fueled stock declines and criticisms from President Donald Trump.

The central bank has hiked rates three times this year, and one more is expected in December.

Siegel told CNBC he worries how the Fed can engineer “a soft landing” as it continues to gradually increase rates in an effort to preserve a steady economy.

Siegel predicted last month the stock market could be headed for another bubble, like the one investors experienced in January. In early February, stocks plummeted and eventually bottomed later that month.


Company: cnbc, Activity: cnbc, Date: 2018-10-22  Authors: berkeley lovelace jr
Keywords: news, cnbc, companies, performing, caution, nasdaq, sp, siegel, investors, term, 2019, urges, month, rates, stock, bull, jeremy, longtime, flat, stocks


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Investors can enjoy tax savings on advisor fees by using this strategy

Yet much of this worry is needless because many clients can still get a tax savings on some fees by using an equivalent strategy. The IRS has long held that qualified retirement accounts, such as traditional and other types of individual retirement accounts, can pay their own expenses. As funds in these accounts are tax-deferred, there are no tax consequences to using this money to pay advisory fees related to the management of these accounts. Roth IRAs are funded with post-tax income, so there’


Yet much of this worry is needless because many clients can still get a tax savings on some fees by using an equivalent strategy. The IRS has long held that qualified retirement accounts, such as traditional and other types of individual retirement accounts, can pay their own expenses. As funds in these accounts are tax-deferred, there are no tax consequences to using this money to pay advisory fees related to the management of these accounts. Roth IRAs are funded with post-tax income, so there’
Investors can enjoy tax savings on advisor fees by using this strategy Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-22  Authors: david robinson, founder ceo of rts private wealth management, skynesher, getty images, sam edwards, shago dela cruz, eyeem, source, louis barajas, danielle barnum
Keywords: news, cnbc, companies, investors, assets, strategy, tax, plans, savings, fees, enjoy, advisor, advisory, pay, advisors, retirement, deduction, accounts, using


Investors can enjoy tax savings on advisor fees by using this strategy

When investors sit down with their financial advisor to prepare their tax returns next year, they’ll be confronted with new rules that for many mean an increase in the cost of having an advisor.

The new tax law passed by Congress last year ends deductions on some types of advisory fees, including those based on the value of assets under management (AUM), a common way advisors charge clients.

For both the client and advisor, this change is causing quite a bit of angst. Yet much of this worry is needless because many clients can still get a tax savings on some fees by using an equivalent strategy.

The IRS has long held that qualified retirement accounts, such as traditional and other types of individual retirement accounts, can pay their own expenses. As funds in these accounts are tax-deferred, there are no tax consequences to using this money to pay advisory fees related to the management of these accounts.

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(Money taken out of these accounts usually triggers ordinary income tax and, for those under age 59½, a hurtful 10 percent penalty — but not in this case, because the IRS doesn’t consider these payments to be distributions.)

To the extent that an individual’s assets are in a traditional IRA, IRA rollover or other tax-deferred account (including Simplified Employee Pension IRAs or pension plans) and are under an advisor’s care, you can pay the advisor the proportionate amount of fees directly out of these accounts with pretax dollars.

This strategy serves as an effective tax deduction. Roth IRAs are funded with post-tax income, so there’s no tax advantage to paying advisory fees out of these accounts. This merely diminishes retirement assets, so it’s usually best to pay Roth fees out of a taxable account.

This alternative strategy has long been available, but many weren’t aware of it because advisory clients were happy to get the deduction on AUM fees, often about 1 percent annually. Now that this straight-out deduction is gone, advisors are receiving calls from nervous clients who say they can no longer afford their services, and advisors are alerting them to the alternative strategy. Investors who want to take this route should talk to their advisors about it.

Many Americans have a significant portion of their assets in tax-deferred, employer-sponsored retirement plans, including 401(k) plans, 403(b) plans for teachers and pension plans. Their portion of advisory fees and other expenses is often taken directly from their accounts, so these account holders are already getting the effective deduction.


Company: cnbc, Activity: cnbc, Date: 2018-10-22  Authors: david robinson, founder ceo of rts private wealth management, skynesher, getty images, sam edwards, shago dela cruz, eyeem, source, louis barajas, danielle barnum
Keywords: news, cnbc, companies, investors, assets, strategy, tax, plans, savings, fees, enjoy, advisor, advisory, pay, advisors, retirement, deduction, accounts, using


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Where is the value in Chinese stocks?

Where is the value in Chinese stocks? 14 Hours AgoCertain banks, insurance and real estate companies have made a comeback after investors began bottom fishing last week, said Ken Wong of Eastspring Investments.


Where is the value in Chinese stocks? 14 Hours AgoCertain banks, insurance and real estate companies have made a comeback after investors began bottom fishing last week, said Ken Wong of Eastspring Investments.
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Keywords: news, cnbc, companies, value, hours, investors, wong, week, investments, stocks14, insurance, real, ken, chinese, stocks


Where is the value in Chinese stocks?

Where is the value in Chinese stocks?

14 Hours Ago

Certain banks, insurance and real estate companies have made a comeback after investors began bottom fishing last week, said Ken Wong of Eastspring Investments.


Company: cnbc, Activity: cnbc, Date: 2018-10-21
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Trump’s ‘opportunity zones’ are popular with investors, but they might offer less benefit to voters

Just weeks before the midterm elections, the Trump administration announced details of tax breaks designed to help spur investment in economically distressed neighborhoods. But while investors and real estate developers can expect to see immediate tax benefits from the new rules, it won’t be clear for a while how effective the program will be in helping voters in the neighborhoods targeted for tax breaks. The new program targeting so-called “opportunity zones” was included in the $1.5 trillion t


Just weeks before the midterm elections, the Trump administration announced details of tax breaks designed to help spur investment in economically distressed neighborhoods. But while investors and real estate developers can expect to see immediate tax benefits from the new rules, it won’t be clear for a while how effective the program will be in helping voters in the neighborhoods targeted for tax breaks. The new program targeting so-called “opportunity zones” was included in the $1.5 trillion t
Trump’s ‘opportunity zones’ are popular with investors, but they might offer less benefit to voters Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-19  Authors: john w schoen, tj kilpatrick, bloomberg, getty images
Keywords: news, cnbc, companies, offer, tax, wont, zones, popular, voters, investors, trillion, weeks, targeted, opportunity, program, targeting, trump, trumps, benefit


Trump's 'opportunity zones' are popular with investors, but they might offer less benefit to voters

Just weeks before the midterm elections, the Trump administration announced details of tax breaks designed to help spur investment in economically distressed neighborhoods.

But while investors and real estate developers can expect to see immediate tax benefits from the new rules, it won’t be clear for a while how effective the program will be in helping voters in the neighborhoods targeted for tax breaks.

The new program targeting so-called “opportunity zones” was included in the $1.5 trillion tax overhaul enacted late last year. Republicans, who are defending majorities in the House and Senate this November, had hoped to stake their campaign messaging to the tax cuts. But the measure failed to resonate with voters on a large scale.


Company: cnbc, Activity: cnbc, Date: 2018-10-19  Authors: john w schoen, tj kilpatrick, bloomberg, getty images
Keywords: news, cnbc, companies, offer, tax, wont, zones, popular, voters, investors, trillion, weeks, targeted, opportunity, program, targeting, trump, trumps, benefit


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Billionaire investors Warren Buffett and Leon Cooperman agree: Luck is key to success

Warren Buffett, 88, and Leon Cooperman, 75, are two of the most successful investors of all time. Buffett, the chairman and largest shareholder of Berkshire Hathaway, is worth a cool $86.6 billion, while Cooperman, the founder and CEO of Omega Advisors, has a personal fortune of about $3.2 billion. The self-made billionaires both readily admit that they wouldn’t be where they are today without good fortune. Cooperman, who was raised by working-class Polish immigrants and was the first in his fam


Warren Buffett, 88, and Leon Cooperman, 75, are two of the most successful investors of all time. Buffett, the chairman and largest shareholder of Berkshire Hathaway, is worth a cool $86.6 billion, while Cooperman, the founder and CEO of Omega Advisors, has a personal fortune of about $3.2 billion. The self-made billionaires both readily admit that they wouldn’t be where they are today without good fortune. Cooperman, who was raised by working-class Polish immigrants and was the first in his fam
Billionaire investors Warren Buffett and Leon Cooperman agree: Luck is key to success Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-19  Authors: kathleen elkins, scott mlyn
Keywords: news, cnbc, companies, investors, success, buffett, ive, luck, billionaire, agree, lucky, bit, born, billion, worth, leon, warren, cooperman, key, wouldnt, achieved


Billionaire investors Warren Buffett and Leon Cooperman agree: Luck is key to success

Warren Buffett, 88, and Leon Cooperman, 75, are two of the most successful investors of all time. Buffett, the chairman and largest shareholder of Berkshire Hathaway, is worth a cool $86.6 billion, while Cooperman, the founder and CEO of Omega Advisors, has a personal fortune of about $3.2 billion.

The self-made billionaires both readily admit that they wouldn’t be where they are today without good fortune.

Cooperman, who was raised by working-class Polish immigrants and was the first in his family to go to college, said on CNBC’s “Fast Money Halftime Report”: “Whatever success I’ve achieved, I think I’ve achieved it because I’ve been very lucky.” He added that common sense and a strong work ethic have also contributed to his fortune.

And Buffett has often talked about how lucky he’s been from the beginning because he won the “ovarian lottery,” meaning that he was born with real advantages that helped him get ahead.

“The womb from which you emerge determines your fate to an enormous degree for most of the seven billion people in the world,” Buffett told journalist Rebecca Jarvis in 2013. “Just in my own case: I was born in 1930, I had two sisters that have every bit the intelligence that I had, have every bit the drive, but they didn’t have the same opportunities.”

In short, “if I had been a female, my life would have been entirely different.”


Company: cnbc, Activity: cnbc, Date: 2018-10-19  Authors: kathleen elkins, scott mlyn
Keywords: news, cnbc, companies, investors, success, buffett, ive, luck, billionaire, agree, lucky, bit, born, billion, worth, leon, warren, cooperman, key, wouldnt, achieved


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Investors can get big tax breaks if they invest in ‘opportunity zones’ under new Treasury rules

The GOP has struggled to sell its tax law to voters as the party tries to hold onto its House majority. Treasury said additional guidance will be released before the end of the year, with final rules likely to come in the spring. Read more: ‘Opportunity zones’ are popular with investors, but they might offer less benefit to votersOne key outstanding issue is how much flexibility the funds will have to buy and sell assets within an opportunity zone. States have designated more than 8,700 Census t


The GOP has struggled to sell its tax law to voters as the party tries to hold onto its House majority. Treasury said additional guidance will be released before the end of the year, with final rules likely to come in the spring. Read more: ‘Opportunity zones’ are popular with investors, but they might offer less benefit to votersOne key outstanding issue is how much flexibility the funds will have to buy and sell assets within an opportunity zone. States have designated more than 8,700 Census t
Investors can get big tax breaks if they invest in ‘opportunity zones’ under new Treasury rules Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-19  Authors: stephanie dhue, ylan mui
Keywords: news, cnbc, companies, investors, opportunity, regulations, zones, rules, invest, funds, capital, treasury, tax, big, sell, guidance, breaks


Investors can get big tax breaks if they invest in 'opportunity zones' under new Treasury rules

The guidance comes just weeks before the midterm elections. The GOP has struggled to sell its tax law to voters as the party tries to hold onto its House majority.

The proposed regulations clarify that only capital gains are eligible for preferred tax treatment. Investors who can participate include individuals, corporations, businesses, REITs, and estates and trusts. Treasury said additional guidance will be released before the end of the year, with final rules likely to come in the spring.

“We felt it was important to issue the core guidance now that’s needed to get the funds up and operating and not wait until we have every question answered,” said a senior Treasury official who declined to be named.

Read more: ‘Opportunity zones’ are popular with investors, but they might offer less benefit to voters

One key outstanding issue is how much flexibility the funds will have to buy and sell assets within an opportunity zone. The official said that will be part of the second round of guidance.

Still, some investors are already setting up funds amid early interest in the new program. Craig Bernstein of OPZ Capital said he has “soft-circled” $50 million in funding, and that demand has been high among families who have been reluctant to sell their businesses or significant shares of stock because of the tax implications.

“I think these regulations are going to free up and unlock a lot of capital that has been sitting on the sidelines waiting to get involved,” Bernstein said.

States have designated more than 8,700 Census tracts as opportunity zones, including nearly all of Puerto Rico. The average poverty rate in the zones is 32 percent, compared with the national average of 17 percent.

The American Investment Council, which represents private equity investors, said it is reviewing the regulations but has welcomed the idea.

“The private equity industry supports Opportunity Zones and looks forward to playing a role as this important program moves forward,” AIC President Drew Maloney said in a statement to CNBC. “Our members have a successful record of investing in communities across America, supporting millions of jobs, and strengthening local economies.”

WATCH: Trump agenda, attitude overshadow tax cuts


Company: cnbc, Activity: cnbc, Date: 2018-10-19  Authors: stephanie dhue, ylan mui
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Artificial intelligence is changing how investors’ money is managed

Morgan Stanley is one firm experimenting with how these new technologies can be applied to better manage clients’ money. Artificial intelligence refers to the ability for computer science to be applied in ways that replace human intelligence. Financial firms — ranging from big Wall Street names like Morgan Stanley to robo-advisors and start-ups — are all taking a look at how tools such as algorithms, data mining and natural-language processing can help you become wealthier. Morgan Stanley formal


Morgan Stanley is one firm experimenting with how these new technologies can be applied to better manage clients’ money. Artificial intelligence refers to the ability for computer science to be applied in ways that replace human intelligence. Financial firms — ranging from big Wall Street names like Morgan Stanley to robo-advisors and start-ups — are all taking a look at how tools such as algorithms, data mining and natural-language processing can help you become wealthier. Morgan Stanley formal
Artificial intelligence is changing how investors’ money is managed Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-19  Authors: lorie konish, sam edwards, getty images, shago dela cruz, eyeem, af_istocker, istock, john lund marc romanelli, blend images, source
Keywords: news, cnbc, companies, money, clients, ideas, artificial, investors, financial, machine, firm, stanley, intelligence, managed, morgan, changing, send, firms


Artificial intelligence is changing how investors' money is managed

Morgan Stanley is one firm experimenting with how these new technologies can be applied to better manage clients’ money.

Artificial intelligence refers to the ability for computer science to be applied in ways that replace human intelligence. Financial firms — ranging from big Wall Street names like Morgan Stanley to robo-advisors and start-ups — are all taking a look at how tools such as algorithms, data mining and natural-language processing can help you become wealthier.

Morgan Stanley formally launched its initiative — called Next Best Action — to its more than 15,000 financial advisors earlier this year. Including the firm’s service employees, more than 20,000 have access to the tools.

The technology works by evaluating communications with clients by emails, texts and other notes. It then applies machine learning to evaluate other ideas that can be suggested to the client.

The tool could prompt your advisor to send a message when a stock you have a significant position in has been downgraded by the firm. Or if you live in the path of a coming storm — as with hurricanes Florence and Michael recently — it can send you a note with a list of helpful resources, information on your insurance rights and tips for protecting your pets.

“The machine serves up those ideas to the financial advisor, and then they decide what makes sense based on their practice and the needs of the clients,” said Jeff McMillan, chief analytics and data officer at Morgan Stanley Wealth Management.


Company: cnbc, Activity: cnbc, Date: 2018-10-19  Authors: lorie konish, sam edwards, getty images, shago dela cruz, eyeem, af_istocker, istock, john lund marc romanelli, blend images, source
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Morgan Stanley downgrades Ford and says dividend at risk

Morgan Stanley downgraded Ford on Friday, saying its earnings and cash flow are under pressure and its dividend is at risk. “While we do believe investors will eventually pay for details and execution, we think the market needs more evidence of success before embracing the Ford restructuring story,” Jonas said. Jonas downgraded Ford from “overweight,” the equivalent of a buy rating, to “equal-weight,” which is essentially a hold. Morgan Stanley values GM Cruise at $11.5 billion, more than ten ti


Morgan Stanley downgraded Ford on Friday, saying its earnings and cash flow are under pressure and its dividend is at risk. “While we do believe investors will eventually pay for details and execution, we think the market needs more evidence of success before embracing the Ford restructuring story,” Jonas said. Jonas downgraded Ford from “overweight,” the equivalent of a buy rating, to “equal-weight,” which is essentially a hold. Morgan Stanley values GM Cruise at $11.5 billion, more than ten ti
Morgan Stanley downgrades Ford and says dividend at risk Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-19  Authors: robert ferris, rebecca cook
Keywords: news, cnbc, companies, stanley, investors, morgan, jonas, company, ford, dividend, restructuring, plan, downgrades, risk, details, driving


Morgan Stanley downgrades Ford and says dividend at risk

Morgan Stanley downgraded Ford on Friday, saying its earnings and cash flow are under pressure and its dividend is at risk.

The number two U.S. automaker is suffering from a perception among investors that it lacks transparency and is failing to take quick, decisive action in executing its turnaround plan, Morgan Stanley analyst Adam Jonas said in a note Friday.

“While we do believe investors will eventually pay for details and execution, we think the market needs more evidence of success before embracing the Ford restructuring story,” Jonas said.

Jonas downgraded Ford from “overweight,” the equivalent of a buy rating, to “equal-weight,” which is essentially a hold. He lowered his 12- to 18-month price target from $14 to $10 a share.

Shares of Ford fell 1.3 percent in premarket trading on Friday morning, at around $8.40 a share.

Ford’s recently announced $11 billion restructuring plan is a “crucial step” for the company, but it hasn’t provided enough detail on how that money will be spent, he said. Its share price has fallen more than 30 percent since the beginning of the year.

The company also cancelled its investor day in September, which worries Jonas.

“We had hopes that Ford management would move the other way with transparency and increase engagement with investors on long-term strategy in a more proactive way, which is especially important during uncertain ‘shoulder periods’ of the cycle,” Jonas said.

The company hasn’t provided enough details on the automaker’s plan to invest in autonomous driving and other future technology either. It appears to be behind competitors, such as larger rival General Motors, which has attracted outside investments in its Cruise Automation unit.

Japanese conglomerate SoftBank and automaker Honda have both made recent investments in GM Cruise, which is developing autonomous driving technology for the automaker. Morgan Stanley values GM Cruise at $11.5 billion, more than ten times what it values Argo AI, an autonomous driving research company Ford has taken a significant stake in.

Despite all this, Jonas thinks CEO Jim Hackett is a visionary leader, who thinks unconventionally and taking a long-term approach to managing the business.

“There are solutions, and management has a window of opportunity to execute,” Jonas said. “While we do believe investors will eventually pay for details and execution, we think the market needs more evidence of success before embracing the Ford restructuring story.”


Company: cnbc, Activity: cnbc, Date: 2018-10-19  Authors: robert ferris, rebecca cook
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Gold posts third weekly gain as stocks dip

Every Federal Reserve policy maker backed raising interest rates last month, according to September meeting minutes released on Wednesday. Rising interest rates are normally negative for gold since they could boost the dollar and also increase the opportunity cost of holding non-yielding bullion. It is finding support from increased risk aversion among market participants, as reflected in falling stock markets, and from additional ETF (exchange traded fund) inflows.” Holdings of the SPDR Gold Tr


Every Federal Reserve policy maker backed raising interest rates last month, according to September meeting minutes released on Wednesday. Rising interest rates are normally negative for gold since they could boost the dollar and also increase the opportunity cost of holding non-yielding bullion. It is finding support from increased risk aversion among market participants, as reflected in falling stock markets, and from additional ETF (exchange traded fund) inflows.” Holdings of the SPDR Gold Tr
Gold posts third weekly gain as stocks dip Cached Page below :
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Keywords: news, cnbc, companies, really, posts, weekly, stock, interest, markets, technical, gold, gained, week, investors, gain, rates, stocks, dip


Gold posts third weekly gain as stocks dip

Gold prices edged up on Friday, the metal’s third week of gains as weaker stock markets spurred investors to seek refuge in bullion, which also gained technical momentum after scaling major milestones.

Spot gold added 0.14 percent to $1,226.66 per ounce. The metal gained 0.7 percent this week, after hitting a 2-1/2-month high at $1,233.26 on Monday.

U.S. gold futures were settled down $1.40 at $1,228.70.

“Gold has done really well to hold up here, given the Fed was really hawkish. Sensitivity to equity markets is helping gold at the moment,” Macquarie commodity strategist Matthew Turner said.

“We are entering a new paradigm, where any further rate hike could be a sign that the economy is overheating a bit, which should be more positive for gold and problematic for equities.”

Every Federal Reserve policy maker backed raising interest rates last month, according to September meeting minutes released on Wednesday.

Rising interest rates are normally negative for gold since they could boost the dollar and also increase the opportunity cost of holding non-yielding bullion.

In wider markets, European stocks tumbled again as a showdown between Italy’s government and the European Union loomed.

“Today’s attempt by gold to lastingly exceed the 100-day moving average looks promising. If it succeeds, technical follow-up buying should push the gold price further up,” Commerzbank analysts said in a note.

“At the same time, gold is resisting the firm U.S. dollar. It is finding support from increased risk aversion among market participants, as reflected in falling stock markets, and from additional ETF (exchange traded fund) inflows.”

Holdings of the SPDR Gold Trust, the largest gold-backed ETF, have gained 2.5 percent in the past two weeks.

The recent sell-off in global stock markets has boosted gold’s appeal, as some investors see it as a safe store of value during political and economic uncertainty.


Company: cnbc, Activity: cnbc, Date: 2018-10-19
Keywords: news, cnbc, companies, really, posts, weekly, stock, interest, markets, technical, gold, gained, week, investors, gain, rates, stocks, dip


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