Kraft Heinz backer 3G Capital faces reality: Brutal cost-cutting isn’t enough

Kraft Heinz late Thursday handed investors a raft of bad news that only added to the string of disappointments from the ketchup maker. Kraft Heinz attributed its miss to operational challenges. But Kraft Heinz hasn’t done a deal in years, far longer than most investors expected. Kraft Heinz passed on the chance to acquire Pinnacle Foods, CNBC previously reported. Without a deal, Kraft Heinz has had to navigate the challenging prospect of managing a big food company just as tastes are moving mark


Kraft Heinz late Thursday handed investors a raft of bad news that only added to the string of disappointments from the ketchup maker. Kraft Heinz attributed its miss to operational challenges. But Kraft Heinz hasn’t done a deal in years, far longer than most investors expected. Kraft Heinz passed on the chance to acquire Pinnacle Foods, CNBC previously reported. Without a deal, Kraft Heinz has had to navigate the challenging prospect of managing a big food company just as tastes are moving mark
Kraft Heinz backer 3G Capital faces reality: Brutal cost-cutting isn’t enough Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-22  Authors: lauren hirsch
Keywords: news, cnbc, companies, backer, kraft, brands, faces, capital, costs, equity, 3g, investors, heinz, brutal, company, costcutting, reality, isnt, deal, food


Kraft Heinz backer 3G Capital faces reality: Brutal cost-cutting isn't enough

It’s been nearly four years since Kraft and Heinz merged — a deal applauded by some on Wall Street as the chance for private equity firm 3G Capital to exercise its reputation for cost-cutting and dealmaking.

The results have been disappointing and raise the question of whether 3G’s model really works. The firm, which has roots in Brazil and made much of its initial money in railroads, has had to run a packaged food company just as the industry turned on its side.

Kraft Heinz late Thursday handed investors a raft of bad news that only added to the string of disappointments from the ketchup maker. It revealed it received a subpoena from the Securities and Exchange Commission in October related to its accounting policies and internal controls. It delivered earnings and revenue that were sharply lower than estimates, slashed its dividend by 36 percent and took a $15 billion write-down on two of its biggest brands, Kraft and Oscar Mayer.

“We believe these impairments validate fears that Kraft Heinz may have been more focused on costs than building brand equity, and even if management now has ‘seen the light’, we are now concerned that its brands lack the equity to drive pricing power needed to compete and drive growth in a sustainable way,” said Piper Jaffray analyst Michael Lavery.

On Friday, shares cratered more than 28 percent to a 52-week-low, lopping off more than $16 billion in market value from the stock.

Kraft Heinz attributed its miss to operational challenges. The company said it stands by its famed zero-based budgeting approach to cost-cutting, in which managers need to justify all costs. It faced pressure from supplier negotiations, delayed manufacturing projects and rising costs.

“We are overly optimistic on delivering savings that did not materialize by year-end,” said CEO Bernardo Hees, a 3G Capital partner. “For that, we take full responsibility.”

Those setbacks came amid tastes that have changed away from packaged food like Oscar Mayer deli meat and Capri Sun drink pouches toward upstart brands with healthier images created by smaller companies like Kind Bar.

But analysts and investors have wondered whether there is a deeper problem with 3G’s approach. Its model, in large part, depends on dealmaking: 3G buys a slow-growing company like Kraft, slashes excess costs and then moves on to another acquisition. It’s the same approach that 3G has applied to the beer industry with Anheuser Busch Inbev. But Kraft Heinz hasn’t done a deal in years, far longer than most investors expected.

Kraft Heinz was publicly and embarrassingly rebuffed by Unilever in 2017 — a rejection that some say emboldened other food companies, which once feared Kraft Heinz, to realize they too could say no to the company and its 3G backers. As Kraft Heinz’s shares since have fallen roughly 60 percent, a potential deal has become even more challenging, particularly because one of its biggest backers, Warren Buffett, is opposed to hostile takeovers

Already, at least two potential deals have slipped by. Kraft Heinz passed on the chance to acquire Pinnacle Foods, CNBC previously reported. When Campbell Soup was forced to evaluate a sale under activist pressure last year, Kraft Heinz did not step up with any meaningful premium to buy the soup company.

Without a deal, Kraft Heinz has had to navigate the challenging prospect of managing a big food company just as tastes are moving markedly away from them.


Company: cnbc, Activity: cnbc, Date: 2019-02-22  Authors: lauren hirsch
Keywords: news, cnbc, companies, backer, kraft, brands, faces, capital, costs, equity, 3g, investors, heinz, brutal, company, costcutting, reality, isnt, deal, food


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Stocks in Asia mixed as investors digest Fed minutes; Lenovo soars more than 12 percent

Stocks in Asia were mixed on Thursday following an earlier slip in the morning as traders digest a release from the Federal Reserve. Mainland Chinese shares saw losses on the day after a turbulent session which saw stocks swinging between positive and negative territory. The Shanghai composite slipped 0.34 percent to close at 2,751.80 while the Shenzhen component declined 0.256 percent to finish its trading day at 8,451.71. Elsewhere in Asia, Japan’s Nikkei 225 gained 0.15 percent to close at 21


Stocks in Asia were mixed on Thursday following an earlier slip in the morning as traders digest a release from the Federal Reserve. Mainland Chinese shares saw losses on the day after a turbulent session which saw stocks swinging between positive and negative territory. The Shanghai composite slipped 0.34 percent to close at 2,751.80 while the Shenzhen component declined 0.256 percent to finish its trading day at 8,451.71. Elsewhere in Asia, Japan’s Nikkei 225 gained 0.15 percent to close at 21
Stocks in Asia mixed as investors digest Fed minutes; Lenovo soars more than 12 percent Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-21  Authors: eustance huang
Keywords: news, cnbc, companies, gained, strong, stocks, asia, 12, close, trading, shenzhen, day, digest, soars, slipped, shares, australia, mixed, fed, lenovo, minutes, investors


Stocks in Asia mixed as investors digest Fed minutes; Lenovo soars more than 12 percent

Stocks in Asia were mixed on Thursday following an earlier slip in the morning as traders digest a release from the Federal Reserve.

Mainland Chinese shares saw losses on the day after a turbulent session which saw stocks swinging between positive and negative territory. The Shanghai composite slipped 0.34 percent to close at 2,751.80 while the Shenzhen component declined 0.256 percent to finish its trading day at 8,451.71. The Shenzhen composite shed 0.269 percent to close at 1,444.35.

Hong Kong’s Hang Seng index rose around 0.3 percent in its final hour of trading.

Hong Kong-listed shares of computer maker Lenovo surged more than 12 percent after the company announced a return to profit in the third quarter, surpassing market expectations. Profit for the quarter was $233 million, versus a loss of $289 million in the same period a year earlier when the world’s largest personal computer maker by shipments took a one-off hit, following U.S. tax reform.

Elsewhere in Asia, Japan’s Nikkei 225 gained 0.15 percent to close at 21,464.23 while the Topix ended its trading day largely flat at 1,613.50. Shares of Japanese conglomerate Softbank Group, however, slipped 1.63 percent.

The Kospi in South Korea closed slightly lower at 2,228.66, with shares of Samsung Electronics rising 0.11 percent after the company unveiled its new series of Galaxy smartphones.

The ASX 200 in Australia rose 0.7 percent to close at 6,139.20 as the heavily weighted financial subindex added about 1.5 percent. Shares of the country’s so-called Big Four banks gained: Australia and New Zealand Banking Group advanced 1.83 percent, Commonwealth Bank of Australia added 2.01 percent, Westpac gained 1.32 percent and National Australia Bank edged up 0.69 percent.

The ongoing trade negotiations between the U.S. and China remain the “main focus” for markets and are likely to “provide the next catalyst for a strong move in sentiment,” Rakuten Securities Australia said in a morning note.

“Hopes that the US will extent the March 1 tariff deadline are growing and any confirmation of this should provide a relief rally across stocks and risk trades with implementation probably leading to a strong sell off,” they said.


Company: cnbc, Activity: cnbc, Date: 2019-02-21  Authors: eustance huang
Keywords: news, cnbc, companies, gained, strong, stocks, asia, 12, close, trading, shenzhen, day, digest, soars, slipped, shares, australia, mixed, fed, lenovo, minutes, investors


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Millennials are making this group of stocks the hottest trade this year

Coty, Ulta, Estee Lauder and e.l.f Beauty have gotten a boost as the cosmetics industry has benefited off the exponential rise in consumer confidence. Coty is the top performer, up more than 70 percent and on track for the best month in its history. According to one technician, the charts suggest the trend in the broader consumer space still has more upside ahead. Conversely Stacey Gilbert, head of derivative strategy at Susquehanna Financial Group, believes that cosmetic stocks specifically may


Coty, Ulta, Estee Lauder and e.l.f Beauty have gotten a boost as the cosmetics industry has benefited off the exponential rise in consumer confidence. Coty is the top performer, up more than 70 percent and on track for the best month in its history. According to one technician, the charts suggest the trend in the broader consumer space still has more upside ahead. Conversely Stacey Gilbert, head of derivative strategy at Susquehanna Financial Group, believes that cosmetic stocks specifically may
Millennials are making this group of stocks the hottest trade this year Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-21  Authors: nia warfield, tasos katopodis, source, adam jeffery, cem ozdel, anadolu agency, getty images, apex legends, kcna, thomas barwick getty images
Keywords: news, cnbc, companies, coty, group, products, millennials, gilbert, hottest, personal, consumer, beauty, trade, newton, investors, household, making, stocks


Millennials are making this group of stocks the hottest trade this year

This retail stock is having its best month ever 23 Hours Ago | 02:39

Beauty stocks are turning heads as some of the marquee names in the space notch double-digit gains this year.

Coty, Ulta, Estee Lauder and e.l.f Beauty have gotten a boost as the cosmetics industry has benefited off the exponential rise in consumer confidence. Coty is the top performer, up more than 70 percent and on track for the best month in its history.

Cosmetic sales have also seen a boost as the surge in millennial usership on popular social media platforms such as Instagram and Twitter has helped companies promote and respond to their core consumers.

“Consumers are becoming more vocal and have more of a say in products, especially in social media,” Alison Gaither beauty analyst at marketing research company Mintel, said in an interview. “Brands are responding and that’s something they weren’t able to do before.”

According to one technician, the charts suggest the trend in the broader consumer space still has more upside ahead.

“They’ve had a pretty substantial run but you look at things like the S&P household and personal products index recently [they] have just pushed onto a new all-time high,” Mark Newton, founder of Newton Advisors, said Wednesday on CNBC’s “Trading Nation.” “So it’s really more of a secular longer-term breakout in my opinion.”

Newton’s charting reveals that relative to the broader consumer staples sector — which is flat on the year — the household and personal products sub-industry has “broken out of nearly a 10-year downtrend” and is a good defensive play for investors looking to trade the space.

“You know you want to be in the staples and household and personal products specifically looks to be an interesting area to really be in as part of this group that can show to leadership,” Newton said.

Conversely Stacey Gilbert, head of derivative strategy at Susquehanna Financial Group, believes that cosmetic stocks specifically may have run too far, too fast. Gilbert referenced shares of cosmetics maker Avon which notched a fresh 52-week high Wednesday.

“We are not seeing any bearish flow, it’s more somewhat profit-taking here,” she said Wednesday on “Trading Nation.”

Additionally, Gilbert noted that while Coty still holds potential for long-term investors, special interest of late has been boosted by the tender offering announcement from investment firm JAB Holding earlier this week.

“It seems as if there is potential longer term, but shorter term via the options I would say investors are positioning for potentially a pullback or at least worst-case scenario is just a breather here,” she said.

The beauty stocks were mixed Thursday with shares of Coty, e.l.f Beauty and Ulta all up slightly, while Estee Lauder was in the red.


Company: cnbc, Activity: cnbc, Date: 2019-02-21  Authors: nia warfield, tasos katopodis, source, adam jeffery, cem ozdel, anadolu agency, getty images, apex legends, kcna, thomas barwick getty images
Keywords: news, cnbc, companies, coty, group, products, millennials, gilbert, hottest, personal, consumer, beauty, trade, newton, investors, household, making, stocks


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Warren Buffett never buys or sells stocks using this common method

The chairman and CEO of Berkshire Hathaway doesn’t sell stocks using a stop-loss order because of its short-term focus. And because he has long maintained that trying to time the market is impossible. Buffett says investors should not try to trade stocks, but invest in them steadily over time. Buffett expounded that the investors who would trade Berkshire this way are not the kind of share owners he would like to attract. Those investors are not thinking long term with their “totally noninvestme


The chairman and CEO of Berkshire Hathaway doesn’t sell stocks using a stop-loss order because of its short-term focus. And because he has long maintained that trying to time the market is impossible. Buffett says investors should not try to trade stocks, but invest in them steadily over time. Buffett expounded that the investors who would trade Berkshire this way are not the kind of share owners he would like to attract. Those investors are not thinking long term with their “totally noninvestme
Warren Buffett never buys or sells stocks using this common method Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-21  Authors: maggie fitzgerald, adam jeffery
Keywords: news, cnbc, companies, know, investors, sell, berkshire, warren, stocks, sells, trade, buffett, long, youre, buys, doesnt, common, using, method


Warren Buffett never buys or sells stocks using this common method

The chairman and CEO of Berkshire Hathaway doesn’t sell stocks using a stop-loss order because of its short-term focus. And because he has long maintained that trying to time the market is impossible. Buffett says investors should not try to trade stocks, but invest in them steadily over time.

It “has always struck me as like having a house that you like, and you’re living in, and, you know, it’s worth $100,000 and you tell your broker, ‘You know, if anybody ever comes along and offers $90 [thousand], you want to sell it,'” Buffett joked to the audience at the 1994 meeting. “It doesn’t make any sense to me.”

Buffett expounded that the investors who would trade Berkshire this way are not the kind of share owners he would like to attract. Those investors are not thinking long term with their “totally noninvestment-type calculations.”


Company: cnbc, Activity: cnbc, Date: 2019-02-21  Authors: maggie fitzgerald, adam jeffery
Keywords: news, cnbc, companies, know, investors, sell, berkshire, warren, stocks, sells, trade, buffett, long, youre, buys, doesnt, common, using, method


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Barclays swings back to profit in 2018, sets aside nearly $200 million for Brexit

But Barclays is standing by, ready to help our small businesses, corporates and consumers no matter what happens,” Staley said. Barclays, along with other European banks, has been under pressure due to the uncertainty surrounding Brexit. The bank was recently also in the news after a report in the Financial Times stated that U.S. hedge fund Tiger Global Management sold all of its stake in Barclays. The New York-based hedge fund had been one of the top 10 investors in Barclays and held a stake of


But Barclays is standing by, ready to help our small businesses, corporates and consumers no matter what happens,” Staley said. Barclays, along with other European banks, has been under pressure due to the uncertainty surrounding Brexit. The bank was recently also in the news after a report in the Financial Times stated that U.S. hedge fund Tiger Global Management sold all of its stake in Barclays. The New York-based hedge fund had been one of the top 10 investors in Barclays and held a stake of
Barclays swings back to profit in 2018, sets aside nearly $200 million for Brexit Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-21  Authors: spriha srivastava
Keywords: news, cnbc, companies, 2018, stake, swings, hedge, brexit, million, uk, barclays, happens, profit, sets, fund, european, nearly, aside, uncertainty, pressure, 200, investors


Barclays swings back to profit in 2018, sets aside nearly $200 million for Brexit

Barclays CEO: Uncertainty around Brexit but we are staying committed to the UK 44 Mins Ago | 01:04

Fitch Ratings said on Wednesday it may downgrade the United Kingdom’s ‘AA’ debt rating based on growing uncertainty about the negotiations between Britain and the European Union over the nation’s departure from the economic bloc next month.

“Downgrade would not be beneficial to the U.K. by any means. We do think the markets are pricing in a fairly negative story right now. So overall let’s see what happens. It will be great to have this uncertainty behind us. But Barclays is standing by, ready to help our small businesses, corporates and consumers no matter what happens,” Staley said.

Barclays, along with other European banks, has been under pressure due to the uncertainty surrounding Brexit.

The bank was recently also in the news after a report in the Financial Times stated that U.S. hedge fund Tiger Global Management sold all of its stake in Barclays.

The New York-based hedge fund had been one of the top 10 investors in Barclays and held a stake of 2.5 percent in the bank.

The exit comes at a time when Barclays is facing pressure from activist investor Edward Bramson forcing his way on to the board. Bramson’s Sherborne Investors holds a 5.5 percent stake in the bank.

According to Reuters, Bramson has in the past urged Barclays to reduce resources allocated to its investment units.


Company: cnbc, Activity: cnbc, Date: 2019-02-21  Authors: spriha srivastava
Keywords: news, cnbc, companies, 2018, stake, swings, hedge, brexit, million, uk, barclays, happens, profit, sets, fund, european, nearly, aside, uncertainty, pressure, 200, investors


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Old problems worry investors as CVS tries to head in a new direction

CVS Health wants to change. On Wednesday, CVS gave its forecast for the year, which disappointed investors and stoked fears about CVS’ core business. (The third segment, health care benefits, does not have a year-over-year change estimate because it’s the newly acquired Aetna business.) “It’s impacting small operators and big operators,” CVS Pharmacy President Kevin Hourican said on the call. Drugmakers aren’t hiking prices like usual on branded prescription drugs, a problem for CVS’ pharmacy be


CVS Health wants to change. On Wednesday, CVS gave its forecast for the year, which disappointed investors and stoked fears about CVS’ core business. (The third segment, health care benefits, does not have a year-over-year change estimate because it’s the newly acquired Aetna business.) “It’s impacting small operators and big operators,” CVS Pharmacy President Kevin Hourican said on the call. Drugmakers aren’t hiking prices like usual on branded prescription drugs, a problem for CVS’ pharmacy be
Old problems worry investors as CVS tries to head in a new direction Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-20  Authors: angelica lavito, getty images
Keywords: news, cnbc, companies, cvs, direction, aetna, investors, care, health, old, wants, drugs, tries, business, pharmacy, adjusted, worry, head, problems, analysts


Old problems worry investors as CVS tries to head in a new direction

CVS Health wants to change. It wants it so bad it spent $70 billion on a health insurer. But old problems are challenging how quickly CVS can woo Wall Street.

CVS in November closed its acquisition of Aetna, a transaction the company has touted as a truly transformational moment in its 56-year history. On Wednesday, CVS gave its forecast for the year, which disappointed investors and stoked fears about CVS’ core business.

For the full year of 2019, CVS forecasts adjusted earnings of $6.68 to $6.88 per share, below the $7.41 per share analysts polled by Refinitiv had anticipated and below the $7.08, adjusted, CVS reported for 2018.

The company also predicts adjusted operating income declines in two of its three business units — retail/long-term care and pharmacy services. (The third segment, health care benefits, does not have a year-over-year change estimate because it’s the newly acquired Aetna business.)

Meantime, CVS plans to spend just as much investing in Aetna this year as it expects to save from integrating it.

These lingering issues could distract CVS from transforming its business, an undertaking that analysts say will be a tough lift. If anything, the challenges are spooking investors about whether the Aetna acquisition can really help CVS navigate the tough realities of the retail pharmacy and pharmacy benefit management businesses.

Shares of CVS fell 8 percent Wednesday, on pace for their worst day since November 2016.

“We understand acutely the importance of balancing near-term execution with longer-term vision and we are confident that these actions will position us well in 2020 and beyond,” CVS CEO Larry Merlo said Wednesday on a call with analysts to discuss CVS’ fourth-quarter earnings results.

Pharmacies across the board are experiencing reimbursement pressure amid questions about how much they get paid for filling prescription drugs. Like its competitors, CVS said it’s feeling the pain.

“It’s impacting small operators and big operators,” CVS Pharmacy President Kevin Hourican said on the call. “It’s a secular headwind impacting everyone.”

CVS’ long-term care unit, from CVS’ 2015 Omnicare acquisition, is also becoming a drag the company’s financial results. The business provides long-term pharmacy services, mainly geared at seniors, especially senior living communities.

Drugmakers aren’t hiking prices like usual on branded prescription drugs, a problem for CVS’ pharmacy benefit management business, Caremark. CVS makes more money when prices are higher.

Plus, the bread and butter of the PBM business, rebates, also hang in limbo. The Trump administration wants Congress to ban rebates, or discounts drugmakers negotiate with PBMs to get drugs placed on formularies.

Executives assured analysts on a conference call Wednesday that they were already working to fix the issues. Still, in a year that was supposed to be spent focusing on its new vision, CVS finds itself trying to address numerous challenges within its old businesses.


Company: cnbc, Activity: cnbc, Date: 2019-02-20  Authors: angelica lavito, getty images
Keywords: news, cnbc, companies, cvs, direction, aetna, investors, care, health, old, wants, drugs, tries, business, pharmacy, adjusted, worry, head, problems, analysts


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Investors need to come to terms with a ‘sloppy’ market: Jack Ablin

Investor Jack Ablin believes it’ll be a “sloppy” year for stocks, but he has a strategy to make money anyway: Embrace the pullbacks. We’ve gotten most of it already thanks to a pretty dour outlook among investors going into the new year.” Ablin doesn’t think there’s anything fundamentally wrong with the markets or economy. And right now, over the last six months, financials have underperformed. … That’s something I think investors aren’t banking on, and I don’t think they’ve calculated it into


Investor Jack Ablin believes it’ll be a “sloppy” year for stocks, but he has a strategy to make money anyway: Embrace the pullbacks. We’ve gotten most of it already thanks to a pretty dour outlook among investors going into the new year.” Ablin doesn’t think there’s anything fundamentally wrong with the markets or economy. And right now, over the last six months, financials have underperformed. … That’s something I think investors aren’t banking on, and I don’t think they’ve calculated it into
Investors need to come to terms with a ‘sloppy’ market: Jack Ablin Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-20  Authors: stephanie landsman, daniel acker, bloomberg, getty images, michael nagle, david a grogan
Keywords: news, cnbc, companies, market, come, stocks, investors, months, 2019, sloppy, financials, markets, ablin, think, money, terms, sp, need, jack


Investors need to come to terms with a 'sloppy' market: Jack Ablin

Investor Jack Ablin believes it’ll be a “sloppy” year for stocks, but he has a strategy to make money anyway: Embrace the pullbacks.

“Most of the 2019 rally has already occurred,” the Cresset Wealth Advisors chief investment officer said Tuesday on CNBC’s “Futures Now.” “We started the year expecting roughly a 9 or so percent return for 2019. We’ve gotten most of it already thanks to a pretty dour outlook among investors going into the new year.”

The S&P 500 is up 11 percent in 2019 and is about 6 percent short of its all-time high of 2,940 hit on Sept. 21.

Ablin doesn’t think there’s anything fundamentally wrong with the markets or economy. He’s basing a key portion of his forecast on the relationship between financials and the S&P 500.

“In general, the stock market likes it when financials do well. And right now, over the last six months, financials have underperformed. That would suggest that equities could struggle over the next six months,” he said. “The fact is that the financial markets and liquidity in general is really the lifeblood of the equity market.”

Ablin, whose firm has $3.5 billion in assets under management, doesn’t expect this year’s pullbacks to match 2018’s corrections. But he contends it’ll still be enough to make profits — as long as investors are buying on them.

On the next downturn, he plans to add positions to industrials, health care and, perhaps, energy. Ablin also likes homebuilders on softness because sentiment in the space is positive, but the stocks are still negative.

The big money question is what could spark the next buying opportunity. The answer is unclear.

“I think it’s more related to the trade policy,” Ablin said. “There could be tariffs especially with China that are persistent that actually never go away. … That’s something I think investors aren’t banking on, and I don’t think they’ve calculated it into the current pricing.”


Company: cnbc, Activity: cnbc, Date: 2019-02-20  Authors: stephanie landsman, daniel acker, bloomberg, getty images, michael nagle, david a grogan
Keywords: news, cnbc, companies, market, come, stocks, investors, months, 2019, sloppy, financials, markets, ablin, think, money, terms, sp, need, jack


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There is only one strategy investors need to follow, staying patient

Staying the course will benefit you in the long run 12:44 PM ET Wed, 13 Feb 2019 | 00:48For first-time investors, getting started can seem daunting, especially when the market is experiencing a lot of volatility. Instead, stay focused on your long-term goals. Though tempting, do not compare your returns to a single index or to other investors for that matter. Research has shown that the most successful long-term investors remain patient during swings in the market. Staying the course could mean


Staying the course will benefit you in the long run 12:44 PM ET Wed, 13 Feb 2019 | 00:48For first-time investors, getting started can seem daunting, especially when the market is experiencing a lot of volatility. Instead, stay focused on your long-term goals. Though tempting, do not compare your returns to a single index or to other investors for that matter. Research has shown that the most successful long-term investors remain patient during swings in the market. Staying the course could mean
There is only one strategy investors need to follow, staying patient Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-20  Authors: aj horch
Keywords: news, cnbc, companies, staying, remain, longterm, follow, goals, financial, investors, need, patient, strategy, lot, market, single, course


There is only one strategy investors need to follow, staying patient

Staying the course will benefit you in the long run 12:44 PM ET Wed, 13 Feb 2019 | 00:48

For first-time investors, getting started can seem daunting, especially when the market is experiencing a lot of volatility. Day-to-day fluctuations in the market are often influenced by outside forces, like trade disputes and uncertainty.

That is why it is important to remain calm and avoid making rash decisions. Instead, stay focused on your long-term goals. This includes maintaining a diversified portfolio so no single investment overly affects your bottom line.

Though tempting, do not compare your returns to a single index or to other investors for that matter. Their goals are likely to be different than yours, as no one invests exactly the same way.

Research has shown that the most successful long-term investors remain patient during swings in the market. Your financial plan is only as good as your ability to see the eventual payoff. Staying the course could mean reaching your financial goals sooner than expected, and with a lot less stress.

Disclosure: NBCUniversal and Comcast Ventures are investors in Acorns.

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Company: cnbc, Activity: cnbc, Date: 2019-02-20  Authors: aj horch
Keywords: news, cnbc, companies, staying, remain, longterm, follow, goals, financial, investors, need, patient, strategy, lot, market, single, course


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Report of a Model 3 leasing program could be a bad sign for Tesla investors

A report saying that Tesla might be starting a leasing program for its Model 3 sedan could be a bad sign for investors in the electric car maker, according to one analyst. “We’ve been reluctant to introduce leasing on Model 3 because of its effect on GAAP financials,” Musk said on the call. Several manufacturers are either already selling electric vehicles or planning to release new models in the next few years. Some are aimed at the higher end of the market, where Tesla’s vehicles are priced, e


A report saying that Tesla might be starting a leasing program for its Model 3 sedan could be a bad sign for investors in the electric car maker, according to one analyst. “We’ve been reluctant to introduce leasing on Model 3 because of its effect on GAAP financials,” Musk said on the call. Several manufacturers are either already selling electric vehicles or planning to release new models in the next few years. Some are aimed at the higher end of the market, where Tesla’s vehicles are priced, e
Report of a Model 3 leasing program could be a bad sign for Tesla investors Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-20  Authors: robert ferris, salwan georges, the washington post, getty images
Keywords: news, cnbc, companies, sign, price, vehicles, sedan, investors, leasing, report, tesla, program, electric, model, bad, starting, introduce


Report of a Model 3 leasing program could be a bad sign for Tesla investors

A report saying that Tesla might be starting a leasing program for its Model 3 sedan could be a bad sign for investors in the electric car maker, according to one analyst.

The timing of the report could be a sign that the gradual expiration of federal tax credits for Tesla vehicles is hitting demand for the sedan, said CFRA analyst Garrett Nelson in a note published Wednesday. The reduction in the tax credits began this year.

“While TSLA has meaningfully driven down vehicle unit costs in recent quarters, we have growing concerns regarding top-line results due to combination of moderating sales volume, price reductions and mix,” Nelson said. “Looking past the near term, we expect TSLA to face significantly increased EV competition starting with the 2021 model year.”

Tesla responded to a report from news site Electrek published on Tuesday saying the electric vehicle manufacturer is planning a leasing program, but that it has not finalized the dates when it will begin.

“This is simply an internal document to ensure teams are prepared for when we eventually introduce a leasing option to customers,” said a statement from Tesla send to CNBC, referring to the email referenced in the Electrek report. “No decision has been made about when Model 3 leasing will be available, but it will definitely be after the dates outlined in this document.”

CEO Elon Musk also said on the company’s fourth-quarter earnings calls that Tesla might wait until later this year to start a program.

“We’ve been reluctant to introduce leasing on Model 3 because of its effect on GAAP financials,” Musk said on the call. “It is worth noting that demand to date is with zero leasing. Obviously, leasing is a way to improve demand, but it makes our financials looks worse. So we’re not wanting to introduce that right away. We’ll introduce it sometime later this year probably.”

Tesla already offers leases on its other models, and it is common for customers to lease vehicles in the premium end of the car market.

Several manufacturers are either already selling electric vehicles or planning to release new models in the next few years. Some are aimed at the higher end of the market, where Tesla’s vehicles are priced, especially the full-size Model S sedan and Model X SUV.

Musk billed the Model 3 as a relatively affordable electric car, and initially Tesla intended to sell them at a starting price of $35,000, much lower than the current price. Competitors are eyeing that end of the market as well.


Company: cnbc, Activity: cnbc, Date: 2019-02-20  Authors: robert ferris, salwan georges, the washington post, getty images
Keywords: news, cnbc, companies, sign, price, vehicles, sedan, investors, leasing, report, tesla, program, electric, model, bad, starting, introduce


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JP Morgan: US momentum can hold the cycle for a ‘few more quarters’

The market has been rising since it hit “rock bottom” in December and there’s enough momentum in the United States economy alone to carry the cycle as global growth slows, top J.P. Morgan strategist Marko Kolanovic told CNBC on Wednesday. As investors ponder how slowing global growth might affect the economy, Kolanovic said his firm’s “bet” is that a recession will not hit the U.S. because the economy has enough momentum to weather the trends. “So we think U.S. can hold us, hold the cycle for ma


The market has been rising since it hit “rock bottom” in December and there’s enough momentum in the United States economy alone to carry the cycle as global growth slows, top J.P. Morgan strategist Marko Kolanovic told CNBC on Wednesday. As investors ponder how slowing global growth might affect the economy, Kolanovic said his firm’s “bet” is that a recession will not hit the U.S. because the economy has enough momentum to weather the trends. “So we think U.S. can hold us, hold the cycle for ma
JP Morgan: US momentum can hold the cycle for a ‘few more quarters’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-20  Authors: tyler clifford
Keywords: news, cnbc, companies, global, trade, quarters, hold, kolanovic, china, cycle, investors, economy, jp, growth, morgan, think, market, slowing, momentum


JP Morgan: US momentum can hold the cycle for a 'few more quarters'

The market has been rising since it hit “rock bottom” in December and there’s enough momentum in the United States economy alone to carry the cycle as global growth slows, top J.P. Morgan strategist Marko Kolanovic told CNBC on Wednesday.

Kolanovic, whose calls have moved the stock market in the past, credited shifting policy in the Federal Reserve, progressing trade negotiations between the U.S. and China, and declining volatility for investors’ willingness to put more money to work. Investors are more comfortable taking on more risk when the market is not up and down as much as 10 percent on a regular basis, the bank’s global head of quantitative and derivatives strategy said.

“Obviously we had a really strong rally now — January and February, so far — so we do not think it can continue that pace,” he said on “Fast Money.” “We do not think that it can go up every day, but we do think it can go up more … because positioning is still relatively low.”

The investment bank has a price target of 3,000 for the S&P 500, which is up more than 18 percent since Christmas Eve. That target is nearly 8 percent higher from Wednesday’s close. The index, which is still in correction territory, added about 5 points to complete its third positive session in a row and seventh in eight.

As investors ponder how slowing global growth might affect the economy, Kolanovic said his firm’s “bet” is that a recession will not hit the U.S. because the economy has enough momentum to weather the trends. Still, stockholders should expect to see a slowdown in gains this year, he said.

On Wednesday, Fed minutes released from its January meeting warned that there is potential downside risk in “the possibilities of a sharper-than-expected slowdown in global economic growth, particularly in China and Europe, a rapid waning of fiscal policy stimulus, or a further tightening of financial market conditions.” But the central bank also hinted that it could stop reducing the balance sheet.

“[The economy’s] slowing down, but … we think it’s way above the stall speed,” he said. “So we think U.S. can hold us, hold the cycle for maybe a few more quarters.”

While China grapples with “signs of inflection,” Kolanovic said the country has taken measures to address concerns. Additionally, Chinese and American trade officials appear to be closer to landing a trade agreement that would stave off a tariff hike on billions of dollars worth of imports from China. President Donald Trump has suggested that he may push back a March 2 trade deadline.

The U.S. economy can sustain until China’s economy “makes a turn,” and the world’s two largest economies could buffer a disappointing European economy that is “slowing down more than expected,” Kolanovic said.

“If this trade deal for some reason is falling apart, we would probably have to change our view entirely,” he said.

But if negotiations lead to a positive outcome, Kolanovic says, markets could see a sharp reversal from fourth-quarter losses.


Company: cnbc, Activity: cnbc, Date: 2019-02-20  Authors: tyler clifford
Keywords: news, cnbc, companies, global, trade, quarters, hold, kolanovic, china, cycle, investors, economy, jp, growth, morgan, think, market, slowing, momentum


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