Dubai’s massive port operator DP World is delisting and returning to private ownership

A gantry crane stands in the DP World Ltd. terminal at Port Metro Vancouver in Vancouver, British Columbia, Canada, on Wednesday, Sept. 19, 2018. DP World, one of the world’s largest port operators, is delisting from the Nasdaq Dubai and returning to fully private ownership, the company announced Monday. The development could be bad news for the Nasdaq Dubai, for whom DP World has been a major draw for investors trading the publicly-listed shares. DP World had a market value of about $10 billion


A gantry crane stands in the DP World Ltd. terminal at Port Metro Vancouver in Vancouver, British Columbia, Canada, on Wednesday, Sept. 19, 2018.
DP World, one of the world’s largest port operators, is delisting from the Nasdaq Dubai and returning to fully private ownership, the company announced Monday.
The development could be bad news for the Nasdaq Dubai, for whom DP World has been a major draw for investors trading the publicly-listed shares.
DP World had a market value of about $10 billion
Dubai’s massive port operator DP World is delisting and returning to private ownership Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-02-17  Authors: natasha turak
Keywords: news, cnbc, companies, market, private, dubai, nasdaq, world, massive, returning, operator, share, dubais, public, ownership, company, strategy, delisting, port


Dubai's massive port operator DP World is delisting and returning to private ownership

A gantry crane stands in the DP World Ltd. terminal at Port Metro Vancouver in Vancouver, British Columbia, Canada, on Wednesday, Sept. 19, 2018.

DP World, one of the world’s largest port operators, is delisting from the Nasdaq Dubai and returning to fully private ownership, the company announced Monday.

The UAE-owned port behemoth’s parent company, Port and Free Zone World, has offered to buy the 19.55% of DP World’s shares traded on the Nasdaq Dubai for $16.75 a share, representing a 29% premium on its closing price of $13 per share on Sunday, the statement said.

Following the announcement, the firm’s stock rose 10% to $14.30 in morning trade in the Middle East.

The company said the move would enable DP World to “focus on its medium-to-long-term strategy of transforming from a global port operator to an infrastructure-led end-to-end logistics provider.” Company executives described the company’s public trading as ultimately too beholden to short-term returns.

Upon completion of the deal, it will be 100% owned by Port and Free Zone World.

The development could be bad news for the Nasdaq Dubai, for whom DP World has been a major draw for investors trading the publicly-listed shares. The Dubai-based exchange did not offer comment when contacted by CNBC. DP World had a market value of about $10 billion as of Monday morning, whereas the whole exchange is worth over $130 billion.

“The DP World Board has concluded that the disadvantages of maintaining a public listing outweigh the benefits,” Yuvraj Narayan, group chief financial, strategy and business officer of DP World, said in the statement Monday.

“Delisting from Nasdaq Dubai is in the best interest of the company, enabling it to execute its medium to long-term strategy … In contrast, public markets typically hold a short-term view. As a result of this gap, the DP World strategy is not fully appreciated by the equity markets, and consequently is not reflected in the company’s share price performance.”

DP World Group Chairman and CEO Sultan Ahmed bin Sulayem described the ports and logistics industry as in the midst of a major transition, with its customer base undergoing consolidation and the “vertical integration of several competitors.”

“Returning to private ownership will free DP World from the demands of the public market for short term returns which are incompatible with this industry, and enable the company to focus on implementing our mid-to-long-term strategy,” he said.

DP World operates 48 marine terminals and 13 port developments in more than 30 countries.

Shares of DP World peaked in late January 2018 at $26.99 per share and have fallen about 52% since then as of Sunday’s market close in the United Arab Emirates. The company’s revenue in 2018 was $5.6 billion, a nearly 20% increase on the previous year, according to its latest available financial report.


Company: cnbc, Activity: cnbc, Date: 2020-02-17  Authors: natasha turak
Keywords: news, cnbc, companies, market, private, dubai, nasdaq, world, massive, returning, operator, share, dubais, public, ownership, company, strategy, delisting, port


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Traders bet on another rate cut soon, and other news affecting your money in the week ahead

Here’s what to watch in the stock market during the week ahead — and how the news could affect your bottom line. Traders will be scouring these notes for signs that policymakers will cut rates again after doing so three times in 2019. Meanwhile, traders see a 47% likelihood that central bankers will reduce interest rates at least twice by the end of 2020. What it means for you: The Fed lowered interest rates last year in an effort to stimulate growth. At the same time, lower interest rates mean


Here’s what to watch in the stock market during the week ahead — and how the news could affect your bottom line.
Traders will be scouring these notes for signs that policymakers will cut rates again after doing so three times in 2019.
Meanwhile, traders see a 47% likelihood that central bankers will reduce interest rates at least twice by the end of 2020.
What it means for you: The Fed lowered interest rates last year in an effort to stimulate growth.
At the same time, lower interest rates mean
Traders bet on another rate cut soon, and other news affecting your money in the week ahead Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-02-15  Authors: anna-louise jackson
Keywords: news, cnbc, companies, soon, fed, money, rate, filing, cut, interest, week, affecting, wall, bet, ahead, market, rates, unemployment, traders


Traders bet on another rate cut soon, and other news affecting your money in the week ahead

The U.S. stock market is shattering records once again, with the S&P 500 setting new, all-time highs in the past week. And with the month half over, this benchmark is up 4.6%. That puts it on track for its best February since 2015. Some of Wall Street’s fears about the economic toll of the deadly coronavirus have tempered, and there are other reasons to be optimistic, too. Federal Reserve Chairman Jerome Powell on Tuesday testified in front of the House Financial Services Committee that the U.S. economy is “in a very good place,” and a monthly report showed consumer prices picked up in January. The Fed will be in focus in the week ahead because on Wednesday policymakers are scheduled to release the minutes from their January meeting. And traders are betting that the Fed will cut interest rates again by June, which marks a shift from as recently as a month ago, when they thought rates were likely to remain unchanged. In addition, people on Wall Street are monitoring the number of Americans filing for unemployment benefits, which has increased slightly this year. Here’s what to watch in the stock market during the week ahead — and how the news could affect your bottom line.

Traders bet the Fed will cut interest rates again

What’s happening: In two days of testimony, Fed Chair Powell assured Congress that the U.S. economy appears “resilient” to factors that could hurt global economic growth, though central bankers are closely monitoring the coronavirus. The minutes from the most recent Federal Reserve meeting, held in late January, are scheduled for release on Wednesday. Traders will be scouring these notes for signs that policymakers will cut rates again after doing so three times in 2019. In his testimony, Powell said Fed policy is well positioned currently. Why it matters: Traders are increasingly betting that the Fed will cut rates and see about a 45% probability of that happening by June, up from just 20% one month ago. Meanwhile, traders see a 47% likelihood that central bankers will reduce interest rates at least twice by the end of 2020. That’s at odds with the Fed’s current wait-and-see stance, and Powell’s recent comments about the economy. What it means for you: The Fed lowered interest rates last year in an effort to stimulate growth. That’s been a factor in making it cheaper for consumers and businesses to borrow money, like taking out a mortgage, and potentially saving borrowers thousands of dollars. At the same time, lower interest rates mean you earn less on your savings account.

More Americans filing for unemployment benefits

What’s happening: The number of Americans filing for unemployment benefits has been increasing slightly so far this year, particularly among those who have been receiving these benefits for a while. The weekly average this year, at nearly 1.74 million, is higher than both the comparable time period in 2019 and the full-year average. Economists currently project an increase in the number of new unemployment beneficiaries for the report scheduled to be released on Thursday. Why it matters: The labor market remains relatively strong, but people on Wall Street will be watching for a rise in jobless claims, both among those people filing for the first time and those who have been receiving those benefits for a while. However, U.S. employers announced more than 67,000 job cuts in January, which was the most in 11 months and a 106% increase from December, according to figures from Challenger, Gray & Christmas, an executive outplacement firm. What it means for you: Even if you’re working full time, it can be helpful to monitor job-related indicators because they give you a sense of how businesses are faring. Generally, labor market trends remain positive, and Wall Street is watching for any sign of a shift. Last week, for example, a report showed that optimism among small business owners jumped in January. It’s well above the long-term average — and in the top 10% of historical readings. Small businesses employ a large share of the population, so if these owners cut back on hiring or shed workers, that has a broader economic impact. More broadly, a recession doesn’t appear imminent, even in 2020, so you’re better off focusing on steps you can take now to safeguard your life before such a downturn occurs.

The bottom line


Company: cnbc, Activity: cnbc, Date: 2020-02-15  Authors: anna-louise jackson
Keywords: news, cnbc, companies, soon, fed, money, rate, filing, cut, interest, week, affecting, wall, bet, ahead, market, rates, unemployment, traders


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This growth fund uses ‘popcorn stocks’ to beat the market

The portfolio manager who helps run a mutual fund that consistently beats the market and its peers said the key to his success is being able to wait for stocks to pop. The fund typically has around 40 stocks in its portfolio, with most of the holdings being large cap stocks. About 10% of holdings are small cap stocks, which the fund defines as market caps under $3 billion. Being able to take a longer view gives the fund an advantage over other traders, Kennedy said. “I had a former boss who shar


The portfolio manager who helps run a mutual fund that consistently beats the market and its peers said the key to his success is being able to wait for stocks to pop.
The fund typically has around 40 stocks in its portfolio, with most of the holdings being large cap stocks.
About 10% of holdings are small cap stocks, which the fund defines as market caps under $3 billion.
Being able to take a longer view gives the fund an advantage over other traders, Kennedy said.
“I had a former boss who shar
This growth fund uses ‘popcorn stocks’ to beat the market Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-02-15  Authors: jesse pound
Keywords: news, cnbc, companies, stock, growth, market, kernel, beat, youre, fund, pop, popcorn, uses, kennedy, cap, portfolio, stocks


This growth fund uses 'popcorn stocks' to beat the market

The portfolio manager who helps run a mutual fund that consistently beats the market and its peers said the key to his success is being able to wait for stocks to pop.

The D.F. Dent Premier Growth Fund, which has returned over 15% annually over the past 10 years and notched a 42.9% gain in 2019, historically beats both the S&P 500 and the Morningstar average for large cap growth funds. The fund typically has around 40 stocks in its portfolio, with most of the holdings being large cap stocks. About 10% of holdings are small cap stocks, which the fund defines as market caps under $3 billion.

Bruce Kennedy, a portfolio manager at D.F. Dent since 2007 with prior experience at T. Rowe Price and Goldman Sachs and a co-manager of the fund, said the fund tries not to focus on capturing quick spikes in upcoming quarters but instead looks for stocks that have the potential to grow dramatically within a wider time window.

Being able to take a longer view gives the fund an advantage over other traders, Kennedy said.

“I had a former boss who shared with me the term of a popcorn stock. If you think about a kernel of popcorn you put in your popcorn popper, that kernel could pop in five seconds or it could pop in two minutes, except you’re pretty confident that if you put a kernel in the popper probably 95% of them will pop,” Kennedy said.

“So we look for stocks that are like that, where you’re not sure if the stock will work in the next three months or six months or maybe it will be three or four years, except you see enough ingredients in place that could make it a winning stock that the risk reward is favorable,” he said.


Company: cnbc, Activity: cnbc, Date: 2020-02-15  Authors: jesse pound
Keywords: news, cnbc, companies, stock, growth, market, kernel, beat, youre, fund, pop, popcorn, uses, kennedy, cap, portfolio, stocks


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As the job market remains strong, older workers are sticking around

The number of employed workers age 65 or older rose by 697,000 — about 36% of the total gain. Another possible reason for increased participation by older workers is changing education levels, Madowitz said. These are folks who were 50 years old then, 55, looking to retire in three or four years time, lost their jobs, lost their homes, lost their retirements. The majority of the people that come to us are people who have continued to work,” Wolniewicz said. Some older workers still need to work


The number of employed workers age 65 or older rose by 697,000 — about 36% of the total gain.
Another possible reason for increased participation by older workers is changing education levels, Madowitz said.
These are folks who were 50 years old then, 55, looking to retire in three or four years time, lost their jobs, lost their homes, lost their retirements.
The majority of the people that come to us are people who have continued to work,” Wolniewicz said.
Some older workers still need to work
As the job market remains strong, older workers are sticking around Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-02-15  Authors: jesse pound
Keywords: news, cnbc, companies, job, market, sticking, age, wolniewicz, remains, lost, work, labor, strong, workers, older, jobs


As the job market remains strong, older workers are sticking around

Bertram McKenzie works at Home Depot in Boston, Massachusetts. Melanie Stetson Freeman | The Christian Science Monitor | Getty Images

The latest leg of the economic expansion has been fueled in part by older Americans, as increased employment among workers who are at least 65 years old has accounted for an out-sized proportion of job growth. The economy gained a little more than 2 million jobs over the past 12 months, according to the Bureau of Labor Statistics. The number of employed workers age 65 or older rose by 697,000 — about 36% of the total gain. “I think the strong economy really has allowed more people to stick around in the labor force longer than they might have thought possible, especially 10 years ago,” said Matt Rutledge, an economist with Boston College’s Center for Retirement Research. To be sure, part of the gain among workers older than 65 is due to demographic changes, with workers steadily aging into a new category but not yet retiring, so those gains in the group aren’t necessarily new additions for the overall economy. “It’s unlikely that it’s got to do with workers doing a lot of searching. We know that this is a group that doesn’t have a lot of bargaining power,” said Michael Madowitz, an economist at the Center for American Progress. However, the gain by workers at least 65 years old over the last two years represents a sharp spike relative to total job gains. That ratio has typically been between 10% and 30%, Madowitz said, but it has been above that in the last two years.

The labor force participation rate for this group has been steadily improving over the last decade as well, indicating that there is more to the trend than just a larger number of older Americans. 25.5% of the people older than 65 without a disability were in the labor force in January, according to the BLS, up from 22.3% a decade earlier. Over that same time span, the labor force participation rate for all workers has declined, and the rate for prime age workers is roughly flat, inching up to 83% from 82.5%.

Another possible reason for increased participation by older workers is changing education levels, Madowitz said. As a more educated generation enters into the 65 and above age bracket, there are an increased number of workers who are more likely to live longer and to have jobs that are not as physically demanding.

Economic reasons

For lower-income people around retirement age, the effects of the financial crisis may be a factor in keeping them in the workforce, said Gary A. Officer, president and CEO of Senior Service America. “Many older Americans who wanted to retire lost everything. These are folks who were 50 years old then, 55, looking to retire in three or four years time, lost their jobs, lost their homes, lost their retirements. And all of a sudden they’re starting back from scratch,” Officer said. Senior Service America works with local organizations around the country like Supportive Services Corporation in Buffalo, New York, sponsoring programs designed to keep or bring back older people to the workforce. Anita Wolniewicz, a program director at Supportive Services, says she has seen strong interest from workers past retirement age that want to work. In one federal program that helps place older workers with non-profits while they look for more permanent work, 27% of participants have been 66 or older over the past year, Wolniewicz said. Most of the interest comes from workers who recently left a different job and not workers being pulled off the sideline. “It’s a small percentage of them that come to us that have retired and decided, ‘Eh, I’m bored.’ It happens, but it’s not the majority. The majority of the people that come to us are people who have continued to work,” Wolniewicz said. Some older workers still need to work but are trying to transition into jobs that are less physically demanding. “We had a lady the other day, and she was a cleaner. It was a really physical job,” Wolniewicz said. “And she wants to continue to work and yet she has some now physical limitations. Not that she can’t work, but she can’t do what she used to do.”

New expectations


Company: cnbc, Activity: cnbc, Date: 2020-02-15  Authors: jesse pound
Keywords: news, cnbc, companies, job, market, sticking, age, wolniewicz, remains, lost, work, labor, strong, workers, older, jobs


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5 things to know before the stock market opens Friday

Dow to open higher after coronavirus concerns knocked stocks from record highsTraders work at the New York Stock Exchange, February 4, 2020. Bryan R Smith | ReutersU.S. stock futures were modestly higher Friday. Tesla prices new stock offering at a discountTesla CEO Elon Musk speaks during the Tesla China-made Model 3 Delivery Ceremony in Shanghai. STR | AFP | Getty ImagesTesla said Friday it priced its secondary common stock offering, which was announced Thursday morning, at $767 per share. Chi


Dow to open higher after coronavirus concerns knocked stocks from record highsTraders work at the New York Stock Exchange, February 4, 2020.
Bryan R Smith | ReutersU.S. stock futures were modestly higher Friday.
Tesla prices new stock offering at a discountTesla CEO Elon Musk speaks during the Tesla China-made Model 3 Delivery Ceremony in Shanghai.
STR | AFP | Getty ImagesTesla said Friday it priced its secondary common stock offering, which was announced Thursday morning, at $767 per share.
Chi
5 things to know before the stock market opens Friday Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-02-14  Authors: matthew j belvedere
Keywords: news, cnbc, companies, things, stock, market, infected, health, china, opens, offering, workers, tesla, coronavirus, dow, million, know


5 things to know before the stock market opens Friday

1. Dow to open higher after coronavirus concerns knocked stocks from record highs

Traders work at the New York Stock Exchange, February 4, 2020. Bryan R Smith | Reuters

U.S. stock futures were modestly higher Friday. Wall Street’s ever-changing level of concern over the coronavirus swung the Dow Jones Industrial Average, S&P 500 and Nasdaq lower Thursday, a day after they all closed at record highs. The Dow, S&P 500 and Nasdaq remain on track for a second straight positive week and continue to be on pace for their best monthly gains since June. Investors get more clues on the health of the U.S. consumer when the government issues its report on January retail sales.

2. Tesla prices new stock offering at a discount

Tesla CEO Elon Musk speaks during the Tesla China-made Model 3 Delivery Ceremony in Shanghai. STR | AFP | Getty Images

Tesla said Friday it priced its secondary common stock offering, which was announced Thursday morning, at $767 per share. The electric auto maker said it will sell 2.65 million shares at that price, a 4.6% discount to Thursday’s close. As previously reported, CEO Elon Musk will buy $10 million and Oracle billionaire Larry Ellison, also a Tesla board member, will purchase $1 million worth in the offering. Goldman Sachs and Morgan Stanley are the lead underwriters.

3. Tesla, Royal Caribbean and Alibaba expect virus impact

4. China reveals six infected health workers died

China’s National Health Commission said overnight that 1,716 health workers in the country had been infected with the coronavirus and six have died. It is the first time China has published figures specifically relating to infected medical personnel. The United States does “not have high confidence in the information coming out of China” regarding the count of coronavirus cases, a senior administration official told CNBC’s Eamon Javers.

5. Federal prosecutors bring new charges against Huawei


Company: cnbc, Activity: cnbc, Date: 2020-02-14  Authors: matthew j belvedere
Keywords: news, cnbc, companies, things, stock, market, infected, health, china, opens, offering, workers, tesla, coronavirus, dow, million, know


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Investors are flocking to bond funds in record numbers

Despite a roaring U.S. stock market, investors continue to pile money into the bond market at a record pace. Last week, in fact, set a new standard for cash flowing into fixed income funds with $23.6 billion of inflows, according to Bank of America Global Research. If that keeps up, the year will see another $1 trillion of inflows for the $10 trillion already in global bond market funds. “We’re seeing a rising tide lift all boats right now,” said Bill Merz, fixed income strategist at U.S. Bank W


Despite a roaring U.S. stock market, investors continue to pile money into the bond market at a record pace.
Last week, in fact, set a new standard for cash flowing into fixed income funds with $23.6 billion of inflows, according to Bank of America Global Research.
If that keeps up, the year will see another $1 trillion of inflows for the $10 trillion already in global bond market funds.
“We’re seeing a rising tide lift all boats right now,” said Bill Merz, fixed income strategist at U.S. Bank W
Investors are flocking to bond funds in record numbers Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-02-14  Authors: jeff cox
Keywords: news, cnbc, companies, global, banks, bond, numbers, investors, trillion, billion, strategist, income, funds, record, market, central, flocking


Investors are flocking to bond funds in record numbers

Despite a roaring U.S. stock market, investors continue to pile money into the bond market at a record pace. Last week, in fact, set a new standard for cash flowing into fixed income funds with $23.6 billion of inflows, according to Bank of America Global Research. If that keeps up, the year will see another $1 trillion of inflows for the $10 trillion already in global bond market funds. By contrast, equity funds took in a net $8 billion in 2019.

BofA’s chief investment strategist Michael Hartnett said the market is seeing a “twin” bubble of assets coming into both bonds and tech stocks. However, investors are betting that a low interest rate environment coupled with slow though not spectacular economic growth will make bonds both a way to preserve capital and generate income at a time of growing volatility in the stock market. “We’re seeing a rising tide lift all boats right now,” said Bill Merz, fixed income strategist at U.S. Bank Wealth Management. “There’s a bit of a rebalance trade there. But I think the underlying catalyst is just this remarkable degree of liquidity coming from the major central banks in the last few months that have kept this going.”

Indeed, after efforts by central banks to get back into a more pre-financial crisis policy lane scared markets, the Federal Reserve and its global counterparts have turned on the monetary spigots again. By Merz’s count, central banks have added about $800 billion worth of liquidity since the September tumult in overnight lending markets, in the form of bond purchases aimed at stabilizing repo operations and, in some cases globally, to spur growth. Money has been looking for a place to go, and much of it has funneled into a bond market that has seen yields across both government and corporate debt test all-time lows.

Low rates far as the eye can see


Company: cnbc, Activity: cnbc, Date: 2020-02-14  Authors: jeff cox
Keywords: news, cnbc, companies, global, banks, bond, numbers, investors, trillion, billion, strategist, income, funds, record, market, central, flocking


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This is the no. 1 S&P 500 sector to avoid here, market bull Jeff Saut says

The S&P 500 ended Friday just 0.2% from records after bouncing more than 1% for the week. But, top market bull Jeffrey Saut isn’t trusting one outperforming sector that carried the index to these heights. The XLU utilities ETF, which tracks the S&P 500 sector, trades at 21 times forward earnings — it hit its highest valuation ever earlier this month. The sector is the second-best performer on the S&P 500 this year. As for the rest of the market, Saut says stocks could be at risk of a pullback,


The S&P 500 ended Friday just 0.2% from records after bouncing more than 1% for the week.
But, top market bull Jeffrey Saut isn’t trusting one outperforming sector that carried the index to these heights.
The XLU utilities ETF, which tracks the S&P 500 sector, trades at 21 times forward earnings — it hit its highest valuation ever earlier this month.
The sector is the second-best performer on the S&P 500 this year.
As for the rest of the market, Saut says stocks could be at risk of a pullback,
This is the no. 1 S&P 500 sector to avoid here, market bull Jeff Saut says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-02-14  Authors: keris lahiff
Keywords: news, cnbc, companies, amazon, market, utilities, etf, saut, think, sector, 500, ive, bull, jeff, avoid


This is the no. 1 S&P 500 sector to avoid here, market bull Jeff Saut says

Stocks are within a whisker of all-time highs.

The S&P 500 ended Friday just 0.2% from records after bouncing more than 1% for the week.

But, top market bull Jeffrey Saut isn’t trusting one outperforming sector that carried the index to these heights.

“I’m not a big fan of utilities here,” Saut, chief investment strategist at Capital Wealth Planning, said on CNBC’s “Trading Nation” on Friday. “I’ve been in this business for forty-nine years. I’ve been looking at markets for fifty-six years… and utilities are as richly valued as I’ve ever seen them.”

The XLU utilities ETF, which tracks the S&P 500 sector, trades at 21 times forward earnings — it hit its highest valuation ever earlier this month. The sector is the second-best performer on the S&P 500 this year.

“I have no interest in utilities. I think there is a much better valuation metric in the midstream master limited partnerships where you can get … 80% tax differed yields then you get in utilities,” said Saut.

Midstream oil companies focus on the transportation and storage of crude. Example ETF include the AMLP Alerian MLP ETF and the MLPA global X MLP ETF.

The stock market’s unbeatable winner – tech – could continue to lead the rest of the pack higher, he adds.

“I like tech. I mean, I see people selling Amazon and looking for the next Amazon and the fact of the matter is the next Amazon is Amazon!” said Saut.

As for the rest of the market, Saut says stocks could be at risk of a pullback, albeit a slight one before rocketing back up to highs.

“l don’t think it pulls back much. You’ve got some divergences out there. I mean, the Russell 2000 hadn’t made a new all-time high, the Nasdaq has some divergence between volume and breadth. So…I think you can get a 3% to 5% pullback from here, but the primary trend of the market is up,” said Saut.

In fact, Saut says this secular bull market could run another five to 10 years. He notes that valuations are not as stretched as in 2000, and a low interest rate environment should keep the bid under the equity market.


Company: cnbc, Activity: cnbc, Date: 2020-02-14  Authors: keris lahiff
Keywords: news, cnbc, companies, amazon, market, utilities, etf, saut, think, sector, 500, ive, bull, jeff, avoid


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Stocks expected to rise even as virus creates volatility: ‘The market thinks the worst is over’

“It does feel as though the market thinks the worst is over,” said Ed Keon, chief investment strategist at QMA. Nvidia said it would take a $100 million hit from the virus, but its revenue forecast was still above expectations. Resilient marketEven with the negative news and doubts about the virus, analysts say the market has the momentum to move higher. But Robert Sluymer, technical analyst with Fundstrat, said the market may stay range bound for awhile until there’s more clarity on the virus.


“It does feel as though the market thinks the worst is over,” said Ed Keon, chief investment strategist at QMA.
Nvidia said it would take a $100 million hit from the virus, but its revenue forecast was still above expectations.
Resilient marketEven with the negative news and doubts about the virus, analysts say the market has the momentum to move higher.
But Robert Sluymer, technical analyst with Fundstrat, said the market may stay range bound for awhile until there’s more clarity on the virus.

Stocks expected to rise even as virus creates volatility: ‘The market thinks the worst is over’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-02-14  Authors: patti domm
Keywords: news, cnbc, companies, stocks, virus, expected, creates, higher, quarter, work, hit, market, volatility, companies, range, fed, rise, think, thinks, worst


Stocks expected to rise even as virus creates volatility: 'The market thinks the worst is over'

Traders work on the floor at the New York Stock Exchange. Brendan McDermid | Reuters

Stocks are likely to remain hostage to developments involving the coronavirus in the week ahead, and even so, the market could continue to hit new highs. Economists have been reducing China’s growth outlook for the quarter, with some seeing little or no growth and then a bounce back in the high single digits next quarter. The U.S. economy is not expected to take a big hit, but the question for the stock market is how will corporate earnings be impacted. “It does feel as though the market thinks the worst is over,” said Ed Keon, chief investment strategist at QMA. “The pace of change is slowing. None of us really know, and there’s a lot of skepticism, including in Washington that they can’t believe what’s coming out of China.”

Keon believes the market looks poised to head higher and it is trading as if the virus will not make a big dent in the economy or profits. “The market didn’t really get much of a drawback, compared to SARS or other episodes. There’s no doubt he world will suffer a hit over the first and second quarter and maybe longer,” he said. Companies reporting earnings in the coming week include Walmart Tuesday; ViacomCBS Thursday, and Deere on Friday. Hyatt Hotels reports Wednesday, and Norwegian Cruise Lines reports Thursday. Economic releases include Tuesday’s Empire State and Thursday’s Philadelphia Fed manufacturing surveys, as well as Markit PMI on Friday. There are also a parade of Fed speakers, including Vice Chairman Richard Clarida, Fed Governor Lael Brainard and Dallas Fed President Robert Kaplan.

Profit warnings

Some companies are already raising warnings, like Cisco which said orders were down and that the forward-looking numbers were not factoring in potential supply chain disruptions. Nvidia said it would take a $100 million hit from the virus, but its revenue forecast was still above expectations. Under Armour said its sales will be impacted by the virus, when it projected disappointing revenue growth this week. Estee Lauder said its sales will be hit by a decline in travel-related luxury sales. “This is going to start to show up because it will affect supply chains” and exporters, said Keon. “It will have a negative impact. But at the moment, at least, it doesn’t look like it will be a huge deal to companies in the U.S…It will be a factor. The question is, is it a lasting factor that will hurt them through the year, or is it a quarter or two and then gets back to normal. None of us know.”

About 64,000 people, mostly in China, have been infected and about 1,400 have died from the virus. Barry Knapp, Ironsides Macroeconomics director of research, said he sees only a minor impact on U.S. corporate earnings. “There will be some hits in some of the consumer companies that have reasonably big businesses in China. I see this as being a fairly small effect on the U.S.,” Knapp said. He said the disruption to the supply chain should not be nearly as bad as it was when Japan was hit by a tsunami and earthquake in 2011. He expects stocks to continue to move higher, ending the year higher, but he says the market could run into turbulence in the spring when the Fed discusses cutting back its purchases of Treasury bills. For now, the Fed asset purchases, a strong U.S. consumer and the positive benefit to business spending from the trade deal should help drive stocks higher. But by April or May, the Fed could become a negative. “Could we go up another 3 or 4% between now and then? Sure, we could,” he said. Knapp said since World War II, market corrections fanned by Fed policy changes have resulted in brief pullbacks, averaging about 8%. He said the market should then rebound. “It trades in a range for a quarter or two and then resumes its uptrend,” he said, noting the uptrend could coincide with the presidential election this year.

Resilient market

Even with the negative news and doubts about the virus, analysts say the market has the momentum to move higher. But Robert Sluymer, technical analyst with Fundstrat, said the market may stay range bound for awhile until there’s more clarity on the virus. “I had a 3,340 to 3,360 [on the S&P 500] as the point where the market starts to consolidate, and we’re there,” said Sluymer. “I don’t have a year-end target but I think it’s higher. I think we’re in a sloppy range. I think it’s range bound.” But Sluymer also said he thinks the market is just pausing. “Stocks are consolidating above support. The market is acting incredibly resilient and it still looks like an intermediate term pause, a consolidation,” he said. Keon said he’s looking for more gains though the market will continue to be swung by virus-related headlines. “I think it’s going to work its way higher, not at the pace you saw last year. But that’s the way we have our portfolios positioned — the market will work its way higher this year,” he said.

Week ahead calendar


Company: cnbc, Activity: cnbc, Date: 2020-02-14  Authors: patti domm
Keywords: news, cnbc, companies, stocks, virus, expected, creates, higher, quarter, work, hit, market, volatility, companies, range, fed, rise, think, thinks, worst


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Five S&P 500 stocks cost more than $1,000 — only two may be worth the price

Just five stocks on the S&P 500 have a hefty price tag of more than $1,000 a share. Two traders who spoke with CNBC’s “Trading Nation” say they will only splash cash on two of those names. Even throughout 2008 and 2009, you just saw a little bit of a drop.” AutoZone will next report quarterly earnings on March 3 – analysts surveyed by FactSet anticipate 3% earnings growth over its February-ended quarter. It may have to pull back a little bit to work off that overbought condition.


Just five stocks on the S&P 500 have a hefty price tag of more than $1,000 a share.
Two traders who spoke with CNBC’s “Trading Nation” say they will only splash cash on two of those names.
Even throughout 2008 and 2009, you just saw a little bit of a drop.”
AutoZone will next report quarterly earnings on March 3 – analysts surveyed by FactSet anticipate 3% earnings growth over its February-ended quarter.
It may have to pull back a little bit to work off that overbought condition.
Five S&P 500 stocks cost more than $1,000 — only two may be worth the price Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-02-14  Authors: keris lahiff
Keywords: news, cnbc, companies, 500, level, going, price, stocks, bit, stock, worth, 1000, autozone, overbought, market, cost, earnings, little, 1030


Five S&P 500 stocks cost more than $1,000 — only two may be worth the price

Just five stocks on the S&P 500 have a hefty price tag of more than $1,000 a share.

Those names range from the more well-known such as Amazon, Alphabet and Booking to the less-talked-about AutoZone and home construction company NVR.

Two traders who spoke with CNBC’s “Trading Nation” say they will only splash cash on two of those names.

“Personally I like AutoZone,” said Danielle Shay, director of options at Simpler Trading, on Monday. “It’s been very consistent over the course of the last 20 years. Even throughout 2008 and 2009, you just saw a little bit of a drop.”

Shay also notes that the stock has seen consistent earnings growth over the past several quarters. AutoZone will next report quarterly earnings on March 3 – analysts surveyed by FactSet anticipate 3% earnings growth over its February-ended quarter.

“Also, I think on a larger macro scale, once we do see this business cycle slow down and once we do see the economy stutter a little bit, companies like AutoZone who sell parts to people who want to fix their cars instead of buy a new one, I think they’re going to remain very strong,” said Shay.

Matt Maley, chief market strategist at Miller Tabak, says AutoZone is approaching a critical level – one that could dictate whether it falls even further or bounces.

“It’s getting down to the $1,030 level that was rock solid support in both… August and October of last year and if it breaks below that level of $1,030 it’s going to be very negative,” said Maley during the same segment. “It’s very oversold so hopefully it could bounce. So, whichever way it breaks over the next week or so is going to be very important.”

AutoZone would need to fall another 2% to reach $1,030. It has not traded below that level since last June.

The name that does look destined to break out even further is Amazon, according to Maley.

“People forget the stock was stuck in a sideways range during the fourth quarter while the rest of the market was flying much higher. So, this stock finally in January and February has broken out to a new all-time high. It’s done so in a very meaningful manner, that’s very bullish,” said Maley.

“It is overbought near term. It may have to pull back a little bit to work off that overbought condition. But, the breakout has been significant enough that in this momentum-driven market, it could have a lot more upside to play catch up with some of those other high-flying names,” said Maley.

Amazon’s relative strength index, or RSI, reads 75. The momentum measure flashes overbought conditions when it trades above 70.

Disclaimer


Company: cnbc, Activity: cnbc, Date: 2020-02-14  Authors: keris lahiff
Keywords: news, cnbc, companies, 500, level, going, price, stocks, bit, stock, worth, 1000, autozone, overbought, market, cost, earnings, little, 1030


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Walmart earnings, housing data, manufacturing read: 3 things to watch for Tuesday

Walmart is set to report fourth quarter earnings on Tuesday before the market opens. The Street is expecting the big-box retailer to earn $1.44 per share on $142.54 billion in revenue, according to estimates from FactSet. This represents 2.7% year-over-year revenue growth, and would be 11.4% higher than the $127.99 billion Walmart earned in the prior quarter. Investors will be watching the retailer’s report closely, since it will include sales from the all-important holiday season. In January co


Walmart is set to report fourth quarter earnings on Tuesday before the market opens.
The Street is expecting the big-box retailer to earn $1.44 per share on $142.54 billion in revenue, according to estimates from FactSet.
This represents 2.7% year-over-year revenue growth, and would be 11.4% higher than the $127.99 billion Walmart earned in the prior quarter.
Investors will be watching the retailer’s report closely, since it will include sales from the all-important holiday season.
In January co
Walmart earnings, housing data, manufacturing read: 3 things to watch for Tuesday Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-02-14  Authors: pippa stevens
Keywords: news, cnbc, companies, manufacturing, watch, holiday, data, yearoveryear, billion, report, fell, market, revenue, sales, walmart, read, things, earnings, estimates, housing


Walmart earnings, housing data, manufacturing read: 3 things to watch for Tuesday

Here’s what investors need to know about Tuesday before hitting the door. (The market will be closed Monday in observance of the Washington’s Birthday holiday.)

Walmart is set to report fourth quarter earnings on Tuesday before the market opens. The Street is expecting the big-box retailer to earn $1.44 per share on $142.54 billion in revenue, according to estimates from FactSet. This represents 2.7% year-over-year revenue growth, and would be 11.4% higher than the $127.99 billion Walmart earned in the prior quarter.

Investors will be watching the retailer’s report closely, since it will include sales from the all-important holiday season.

In January competitor Target said its holiday sales fell short of estimates following softness in the company’s toys and electronics divisions.

Shares of Walmart slid alongside the broader S&P Retail ETF on Friday after the U.S. Commerce Department said that clothing store sales in January fell the most since 2009.


Company: cnbc, Activity: cnbc, Date: 2020-02-14  Authors: pippa stevens
Keywords: news, cnbc, companies, manufacturing, watch, holiday, data, yearoveryear, billion, report, fell, market, revenue, sales, walmart, read, things, earnings, estimates, housing


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