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


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Utilities and these other stocks win when volatility strikes Wall Street

The second-best performing ETF was the iShares U.S. Real Estate ETF (IYR). The group of real estate stocks rose 0.28% in the week following surges in volatility. Real estate companies tend to have higher dividends, which is attractive for investors searching for yield in a volatile environment. One caveat, if the volatility is the result of a recession centering on real estate, these names could get hit as well. The Financial Select Sector SPDR Fund (XLF) returned 0.18% and the Health Care Selec


The second-best performing ETF was the iShares U.S. Real Estate ETF (IYR). The group of real estate stocks rose 0.28% in the week following surges in volatility. Real estate companies tend to have higher dividends, which is attractive for investors searching for yield in a volatile environment. One caveat, if the volatility is the result of a recession centering on real estate, these names could get hit as well. The Financial Select Sector SPDR Fund (XLF) returned 0.18% and the Health Care Selec
Utilities and these other stocks win when volatility strikes Wall Street Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-15  Authors: maggie fitzgerald
Keywords: news, cnbc, companies, strikes, win, volatility, vix, select, wall, etf, stocks, rose, estate, utilities, points, sector, street, real


Utilities and these other stocks win when volatility strikes Wall Street

Volatility is back on Wall Street.

The average daily point range of the Dow Jones Industrial Average so far this month is about 482 points, which is more than double the average daily range from the rest of the year (224 points from January to July).

The CBOE Volatility index, a gauge for investor fear, has risen nearly 50% this month but based on past surges in uncertainty this could be a buying opportunity.

Stocks have whipsawed in August on concerns about the trade war between the U.S. and China and global economic uncertainty. On Monday stocks fell on worries and falling yields, followed by a rally in stocks of 300 points on Tuesday when Trump delayed and cancelled tariffs on select items. Just yesterday, the Dow dropped 800 points as investors worried an inverted yield curve means a recession is coming.

CNBC used Kensho, a hedge fund analytics tool, to track the top ETF performers the week after the volatility Index, a measure of the 30-day implied volatility of U.S. stocks also known as the VIX, popped above the 15 level. The VIX has breached this key fear level 82 times in the past 10 years and data showed that the utilities ETF has the biggest returns following bursts of uncertainty.

The Utilities Select Sector SPDR Fund (XLU), which holds stocks like Duke Energy, Dominion Energy and Southern Company, rose 0.35% in the week after the VIX popped over 15.

Utilities are generally more stable stocks, as demand for electricity and gas is a steady consumer and business need. And the shares pay above-average dividends.

The second-best performing ETF was the iShares U.S. Real Estate ETF (IYR). The group of real estate stocks rose 0.28% in the week following surges in volatility.

Real estate companies tend to have higher dividends, which is attractive for investors searching for yield in a volatile environment. The high dividend comes from real estate company’s strong cash flow. In the case of tax laws for REITS, the companies are forced to distribute a certain percentage of income, which also drive yield higher.

Prologis, Equinix and American Tower are all in the XLU real estate portfolio. One caveat, if the volatility is the result of a recession centering on real estate, these names could get hit as well.

As a proxy for bonds in times of economic uncertainty, the U.S. Treasury ETF was also a strong performer following a spike in volatility. The iShares 20+ Year Treasury Bond ETF (TLT) rose 0.24% when the VIX breached the 15 level.

The financial sector ETF and the healthcare ETF also rose following increased uncertainty.

The Financial Select Sector SPDR Fund (XLF) returned 0.18% and the Health Care Select Sector SPDR Fund (XLV) returned 0.15% in the 5 days after the VIX rose.

This month’s volatility is not quite at levels breached in December 2018, when the Dow saw an average daily range of 600 points.

CNBC’s Jim Cramer said Tuesday the markets should be prepared for “choppy waters and perhaps a modest pullback,” as the S&P 500 index and the VIX typically run in opposite directions.

Stocks rebounded slightly on Thursday in more volatile trading.


Company: cnbc, Activity: cnbc, Date: 2019-08-15  Authors: maggie fitzgerald
Keywords: news, cnbc, companies, strikes, win, volatility, vix, select, wall, etf, stocks, rose, estate, utilities, points, sector, street, real


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

These stocks are dependable winners after the yield curve inverts

The bond market’s main yield curve inverted Wednesday, triggering worries of an eventual recession. CNBC used Kensho, a hedge fund analytics tool, to determine which stock sectors perform the best after a yield curve inversion. Utilities is the best-performing sector after a yield curve inversion. If you bought one day before a yield curve inversion and sold six months later, the return on the utilities sector averages an 8.59% return. Electric power company Duke Energy has a dividend yield of 4


The bond market’s main yield curve inverted Wednesday, triggering worries of an eventual recession. CNBC used Kensho, a hedge fund analytics tool, to determine which stock sectors perform the best after a yield curve inversion. Utilities is the best-performing sector after a yield curve inversion. If you bought one day before a yield curve inversion and sold six months later, the return on the utilities sector averages an 8.59% return. Electric power company Duke Energy has a dividend yield of 4
These stocks are dependable winners after the yield curve inverts Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-14  Authors: maggie fitzgerald
Keywords: news, cnbc, companies, inverts, months, curve, inversion, dependable, investors, returns, data, yield, energy, sector, winners, stocks


These stocks are dependable winners after the yield curve inverts

A display of Procter & Gamble’s Pampers diapers are seen on sale in Denver.

The bond market’s main yield curve inverted Wednesday, triggering worries of an eventual recession. But investors can still win, even if the clock is ticking on this bull run.

The yield on the benchmark 10-year Treasury note was at 1.623% on Wednesday, below the 2-year yield at 1.634%. This means that investors will now receive higher returns on a short-term bond than a long-term Treasury note, a trend that signals investors are worried and looking for a long-term safe haven for their money.

CNBC used Kensho, a hedge fund analytics tool, to determine which stock sectors perform the best after a yield curve inversion. This type of inversion has happened three times since 1980 and data showed that only two sectors yield positive returns six months after an inversion 100% of the time, and only one sector beats the broader market.

Utilities is the best-performing sector after a yield curve inversion. Although the inversion is an early recession indicator, data shows that if investors turn defensive, there is still a buying opportunities for stocks.

If you bought one day before a yield curve inversion and sold six months later, the return on the utilities sector averages an 8.59% return.

Utilities are generally more stable stocks, as demand for electricity and gas is a steady consumer and business need. Investors dump into utilities in times of uncertainty because of their higher dividends and steady cash flow.

Electric power company Duke Energy has a dividend yield of 4.2%, and energy producer Dominion Energy has a dividend yield of 4.9%.

Consumer staples stocks, like Procter & Gamble and Coca-Cola, are the other consistent winners in the months after an inversion, with positive returns after all three of the last inversions.

But this inversion doesn’t mean the market’s overall run is over. The average return on the S&P 500 is 3.47% six months out, with positive returns during all three of the last inversions.

Similarly, consumer staple stocks are a less volatile, more defensive play.

While there is a shift into more defensive stocks, the overall market typically has another 18 months to run before it starts to roll over following a yield curve inversion, according to data from Credit Suisse.

The data held up Wednesday. While the Dow Jones Industrial Average plunged 800 points, utility and consumer staples stocks fought the sell-off. Dominion Energy was up nearly 1% for most of the day and Coca-Cola was only down 0.5%.


Company: cnbc, Activity: cnbc, Date: 2019-08-14  Authors: maggie fitzgerald
Keywords: news, cnbc, companies, inverts, months, curve, inversion, dependable, investors, returns, data, yield, energy, sector, winners, stocks


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Investors are buying up these ‘tariff-proof’ tech stocks to keep exposure to the sector

Enterprise software is emerging as an exception to some investors’ caution around the technology sector. “Software names are not exactly recession proof, but they’re more resilient to downturn.” The S&P 500 Technology sector — which doesn’t include Amazon, Google or Facebook — is the most international of any S&P sector when it comes to revenues, according DataTrek Research. The U.S.-China trade battle has been a jolt to the sector, “with a new level of uncertainty representing a dark cloud over


Enterprise software is emerging as an exception to some investors’ caution around the technology sector. “Software names are not exactly recession proof, but they’re more resilient to downturn.” The S&P 500 Technology sector — which doesn’t include Amazon, Google or Facebook — is the most international of any S&P sector when it comes to revenues, according DataTrek Research. The U.S.-China trade battle has been a jolt to the sector, “with a new level of uncertainty representing a dark cloud over
Investors are buying up these ‘tariff-proof’ tech stocks to keep exposure to the sector Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-09  Authors: kate rooney
Keywords: news, cnbc, companies, names, stocks, technology, trade, sp, exposure, investors, microsoft, sector, ives, software, buying, tariffproof, newton, tech


Investors are buying up these 'tariff-proof' tech stocks to keep exposure to the sector

Enterprise software is emerging as an exception to some investors’ caution around the technology sector.

Wall Street analysts and investors including Carl Icahn are turning to software companies, which don’t rely as much on supply chains and manufacturing, as the trade war and strong dollar threaten the rest of the high-flying sector.

Although names like Microsoft, Salesforce and Twilio are not entirely “tariff-proof,” they may hold up better than some consumer technology names that manufacture products in China, according to Rishi Jaluria, senior research analyst at D.A. Davidson.

“They’re a safe haven right now,” Jaluria told CNBC. “Software names are not exactly recession proof, but they’re more resilient to downturn.”

One ominous factor is a strong dollar. The S&P 500 Technology sector — which doesn’t include Amazon, Google or Facebook — is the most international of any S&P sector when it comes to revenues, according DataTrek Research. Fifty-eight percent of sales come from outside the U.S., compared with 39% for the S&P 500 overall. Materials is the only other sector that gets more than half of its revenue outside of the U.S.

“That means global slowing hurts the sector more than the average S&P company,” said Nick Cola, co-founder of DataTrek.

Equity markets saw a sharp pullback this week after more tariff escalation, a fall in the Chinese yuan against the dollar and tumbling bond yields that fueled global growth concerns. Tech shares led a rebound on Thursday, with the sector rising more than 1%.

Still, Mark Newton, president and founder of Newton Advisors, is bearish on tech and said it could see more of a pullback throughout the rest of August. He’s recommending that clients take some profits and diversify out of popular technology stocks, which have led a record bull run since the financial crisis.

“Enterprise software is the standout that’s still resilient,” Newton said.

Wedbush Securities managing director Dan Ives is also cautious on tech. The U.S.-China trade battle has been a jolt to the sector, “with a new level of uncertainty representing a dark cloud over the sector,” Ives said. And if the trade situation escalates, Ives is anticipating major impacts on supply chains that could hit semiconductor companies, and Apple.

“We believe on large cap Microsoft is a compelling name to own with negligible China exposure and overall the software sector we would be buying here as it is primarily immune from the trade war,” Ives said.

The S&P technology sector is down 1.7% for the month, compared with a 1.4% drop in the broader S&P index. Microsoft is up about 1.4% in that time frame.


Company: cnbc, Activity: cnbc, Date: 2019-08-09  Authors: kate rooney
Keywords: news, cnbc, companies, names, stocks, technology, trade, sp, exposure, investors, microsoft, sector, ives, software, buying, tariffproof, newton, tech


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

The future of Hong Kong’s property market is looking ‘dim,’ researcher says

“If you look at Hong Kong’s property market, historically, basically when the U.S. economy catches a cold or sneezes, Hong Kong’s property market is going to catch a cold,” Ma told CNBC. The future for Hong Kong’s property market is bleak, according to a commercial real estate services researcher. Residential units are seen clustered tightly together in an apartment complex in the Quarry Bay area of Hong Kong. The real-estate sector is tracked as an indicator of the health of the wider Hong Kong


“If you look at Hong Kong’s property market, historically, basically when the U.S. economy catches a cold or sneezes, Hong Kong’s property market is going to catch a cold,” Ma told CNBC. The future for Hong Kong’s property market is bleak, according to a commercial real estate services researcher. Residential units are seen clustered tightly together in an apartment complex in the Quarry Bay area of Hong Kong. The real-estate sector is tracked as an indicator of the health of the wider Hong Kong
The future of Hong Kong’s property market is looking ‘dim,’ researcher says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-01  Authors: stella soon
Keywords: news, cnbc, companies, researcher, seeing, sector, looking, market, dim, recession, federal, property, economy, hong, future, kong, kongs


The future of Hong Kong's property market is looking 'dim,' researcher says

“If you look at Hong Kong’s property market, historically, basically when the U.S. economy catches a cold or sneezes, Hong Kong’s property market is going to catch a cold,” Ma told CNBC.

That “dim outlook” on the city’s property comes amid a possible U.S. recession and China -U.S. trade tensions, Denis Ma, head of research at Jones Lang LaSalle, said Tuesday.

The future for Hong Kong’s property market is bleak, according to a commercial real estate services researcher.

Residential units are seen clustered tightly together in an apartment complex in the Quarry Bay area of Hong Kong.

Property is regarded as critical to Hong Kong’s financial stability. The real-estate sector is tracked as an indicator of the health of the wider Hong Kong economy and banking sector, according to the Hong Kong Monetary Authority.

The U.S. economy is one factor that could weigh on the Hong Kong property market, said Ma.

Analysts have suggested a looming recession could befall the U.S. in the year ahead. Last week, Morgan Stanley economists said there is a “credible bear case” for a recession, and set their estimates for such a downturn at 20%.

Similarly, the Federal Reserve Bank of New York’s recession probability indicator estimated a 33% chance of a U.S. recession by June 2020.

Despite that, Federal Reserve Chairman Jerome Powell said the Fed’s 25-basis-point rate cut yesterday was not the start of a cutting cycle — as in a recession.

“When you think about rate-cutting cycles, they go on for a long time and the committee’s not seeing that. Not seeing us in that place. You would do that if you saw real economic weakness and you thought that the federal funds rate needed to be cut a lot. That’s not what we’re seeing,” Powell said.


Company: cnbc, Activity: cnbc, Date: 2019-08-01  Authors: stella soon
Keywords: news, cnbc, companies, researcher, seeing, sector, looking, market, dim, recession, federal, property, economy, hong, future, kong, kongs


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

S&P 500 and Nasdaq close at record highs as tech sector shakes off new regulatory threat

The S&P 500 and Nasdaq Composite reached all-time highs on Wednesday, propelled by a rally in chip stocks as investors shook off regulatory concerns facing Big Tech. UPS jumped more than 8% after posting earnings and revenue that topped analyst expectations. AT&T, meanwhile, gained 3.6% after the company reported net phone subscriber growth that topped estimates. Caterpillar shares slid 4.5% after the company reported weaker-than-expected earnings and revenue amid rising costs. While stocks “are


The S&P 500 and Nasdaq Composite reached all-time highs on Wednesday, propelled by a rally in chip stocks as investors shook off regulatory concerns facing Big Tech. UPS jumped more than 8% after posting earnings and revenue that topped analyst expectations. AT&T, meanwhile, gained 3.6% after the company reported net phone subscriber growth that topped estimates. Caterpillar shares slid 4.5% after the company reported weaker-than-expected earnings and revenue amid rising costs. While stocks “are
S&P 500 and Nasdaq close at record highs as tech sector shakes off new regulatory threat Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-24  Authors: fred imbert
Keywords: news, cnbc, companies, revenue, sp, company, threat, regulatory, sector, highs, strong, record, rally, topped, reported, nasdaq, close, earnings, shakes, stocks, shares, tech


S&P 500 and Nasdaq close at record highs as tech sector shakes off new regulatory threat

The S&P 500 and Nasdaq Composite reached all-time highs on Wednesday, propelled by a rally in chip stocks as investors shook off regulatory concerns facing Big Tech.

The broad index rose 0.5% to 3,019.56, a record. The tech-heavy Nasdaq jumped nearly 0.9% to end the day at 8,321.50. The VanEck Vectors Semiconductor ETF (SMH) gained 2.7% to hit a record, led by a 7.4% rally in Texas Instruments sparked by better-than-expected quarterly results.

Other companies such as UPS and AT&T also got a boost from strong results.

UPS jumped more than 8% after posting earnings and revenue that topped analyst expectations. The company said higher demand for its Next Day Air and Ground services drove its strong results.

AT&T, meanwhile, gained 3.6% after the company reported net phone subscriber growth that topped estimates. The telecom giant also raised its 2019 free cash flow guidance.

However, the Dow Jones Industrial Average closed 79.22 points lower at 27,269.97 as investors pored through disappointing earnings from Boeing and Caterpillar.

Boeing shares dropped 3.1% after the aerospace giant posted a massive loss for the previous quarter. The loss comes as costs pile up while its 737 Max jet remains grounded. The company also warned it could suspend production of its flagship jet if delays worsen.

Caterpillar shares slid 4.5% after the company reported weaker-than-expected earnings and revenue amid rising costs. The company has been under pressure as U.S. tariffs on Chinese goods remain in place while the two countries try to work out a trade deal.

“The mixed earnings picture and comments on the economy that we have heard from companies so far now coincides with a somewhat mixed technical backdrop for the market in the near-term,” said Dan Russo, chief market strategist at Chaikin Analytics. While stocks “are trading near their recent all-time highs, under the surface there are signs that the bulls could take a breather.”


Company: cnbc, Activity: cnbc, Date: 2019-07-24  Authors: fred imbert
Keywords: news, cnbc, companies, revenue, sp, company, threat, regulatory, sector, highs, strong, record, rally, topped, reported, nasdaq, close, earnings, shakes, stocks, shares, tech


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

European markets close slightly higher amid earnings, weak economic data

European stocks closed slightly higher Wednesday, as market participants digested a fresh round of corporate earnings and disappointing economic data out of France and Germany. Market focus is largely attuned to economic data and corporate results. The euro slumped to two-month lows to $1.1127 following the PMI figures, but recovered slightly to trade around the $1.1140 mark during the afternoon. Deutsche Bank reported a weaker-than-expected net loss of 3.15 billion euros ($3.51 billion) for the


European stocks closed slightly higher Wednesday, as market participants digested a fresh round of corporate earnings and disappointing economic data out of France and Germany. Market focus is largely attuned to economic data and corporate results. The euro slumped to two-month lows to $1.1127 following the PMI figures, but recovered slightly to trade around the $1.1140 mark during the afternoon. Deutsche Bank reported a weaker-than-expected net loss of 3.15 billion euros ($3.51 billion) for the
European markets close slightly higher amid earnings, weak economic data Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-24  Authors: elliot smith sam meredith, elliot smith, sam meredith
Keywords: news, cnbc, companies, stoxx, markets, amid, weak, sector, higher, economic, data, billion, euros, trade, earnings, close, shares, european, stocks, slightly, second


European markets close slightly higher amid earnings, weak economic data

European stocks closed slightly higher Wednesday, as market participants digested a fresh round of corporate earnings and disappointing economic data out of France and Germany.

The pan-European Stoxx 600 closed provisionally up almost 0.1%, with autos stocks leading the gains with a near-1.5% rise while the basic resources sector tumbled over 1.2%.

Market focus is largely attuned to economic data and corporate results. PMI (Purchasing Managers’ Index) data showed that a recession in Germany’s manufacturing sector worsened in July with goods producer performance falling to its lowest level in seven year.

Meanwhile, French business growth also slowed unexpectedly. The euro slumped to two-month lows to $1.1127 following the PMI figures, but recovered slightly to trade around the $1.1140 mark during the afternoon.

On the earnings front, ITV shares surged almost 7% to the top of the Stoxx 600 after Britain’s biggest free-to-air commercial broadcaster said a strong contribution to online revenue from reality show “Love Island” helped limit a fall in ad revenue to 5% for the first half of the year.

Deutsche Bank reported a weaker-than-expected net loss of 3.15 billion euros ($3.51 billion) for the second quarter of 2019 due to substantial strategic transformation charges of 3.4 billion euros. Deutsche Bank shares were down nearly 2%.

French carmaker Peugeot delivered a sharp increase in first-half profit, as new models and the integration of Opel-Vauxhall more than made up for weaker emerging-market sales. The group’s share price rose by almost 2%.

Daimler said it would intensify cost cuts after legal risks for diesel-related issues and the cost of replacing Takata airbags triggered a 1.56 billion euros ($1.74 billion) loss before interest and taxes in the second quarter. Daimler shares recovered from early losses to trade nearly 3% higher.

Outside the main European blue chip index, Aston Martin shares plunged 24% after the British luxury carmaker issued a profit warning amid weakness in the U.K. and mainland Europe.


Company: cnbc, Activity: cnbc, Date: 2019-07-24  Authors: elliot smith sam meredith, elliot smith, sam meredith
Keywords: news, cnbc, companies, stoxx, markets, amid, weak, sector, higher, economic, data, billion, euros, trade, earnings, close, shares, european, stocks, slightly, second


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Technology stocks rise to their highest levels ever despite the trade war

Michaela Rehle | ReutersBig cap technology stocks hit an all-time high Tuesday, aided by a rebounding semiconductor sector amid some signs of progress in the trade war between the U.S. and China. The Technology Select SPDR Fund ETF, XLK representing the technology sector within the S&P 500, briefly rose to a record $82.15 and was trading slightly higher in afternoon trading. Chip stocks “remain the thin edge of the cyclical rotation edge,” Fundstrat technical analyst Robert Sluymer said in a not


Michaela Rehle | ReutersBig cap technology stocks hit an all-time high Tuesday, aided by a rebounding semiconductor sector amid some signs of progress in the trade war between the U.S. and China. The Technology Select SPDR Fund ETF, XLK representing the technology sector within the S&P 500, briefly rose to a record $82.15 and was trading slightly higher in afternoon trading. Chip stocks “remain the thin edge of the cyclical rotation edge,” Fundstrat technical analyst Robert Sluymer said in a not
Technology stocks rise to their highest levels ever despite the trade war Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-23  Authors: patti domm
Keywords: news, cnbc, companies, technology, semiconductor, levels, market, rise, trade, highest, china, chip, huawei, sector, stocks, war, despite


Technology stocks rise to their highest levels ever despite the trade war

Michaela Rehle | Reuters

Big cap technology stocks hit an all-time high Tuesday, aided by a rebounding semiconductor sector amid some signs of progress in the trade war between the U.S. and China. The Technology Select SPDR Fund ETF, XLK representing the technology sector within the S&P 500, briefly rose to a record $82.15 and was trading slightly higher in afternoon trading. The XLK is up 4.6% month-to-date and 31.7% so far this year. The sector has been boosted by a recent rebound in chip stocks, which have been mostly rising since the beginning of June. The Philadelphia Semiconductor Index is up 10.9% in the past month, and 7.2% for the month of July so far. It is up 35.2% year-to-date. Chip stocks “remain the thin edge of the cyclical rotation edge,” Fundstrat technical analyst Robert Sluymer said in a note. “In contrast to defensive/safety groups, cyclicals, notably semis which we’ve focused on since early 2019, continue to show signs of emerging within longer-term cycles.” Semiconductor companies are squarely in the cross hairs of the trade war between the U.S. and China, and had been hurt earlier in the year because of trade friction and also steep earnings declines. Chip suppliers to Huawei have been in limbo, after the U.S. blacklisted the Chinese telecom company.

Chips are ‘tip of the sword’ in trade war

“The semiconductors themselves have been the tip of the sword for trying to feel how things have been going in the trade war, and it feels like yesterday was a pivot in that it feels like [the U.S.] will give some on Huawei if [China] begins to buy some soy beans,” said Art Hogan, chief market strategist at National Securities. Hogan said the stocks have been a barometer for the trade wars, and have been doing better since the G-20 meeting between President Donald Trump and China President Xi Jinping in late June. Trump agreed to requests by technology company officials visiting the White House Monday to help speed the process of licensing for certain product sales to Huawei. China has made moves to purchase U.S. agriculture products, in what is seen as a goodwill gesture. Face-to-face talks between the U.S. and China are expected to resume next week in China, according to sources. Two sources told CNBC that the White House is now looking at a longer timeline for the talks that could now take six months. “Basically, the tug of war, which is going on within the semiconductors… is the promise of the increased demand with the roll out of 5G, versus the drag from the escalation of trade tensions, especially in the month of May,” said Hogan. In May, trade negotiations hit a low and Trump put a new round of tariffs on China, knocking the wind out of the chip group and the broader market. J.P. Morgan analysts Tuesday said they now see potential for a surprise move higher in the chip sector. “Resumption of shipments to Huawei could be a source of upside though the situation remains fluid and we do not believe most suppliers are shipping products to Huawei at this time,” the analysts noted. But they pointed to the reports that said some U.S. suppliers may be able to obtain licenses to supply components to Huawai, where there is no national security threat. There have been other positive signals for the sector. On Sunday, Goldman Sachs analyst Mark Delaney told clients he has become more positive on global memory stocks. “We believe that Micron’s stock will trade more on memory pricing trends and intermediate term EPS expectations than FY20 earnings,” he wrote in a note. Goldman had been cautious on near-term fundamentals of memory chip companies because of excess inventory weighing on pricing in the near-term. Delaney said he believes that memory inventory is now being depleted more quickly than he expected, and he still expects production to fall below longer term demand growth in 2020. Also last week, Taiwan Semiconductor, seen as a bellwether, said it expects third quarter revenues to be 3% better than expected, and 5G should drive smartphone growth. Taiwan Semi is a major supplier to Apple, and its bullish comments were positive for chips in general but also Apple.

Cyclical rotation in stocks

Chris Verrone, technical analyst at Strategas, said he sees an interesting divergence within tech, as semis break out ahead of software. “The presumption is within what has been the best sector – technology, there are both defensive an cyclical components, semis being the most cyclical and software being the most defensive,” he said. “If it’s happening in the best sector like technology, we’re suspecting it’s going to start happening in other places.” It also could have implications for the broader market. “I think it signals that we are in the midst of some type of leadership shift away from the low volatility, defensive corner of the market and into the more pro-cyclical corners,” he said. “We’re starting to see it in other areas — banks are outperforming utilities and high beta stocks outperforming those with lower beta.” Verrone said the fact semiconductors have been moving, even with trade war fears, also makes a statement about the broader market. “Maybe it’s the markets way of saying that stuff doesn’t matter,” said Verrone. Separately, J.P. Morgan’s technical analyst Jason Hunter said the semiconductor stocks are the first of the cyclically sensitive groups he follows to break through key pattern resistance. “Since the group’s equity performance has had a decent correlation with global PMI data over the past two decades, the SOX Index has been a primary focus since the middle of 2018 when trade tensions increased and started to drive large divergences in global market performance,” he wrote. “The recent industry group outperformance versus the broad market potential restarts the bullish dynamic that dominated in the first quarter, but we need to see other cyclically sensitive markets follow along to build that confidence.” Some of the best performing components of the XLK in the past month have been chip names, like Western Digital, up 15.6%; Applied Materials, up 11.8%; Micron, up 20.5% and Lam Research, up 10.2%. Qualcomm, however is lower by 1.2% in the period.

Top gainers in XLK Technology SPDR ETF July 23


Company: cnbc, Activity: cnbc, Date: 2019-07-23  Authors: patti domm
Keywords: news, cnbc, companies, technology, semiconductor, levels, market, rise, trade, highest, china, chip, huawei, sector, stocks, war, despite


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Elizabeth Warren says the ‘warning lights are flashing’ for the next economic crash

Elizabeth Warren speaks at her campaign for the Democratic nomination for the 2020 United States presidential election during a Community Conversation at Prairie Winds Event Center in Orange City. Democratic presidential contender Sen. Elizabeth Warren warned on Monday that the next financial crisis is on its way. Whether it’s this year or next year, the odds of another economic downturn are high — and growing,” Warren wrote in a post on the blogging platform Medium. Citing a top economist, Warr


Elizabeth Warren speaks at her campaign for the Democratic nomination for the 2020 United States presidential election during a Community Conversation at Prairie Winds Event Center in Orange City. Democratic presidential contender Sen. Elizabeth Warren warned on Monday that the next financial crisis is on its way. Whether it’s this year or next year, the odds of another economic downturn are high — and growing,” Warren wrote in a post on the blogging platform Medium. Citing a top economist, Warr
Elizabeth Warren says the ‘warning lights are flashing’ for the next economic crash Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-22  Authors: tucker higgins
Keywords: news, cnbc, companies, warren, presidential, crash, flashing, trump, shock, odds, economic, sector, manufacturing, warning, increasing, lights, elizabeth, wrote


Elizabeth Warren says the 'warning lights are flashing' for the next economic crash

Elizabeth Warren speaks at her campaign for the Democratic nomination for the 2020 United States presidential election during a Community Conversation at Prairie Winds Event Center in Orange City.

Democratic presidential contender Sen. Elizabeth Warren warned on Monday that the next financial crisis is on its way.

“Warning lights are flashing. Whether it’s this year or next year, the odds of another economic downturn are high — and growing,” Warren wrote in a post on the blogging platform Medium.

The Massachusetts Democrat said that increasing household and corporate debt has left the economy on precarious footing. Citing a top economist, Warren wrote that a failure to raise the debt ceiling in September could be “more catastrophic” than the 2008 collapse of Lehman Brothers.

She also noted weakness in the manufacturing sector, putting the blame for its recent slowdown on President Donald Trump, who has tangled with China over trade. Despite Trump’s pledge to bring back manufacturing jobs, the sector is now in recession, she wrote, and wages for the industry lag the national average.

“The country’s economic foundation is fragile. A single shock could bring it all down. And the Trump Administration’s reckless behavior is increasing the odds of just such a shock,” Warren wrote.


Company: cnbc, Activity: cnbc, Date: 2019-07-22  Authors: tucker higgins
Keywords: news, cnbc, companies, warren, presidential, crash, flashing, trump, shock, odds, economic, sector, manufacturing, warning, increasing, lights, elizabeth, wrote


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

History shows it pays to buy Netflix for a quick trade after it plunges like this

A booming manufacturing report pokes another hole in the Fed’s… The Philadelphia Fed saw its primary gauge measuring the sector jump from 0.3 in June to 21.8, far better than Wall Street estimates of 5 and the highest in a year. Economyread more


A booming manufacturing report pokes another hole in the Fed’s… The Philadelphia Fed saw its primary gauge measuring the sector jump from 0.3 in June to 21.8, far better than Wall Street estimates of 5 and the highest in a year. Economyread more
History shows it pays to buy Netflix for a quick trade after it plunges like this Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-18  Authors: michael sheetz
Keywords: news, cnbc, companies, wall, buy, plunges, quick, saw, street, pokes, philadelphia, yeareconomyread, primary, shows, trade, history, pays, netflix, sector, measuring, report


History shows it pays to buy Netflix for a quick trade after it plunges like this

A booming manufacturing report pokes another hole in the Fed’s…

The Philadelphia Fed saw its primary gauge measuring the sector jump from 0.3 in June to 21.8, far better than Wall Street estimates of 5 and the highest in a year.

Economy

read more


Company: cnbc, Activity: cnbc, Date: 2019-07-18  Authors: michael sheetz
Keywords: news, cnbc, companies, wall, buy, plunges, quick, saw, street, pokes, philadelphia, yeareconomyread, primary, shows, trade, history, pays, netflix, sector, measuring, report


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post