President Trump met with trade team at White House amid tweetstorm that rocked markets

France opens probe of possible crimes linked to Jeffrey EpsteinEpstein, a former friend of Presidents Donald Trump and Bill Clinton, was arrested by FBI agents in New Jersey in early July as he stepped off his private plane, which had… Politicsread more


France opens probe of possible crimes linked to Jeffrey EpsteinEpstein, a former friend of Presidents Donald Trump and Bill Clinton, was arrested by FBI agents in New Jersey in early July as he stepped off his private plane, which had… Politicsread more
President Trump met with trade team at White House amid tweetstorm that rocked markets Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-23  Authors: thomas franck
Keywords: news, cnbc, companies, possible, linked, jersey, rocked, trump, tweetstorm, trade, markets, presidents, plane, opens, private, house, stepped, team, white, met, president, probe


President Trump met with trade team at White House amid tweetstorm that rocked markets

France opens probe of possible crimes linked to Jeffrey Epstein

Epstein, a former friend of Presidents Donald Trump and Bill Clinton, was arrested by FBI agents in New Jersey in early July as he stepped off his private plane, which had…

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Company: cnbc, Activity: cnbc, Date: 2019-08-23  Authors: thomas franck
Keywords: news, cnbc, companies, possible, linked, jersey, rocked, trump, tweetstorm, trade, markets, presidents, plane, opens, private, house, stepped, team, white, met, president, probe


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Fed’s Harker doesn’t see need for another rate cut, says central bank should stay here ‘for a while’

Philadelphia Fed President Patrick Harker said Thursday that while he went along with the central bank’s rate cut in July, he doesn’t see the case for additional stimulus. And I think we should stay here for a while and see how things play out,” Harker told CNBC’s Steve Liesman from the central bank’s annual symposium in Jackson Hole, Wyoming. This marked the first rate cut since the start of the financial crisis more than a decade ago. Bonds ticked up after Kansas City Fed President Esther Geor


Philadelphia Fed President Patrick Harker said Thursday that while he went along with the central bank’s rate cut in July, he doesn’t see the case for additional stimulus. And I think we should stay here for a while and see how things play out,” Harker told CNBC’s Steve Liesman from the central bank’s annual symposium in Jackson Hole, Wyoming. This marked the first rate cut since the start of the financial crisis more than a decade ago. Bonds ticked up after Kansas City Fed President Esther Geor
Fed’s Harker doesn’t see need for another rate cut, says central bank should stay here ‘for a while’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-22  Authors: thomas franck
Keywords: news, cnbc, companies, doesnt, fed, yield, stay, basis, need, feds, neutral, central, harker, cut, rate, banks, markets, bank


Fed's Harker doesn't see need for another rate cut, says central bank should stay here 'for a while'

Philadelphia Fed President Patrick Harker said Thursday that while he went along with the central bank’s rate cut in July, he doesn’t see the case for additional stimulus.

“We’re roughly where neutral is. It’s hard to know exactly where neutral is, but I think we’re roughly where neutral is right now. And I think we should stay here for a while and see how things play out,” Harker told CNBC’s Steve Liesman from the central bank’s annual symposium in Jackson Hole, Wyoming.

At its July policy meeting the Federal Reserve appeased markets by cutting the target range for its overnight lending rate 25 basis points, to a target range of 2% to 2.25%. This marked the first rate cut since the start of the financial crisis more than a decade ago.

Harker, who isn’t a voting member of the Federal Open Market Committee, said that while he offered tepid support for the central bank’s 25 basis point cut in July, he’d prefer to wait and see before advocating for more easing.

Asked if he sees a case for further stimulus, Harker replied “No. Not right now.”

“The labor markets are strong, inflation is moving up slowly — but with the last CPI print, it was a good print,” he said.

Following Harker’s comments, the bond market’s main yield curve inverted for the third time in less than two weeks. The yield on the 2-year Treasury was at 1.601% while the 10-year yield was below at 1.597%.

Harker was not the only central banker commenting on the level of interest rates Thursday morning. Bonds ticked up after Kansas City Fed President Esther George said the July rate cut was not “required. ”

Though investors remained confident on Thursday that the central bank will cut again in September, those expectations waned after the Fed commentary.

Traders were pricing in a 90% probability of a 25 basis point cut following Harker’s and George’s comments, according to the CME’s FedWatch Tool, down about 8 percentage points from the prior session.


Company: cnbc, Activity: cnbc, Date: 2019-08-22  Authors: thomas franck
Keywords: news, cnbc, companies, doesnt, fed, yield, stay, basis, need, feds, neutral, central, harker, cut, rate, banks, markets, bank


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Dow drops for the first time in 4 days—here’s what experts see ahead for markets

The move leaves investors and experts broadly uncertain about what’s next for global markets, with key Federal Reserve announcements set for this week and U.S.-China trade talks still ahead. Since then, you’ve had another 90% downside day on Aug.14, and you’ve had two almost 90% upside days. The market might be a little bit ahead of itself on a very short-term trading basis, but, again, I think the market’s going substantially higher.” But for right now, rising valuations on low interest rates,


The move leaves investors and experts broadly uncertain about what’s next for global markets, with key Federal Reserve announcements set for this week and U.S.-China trade talks still ahead. Since then, you’ve had another 90% downside day on Aug.14, and you’ve had two almost 90% upside days. The market might be a little bit ahead of itself on a very short-term trading basis, but, again, I think the market’s going substantially higher.” But for right now, rising valuations on low interest rates,
Dow drops for the first time in 4 days—here’s what experts see ahead for markets Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-20  Authors: lizzy gurdus
Keywords: news, cnbc, companies, bit, trade, ahead, little, drops, dow, thats, think, market, daysheres, experts, markets, downside, 90, going


Dow drops for the first time in 4 days—here's what experts see ahead for markets

Stocks are in limbo.

The Dow Jones Industrial Average fell for the first time in four days on Tuesday as the market digested its recent swings, with the S&P 500 and Nasdaq Composite also ticking lower.

The move leaves investors and experts broadly uncertain about what’s next for global markets, with key Federal Reserve announcements set for this week and U.S.-China trade talks still ahead.

Here’s what four market pros are watching:

Jeff Saut, market strategist at Capital Wealth Planning, didn’t let last week’s volatility shake his bullish outlook:

“I think we’re in the sixth inning. I think this market, the secular bull market that we’re in, … has years left to run, and I think that you should be pretty much fully invested here. It was about three weeks ago … that I said, ‘The market bottomed yesterday,’ and that was Aug. 5, with a 90% downside day, meaning 90% of the total volume traded came in on the downside. Since then, you’ve had another 90% downside day on Aug.14, and you’ve had two almost 90% upside days. That … is the way bottoms are made, so we think the lows are in. The market might be a little bit ahead of itself on a very short-term trading basis, but, again, I think the market’s going substantially higher.”

Michael Tyler, Eastern Bank Wealth Management’s chief investment officer, was more inclined to wait for the outcome of U.S.-China trade discussions:

“The interesting thing is that earnings are beginning to come in a little bit soft and we do have some signs that, if the next round of tariffs is implemented, a little in September and perhaps more in December depending on how the politics goes, that could really, meaningfully impact the consumer. Home Depot gave us a tiny touch of that this morning. And, if so, then we’ve got some real vulnerability, because the consumer has been the driving force for so long, and if that weakens, if consumers weaken, then we could have a fundamental problem. But for right now, rising valuations on low interest rates, even if earnings are a bit soft, I’d say Jeff is right: The market’s probably got a little bit more, at least a little bit more, to go this year. ”

Former Minneapolis Fed President Narayana Kocherlakota warned of a debilitating “fear factor” weighing on global markets:

“I think the concern that you see in bond markets about the future is really tied to the lack of policy capacity that we have in central banks, that we’re going to see these downside shocks and central banks and the fiscal authorities are not going to be able to respond effectively. And that’s going to lead to another recession, perhaps of the magnitude we saw in — hopefully not, but could lead to a recession the kind of magnitude we saw in 2007 to 2009, with those same kind of persistent effects on output. And that’s because it’s the fear itself … of low capacity that breeds the conditions where, actually, central banks can’t respond effectively. So, that’s what worries me, and that’s why I think we have these low nominal rates around the world. … You look at German debt, for example, out to 10 years at negative nominal yields — this is all a fear factor, and we need to have better expectations of growth. I’m not sure where that’s going to come from, though.”

Kirk Hartman, president and global chief investment officer at Wells Fargo Asset Management, said playing today’s market was all but a fool’s errand:

“I think if you try to trade this market, it’s an opportunity to lose money. I think you want to look through the next two months. I think you’re going to see a lot more volatility until the trade dispute settles down, and I think what you want to do is you want to say, ‘I want to own stocks towards the end of the year.’ But I wouldn’t be trading this market here.”

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Company: cnbc, Activity: cnbc, Date: 2019-08-20  Authors: lizzy gurdus
Keywords: news, cnbc, companies, bit, trade, ahead, little, drops, dow, thats, think, market, daysheres, experts, markets, downside, 90, going


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Buy Amazon and Chewy, but sell Netflix if there’s a recession, Nomura Instinet says

The continued growth of digital services should give some technology and digital media companies the ability to outperform during a recession, but not every stock is well-positioned, according to analysts at Nomura Instinet. While e-commerce sales growth slowed during the great financial crisis, the digital companies gained market share from traditional retailers. “Amazon is also well-positioned as a general-purpose retailer,” the analysts wrote, while noting Nomura doesn’t officially cover the


The continued growth of digital services should give some technology and digital media companies the ability to outperform during a recession, but not every stock is well-positioned, according to analysts at Nomura Instinet. While e-commerce sales growth slowed during the great financial crisis, the digital companies gained market share from traditional retailers. “Amazon is also well-positioned as a general-purpose retailer,” the analysts wrote, while noting Nomura doesn’t officially cover the
Buy Amazon and Chewy, but sell Netflix if there’s a recession, Nomura Instinet says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-19  Authors: jesse pound
Keywords: news, cnbc, companies, nomura, ecommerce, instinet, sell, netflix, companies, advertising, markets, market, buy, theres, recession, chewy, digital, analysts, media, amazon


Buy Amazon and Chewy, but sell Netflix if there's a recession, Nomura Instinet says

Signage for Chewy is seen on the trading floor ahead of their IPO at the New York Stock Exchange, June 14, 2019.

The continued growth of digital services should give some technology and digital media companies the ability to outperform during a recession, but not every stock is well-positioned, according to analysts at Nomura Instinet.

Fears of a recession in the U.S. rose last week when the main yield curve inverted, a historically reliable indicator of a slowdown. The action in the bond market, combined with continued trade uncertainty and stagnant economies around the globe, has led some economists and financiers to consider a recession in the next year or two.

The tech and digital media sectors have large exposure to advertising and discretionary consumer spending, two areas that are seen as high risk during hard economic times.

However, Nomura analyst Mark Kelley and two colleagues said in a client note Monday that e-commerce companies and those with strong digital advertising businesses should see secular tailwinds that make them winners during a downturn.

The analysts said e-commerce stocks were the “best to own in such an environment,” singling out Amazon and pet retailer Chewy, the latter because demand for pet products has shown resilience during recessions. While e-commerce sales growth slowed during the great financial crisis, the digital companies gained market share from traditional retailers.

“Amazon is also well-positioned as a general-purpose retailer,” the analysts wrote, while noting Nomura doesn’t officially cover the stock.

“We would expect this trend to continue in a future downturn, continuing the decline of legacy brick-and-mortar retailers that have suffered in the ‘retail apocalypse’ in favor of more nimble and online-focused marketplaces. We expect larger e-commerce platforms and niche retailers whose end markets are less discretionary to outperform,” the analysts said.

Advertising also took a big hit during the last recession, but digital advertising, which only accounted for about 15% of total ad budgets at the time, held up better than the industry as a whole. Though digital advertising is a much bigger market now, the analysts believe the digital side should still lift companies such as Alphabet and Facebook.

“We believe the continued transition to digital advertising should equate to digital advertising budgets holding up much better than legacy formats,” the analysts said.

Not every technology and media company can count on the strength of digital markets to bolster them during a downturn, the analysts said, pointing to video game companies as one industry that could be hit hard.

“We would be cautious regarding cash-flow-negative companies, such as Snap and Netflix, and those companies exposed to cyclical or discretionary end markets, such as ANGI Homeservices and the Interactive Entertainment sector, ” the analysts said.


Company: cnbc, Activity: cnbc, Date: 2019-08-19  Authors: jesse pound
Keywords: news, cnbc, companies, nomura, ecommerce, instinet, sell, netflix, companies, advertising, markets, market, buy, theres, recession, chewy, digital, analysts, media, amazon


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Gold slips 1% as equities, US Treasury yields rise

Gold shed 1% on Monday as a recovery in share markets and rising U.S. Treasury yields reduced some of the metal’s safe-haven appeal, prompting investors to book profits. “However, gold is holding above the $1,500 level and key support level around $1,480 – $1,485 area. But with bond yields moving up a notch, there isn’t much room for gold buyers.” Benchmark U.S. Treasury yields gained on Monday, moving further away from record lows after the closely-watched U.S. yield curve between two- and 10-y


Gold shed 1% on Monday as a recovery in share markets and rising U.S. Treasury yields reduced some of the metal’s safe-haven appeal, prompting investors to book profits. “However, gold is holding above the $1,500 level and key support level around $1,480 – $1,485 area. But with bond yields moving up a notch, there isn’t much room for gold buyers.” Benchmark U.S. Treasury yields gained on Monday, moving further away from record lows after the closely-watched U.S. yield curve between two- and 10-y
Gold slips 1% as equities, US Treasury yields rise Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-19
Keywords: news, cnbc, companies, slips, yields, symposium, markets, investors, trump, gold, rise, equities, week, weekend, holding, treasury


Gold slips 1% as equities, US Treasury yields rise

Gold shed 1% on Monday as a recovery in share markets and rising U.S. Treasury yields reduced some of the metal’s safe-haven appeal, prompting investors to book profits.

Spot gold was down 1.06% at $1,497.85 per ounce. U.S. gold futures slipped 1% to $1,508.1.

“The rally in bond markets seems to have paused at least for now and we’ve seen some additional gains in stocks over the weekend, so a bit of a more optimistic start to the week is helping to attract profit taking in gold,” Saxo Bank commodity strategist Ole Hansen said.

“However, gold is holding above the $1,500 level and key support level around $1,480 – $1,485 area. But with bond yields moving up a notch, there isn’t much room for gold buyers.”

Benchmark U.S. Treasury yields gained on Monday, moving further away from record lows after the closely-watched U.S. yield curve between two- and 10-year bonds inverted for the first time since 2007 on Wednesday.

Equity markets around the world rose, with European markets rising for the second session, as investors cheered signs of moves by Germany and China to counter slowing growth.

Over the weekend, U.S. President Donald Trump and top White House officials dismissed concerns that economic growth may be faltering, saying they saw little risk of recession. Trump also said he was “not ready to make a (trade) deal yet” with China.

Markets are awaiting the U.S. Federal Reserve’s Jackson Hole symposium this week for greater clarity on the future path of interest rates. Traders saw an 83.7% chance of a 25 basis-point cut in September.

“Given the policy uncertainties that may or may not unfold later in the week from Jackson Hole symposium, gold could consolidate with a downward bias before eventually resuming its upward momentum,” Stephen Innes, managing partner, VM Markets said in a note.

Lower interest rates decrease the opportunity cost of holding non-yielding bullion and weigh on the dollar, making gold cheaper for investors holding other currencies.

However, the dollar index was up 0.1%, hovering near a two-week high hit in the previous session.

Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.1% to 843.41 tonnes on Friday from Thursday.

Hedge funds and money managers trimmed their bullish stance in COMEX gold and cut net long positions in silver contracts in the week to Aug. 13, the U.S.

Commodity Futures Trading Commission (CFTC) said on Friday.

Elsewhere, silver dipped 1% to $16.91 per ounce.

Platinum fell 0.4% to $840.75 an ounce, while palladium gained 0.5% to $1,455.16.


Company: cnbc, Activity: cnbc, Date: 2019-08-19
Keywords: news, cnbc, companies, slips, yields, symposium, markets, investors, trump, gold, rise, equities, week, weekend, holding, treasury


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Fed’s Powell must signal a more aggressive stance on rates at Jackson Hole or stocks will tumble, James Bianco warns

Federal Reserve chief Jerome Powell will deliver opening remarks at the Jackson Hole Economic Policy Symposium on Thursday. If Powell doesn’t address the stock market’s wild swings and recent bearish bond yield inversion, market researcher James Bianco warns the reaction will be violent. “Powell should probably open the door for the possibility of a 50 basis point cut at the September meeting.” It wouldn’t be unprecedented for Powell to try to calm the market during his Jackson Hole welcome spee


Federal Reserve chief Jerome Powell will deliver opening remarks at the Jackson Hole Economic Policy Symposium on Thursday. If Powell doesn’t address the stock market’s wild swings and recent bearish bond yield inversion, market researcher James Bianco warns the reaction will be violent. “Powell should probably open the door for the possibility of a 50 basis point cut at the September meeting.” It wouldn’t be unprecedented for Powell to try to calm the market during his Jackson Hole welcome spee
Fed’s Powell must signal a more aggressive stance on rates at Jackson Hole or stocks will tumble, James Bianco warns Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-17  Authors: stephanie landsman, michael affigne
Keywords: news, cnbc, companies, jackson, markets, cut, signal, powell, james, basis, welcome, worst, stance, market, bianco, hole, yield, going, warns, stocks, tumble, rates


Fed's Powell must signal a more aggressive stance on rates at Jackson Hole or stocks will tumble, James Bianco warns

Wall Street’s next make or break moment for stocks may come from 2,000 miles away.

Federal Reserve chief Jerome Powell will deliver opening remarks at the Jackson Hole Economic Policy Symposium on Thursday.

If Powell doesn’t address the stock market’s wild swings and recent bearish bond yield inversion, market researcher James Bianco warns the reaction will be violent.

“We could see another plunge in rates. We could see further movement down in yields and the yield curve and more volatility and problems in the markets. He should move aggressively,” the Bianco Research president said Friday on CNBC’s “Trading Nation. ”

Despite Friday’s strong rally, the major indexes still saw their third negative week in a row. The Dow, S&P 500 and Nasdaq are now at least 5% below their all-time highs.

Last week’s stock market turmoil was in response to the 10-year Treasury yield breaking below the 2-year rate for the first time since 2007. It’s often seen as a harbinger of a recession.

According to Bianco, the Street is desperately looking for a sign that a deep cut is coming because U.S. rates are too high in relationship with other developing nations in the throes of economic slowdowns.

“We’re the only place on the planet now you can get more than a 2% yield among developed countries,” Bianco said. “Powell should probably open the door for the possibility of a 50 basis point cut at the September meeting.”

It wouldn’t be unprecedented for Powell to try to calm the market during his Jackson Hole welcome speech. He soothed the Street in early January and June in opening remarks at events by signaling the Fed would act more accomodative.

Bianco hopes Powell does it again, adding it would be a big mistake for him to generically welcome attendees to the conference and avoid the market’s issues.

“That could be the worst thing,” he said. “The next worst thing is he makes comments that are interpreted as ‘we’re only going to move 25 basis points. Then, we’re going to wait and see if we’re going to move some more.’ The market rolls its eyes and says ‘you’re not getting it. We want you to move faster.'”

For now, Bianco is holding out for the best case scenario, and that’s an indication a sizable cut is coming in the next month.

“If he does move more aggressively with a 50 basis point cut, I think the market will respond most positive to that,” Bianco said.


Company: cnbc, Activity: cnbc, Date: 2019-08-17  Authors: stephanie landsman, michael affigne
Keywords: news, cnbc, companies, jackson, markets, cut, signal, powell, james, basis, welcome, worst, stance, market, bianco, hole, yield, going, warns, stocks, tumble, rates


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Europe stocks higher as calm returns to markets following Treasury yield inversion; FTSE fails to open

European markets moved higher on Friday morning as investors monitor Treasury yields for clues on a possible recession. The pan-European Stoxx 600 was up by 0.7% shortly after the opening bell, with every sector moving higher. London’s FTSE 100 index failed to open at the start of the European trading on Friday.The London Stock Exchange (LSE) has said it is currently investigating a potential trading services issue, according to Reuters.


European markets moved higher on Friday morning as investors monitor Treasury yields for clues on a possible recession. The pan-European Stoxx 600 was up by 0.7% shortly after the opening bell, with every sector moving higher. London’s FTSE 100 index failed to open at the start of the European trading on Friday.The London Stock Exchange (LSE) has said it is currently investigating a potential trading services issue, according to Reuters.
Europe stocks higher as calm returns to markets following Treasury yield inversion; FTSE fails to open Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-16  Authors: silvia amaro, chloe taylor
Keywords: news, cnbc, companies, markets, stock, returns, ftse, treasury, following, open, european, stoxx, services, sector, higher, yields, stocks, shortly, start, inversion, yield, trading


Europe stocks higher as calm returns to markets following Treasury yield inversion; FTSE fails to open

European markets moved higher on Friday morning as investors monitor Treasury yields for clues on a possible recession.

The pan-European Stoxx 600 was up by 0.7% shortly after the opening bell, with every sector moving higher.

London’s FTSE 100 index failed to open at the start of the European trading on Friday.The London Stock Exchange (LSE) has said it is currently investigating a potential trading services issue, according to Reuters.


Company: cnbc, Activity: cnbc, Date: 2019-08-16  Authors: silvia amaro, chloe taylor
Keywords: news, cnbc, companies, markets, stock, returns, ftse, treasury, following, open, european, stoxx, services, sector, higher, yields, stocks, shortly, start, inversion, yield, trading


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A leading indicator could be waving a yellow flag to the markets

Just as the stock market sell-off has taken a pause, one technician sees trouble brewing on one corner of Wall Street. Matt Maley, equity strategist at Miller Tabak, says small caps are underperforming, and they have a solid track record of foreshadowing the market’s next move. The Russell 2000 closed Thursday’s session at 1,461.65, right on the cusp of its June low. Mark Tepper, president of Strategic Wealth Partners, says now is not the right time to invest in the Russell 2000. Small-cap finan


Just as the stock market sell-off has taken a pause, one technician sees trouble brewing on one corner of Wall Street. Matt Maley, equity strategist at Miller Tabak, says small caps are underperforming, and they have a solid track record of foreshadowing the market’s next move. The Russell 2000 closed Thursday’s session at 1,461.65, right on the cusp of its June low. Mark Tepper, president of Strategic Wealth Partners, says now is not the right time to invest in the Russell 2000. Small-cap finan
A leading indicator could be waving a yellow flag to the markets Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-16  Authors: keris lahiff, michael affigne
Keywords: news, cnbc, companies, waving, sp, small, markets, 2000, stock, caps, indicator, market, tepper, flag, low, maley, russell, yellow, leading


A leading indicator could be waving a yellow flag to the markets

Just as the stock market sell-off has taken a pause, one technician sees trouble brewing on one corner of Wall Street.

Matt Maley, equity strategist at Miller Tabak, says small caps are underperforming, and they have a solid track record of foreshadowing the market’s next move.

“The Russell 2000 small-cap index has been a great leading indicator for the stock market in both directions, and we saw it last year before the big decline in the stock market in the fourth quarter, ” Maley said Thursday on CNBC’s “Trading Nation. ”

In September, the Russell 2000 topped out and rolled over, Maley noted. The S&P 500 followed suit in October.

“When the Russell 2000 rolled over and broke to a new lower low, that’s when the whole market started to really fall out of bed, and we’re seeing a similar situation right now,” said Maley. “When the S&P went to make a new high [in July], the Russell failed to do so, and now it’s rolling back over and it’s testing its June lows.”

Small caps’ next move holds the key to whether the S&P 500 can rebound or continue to sell off, Maley said.

“If it breaks below those June lows that will give it another key lower low,” he added. “A key lower low on the Russell 2000 would not bode well for either the small caps overall or for the rest of the market over the intermediate term.”

The Russell 2000 closed Thursday’s session at 1,461.65, right on the cusp of its June low.

Mark Tepper, president of Strategic Wealth Partners, says now is not the right time to invest in the Russell 2000.

“We’d much rather be in large-cap stocks — companies with good strong balance sheets, strong free cash flow, and low debt levels — and small caps don’t typically check any of those boxes,” Tepper said Thursday. “Roughly about a third of these small-cap companies, they don’t make any money, and that’s obviously not a good thing. The index as a whole is just up to their eyeballs in debt. They’ve got roughly three times the leverage of large caps and those are the high-debt companies that don’t survive when the economy takes a turn for the worse.”

Small-cap financials stocks also make up a large portion of the Russell 2000, another deterrent to Tepper. He says to steer clear of these names as the flat-to-inverted yield curve puts pressure on banking profitability. Financials make up 25% of the IWM Russell ETF.

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Company: cnbc, Activity: cnbc, Date: 2019-08-16  Authors: keris lahiff, michael affigne
Keywords: news, cnbc, companies, waving, sp, small, markets, 2000, stock, caps, indicator, market, tepper, flag, low, maley, russell, yellow, leading


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Strategist: Yield curves predict ‘absolutely nothing,’ and central banks ‘never run out of bullets’

Fears are rising that a recession looms after a closely watched market metric flashed a warning signal, but one strategist told CNBC the supposed indicator “predicts absolutely nothing.” That so-called inverted yield curve has historically been regarded as a precursor to an economic recession. “My view has always been that yield curve predicts absolutely nothing,” he told CNBC’s “Squawk Box” on Thursday. The yield curve inversion, he said, may demonstrate that the global economy is slowing down.


Fears are rising that a recession looms after a closely watched market metric flashed a warning signal, but one strategist told CNBC the supposed indicator “predicts absolutely nothing.” That so-called inverted yield curve has historically been regarded as a precursor to an economic recession. “My view has always been that yield curve predicts absolutely nothing,” he told CNBC’s “Squawk Box” on Thursday. The yield curve inversion, he said, may demonstrate that the global economy is slowing down.
Strategist: Yield curves predict ‘absolutely nothing,’ and central banks ‘never run out of bullets’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-15  Authors: abigail ng
Keywords: news, cnbc, companies, run, inversion, curve, absolutely, banks, markets, recession, shvets, predicts, strategist, yield, curves, bullets, told, central, predict, inverted


Strategist: Yield curves predict 'absolutely nothing,' and central banks 'never run out of bullets'

Fears are rising that a recession looms after a closely watched market metric flashed a warning signal, but one strategist told CNBC the supposed indicator “predicts absolutely nothing.”

The yield on the 10-year U.S. Treasury briefly broke below the 2-year rate on Wednesday stateside. That so-called inverted yield curve has historically been regarded as a precursor to an economic recession. U.S. markets fell following the inversion, with the Dow Jones Industrial Average losing around 800 points. The rates inverted again in the morning of Asian trading hours on Thursday.

Nevertheless, Viktor Shvets, head of Asian strategy for Macquarie Commodities and Global Markets, brushed off those concerns.

“My view has always been that yield curve predicts absolutely nothing,” he told CNBC’s “Squawk Box” on Thursday.

“What it does tell you (is) that you will have a recession if you don’t do something about it,” Shvets added.

The yield curve inversion, he said, may demonstrate that the global economy is slowing down. That’s because of a lack of liquidity, absence of reflationary momentum and a de-globalization of trade and capital flows, according to Shvets.

“If you reverse those elements, then the yield curve will respond very quickly,” the strategist said, adding that, to him, “recession equals policy errors.”


Company: cnbc, Activity: cnbc, Date: 2019-08-15  Authors: abigail ng
Keywords: news, cnbc, companies, run, inversion, curve, absolutely, banks, markets, recession, shvets, predicts, strategist, yield, curves, bullets, told, central, predict, inverted


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Bond yields are tumbling throughout Asia Pacific

Yields for 10-year government bonds in major Asian markets have been dropping sharply as recession fears send investors pouring into the assets. Bond prices move opposite yields, and as investors rush to buy them, prices surge and yields fall in tandem. Here’s a look at how each market’s 10-year government bond yield has fallen by Thursday morning, versus a week ago and the beginning of the month. Previously, the central bank has fixed the yield on the 10-year bond at around zero, which it pegge


Yields for 10-year government bonds in major Asian markets have been dropping sharply as recession fears send investors pouring into the assets. Bond prices move opposite yields, and as investors rush to buy them, prices surge and yields fall in tandem. Here’s a look at how each market’s 10-year government bond yield has fallen by Thursday morning, versus a week ago and the beginning of the month. Previously, the central bank has fixed the yield on the 10-year bond at around zero, which it pegge
Bond yields are tumbling throughout Asia Pacific Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-15  Authors: weizhen tan
Keywords: news, cnbc, companies, pacific, bond, asia, week, 10year, bonds, markets, curve, tumbling, yield, yellen, yields, investors


Bond yields are tumbling throughout Asia Pacific

Pedestrians are reflected on a window of a securities company in Tokyo on Aug. 30, 2017.

Yields for 10-year government bonds in major Asian markets have been dropping sharply as recession fears send investors pouring into the assets.

Bond prices move opposite yields, and as investors rush to buy them, prices surge and yields fall in tandem.

Here’s a look at how each market’s 10-year government bond yield has fallen by Thursday morning, versus a week ago and the beginning of the month.

In Japan, the 10-year yield dropped below the Bank of Japan’s preferred range for the first time last week — falling past -0.2%. Previously, the central bank has fixed the yield on the 10-year bond at around zero, which it pegged at a range of between 0.2% and -0.2%.

Recession fears have roiled markets. The yield on the benchmark 10-year Treasury note broke below the 2-year rate early Wednesday. That so-called yield curve is a bond market phenomenon that’s been a reliable, albeit early, indicator for economic recessions.

The yield on the U.S. 30-year bond also fell to a new low.

While lower-yielding markets, such as Hong Kong, South Korea and Singapore, and mid-yielding markets such as Malaysia and China, have seen rates drifting lower, one analyst told CNBC that investors are staying away from riskier markets — the high-yielding Asia bond markets such as India and Indonesia.

That’s causing the yields of those bonds to go up, said Julio Callegari, a fixed income portfolio manager at J.P. Morgan Asset Management.

“The main reason is that these bond markets are more sensitive to risk aversion — that usually causes depreciation in their currencies and pressure on the yield curve,” he said in an email. “Overall we expect this trend to continue for a while, since broadly speaking economic growth is still slowing in the region and central banks are likely to keep easing monetary policy.”

In the U.S., investors have also been rushing into bonds. The iShares 20+ Year Treasury Bond ETF, TLT jumped 2.1% on Monday, its biggest gain in a year.

Commenting on the recent main yield curve inversion in the U.S., former Federal Reserve Chair Janet Yellen said Wednesday that “it may be a less good signal ” this time around.

“The reason for that is there are a number of factors other than market expectations about the future path of interest rates that are pushing down long-term yields,” Yellen said on Fox Business Network.

— CNBC’s Eustance Huang, Thomas Franck and Patti Domm contributed to this report.


Company: cnbc, Activity: cnbc, Date: 2019-08-15  Authors: weizhen tan
Keywords: news, cnbc, companies, pacific, bond, asia, week, 10year, bonds, markets, curve, tumbling, yield, yellen, yields, investors


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