Bank of America downgrades Best Buy to neutral ‘after several years of outsized growth’

Bank of America Merrill Lynch lowered the firm’s rating of Best Buy to neutral from buy on slowing growth and risk to key products. The consumer electronics industry saw a slowdown in the third quarter and expects there is “less chance for a big” same store sales result for Best Buy in the year ahead. Specifically, Nagle said he sees a “risk from key products for at least the next few quarters.” The firm lowered its price target on Best Buy shares to $70 a share from $92 a share. Best Buy shares


Bank of America Merrill Lynch lowered the firm’s rating of Best Buy to neutral from buy on slowing growth and risk to key products. The consumer electronics industry saw a slowdown in the third quarter and expects there is “less chance for a big” same store sales result for Best Buy in the year ahead. Specifically, Nagle said he sees a “risk from key products for at least the next few quarters.” The firm lowered its price target on Best Buy shares to $70 a share from $92 a share. Best Buy shares
Bank of America downgrades Best Buy to neutral ‘after several years of outsized growth’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-13  Authors: michael sheetz, getty images
Keywords: news, cnbc, companies, outsized, nagle, downgrades, shares, buy, lowered, risk, best, neutral, sales, key, bank, products, growth, america


Bank of America downgrades Best Buy to neutral 'after several years of outsized growth'

Bank of America Merrill Lynch lowered the firm’s rating of Best Buy to neutral from buy on slowing growth and risk to key products.

“We continue to see [Best Buy] as one of the highest quality hardline names but after several years of outsized growth and likely less opportunity for big beat and raise quarters, it is harder to justify,” the firm’s analyst Curtis Nagle said in a note Tuesday.

The consumer electronics industry saw a slowdown in the third quarter and expects there is “less chance for a big” same store sales result for Best Buy in the year ahead. Specifically, Nagle said he sees a “risk from key products for at least the next few quarters.”

“The biggest risks from a product perspective are TVs, gaming, Apple products and possibly appliances. Collectively we estimate these products are close to 50% of sales,” Nagle said.

The firm lowered its price target on Best Buy shares to $70 a share from $92 a share.

Best Buy shares fell 0.3 percent in trading Tuesday.


Company: cnbc, Activity: cnbc, Date: 2018-11-13  Authors: michael sheetz, getty images
Keywords: news, cnbc, companies, outsized, nagle, downgrades, shares, buy, lowered, risk, best, neutral, sales, key, bank, products, growth, america


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New Zealand central bank shifts to neutral tone and warns of growth risks

New Zealand’s central bank struck a neutral tone as it marked two full years of steady policy on Thursday, saying its next move would depend on how the economy fared and cautioned of downside risks to growth from global trade frictions. As widely expected, the Reserve Bank of New Zealand kept the official cash rate (OCR) at 1.75 percent, where it has remained since late 2016, and reiterated it expected to hold rates into 2020. The central bank removed a line from its previous statements that its


New Zealand’s central bank struck a neutral tone as it marked two full years of steady policy on Thursday, saying its next move would depend on how the economy fared and cautioned of downside risks to growth from global trade frictions. As widely expected, the Reserve Bank of New Zealand kept the official cash rate (OCR) at 1.75 percent, where it has remained since late 2016, and reiterated it expected to hold rates into 2020. The central bank removed a line from its previous statements that its
New Zealand central bank shifts to neutral tone and warns of growth risks Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-08  Authors: mark coote, bloomberg, getty images
Keywords: news, cnbc, companies, global, zealand, economic, tone, risks, neutral, growth, central, bank, ocr, cut, shifts, warns, trade, rate, inflation


New Zealand central bank shifts to neutral tone and warns of growth risks

New Zealand’s central bank struck a neutral tone as it marked two full years of steady policy on Thursday, saying its next move would depend on how the economy fared and cautioned of downside risks to growth from global trade frictions.

The New Zealand dollar rallied briefly and bonds sold off as the markets priced out any chance of a near term rate cut and instead focused on when New Zealand would join some of its global counterparts in raising rates.

As widely expected, the Reserve Bank of New Zealand kept the official cash rate (OCR) at 1.75 percent, where it has remained since late 2016, and reiterated it expected to hold rates into 2020.

“The timing and direction of any future OCR move remains data dependent,” Governor Adrian Orr said in a statement, and in a press conference later in the day he refused to rule out a rate cut if economic conditions deteriorated.

The central bank removed a line from its previous statements that its next rate move could be either up or down, but noted both upside and downside risks remained to growth and inflation projections.

“We don’t agree that the RBNZ needs to maintain the fence-sitting dual approach to policy,” said Citibank economist Paul Brennan.

“While our own forecasts show a near-term moderation in GDP growth, we expect CPI inflation to exceed the RBNZ’s latest forecasts and maintain the view that the OCR will need to rise from Q3 next year.”

A run of stellar economic data including a surprise drop in third-quarter jobless rate to 10-year lows, better-than-expected growth and inflation numbers over recent months, has given the RBNZ some breathing room.

However, Orr pointed to temporary factors for the pick-up in second-quarter economic growth and cautioned of headwinds to growth.

“Weak business sentiment could weigh on growth for longer. Trade tensions remain in some major economies, raising the risk that trade barriers increase and undermine global growth.”

The New Zealand dollar hit a fresh three-month high of $0.6820 immediately after the rate decision but quickly retreated from those levels to last hover around $0.6785.

Government bonds were sold off for a second straight day as investors priced out the risk of a cut with yields on the long-end of the curve up about 5 basis points.


Company: cnbc, Activity: cnbc, Date: 2018-11-08  Authors: mark coote, bloomberg, getty images
Keywords: news, cnbc, companies, global, zealand, economic, tone, risks, neutral, growth, central, bank, ocr, cut, shifts, warns, trade, rate, inflation


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Stocks making the biggest move premarket: LOW, VZ, GE, AMZN, AAPL & more

The company estimates the move will shave 28 to 34 cents per share off full year 2018 earnings. Verizon – Verizon will restructure operations into three units as of January 1, forming units known as Consumer, Business, and Verizon Media Group/Oath. SeaWorld Entertainment – SeaWorld reported quarterly profit of $1.10 per share, 2 cents a share above estimates. Chevron – Chevron was upgraded to “outperform” from “neutral” at Credit Suisse, which calls the stock’s valuation and the energy giant’s f


The company estimates the move will shave 28 to 34 cents per share off full year 2018 earnings. Verizon – Verizon will restructure operations into three units as of January 1, forming units known as Consumer, Business, and Verizon Media Group/Oath. SeaWorld Entertainment – SeaWorld reported quarterly profit of $1.10 per share, 2 cents a share above estimates. Chevron – Chevron was upgraded to “outperform” from “neutral” at Credit Suisse, which calls the stock’s valuation and the energy giant’s f
Stocks making the biggest move premarket: LOW, VZ, GE, AMZN, AAPL & more Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-05  Authors: peter schacknow
Keywords: news, cnbc, companies, ge, units, share, estimates, low, verizon, buy, making, aapl, stores, amzn, neutral, vz, stock, according, biggest, premarket, upgraded, stocks


Stocks making the biggest move premarket: LOW, VZ, GE, AMZN, AAPL & more

If there’s no growth to buy into, you’ve got to be a value investor: Strategist 4 Hours Ago | 01:55

Check out the companies making headlines before the bell:

Lowe’s – The home improvement retailer is closing 20 U.S. and 31 Canadian stores as part of an ongoing strategic evaluation. Lowe’s said the stores involved are underperformers and most of the impacted U.S. stores are within 10 miles of another Lowe’s location. The company estimates the move will shave 28 to 34 cents per share off full year 2018 earnings.

Verizon – Verizon will restructure operations into three units as of January 1, forming units known as Consumer, Business, and Verizon Media Group/Oath.

Berkshire Hathaway – Berkshire beat estimates on both the top and bottom lines in its third-quarter earnings report, with operating profit nearly doubling on better-than-expected insurance results and lower taxes. Berkshire also bought back $928 million in stock during the quarter, its first buyback since 2012.

General Electric – GE will pay ousted CEO John Flannery $4.25 million in severance pay, and will keep his eligibility for equity awards that depend on the company’s long-term performance. Separately, British media reports say the U.K. is set to disallow $1 billion in tax deductions claimed by the company. And according to a new Securities and Exchange Commission filing, CEO Larry Culp has purchased 225,000 GE shares.

Amazon.com – Amazon will drop its minimum purchase amount for free shipping for the holiday season. The minimum for customers who are not members of the retailer’s Prime program is normally $25. The promotion will remain in place until the day that Amazon can no longer guarantee delivery in time for Christmas.

Apple — Demand for Apple’s iPhone XR appears to be disappointing, according to a report in Japan’s Nikkei newspaper. The paper quotes sources as saying Apple has told suppliers Foxconn and Pegatron to stop preparing additional production lines.

SeaWorld Entertainment – SeaWorld reported quarterly profit of $1.10 per share, 2 cents a share above estimates. The theme park operator’s revenue also topped forecasts on the strength of a 9.7 percent increase in park attendance.

Teva Pharmaceutical – Teva was upgraded to “overweight” from “equal-weight” at Morgan Stanley, which feels that the drugmaker’s financials will improve. Morgan Stanley also increased its price target for the stock to $27 per share from $20.

Fiat Chrysler – Fiat Chrysler was upgraded to “buy” from “sell” at Societe Generale, which points to the liquidity boost for the automaker from the sale of its Magneti Marelli parts unit.

MGM Resorts – MGM has hired advisers to examine the possibility of merging with Caesars Entertainment, according to the New York Post.

Under Armour – Under Armour was upgraded to “overweight” from “neutral” at Piper Jaffray, which feels the athletic apparel maker’s sales opportunity is underappreciated by investors. It maintains that view even after the stock jumped following the company’s quarterly earnings.

Chevron – Chevron was upgraded to “outperform” from “neutral” at Credit Suisse, which calls the stock’s valuation and the energy giant’s free cash flow “compelling”. The firm said Chevron is continuing to execute on its “already superior growth outlook.”

Starbucks – Mizuho upgraded the coffee chain’s stock to “buy” from “neutral,” saying sales momentum for Starbucks is gathering steam sooner than it had originally expected.


Company: cnbc, Activity: cnbc, Date: 2018-11-05  Authors: peter schacknow
Keywords: news, cnbc, companies, ge, units, share, estimates, low, verizon, buy, making, aapl, stores, amzn, neutral, vz, stock, according, biggest, premarket, upgraded, stocks


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Democrats gaining control would be ‘market neutral’: Credit Suisse

Democrats gaining control would be ‘market neutral’: Credit Suisse13 Hours AgoIf Democrats take the house, there might be a moderate negative shock to the market, but it will “diminish quite rapidly,” says John Woods of Credit Suisse.


Democrats gaining control would be ‘market neutral’: Credit Suisse13 Hours AgoIf Democrats take the house, there might be a moderate negative shock to the market, but it will “diminish quite rapidly,” says John Woods of Credit Suisse.
Democrats gaining control would be ‘market neutral’: Credit Suisse Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-30
Keywords: news, cnbc, companies, gaining, suisse, credit, market, democrats, shock, control, rapidly, quite, neutral, suisse13, woods


Democrats gaining control would be 'market neutral': Credit Suisse

Democrats gaining control would be ‘market neutral’: Credit Suisse

13 Hours Ago

If Democrats take the house, there might be a moderate negative shock to the market, but it will “diminish quite rapidly,” says John Woods of Credit Suisse.


Company: cnbc, Activity: cnbc, Date: 2018-10-30
Keywords: news, cnbc, companies, gaining, suisse, credit, market, democrats, shock, control, rapidly, quite, neutral, suisse13, woods


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Dick Bove: The Federal Reserve could be dragging us into a recession

The effective Federal Funds rate (the rate set by the Federal Reserve which is what banks charge to lend each other money overnight) is presently 2.18 percent. The average Federal Funds rate from 2000 to 2015, before the Federal Reserve began raising rates, was 1.71 percent. Shockingly from 2000 to the present, the Federal Funds rate was lower than the current rate of 2.18 percent, an estimated 73 percent of the time. The pundits at the Federal Reserve indicate that the agency is striving to rai


The effective Federal Funds rate (the rate set by the Federal Reserve which is what banks charge to lend each other money overnight) is presently 2.18 percent. The average Federal Funds rate from 2000 to 2015, before the Federal Reserve began raising rates, was 1.71 percent. Shockingly from 2000 to the present, the Federal Funds rate was lower than the current rate of 2.18 percent, an estimated 73 percent of the time. The pundits at the Federal Reserve indicate that the agency is striving to rai
Dick Bove: The Federal Reserve could be dragging us into a recession Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-29  Authors: richard x bove, andrew harrer, bloomberg, getty images
Keywords: news, cnbc, companies, reserve, volcker, rate, fed, bove, neutral, rates, recession, began, federal, dragging, funds, dick, shrinking


Dick Bove: The Federal Reserve could be dragging us into a recession

The effective Federal Funds rate (the rate set by the Federal Reserve which is what banks charge to lend each other money overnight) is presently 2.18 percent. The average Federal Funds rate from 2000 to 2015, before the Federal Reserve began raising rates, was 1.71 percent. Shockingly from 2000 to the present, the Federal Funds rate was lower than the current rate of 2.18 percent, an estimated 73 percent of the time.

The pundits at the Federal Reserve indicate that the agency is striving to raise interest rates to a “neutral rate.” Observers believe that this would be in the 3.25 percent to 3.50 percent range. The history of the Federal Funds rate in the last 18 years does not indicate that it ever stabilized at anywhere near this rate. The average Federal Funds rate since it was first published in July 1954 has been 4.80 percent.

It would appear that the Fed simply made up this concept of a “neutral rate” since there is little evidence that it has ever existed before. Interestingly, CNBC’s Andrew Ross Sorkin recently interviewed ex Fed Chairman Paul Volcker. In the interview Mr. Volcker stated “a 2 percent [inflation] target, or limit, was not in my textbook years ago. I know of no theoretical justification.”

Apparently, Mr. Volcker thinks that the Fed may have made up the 2 percent number as a convenience. Others may think that the “neutral rate” concept was conceived for similar reasons.

The Federal Reserve is shrinking its balance sheet at the fastest rate recorded since it began publishing these numbers in 2002. In the past 12 months since it began shrinking, assets are down by $262 billion or 6.3 percent.


Company: cnbc, Activity: cnbc, Date: 2018-10-29  Authors: richard x bove, andrew harrer, bloomberg, getty images
Keywords: news, cnbc, companies, reserve, volcker, rate, fed, bove, neutral, rates, recession, began, federal, dragging, funds, dick, shrinking


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Fed’s Kaplan: ‘We no longer need to be stimulating the US economy’

Dallas Federal Reserve President Robert Kaplan on Wednesday became the latest central banker to say it’s time to let the economy run on its own. The unemployment rate is running at 3.7 percent and inflation is just above the Fed’s 2 percent target. “As we reach our dual-mandate objectives, I believe that the Federal Reserve should be gradually easing off the accelerator — we no longer need to be stimulating the U.S. economy,” he said in an essay. The comments come a day after Atlanta Fed Preside


Dallas Federal Reserve President Robert Kaplan on Wednesday became the latest central banker to say it’s time to let the economy run on its own. The unemployment rate is running at 3.7 percent and inflation is just above the Fed’s 2 percent target. “As we reach our dual-mandate objectives, I believe that the Federal Reserve should be gradually easing off the accelerator — we no longer need to be stimulating the U.S. economy,” he said in an essay. The comments come a day after Atlanta Fed Preside
Fed’s Kaplan: ‘We no longer need to be stimulating the US economy’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-24  Authors: jeff cox
Keywords: news, cnbc, companies, kaplan, president, longer, neutral, rate, stimulating, fed, feds, federal, powell, economic, track, economy, estimate, need


Fed's Kaplan: 'We no longer need to be stimulating the US economy'

Dallas Federal Reserve President Robert Kaplan on Wednesday became the latest central banker to say it’s time to let the economy run on its own.

At a time when the Fed is undergoing criticism from President Donald Trump and some notable market voices, Kaplan said policymakers are on the right track with their gradual approach to raising interest rates.

The unemployment rate is running at 3.7 percent and inflation is just above the Fed’s 2 percent target. Believing that the Fed has met its dual mandate, the Federal Open Market Committee has hiked its benchmark rate three times this year and is on track for a fourth increase in December.

Kaplan said that remains the right strategy.

“As we reach our dual-mandate objectives, I believe that the Federal Reserve should be gradually easing off the accelerator — we no longer need to be stimulating the U.S. economy,” he said in an essay. “As such, I believe we should be gradually and patiently moving toward a neutral policy stance.”

The comments come a day after Atlanta Fed President Raphael Bostic said the Fed doesn’t need ” to keep our foot on the gas pedal.”

Trump launched his latest broadside at the Fed and Chairman Jerome Powell in an interview Tuesday with The Wall Street Journal.

The president repeated criticism that higher rates are the biggest threat to the economic boom during his administration, and said Powell “looks like he’s happy raising interest rates.”

Kaplan backs further rate hikes even though he said he expects economic growth to slow in the years ahead as fiscal stimulus fades. He added that his estimate of the longer-run “neutral” late is somewhat lower than his colleagues’ median estimate, but he said he’s on board for at least the next several rate hikes. Kaplan favors allowing the benchmark funds rate target to rise to as high as 2.75 percent to 3 percent. The current range is 2 percent to 2.75 percent.

The current median estimate is closer to 3.1 percent, and Powell has said it may be prudent to go even a bit beyond that to tame inflation. While not a voting member on the FOMC, Kaplan does get to provide input at committee policy meetings.

“I intend to avoid prejudging what, if any, further actions we should take once we get into the range of our best estimate of a neutral stance. I intend to make that judgment sometime in the spring or summer of 2019 based on the economic outlook at that time,” Kaplan said.


Company: cnbc, Activity: cnbc, Date: 2018-10-24  Authors: jeff cox
Keywords: news, cnbc, companies, kaplan, president, longer, neutral, rate, stimulating, fed, feds, federal, powell, economic, track, economy, estimate, need


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Goldman Sachs sees a correction coming for chipmakers but still likes Nvidia

Goldman Sachs warned clients about a downturn coming for the semiconductor sector but still recommends some chip stocks. “We foresee a cyclical correction approaching and recommend investors to stay selective in Semis,” Goldman Sachs analyst Toshiya Hari said in a note Thursday. Nvidia is Goldman’s top choice in the industry, as the firm believes Nvidia continues to have a strong balance sheet. Nvidia stock fell 0.5 percent in trading Thursday. 1 reason for a coming correction in the industry st


Goldman Sachs warned clients about a downturn coming for the semiconductor sector but still recommends some chip stocks. “We foresee a cyclical correction approaching and recommend investors to stay selective in Semis,” Goldman Sachs analyst Toshiya Hari said in a note Thursday. Nvidia is Goldman’s top choice in the industry, as the firm believes Nvidia continues to have a strong balance sheet. Nvidia stock fell 0.5 percent in trading Thursday. 1 reason for a coming correction in the industry st
Goldman Sachs sees a correction coming for chipmakers but still likes Nvidia Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-18  Authors: michael sheetz, rick wilking
Keywords: news, cnbc, companies, coming, firm, industry, neutral, stock, semiconductor, likes, chipmakers, correction, nvidia, goldman, sachs, sees


Goldman Sachs sees a correction coming for chipmakers but still likes Nvidia

Goldman Sachs warned clients about a downturn coming for the semiconductor sector but still recommends some chip stocks.

“We foresee a cyclical correction approaching and recommend investors to stay selective in Semis,” Goldman Sachs analyst Toshiya Hari said in a note Thursday.

Nvidia is Goldman’s top choice in the industry, as the firm believes Nvidia continues to have a strong balance sheet. The firm reiterated a buy rating on Nvidia shares and added the stock to its conviction list of stock picks. Nvidia stock fell 0.5 percent in trading Thursday.

Goldman downgraded Analog Devices and Maxim Integrated Products to sell from neutral, as well as Teradyne to neutral from buy, as the firm said there is “an increasingly negative outlook for” analog chipmakers “in particular.”

The firm said its No. 1 reason for a coming correction in the industry stems from the number of monthly semiconductor units “tracking meaningfully above what we consider to be the long-term trend-line.”


Company: cnbc, Activity: cnbc, Date: 2018-10-18  Authors: michael sheetz, rick wilking
Keywords: news, cnbc, companies, coming, firm, industry, neutral, stock, semiconductor, likes, chipmakers, correction, nvidia, goldman, sachs, sees


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Bond yields sink after consumer prices reading is lighter than expected, quelling inflation fears

That could be a worry for the Federal Reserve trying to keep a lid on inflation. Though consumer prices came in softer than expected, the print is unlikely to impact market expectations for a fourth rate hike from the Federal Reserve before the end of the year. Markets have been jittery as interest rates continue to climb. Concerns surrounding rising interest rates continue to keep investors on edge, as strong economic data fuel jitters on what this could mean for the future of U.S. monetary pol


That could be a worry for the Federal Reserve trying to keep a lid on inflation. Though consumer prices came in softer than expected, the print is unlikely to impact market expectations for a fourth rate hike from the Federal Reserve before the end of the year. Markets have been jittery as interest rates continue to climb. Concerns surrounding rising interest rates continue to keep investors on edge, as strong economic data fuel jitters on what this could mean for the future of U.S. monetary pol
Bond yields sink after consumer prices reading is lighter than expected, quelling inflation fears Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-11  Authors: thomas franck
Keywords: news, cnbc, companies, reserve, inflation, interest, continue, quelling, consumer, sink, treasury, yields, lighter, hike, expected, rates, prices, fears, market, federal, reading, neutral, fed


Bond yields sink after consumer prices reading is lighter than expected, quelling inflation fears

Recent employment reports have added to the now-widespread view that the labor market is near or beyond full employment and have started to show acceleration in wage growth. That could be a worry for the Federal Reserve trying to keep a lid on inflation.

Though consumer prices came in softer than expected, the print is unlikely to impact market expectations for a fourth rate hike from the Federal Reserve before the end of the year.

“CPI was a miss, but it doesn’t necessarily portend broader inflation trends,” said George Goncalves, head of fixed-income strategy at Nomura Securities International. “As the Fed is watching this information come in over the months, you get mixed reads, so this does not stop them. They’re making their way to their neutral rate.”

As of 9:26 a.m. ET, expectations for a hike at its December meeting held around 78 percent, according to the CME Group’s FedWatch tool.

Equity markets around the world slumped Thursday. Asia-Pacific stocks saw sharp declines by the region’s market close, while European shares tumbled in its morning trade. In the U.S., futures tanked following on from a sharp drop seen in the previous session where the Dow closed more than 800 points down.

Markets have been jittery as interest rates continue to climb. While Treasury yields inched lower on Wednesday, this comes after the benchmark 10-year Treasury yield clinched a fresh seven-year high and the 30-year bond yield reached a high not seen since 2014 during the course of Tuesday’s trade.

Concerns surrounding rising interest rates continue to keep investors on edge, as strong economic data fuel jitters on what this could mean for the future of U.S. monetary policy and therefore the economy.

On the auction front, the U.S. Treasury is set to auction $15 billion in 29-year and 10 month bonds.

Following the central bank’s move to hike rates a third time this year, Fed Chair Jerome Powell said in an interview with PBS that U.S. monetary policy is “far from neutral,” suggesting front-end rates have further room to rise.

“Interest rates are still accommodative, but we’re gradually moving to a place where they will be neutral,” Powell said added. “We may go past neutral, but we’re a long way from neutral at this point, probably.”

In the latest surrounding the topic, President Donald Trump criticized the Federal Reserve on Wednesday, saying that the U.S. central bank was “making a mistake” for continuing to increase interest rates.

“The problem [causing the market drop] in my opinion is Treasury and the Fed. The Fed is going loco and there’s no reason for them to do it. I’m not happy about it,” Trump went on to say in a separate telephone interview with Fox host Shannon Bream.

“Loco” means “crazy” in Spanish.

“The loco part: that was a new one,” Nomura’s Goncalves added. “I don’t place much value in it; the Fed will continue to do what’s necessary to keep in the economy from overheating. They’re just trying to get the frothiness out.”

“If they don’t lean against it, it can be much worse later on.”

— CNBC’s Alexandra Gibbs contributed reporting.


Company: cnbc, Activity: cnbc, Date: 2018-10-11  Authors: thomas franck
Keywords: news, cnbc, companies, reserve, inflation, interest, continue, quelling, consumer, sink, treasury, yields, lighter, hike, expected, rates, prices, fears, market, federal, reading, neutral, fed


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Powell says we’re ‘a long way’ from neutral on interest rates, indicating more hikes are coming

Federal Reserve Chairman Jerome Powell said the central bank has a ways to go yet before it gets interest rates to where they are neither restrictive nor accommodative. “The really extremely accommodative low interest rates that we needed when the economy was quite weak, we don’t need those anymore. “Interest rates are still acommodative, but we’re gradually moving to a place where they will be neutral,” he added. “We may go past neutral, but we’re a long way from neutral at this point, probably


Federal Reserve Chairman Jerome Powell said the central bank has a ways to go yet before it gets interest rates to where they are neither restrictive nor accommodative. “The really extremely accommodative low interest rates that we needed when the economy was quite weak, we don’t need those anymore. “Interest rates are still acommodative, but we’re gradually moving to a place where they will be neutral,” he added. “We may go past neutral, but we’re a long way from neutral at this point, probably
Powell says we’re ‘a long way’ from neutral on interest rates, indicating more hikes are coming Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-03  Authors: jeff cox
Keywords: news, cnbc, companies, level, policymaking, rates, hikes, way, coming, long, place, question, powell, federal, indicating, interest, rate, neutral


Powell says we're 'a long way' from neutral on interest rates, indicating more hikes are coming

Federal Reserve Chairman Jerome Powell said the central bank has a ways to go yet before it gets interest rates to where they are neither restrictive nor accommodative.

In a question and answer session Wednesday with Judy Woodruff of PBS, Powell said the Fed no longer needs the policies that were in place that pulled the economy out of the financial crisis malaise.

“The really extremely accommodative low interest rates that we needed when the economy was quite weak, we don’t need those anymore. They’re not appropriate anymore,” Powell said.

“Interest rates are still acommodative, but we’re gradually moving to a place where they will be neutral,” he added. “We may go past neutral, but we’re a long way from neutral at this point, probably.”

The question of the neutral rate is critical for the Fed’s policymaking. Officials have been debating for years where that level may be, with the Fed consensus near 3 percent. The current range for the central bank’s benchmark rate is 2 percent to 2.25 percent; projections released last week indicated the policymaking Federal Open Market Committee is likely to take the funds rate to 3.4 percent before pausing.

During the interview, the euro dropped to its lowest level since Aug. 21 as investors saw Powell’s remarks as affirmation of more rate hikes down the road.

Powell spoke on a number of issues as well:


Company: cnbc, Activity: cnbc, Date: 2018-10-03  Authors: jeff cox
Keywords: news, cnbc, companies, level, policymaking, rates, hikes, way, coming, long, place, question, powell, federal, indicating, interest, rate, neutral


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Stocks making the biggest move premarket: DRI, THO, GE, CAT, PG & more

Thor Industries – The recreational vehicle maker reported quarterly profit of $1.67 per share, below the consensus estimate of $2.03 a share. Red Hat – The Linux operating system distributor reported adjusted quarterly profit of 85 cents per share, beating the consensus estimate by 3 cents a share. Herman Miller – Herman Miller reported adjusted quarterly profit of 69 cents per share, 4 cents a share above estimates. Ralph Lauren – Piper Jaffray upgraded the apparel maker to “neutral” from “unde


Thor Industries – The recreational vehicle maker reported quarterly profit of $1.67 per share, below the consensus estimate of $2.03 a share. Red Hat – The Linux operating system distributor reported adjusted quarterly profit of 85 cents per share, beating the consensus estimate by 3 cents a share. Herman Miller – Herman Miller reported adjusted quarterly profit of 69 cents per share, 4 cents a share above estimates. Ralph Lauren – Piper Jaffray upgraded the apparel maker to “neutral” from “unde
Stocks making the biggest move premarket: DRI, THO, GE, CAT, PG & more Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-09-20  Authors: peter schacknow
Keywords: news, cnbc, companies, reported, cat, maker, tho, share, revenue, neutral, ge, dri, premarket, cents, making, profit, announced, forecasts, biggest, stocks, quarterly, pg


Stocks making the biggest move premarket: DRI, THO, GE, CAT, PG & more

Check out the companies making headlines before the bell:

Darden Restaurants – The parent of Olive Garden, Longhorn Steakhouse, and other restaurant chains earned $1.34 per share for its latest quarter, 10 cents a share above estimates. Revenue beat forecasts, as well. Darden’s comparable-restaurant sales rose 3.3 percent, tripling consensus estimates, and it also raised its full-year outlook.

Comcast, 21st Century Fox, Walt Disney – The U.K.’s takeover panel announced that it will begin an auction process for broadcaster Sky Friday, with the winning bidder announced Saturday. The portion of Sky that Fox already owns is among the assets it is selling to Disney, and the NBCUniversal and CNBC parent currently has the highest offer on the table for Sky.

Thor Industries – The recreational vehicle maker reported quarterly profit of $1.67 per share, below the consensus estimate of $2.03 a share. Revenue beat forecasts, however. Analysts say Thor is still dealing with excess inventory and higher costs.

General Electric – J.P. Morgan Securities lowered its price target on GE to $10 per share from $11 a share, based on what the firm said are issues involving turbine installations.

Caterpillar – Caterpillar was upgraded to “outperform” from “neutral” at RW Baird, which notes underperformance this year by the machinery sector compared to the overall market and saying the risk/reward profile appears favorable.

Procter & Gamble – Atlantic Equities rates the consumer products giant “overweight” in new coverage, pointing to improved performance in key categories and positive change throughout the organization.

Facebook – Facebook must comply with European Union consumer rules by the end of this year or face sanctions, according to a statement issued by European Justice Commissioner Vera Jourova.

Red Hat – The Linux operating system distributor reported adjusted quarterly profit of 85 cents per share, beating the consensus estimate by 3 cents a share. Revenue fell short of Street forecasts, however, as did the company’s current-quarter revenue and earnings guidance. Red Hat’s results have been hurt by lower-than-expected subscription revenue.

Nestle – Nestle is exploring strategic options for its skin health business, including a possible sale. The food producer said it believes the unit might perform better once separated from Nestle.

Rio Tinto – Rio Tinto announced a $3.2 billion share buyback, following the mining company’s recent sale of some of its Australian coal assets.

Walgreens Boots Alliance – Walgreens announced it will launch a Boots-branded flagship store on Alibaba’s Tmall platform to introduce a number of its Boots beauty brands to Chinese consumers.

Amazon.com – Amazon is expected to move up to third in the 2018 rankings of U.S. digital ad sellers, according to research firm eMarketer.

Wells Fargo – Wells Fargo issued a statement to CNBC denying rumors that the bank’s board had reached out to potential CEO candidates, calling them “completely false.” The New York Post had reported that former National Economic Council director Gary Cohn had rebuffed overtures from Wells earlier this year to be its next CEO.

Skechers – Skechers was downgraded to “market perform” from “outperform” at Cowen, which cites a number of factors for the footwear maker including rising inventories.

Stitch Fix – Stitch Fix was downgraded to “neutral” from “overweight” at Piper Jaffray in a valuation call. The online clothing styling company went public at $15 per share last November and closed Wednesday at $47.11.

Herman Miller – Herman Miller reported adjusted quarterly profit of 69 cents per share, 4 cents a share above estimates. The office furniture company’s revenue also exceeding forecasts.

Ralph Lauren – Piper Jaffray upgraded the apparel maker to “neutral” from “underweight,” despite ongoing concerns about the sustainability of sales growth. The firm feels Ralph Lauren’s earnings will move higher thanks to cost controls and a more favorable profit mix.


Company: cnbc, Activity: cnbc, Date: 2018-09-20  Authors: peter schacknow
Keywords: news, cnbc, companies, reported, cat, maker, tho, share, revenue, neutral, ge, dri, premarket, cents, making, profit, announced, forecasts, biggest, stocks, quarterly, pg


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