Dow turns positive, erases 118-point loss on report China could agree to buy more US agricultural products

Stocks fell on Tuesday, weighed down by a continuing decline in tech shares while Ford was pressured by a downgrade to its credit rating. The Dow Jones Industrial Average traded 110 points lower, or 0.4%. The Nasdaq Composite lost 0.9% while the S&P 500 slid 0.7%. The S&P 500 tech sector was one of the worst performers on Monday, sliding 0.7%. Ford Motor was the biggest decliner in the S&P 500 on Tuesday, dropping 3.5%.


Stocks fell on Tuesday, weighed down by a continuing decline in tech shares while Ford was pressured by a downgrade to its credit rating. The Dow Jones Industrial Average traded 110 points lower, or 0.4%. The Nasdaq Composite lost 0.9% while the S&P 500 slid 0.7%. The S&P 500 tech sector was one of the worst performers on Monday, sliding 0.7%. Ford Motor was the biggest decliner in the S&P 500 on Tuesday, dropping 3.5%.
Dow turns positive, erases 118-point loss on report China could agree to buy more US agricultural products Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-10  Authors: fred imbert
Keywords: news, cnbc, companies, lower, credit, report, products, erases, dow, buy, fell, tech, loss, china, decline, agricultural, slid, turns, 500, sector, positive


Dow turns positive, erases 118-point loss on report China could agree to buy more US agricultural products

Stocks fell on Tuesday, weighed down by a continuing decline in tech shares while Ford was pressured by a downgrade to its credit rating.

The Dow Jones Industrial Average traded 110 points lower, or 0.4%. The Nasdaq Composite lost 0.9% while the S&P 500 slid 0.7%.

Shares of Facebook, Amazon, Netflix and Alphabet all fell at least 0.4%. The Technology Select Sector SPDR Fund (XLK) slid 1.4%.

The S&P 500 tech sector was one of the worst performers on Monday, sliding 0.7%. The sector’s decline pushed the broad index to close lower for the first time in four sessions.

Ford Motor was the biggest decliner in the S&P 500 on Tuesday, dropping 3.5%. The stock fell after Moody’s downgraded the auto maker’s credit rating to junk status, citing below-expectations profit margins and cash flow.


Company: cnbc, Activity: cnbc, Date: 2019-09-10  Authors: fred imbert
Keywords: news, cnbc, companies, lower, credit, report, products, erases, dow, buy, fell, tech, loss, china, decline, agricultural, slid, turns, 500, sector, positive


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The huge and swift shift into value stocks from momentum shares may be all about rates

A sudden shift from momentum stocks to value plays could mean investors are betting on higher interest rates. Bespoke Investment Group compared two exchange-traded funds by MSCI, the Momentum factor ETF and the Value factor ETF, to illustrate the trend. According to these ETFs, momentum stocks are up 2.8% this week, while value stocks are down 3.5%, a very large diversion for such a short amount of time. The Momentum ETF used in this comparison invests large- and mid-capitalization stocks that h


A sudden shift from momentum stocks to value plays could mean investors are betting on higher interest rates. Bespoke Investment Group compared two exchange-traded funds by MSCI, the Momentum factor ETF and the Value factor ETF, to illustrate the trend. According to these ETFs, momentum stocks are up 2.8% this week, while value stocks are down 3.5%, a very large diversion for such a short amount of time. The Momentum ETF used in this comparison invests large- and mid-capitalization stocks that h
The huge and swift shift into value stocks from momentum shares may be all about rates Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-10  Authors: al lewis
Keywords: news, cnbc, companies, stocks, value, higher, shares, rates, shift, etf, week, huge, interest, lower, swift, yields, momentum


The huge and swift shift into value stocks from momentum shares may be all about rates

A sudden shift from momentum stocks to value plays could mean investors are betting on higher interest rates.

This week there’s been a dramatic rotation from the high-valuation stocks that have driven the market’s run-up to more steady companies with lower valuations.

Bespoke Investment Group compared two exchange-traded funds by MSCI, the Momentum factor ETF and the Value factor ETF, to illustrate the trend.

According to these ETFs, momentum stocks are up 2.8% this week, while value stocks are down 3.5%, a very large diversion for such a short amount of time.

The spread between these two funds tracks yields on the 10-year Treasury reasonably well, as seen in the chart below, but this week it has broken away.

The breakout, which follows a recent uptick in bond yields, means one of two things, said Bespoke analyst George Pearkes.

“Either equities are over-reacting to the recent move higher in rates, or they’re predicting a more extended turn higher in yields,” he wrote.

Bond yields continued rising on Tuesday with the 2-year at 1.654% and the 10-year up to 1.697%.

The improvement in yields comes even as the Federal Reserve is widely expected to lower its key rate when it meets later this month. It also stands in contrast to what central banks around the globe have been doing: cutting rates into negative integers and increasing quantitative easing operations to fend off a global economic downturn.

It’s perhaps counterintuitive that the market would be expecting these higher yields to last for long in a global interest rate environment that includes nearly $17 trillion in negative-yielding debt.

The Momentum ETF used in this comparison invests large- and mid-capitalization stocks that have enjoyed big moves in valuation. It’s top five holdings are Visa, Mastercard, Microsoft, Procter & Gamble and Walt Disney.

The Value ETF, buys U.S. large- and mid-capitalization stocks with relatively lower valuations. It holds AT&T, Intel, IBM, Pfizer and Bank of America in in its top five.

Beyond signaling a bet on interest rates, a repositioning from momentum to value could indicate a flight to safety for investors concerned about a downturn, even as the market hovers around new highs.

“If interest rates are done falling and about to turn higher, it hurts high growth stocks with sky-high P/E ratios by diminishing the future value of earnings and raising borrowing costs,” Pearkes said.


Company: cnbc, Activity: cnbc, Date: 2019-09-10  Authors: al lewis
Keywords: news, cnbc, companies, stocks, value, higher, shares, rates, shift, etf, week, huge, interest, lower, swift, yields, momentum


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‘It: Chapter Two’ nabs second-highest horror movie opening with $91 million haul

“It: Chapter Two” wasn’t able to scare up more ticket sales than the first installment of Warner Bros. two-part adaptation of Stephen King’s famed novel, but it did manage to have the second-highest horror movie opening of all time. Still, it was able to breeze past 2018’s “Halloween’s” $76.2 million opening, which was the second-highest opening for a horror film. “It,” which was released in 2017, still holds the highest opening of a horror movie with $123 million. It is also the highest-grossin


“It: Chapter Two” wasn’t able to scare up more ticket sales than the first installment of Warner Bros. two-part adaptation of Stephen King’s famed novel, but it did manage to have the second-highest horror movie opening of all time. Still, it was able to breeze past 2018’s “Halloween’s” $76.2 million opening, which was the second-highest opening for a horror film. “It,” which was released in 2017, still holds the highest opening of a horror movie with $123 million. It is also the highest-grossin
‘It: Chapter Two’ nabs second-highest horror movie opening with $91 million haul Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-08  Authors: sarah whitten
Keywords: news, cnbc, companies, horror, movie, chapter, lower, secondhighest, sales, nabs, ticket, opening, film, million, haul


'It: Chapter Two' nabs second-highest horror movie opening with $91 million haul

“It: Chapter Two” wasn’t able to scare up more ticket sales than the first installment of Warner Bros. two-part adaptation of Stephen King’s famed novel, but it did manage to have the second-highest horror movie opening of all time.

The film, which takes place 27 years after the first film, hauled in $91 million domestically over the last three days, shy of analyst estimates which called for the flick to bring in more than $100 million. Still, it was able to breeze past 2018’s “Halloween’s” $76.2 million opening, which was the second-highest opening for a horror film.

“It,” which was released in 2017, still holds the highest opening of a horror movie with $123 million. It is also the highest-grossing horror movie of all time, with sales of $700 million during its run.

“The first installment set a new benchmark for horror movie box-office performance and ‘It Chapter Two,’ though coming in at less than its predecessor, is still impressive and posts the second biggest horror movie gross of all time,” Paul Dergarabedian, senior media analyst at Comscore, said.

There had been a wide estimate for the weekend haul of “Chapter Two,” with some saying it will pull in between $105 million and $110 million, while others see it topping $130 million. Warner Bros., however, had forecast the film would bring in around $85 million in ticket sales over the weekend.

“Chapter Two” pulled in only $10.5 million on Thursday, a smaller take than “It” which took in $13.5 million during its preview night two years ago. Some have suggested that Hurricane Dorian was to blame for the lower turnout. Still, “Chapter Two” had the second-highest preview gross for any horror film, just behind its predecessor.

Hurricane Dorian, the storm that devastated parts of the Bahamas, could have put a damper on ticket sales in areas that have experienced flooding or evacuation orders. Dorian made landfall Friday in North Carolina’s Outer Banks as a Category 1 storm.

Other factors that could have led to lower audience turnout was the fact that “Chapter Two” had a lower Rotten Tomatoes score than its predecessor, 64% vs. 86%, and it had a run time of two hours and 49 minutes, 35 minutes longer than the first film.

“Horror in recent years has garnered critical respect, something that has eluded the much maligned genre in the past and the ‘It’ franchise has been a part of the newly revitalized stature of what has always been one of the most reliable, though often under-appreciated categories in film,” Dergarabedian said.


Company: cnbc, Activity: cnbc, Date: 2019-09-08  Authors: sarah whitten
Keywords: news, cnbc, companies, horror, movie, chapter, lower, secondhighest, sales, nabs, ticket, opening, film, million, haul


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Dow futures fall more than 200 points after new US-China trade tariffs take effect

U.S. stock index futures were sharply lower Tuesday morning, after the world’s two largest economies began imposing new tariffs on one another’s goods. ET, Dow futures fell 234 points, indicating a negative open of more than 235 points. The U.S. imposed 15% tariffs on a variety of Chinese goods on Sunday, while China imposed new charges on U.S. products from September 1. The U.S. and China have imposed tariffs on billions of dollars’ worth of one another’s goods since the start of 2018, batterin


U.S. stock index futures were sharply lower Tuesday morning, after the world’s two largest economies began imposing new tariffs on one another’s goods. ET, Dow futures fell 234 points, indicating a negative open of more than 235 points. The U.S. imposed 15% tariffs on a variety of Chinese goods on Sunday, while China imposed new charges on U.S. products from September 1. The U.S. and China have imposed tariffs on billions of dollars’ worth of one another’s goods since the start of 2018, batterin
Dow futures fall more than 200 points after new US-China trade tariffs take effect Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-03  Authors: sam meredith
Keywords: news, cnbc, companies, points, futures, china, fall, dow, trade, effect, goods, uschina, latest, anothers, imposed, tariffs, 200, lower


Dow futures fall more than 200 points after new US-China trade tariffs take effect

U.S. stock index futures were sharply lower Tuesday morning, after the world’s two largest economies began imposing new tariffs on one another’s goods.

At around 03:20 a.m. ET, Dow futures fell 234 points, indicating a negative open of more than 235 points. Futures on the S&P and Nasdaq were both lower. The moves in pre-market trade come after investors observed a market holiday on Monday.

The U.S. imposed 15% tariffs on a variety of Chinese goods on Sunday, while China imposed new charges on U.S. products from September 1. It marked the latest escalation in their long-running trade war.

The U.S. and China have imposed tariffs on billions of dollars’ worth of one another’s goods since the start of 2018, battering financial markets and souring business and consumer sentiment.

President Donald Trump has said officials from both sides were still planning to meet later this month, despite rising tensions.

On Monday, Beijing filed a complaint against Washington at the World Trade Organization over U.S. import duties. China claimed the latest round of tariffs violated a consensus reached by leaders of both countries in Osaka, Japan.


Company: cnbc, Activity: cnbc, Date: 2019-09-03  Authors: sam meredith
Keywords: news, cnbc, companies, points, futures, china, fall, dow, trade, effect, goods, uschina, latest, anothers, imposed, tariffs, 200, lower


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European stocks open lower as UK prepares for Brexit showdown; Sterling hits 35-month low

European stocks opened lower Tuesday morning, with British opposition lawmakers bidding to seize control of the House of Commons and stop the U.K. leaving the European Union without a deal on October 31. The pan-European Stoxx 600 slipped 0.3% at the opening bell, travel and leisure stocks shedding 0.6% to lead losses as all sectors traded in the red, while sterling’s weakness pushed the FTSE 100 to break trend and trade in positive territory.


European stocks opened lower Tuesday morning, with British opposition lawmakers bidding to seize control of the House of Commons and stop the U.K. leaving the European Union without a deal on October 31. The pan-European Stoxx 600 slipped 0.3% at the opening bell, travel and leisure stocks shedding 0.6% to lead losses as all sectors traded in the red, while sterling’s weakness pushed the FTSE 100 to break trend and trade in positive territory.
European stocks open lower as UK prepares for Brexit showdown; Sterling hits 35-month low Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-03  Authors: elliot smith
Keywords: news, cnbc, companies, union, lower, showdown, low, hits, trend, travel, traded, trade, european, weakness, sterling, open, territory, prepares, stocks


European stocks open lower as UK prepares for Brexit showdown; Sterling hits 35-month low

European stocks opened lower Tuesday morning, with British opposition lawmakers bidding to seize control of the House of Commons and stop the U.K. leaving the European Union without a deal on October 31.

The pan-European Stoxx 600 slipped 0.3% at the opening bell, travel and leisure stocks shedding 0.6% to lead losses as all sectors traded in the red, while sterling’s weakness pushed the FTSE 100 to break trend and trade in positive territory.


Company: cnbc, Activity: cnbc, Date: 2019-09-03  Authors: elliot smith
Keywords: news, cnbc, companies, union, lower, showdown, low, hits, trend, travel, traded, trade, european, weakness, sterling, open, territory, prepares, stocks


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Asia stocks mixed as investors watch US Treasury yields

Stocks in major Asian markets were mixed on Thursday as investors continued to watch the yield curve in U.S. Treasurys, which inverted further overnight. The Nikkei 225 in Japan close slightly lower at 20,460.93, while the Topix finished its trading day largely flat at 1,490.17. Investors continued to monitor the yields in U.S. Treasurys. The phenomenon, also known as a yield curve inversion, has historically preceded periods of recession. The yields on the 10-year Treasury note and 2-year note


Stocks in major Asian markets were mixed on Thursday as investors continued to watch the yield curve in U.S. Treasurys, which inverted further overnight. The Nikkei 225 in Japan close slightly lower at 20,460.93, while the Topix finished its trading day largely flat at 1,490.17. Investors continued to monitor the yields in U.S. Treasurys. The phenomenon, also known as a yield curve inversion, has historically preceded periods of recession. The yields on the 10-year Treasury note and 2-year note
Asia stocks mixed as investors watch US Treasury yields Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-29  Authors: eustance huang
Keywords: news, cnbc, companies, yield, usually, note, investors, curve, asia, treasurys, continued, watch, yields, day, stocks, 10year, treasury, lower, mixed


Asia stocks mixed as investors watch US Treasury yields

Stocks in major Asian markets were mixed on Thursday as investors continued to watch the yield curve in U.S. Treasurys, which inverted further overnight.

Mainland Chinese shares dipped on the day, with the Shanghai composite slipping 0.1% to about 2,890.92 and the Shenzhen component down 0.17% to 9,398.47. The Shenzhen composite was 0.172% lower at around 1,591.08. Hong Kong’s Hang Seng index, on the other hand, was up 0.28% as of its final hour of trading.

The Chinese yuan also briefly weakened to a level not seen in more than 11-and-a-half years.

The Nikkei 225 in Japan close slightly lower at 20,460.93, while the Topix finished its trading day largely flat at 1,490.17. Over in South Korea, the Kospi closed 0.4% lower at 1,933.41. Australia’s S&P/ASX 200 rose 0.1% to end its trading day at 6,507.40.

Overall, the MSCI Asia ex-Japan index rose 0.08%.

Investors continued to monitor the yields in U.S. Treasurys. The 30-year bond yield fell to a new record low of 1.907% on Wednesday before seeing a recovery. It was last at 1.9607%.

The closely-watched yield spread between the 10-year Treasury note and 2-year note also widened further on Wednesday, extending losses from the previous session where it touched its lowest level since 2007. The phenomenon, also known as a yield curve inversion, has historically preceded periods of recession.

The yields on the 10-year Treasury note and 2-year note were last at 1.4844% and 1.5119%, respectively.

“I think it’s always easy to say it’s different this time. The reality is and it’s tough to sugarcoat it, when the yield curve inverts, it’s usually a very powerful predictor of … at best a slowdown and usually … it’s a recession,” said Omar Slim, senior vice president of fixed income at PineBridge Investments, Singapore.

“The short-end with the 10-year is … where you see most of the inversion and that’s usually because the market is expecting a slowdown,” Slim told CNBC’s “Street Signs” on Thursday. He added that this was driven by fears of recession both in the U.S. as well as elsewhere globally.

Markets continued to remain on edge as investors await developments on the U.S.-China trade front, with the tariff war between the two economic powerhouses recently escalating and further dampening sentiment and raising concerns over the global economic outlook.


Company: cnbc, Activity: cnbc, Date: 2019-08-29  Authors: eustance huang
Keywords: news, cnbc, companies, yield, usually, note, investors, curve, asia, treasurys, continued, watch, yields, day, stocks, 10year, treasury, lower, mixed


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Investors stick with yen as recession fears grow; sterling slides

Investors worry the trade conflict between the United States and China could tip the world into an economic slowdown. The yen stood at 105.78 yen per dollar, unchanged on the day but close to the 7-month high of 104.46 yen hit on Monday. Sterling skidded more than 1% against the euro and dollar on media reports of Boris Johnson’s plans. Sterling was last down 0.7% at $1.2198 and 0.7% lower versus the euro at 90.93 pence, just off the day’s lows. “Instead the escalation in trade wars merely looks


Investors worry the trade conflict between the United States and China could tip the world into an economic slowdown. The yen stood at 105.78 yen per dollar, unchanged on the day but close to the 7-month high of 104.46 yen hit on Monday. Sterling skidded more than 1% against the euro and dollar on media reports of Boris Johnson’s plans. Sterling was last down 0.7% at $1.2198 and 0.7% lower versus the euro at 90.93 pence, just off the day’s lows. “Instead the escalation in trade wars merely looks
Investors stick with yen as recession fears grow; sterling slides Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-28
Keywords: news, cnbc, companies, yen, investors, lower, recession, risk, fears, currency, sterling, dollar, stick, economic, trade, looks, slides, grow, euro


Investors stick with yen as recession fears grow; sterling slides

The Japanese yen clung to its recent gains on Wednesday as worries about a global economic downturn grew, while sterling slumped on British Prime Minister Boris Johnson’s move to limit parliament’s opportunity to derail his Brexit plans.

Two-year U.S. government bond yields rose further above 10-year yields, a deepening of the so-called inversion of the yield curve that many see as a harbinger of a recession. Investors worry the trade conflict between the United States and China could tip the world into an economic slowdown.

The yen stood at 105.78 yen per dollar, unchanged on the day but close to the 7-month high of 104.46 yen hit on Monday.

“Much if not all of the decline in dollar/yen is simply down to markets becoming more risk averse,” said Adam Cole, currency strategist at RBC Capital Markets.

Cole said, however, that if the outlook for the global trade conflict improves and risk appetite recovers, he expected the dollar to “grind higher” against the yen as Japanese investors continue to buy higher-yielding dollar assets without hedging the currency risk, which would support the greenback.

The dollar index, which measures the U.S. currency against a basket of currencies, rose marginally to 98.091.

Sterling skidded more than 1% against the euro and dollar on media reports of Boris Johnson’s plans.

A government source said the prime minister, who has vowed to take Britain out of the EU without a divorce deal if necessary, would set an Oct. 14 date for the Queen’s Speech – the formal state opening of a new session of parliament.

That would effectively shut parliament from mid-September for around a month and reduce the parliamentary time in which lawmakers could try to block a no-deal Brexit.

Sterling was last down 0.7% at $1.2198 and 0.7% lower versus the euro at 90.93 pence, just off the day’s lows.

Elsewhere, weaker risk appetite weighed on the Australian and New Zealand dollars, which tend to perform well when investors buy into riskier assets.

The Aussie has been on the back foot since Reserve Bank of Australia (RBA) Deputy Governor Guy Debelle said on Tuesday that a weakening the currency was supporting the economy and that further falls would be beneficial.

The Aussie had fallen to a more than decade-low of $0.6677 early in August. On Wednesday it stood at $0.6724, down 0.1% on the day while the kiwi was 0.3% lower at $0.6341.

The Chinese yuan edged lower to 7.1703 in offshore markets, not far from the record low of 7.187 it touched on Monday.

Euro/dollar was little changed, trading at $1.1091 with little in the way of new economic data scheduled for Wednesday or developments to spark bigger moves.

Analysts at ING said positive news in Italy, where the 5-Star Movement and the opposition Democratic Party appear on the verge of agreeing a governing coalition, would not help the euro significantly.

“Instead the escalation in trade wars merely looks to extend the slow-down in manufacturing, depressing European growth still further. Like all activity currencies, the EUR looks soft and could break down to new lows at any time. EUR/USD support at $1.1025/50 looks vulnerable,” they said.


Company: cnbc, Activity: cnbc, Date: 2019-08-28
Keywords: news, cnbc, companies, yen, investors, lower, recession, risk, fears, currency, sterling, dollar, stick, economic, trade, looks, slides, grow, euro


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Mini refinance boom goes bust, as mortgage rates turn higher

It didn’t take much to end the party in the refinance market. A small tick higher in mortgage rates caused the sudden surge in refinances to retreat just as quickly. Volume was 66% higher annually, as rates were still higher last year. The rate was 84 basis points lower than a year ago and 14 basis points lower than four weeks earlier. They were still 167% higher than a year ago, proving how volatile the weekly moves are despite rates being lower.


It didn’t take much to end the party in the refinance market. A small tick higher in mortgage rates caused the sudden surge in refinances to retreat just as quickly. Volume was 66% higher annually, as rates were still higher last year. The rate was 84 basis points lower than a year ago and 14 basis points lower than four weeks earlier. They were still 167% higher than a year ago, proving how volatile the weekly moves are despite rates being lower.
Mini refinance boom goes bust, as mortgage rates turn higher Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-28  Authors: diana olick
Keywords: news, cnbc, companies, rates, turn, mortgage, mini, boom, end, points, goes, market, bust, refinance, lower, rate, week, higher


Mini refinance boom goes bust, as mortgage rates turn higher

It didn’t take much to end the party in the refinance market.

A small tick higher in mortgage rates caused the sudden surge in refinances to retreat just as quickly. That pushed total mortgage application volume down 6.2% last week, compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. Volume was 66% higher annually, as rates were still higher last year.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($484,350 or less) increased to 3.94% from 3.90%, with points increasing to 0.38 from 0.35 (including the origination fee) for loans with a 20% down payment. The rate was 84 basis points lower than a year ago and 14 basis points lower than four weeks earlier.

“U.S. Treasury yields were volatile over the course of the week, as the ongoing trade dispute between the U.S. and China continued to generate uncertainty among investors,” said Joel Kan, MBA’s associate vice president of economic and industry forecasting. “Rates increased for the first time since the week of July 12.”

Despite that, mortgage applications to refinance a home loan fell 8% for the week. They were still 167% higher than a year ago, proving how volatile the weekly moves are despite rates being lower. The refinance share of mortgage activity decreased to 62.4 percent of total applications from 62.7 percent the previous week

Mortgage applications to purchase a home, which are less sensitive to rate changes, fell 4% last week and were just 2% higher than a year ago.

“The drop in rates this summer have not yet led to a significant boost in activity. Uncertainty over the near-term economic outlook and low supply [of homes for sale] continue to be the predominant headwinds for prospective homebuyers,” Kan said.

Consumer confidence in the housing market is still high, according to a monthly Fannie Mae survey, but there is a shortage of homes for sale on the low end of the market, where demand is strongest. That is where home prices are still rising fastest and borrowers have less wiggle room in their wallets. At the higher end, where listings are more plentiful, potential buyers are more sensitive to the latest swings in the stock market and the overall concern over a potential recession.


Company: cnbc, Activity: cnbc, Date: 2019-08-28  Authors: diana olick
Keywords: news, cnbc, companies, rates, turn, mortgage, mini, boom, end, points, goes, market, bust, refinance, lower, rate, week, higher


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Millennials are rejected more often when applying for loans, mortgages and credit cards

FICO scores range from 300 to 850, with “good” scores considered to be any above 670. The legislation banned credit card companies from issuing new credit cards to those under 21 unless they had a job or a co-signer who could pay off the credit line. Essentially, some millennials, particularly younger ones, may have delayed applying for a credit card, but were later rejected because they didn’t have a robust history. Several recent surveys and polls suggest many millennials don’t have credit car


FICO scores range from 300 to 850, with “good” scores considered to be any above 670. The legislation banned credit card companies from issuing new credit cards to those under 21 unless they had a job or a co-signer who could pay off the credit line. Essentially, some millennials, particularly younger ones, may have delayed applying for a credit card, but were later rejected because they didn’t have a robust history. Several recent surveys and polls suggest many millennials don’t have credit car
Millennials are rejected more often when applying for loans, mortgages and credit cards Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-28  Authors: megan leonhardt
Keywords: news, cnbc, companies, loans, fico, cards, applying, card, gen, rejected, credit, millennials, mortgages, typically, ulzheimer, scores, lower, score


Millennials are rejected more often when applying for loans, mortgages and credit cards

Yet while millennials report being rejected more often, their credit scores are not much different than those in Gen Z (ages 18 to 22) and Gen X (ages 39 to 54). Millennials have an average FICO Score of 668, according to Experian data from the second quarter of 2019. FICO scores range from 300 to 850, with “good” scores considered to be any above 670.

Gen Zers have an average score of 667, while Gen Xers are typically at 688. Baby Boomers have a much stronger average score of 731, Experian reports.

If their credit scores are not that different, why are more millennials facing denials? Gen Zers likely have a lower rejection rate because they haven’t applied for as many credit products yet. Keep in mind the oldest members of this generation are barely out of college. “Those that are old enough to apply for credit aren’t out there looking for massive mortgages or expensive cars,” says John Ulzheimer, an expert on credit reporting, who’s previously worked at FICO and Equifax.

The higher rate of denials among millennials may be an “unintended consequence” of the CARD Act, which went into effect in 2010, says Ted Rossman, a credit card industry analyst with Bankrate. The legislation banned credit card companies from issuing new credit cards to those under 21 unless they had a job or a co-signer who could pay off the credit line.

“It has become much harder for people in their early and mid-20s to obtain credit,” Rossman says. Essentially, some millennials, particularly younger ones, may have delayed applying for a credit card, but were later rejected because they didn’t have a robust history.

Another factor is that millennials may depend on credit less frequently than older generations. Several recent surveys and polls suggest many millennials don’t have credit cards, while a significant portion prefer debit cards. When this happens, their credit scores end up lower — or nonexistent. But avoiding credit isn’t a solid strategy if you’re looking to improve your score, Ulzheimer says.

In general, younger Americans tend to have lower credit score potential because they don’t have the decades of credit history that older generations typically have, according to Ulzheimer. “There’s a metric in both FICO and VantageScore’s credit scoring systems that reward you with a higher score ceiling if you’ve got decades of credit experience on your credit reports,” he says.

These dynamics could all shift, however, if there’s a prolonged market downturn or recession. “If the employment market tanks and people start losing jobs, then lenders will typically make a flight to quality, which means minimum score requirements will go up,” Ulzheimer says, adding that this happened in the aftermath of the 2008 financial crisis.

Don’t miss: Actually, carrying a balance on your credit card doesn’t increase your credit score

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Company: cnbc, Activity: cnbc, Date: 2019-08-28  Authors: megan leonhardt
Keywords: news, cnbc, companies, loans, fico, cards, applying, card, gen, rejected, credit, millennials, mortgages, typically, ulzheimer, scores, lower, score


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Why record low bond yields could keep heading lower as market fears ‘disaster scenario’

The benchmark 10-year Treasury note yield, which influences everything from business loans to home mortgages, has been hugging three-year lows and was at 1.45% Wednesday. The 30-year Treasury bond yield fell to an all-time low 1.91% Wednesday as yields around the world, which move opposite price, slid to multi-year or record lows. U.S. rates followed a global move lower, with the Japanese 10-year yield falling to a new negative three-year low and the German 10-year bund yield sliding to its own


The benchmark 10-year Treasury note yield, which influences everything from business loans to home mortgages, has been hugging three-year lows and was at 1.45% Wednesday. The 30-year Treasury bond yield fell to an all-time low 1.91% Wednesday as yields around the world, which move opposite price, slid to multi-year or record lows. U.S. rates followed a global move lower, with the Japanese 10-year yield falling to a new negative three-year low and the German 10-year bund yield sliding to its own
Why record low bond yields could keep heading lower as market fears ‘disaster scenario’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-28  Authors: patti domm
Keywords: news, cnbc, companies, yield, rates, yields, fears, negative, curve, low, heading, market, scenario, trade, record, theres, investors, bond, 10year, disaster, treasury, lower


Why record low bond yields could keep heading lower as market fears 'disaster scenario'

Traders signal offers in the Ten-Year Treasury Note Options pit at the Chicago Board of Trade. Scott Olson | Getty Images

Bond yields are heading south, and there appears to be no stopping them for now. The benchmark 10-year Treasury note yield, which influences everything from business loans to home mortgages, has been hugging three-year lows and was at 1.45% Wednesday. That’s below the 2-year yield of 1.5%, and the move has been signaling recession. The 30-year Treasury bond yield fell to an all-time low 1.91% Wednesday as yields around the world, which move opposite price, slid to multi-year or record lows. U.S. rates followed a global move lower, with the Japanese 10-year yield falling to a new negative three-year low and the German 10-year bund yield sliding to its own record, minus-0.72%.

“This is one big trade,” said Gregory Faranello, head of U.S. rates at Amerivet Securities. “The momentum and trends that are in place right now are pretty steadfast. There’s nothing glaring to me that will change the dynamics right now. We’re in the latter stages of the summer months. Liquidity is definitely an issue. When you look at it globally right now, it encompasses a lot of different, diverse things. Today we have the headline from the U.K.; you have this ongoing trade war, and this global yield structure just continues to unfold.” Strategists said the bond market has been caught between a number of forces and is now a vortex sucking in investors who have to buy yield, which keep getting lower as bond prices move higher. In the past several days, investors have begun to believe that there’s a very good chance the trade wars between the U.S. and China could continue for a very long time, and possibly until after the presidential election.

Fear factors

The global economy is slowing, and increasingly there are warning signs that make it appear Europe could enter a recession. China’s slowdown has sent a chill across emerging market economies, which have seen a decline in exports. Then there is political uncertainty, which got even murkier in the U.K. on Wednesday, after Prime Minister Boris Johnson pushed back the reopening of Parliament until mid-October, limiting the amount of debate time and increasing the chances of a no-deal Brexit. Sterling fell and the 10-year gilt yield dropped to its lowest level in three years. “The disaster scenario is if yields fall dramatically from here,” said Michael Schumacher, director rates at Wells Fargo. “Hypothetically, if the trade situation intensifies, if maybe Hong Kong goes badly and Brexit seems like it results in a hard exit … then what you probably get is a massive rally again in Treasurys.” “Anyone who is handing you a hard forecast in that scenario is throwing darts,” he said. After the 10-year yield broke through the psychologically important 1.50% level Tuesday, Schumacher said investors are looking for the next target on the benchmark note at the record low it reached in the weeks after the U.K. voted for Brexit, or to leave the European Union.

“People seem to be fixated on 1.35%,” he said. For investors, he said a good place to hide might be in very short-term Treasurys. For instance, the 1-month Treasury bill was yielding 2.06%, well above other securities. “Why be a hero?” he said. Many strategists do not expect U.S. bonds to follow the rest of the world into negative yields, but they concede it could happen. The other side of the falling yield story is that bond yields could quickly snap higher, if for instance there was significant progress in the trade situation. But strategists are skeptical that will happen any time soon. “Clearly, the trade war is such a big piece of this and it remains so incredibly unpredictable. Most people feel like it’s elevated to such an extent that it’s highly unlikely to get anywhere,” said Ralph Axel, rates strategist at Bank of America Merrill Lynch. He said people are wondering why China would sign a long-term deal with President Donald Trump ahead of the election.

Sinkhole of global yields

Another major factor driving yields lower is the fact that more than $16 trillion in bonds around the world now have negative yields, and the U.S. Treasury market has been a magnet for investors looking for yield, as well as safety. Axel said he has a 1.25% target on the 10-year, and he also expects the 30-year yield to be at that level by the second quarter of next year. Faranello said yields move lower because buying forces in more buyers as investors look to lock in yield. The question is will the consumer, who has been holding up the U.S. economy, begin to react to what’s scaring markets. “If you’re a U.S. consumer, you see volatility in markets. You don’t understand it. They see negative interest rates. You see the inverted yield curve, which consumers don’t understand, and there’s talk of recession,” Faranello said. “This could be self-fulfilling at some point, and the Fed has to keep an eye on it.” Data in the next week could be important since it includes the monthly employment report next Friday and also ISM manufacutring and PMI, two indicators that have been signaling a slowdown in manufacturing “The yield curve is telling us essentially that we’re looking at zero percent GDP growth next year. That’s what the front end of the curve would imply. The question is will the yield curve win out or will policy makers be able to support the data enough,” Faranello said. “I have no idea how it’s going to play out, but there’s very incredible fear and focus on a recession.”

Central banks behind the curve


Company: cnbc, Activity: cnbc, Date: 2019-08-28  Authors: patti domm
Keywords: news, cnbc, companies, yield, rates, yields, fears, negative, curve, low, heading, market, scenario, trade, record, theres, investors, bond, 10year, disaster, treasury, lower


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