Cramer on the sell-off: Negativity shouldn’t stop you from careful stock-picking

Pessimism among investors shouldn’t deter people from carefully buying shares of high-quality companies that have endured massive declines, CNBC’s Jim Cramer said Friday after a widespread sell-off in the stock market. But Cramer, a longtime stock-picker whose mantra is “there’s always a bull market somewhere,” urged investors “to think a little more long-term.” “We still have plenty of companies that are doing well and their stocks actually do get cheaper as they go lower,” he said on “Mad Mone


Pessimism among investors shouldn’t deter people from carefully buying shares of high-quality companies that have endured massive declines, CNBC’s Jim Cramer said Friday after a widespread sell-off in the stock market. But Cramer, a longtime stock-picker whose mantra is “there’s always a bull market somewhere,” urged investors “to think a little more long-term.” “We still have plenty of companies that are doing well and their stocks actually do get cheaper as they go lower,” he said on “Mad Mone
Cramer on the sell-off: Negativity shouldn’t stop you from careful stock-picking Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-14  Authors: elizabeth gurdus
Keywords: news, cnbc, companies, costco, stock, investors, johnson, stocks, stop, stockpicking, companies, mad, selloff, careful, shouldnt, cramer, negativity, adobe, money


Cramer on the sell-off: Negativity shouldn't stop you from careful stock-picking

Pessimism among investors shouldn’t deter people from carefully buying shares of high-quality companies that have endured massive declines, CNBC’s Jim Cramer said Friday after a widespread sell-off in the stock market.

On Thursday, survey results from the American Association of Individual Investors showed that pessimism among retail investors was at its worst in some 5½ years, a symptom of the market’s volatility in recent months.

But Cramer, a longtime stock-picker whose mantra is “there’s always a bull market somewhere,” urged investors “to think a little more long-term.”

“We still have plenty of companies that are doing well and their stocks actually do get cheaper as they go lower,” he said on “Mad Money.” “Unfortunately, this is one of those times where you enter the house of pain the moment you buy a stock.”

That means investors have to be exceedingly careful and choose their buys wisely, Cramer said, choosing the stocks of Adobe, Costco and Johnson & Johnson to illustrate his point.

“If you bought any of those stocks yesterday, you’d say, ‘Wow, that had to have been the worst financial decision I’ve ever made,'” he said after all three stocks closed dramatically lower. “Adobe and Costco must’ve had shortfalls. […] The J&J story about the company knowing about asbestos in talc? Dreadful.”

But stock-pickers who are open to a wider frame of reference for these stocks — say, several months rather than several weeks — might have an easier time rationalizing why these stocks look “cheap” here, Cramer explained.

“In reality, … Adobe reported a terrific quarter, but the stock had already run up dramatically. Same with Costco. People just assumed the numbers were bad, though, because the stock went down. There was no rigor to the process at all. In short, Adobe and Costco are broken stocks, but they’re not broken companies,” he said.

The “Mad Money” host even had a cautiously positive outlook for Johnson & Johnson, which he said would “come out OK,” though “not at first.”

All in all, negative sentiment shouldn’t deter investors from buying into shares of top-notch companies, as long as they’ve done their homework and are sure the pain is unwarranted, argued the “Mad Money” host.

“Sentiment is very negative here. Historically, that’s made for some good buys, for some excellent opportunities, but this time might be different,” he noted. “That said, even if the market keeps getting clobbered, some individual stocks have come down so far, so fast, that they’re now getting too cheap to ignore. It’s just that, right now, there aren’t very many of them.”


Company: cnbc, Activity: cnbc, Date: 2018-12-14  Authors: elizabeth gurdus
Keywords: news, cnbc, companies, costco, stock, investors, johnson, stocks, stop, stockpicking, companies, mad, selloff, careful, shouldnt, cramer, negativity, adobe, money


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Johnson & Johnson sell-off is ‘excessive’ in light of asbestos report, says Wells Fargo

The plunge in Johnson & Johnson’s stock price following a report suggesting the company knew about asbestos in its baby powder is overdone and “excessive,” Wells Fargo told clients Friday. Wells Fargo, which said it still believes J&J’s stock will outperform despite the allegation, said the selling based purely on the outcomes of any talc litigation is likely overstated. Johnson & Johnson offered the following statement in response to the Reuters report:”The Reuters article is one-sided, false a


The plunge in Johnson & Johnson’s stock price following a report suggesting the company knew about asbestos in its baby powder is overdone and “excessive,” Wells Fargo told clients Friday. Wells Fargo, which said it still believes J&J’s stock will outperform despite the allegation, said the selling based purely on the outcomes of any talc litigation is likely overstated. Johnson & Johnson offered the following statement in response to the Reuters report:”The Reuters article is one-sided, false a
Johnson & Johnson sell-off is ‘excessive’ in light of asbestos report, says Wells Fargo Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-14  Authors: thomas franck, justin sullivan, getty images
Keywords: news, cnbc, companies, wells, fargo, johnsons, johnson, litigation, light, selloff, cases, talc, asbestos, jj, billion, report, case, company, excessive


Johnson & Johnson sell-off is 'excessive' in light of asbestos report, says Wells Fargo

The plunge in Johnson & Johnson’s stock price following a report suggesting the company knew about asbestos in its baby powder is overdone and “excessive,” Wells Fargo told clients Friday.

Wells Fargo, which said it still believes J&J’s stock will outperform despite the allegation, said the selling based purely on the outcomes of any talc litigation is likely overstated.

“Based on prior high-profile product liability cases in drug and device sectors, we believe any potential settlement should be manageable for JNJ,” analyst Larry Biegelsen wrote Friday. “Even if all 11,700 talc cases settled for $280,000 per case (the highest per case settlement amount among the cases we’ve tracked), the total liability to JNJ would be $3.3 billion. With over $19 billion of cash and marketable securities at the end of the third quarter, we continue to see the talc litigation as manageable for the company.”

J&J shares sank as much as 11.9 percent on Friday after Reuters reported that the company knew for decades that its iconic talcum power contained asbestos. Reuters said its review showed that from 1971 to the early 2000s, J&J executives, mine managers, doctors and lawyers were aware the company’s raw talc and finished powders sometimes tested positive for small amounts of asbestos. Though the problem was discussed, it was never disclosed to regulators or the public, Reuters reported.

Johnson & Johnson offered the following statement in response to the Reuters report:

“The Reuters article is one-sided, false and inflammatory. Simply put, the Reuters story is an absurd conspiracy theory, in that it apparently has spanned over 40 years, orchestrated among generations of global regulators, the world’s foremost scientists and universities, leading independent labs, and J&J employees themselves,” the company said in a statement. “Johnson & Johnson’s baby powder is safe and asbestos-free.”

The Reuters report represents the latest in a string of talc-related headaches for the company, which prides itself on the safety and family-friendly reputation of its products.

A jury in St. Louis concluded in July that the consumer drugmaker should pay $4.69 billion in damages to 22 women and their families who brought a tort suit. Johnson & Johnson said it was “deeply disappointed” with the jury’s decision.

Citigroup analyst Amit Hazah noted that every court case decision that has been appealed has been overturned in Johnson & Johnson’s favor.

“While we want to steer clear of giving a strong prediction on the outcome of the ongoing talc litigation given its breadth and complexity, we do want to note that response from management,” Hazah wrote. We’d “highlight the robust cash generation capabilities of the company … the product category itself” makes up less than 0.02 percent of total J&J sales.


Company: cnbc, Activity: cnbc, Date: 2018-12-14  Authors: thomas franck, justin sullivan, getty images
Keywords: news, cnbc, companies, wells, fargo, johnsons, johnson, litigation, light, selloff, cases, talc, asbestos, jj, billion, report, case, company, excessive


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Huawei CFO arrest hits Asian tech stocks hard; broader markets sell-off as global rout continues

Technology stocks across the region were under pressure, including many Huawei partners and suppliers. Taiwan’s major tech names also struggled: Catcher Technology fell 9.89 percent, Taiwan Semiconductor was down 2.65 percent, Largan Precision lost 9.94 percent and iPhone assembler Hon Hai dropped 3.63 percent. “Huawei equipment is more widely used (than ZTE is) by carriers around the world, including in Europe and Africa,” they said. ZTE shares listed in Hong Kong were down 5.94 percent on the


Technology stocks across the region were under pressure, including many Huawei partners and suppliers. Taiwan’s major tech names also struggled: Catcher Technology fell 9.89 percent, Taiwan Semiconductor was down 2.65 percent, Largan Precision lost 9.94 percent and iPhone assembler Hon Hai dropped 3.63 percent. “Huawei equipment is more widely used (than ZTE is) by carriers around the world, including in Europe and Africa,” they said. ZTE shares listed in Hong Kong were down 5.94 percent on the
Huawei CFO arrest hits Asian tech stocks hard; broader markets sell-off as global rout continues Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-06  Authors: saheli roy choudhury, eustance huang, miguel candela, sopa images, lightrocket, getty images
Keywords: news, cnbc, companies, rout, continues, shares, stocks, fell, markets, hits, equipment, technology, major, tech, softbank, represents, selloff, hard, huawei, global, zte


Huawei CFO arrest hits Asian tech stocks hard; broader markets sell-off as global rout continues

Technology stocks across the region were under pressure, including many Huawei partners and suppliers.

Chipmaker Samsung tumbled 2.29 percent, Sunny Optical, which makes some of the lenses for Huawei phones, fell 5.47 percent and AAC Technologies declined 5.59 percent on the day. Chinasoft International, where Huawei is a strategic shareholder, dropped 11.71 percent.

Shares of Nikkei heavyweight SoftBank Group fell 4.93 percent. Last year, SoftBank and Huawei jointly demonstrated potential use of the next generation of high-speed mobile internet; SoftBank is taking its mobile unit public on Dec. 19.

The negative sentiment rippled through the broader Japanese tech sector, with shares of Tokyo Electron down 4.54 percent, Advantest falling 5.30 percent and TDK Corp dropping 6.64 percent.

Taiwan’s major tech names also struggled: Catcher Technology fell 9.89 percent, Taiwan Semiconductor was down 2.65 percent, Largan Precision lost 9.94 percent and iPhone assembler Hon Hai dropped 3.63 percent. Asia’s Apple suppliers, in general, saw Thursday declines.

Analysts at Jefferies pointed out that Huawei has a major global presence in various technology areas such as telecommunications equipment, semiconductors, smartphones and cloud computing. It also represents a major growth driver for many tech manufacturers.

Huawei’s Meng, who is the daughter of the company’s founder, faces extradition to the U.S., according to Canada’s Department of Justice.

While the arrest represents a new escalation in American efforts to hold Chinese companies accountable for violation of U.S. laws, it is likely to elicit an angry reaction from Beijing, according to Eurasia Group.

“The investigation of Huawei could be a prelude to further action against the firm and its senior officials,” the Eurasia Group analysts said, adding that if the U.S. places a sudden ban on Huawei equipment, like it did with ZTE, the impact would be much greater.

“Huawei equipment is more widely used (than ZTE is) by carriers around the world, including in Europe and Africa,” they said.

ZTE shares listed in Hong Kong were down 5.94 percent on the day.

Both Huawei and ZTE are restricted from selling telecoms equipment in the U.S. due to what the U.S. describes as national security concerns.


Company: cnbc, Activity: cnbc, Date: 2018-12-06  Authors: saheli roy choudhury, eustance huang, miguel candela, sopa images, lightrocket, getty images
Keywords: news, cnbc, companies, rout, continues, shares, stocks, fell, markets, hits, equipment, technology, major, tech, softbank, represents, selloff, hard, huawei, global, zte


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US market sell-off set to continue as Dow futures fall

U.S. stock futures opened lower Wednesday amid lingering anxiety about a possible economic slowdown and continued murkiness around trade relations with China. On Wednesday evening, futures initially indicated that the Dow Jones Industrial Average would open 400 points lower. Dow futures fell as much as 486 points at their lows. As of 2:24 a.m., ET Thursday, the futures indicated that the Dow would open 259.07 points lower on Thursday. Over the weekend, U.S. President Donald Trump met with Chines


U.S. stock futures opened lower Wednesday amid lingering anxiety about a possible economic slowdown and continued murkiness around trade relations with China. On Wednesday evening, futures initially indicated that the Dow Jones Industrial Average would open 400 points lower. Dow futures fell as much as 486 points at their lows. As of 2:24 a.m., ET Thursday, the futures indicated that the Dow would open 259.07 points lower on Thursday. Over the weekend, U.S. President Donald Trump met with Chines
US market sell-off set to continue as Dow futures fall Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-05  Authors: christine wang, eustance huang, brendan mcdermid
Keywords: news, cnbc, companies, fall, points, open, dow, futures, president, xi, trade, continue, yield, selloff, lower, market, set


US market sell-off set to continue as Dow futures fall

U.S. stock futures opened lower Wednesday amid lingering anxiety about a possible economic slowdown and continued murkiness around trade relations with China.

On Wednesday evening, futures initially indicated that the Dow Jones Industrial Average would open 400 points lower. Dow futures fell as much as 486 points at their lows. As of 2:24 a.m., ET Thursday, the futures indicated that the Dow would open 259.07 points lower on Thursday.

The New York Stock Exchange, Nasdaq and U.S. Treasury market were closed Wednesday as the nation remembered former president George H.W. Bush.

On Tuesday, the Dow Jones Industrial Average shed nearly 800 points in its largest decline since Oct. 10.

On Monday, the yield on the three-year Treasury note surpassed its five-year counterpart. That bond-market phenomenon, known as a yield-curve inversion, is seen as a recession signal. But typically the recession doesn’t come until years after and many traders won’t see the inversion as official until the two-year yield rises above the 10-year yield.

Investors remain uncertain about the prospects of a permanent trade deal with China. Over the weekend, U.S. President Donald Trump met with Chinese President Xi Jinping to discuss ongoing trade quarrels between their two countries. While the White House has said it has worked out a cease-fire with Beijing, discrepancies in messaging haven’t assuaged market fears of uncertainty.

“Unfortunately until we get new news the market continues to be a caldron of concerns causing caution with investors,” said Art Hogan, B. Riley FBR’s chief market strategist. “With the combination of he said Xi said on China trade, a fear of an economic slowdown in 2019, and the slow trickle of Mueller investigation reports coming out, it is not at all surprising to see a buyer’s strike in the after hours market.”

Still, Hogan added, there will be a “plethora of data as Markets open on Thursday and on Friday with the jobs report that might turn the tide of negative sentiment.” But until then, he said, “we are stuck in a news vacuum and most of the news that we do have leans to the negative.”

—CNBC’s Fred Imbert and Tom Franck contributed to this report.


Company: cnbc, Activity: cnbc, Date: 2018-12-05  Authors: christine wang, eustance huang, brendan mcdermid
Keywords: news, cnbc, companies, fall, points, open, dow, futures, president, xi, trade, continue, yield, selloff, lower, market, set


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PayPal just entered a correction, but one trader bets the stock could see a huge year-end rally

A sell-off on Tuesday sent the stock spiraling into a correction, having fallen more than 10 percent from its 52-week highs. “The stock has hung in extremely well in this period of volatility,” Gordon said on CNBC’s “Trading Nation” on Tuesday. So far this year, PayPal has risen 14 percent, far better than the 1 percent advance on the S&P 500. PayPal moved above $88 earlier this week but then moved back below $85 during Tuesday’s sell-off. In this trade structure he is targeting a move up to tha


A sell-off on Tuesday sent the stock spiraling into a correction, having fallen more than 10 percent from its 52-week highs. “The stock has hung in extremely well in this period of volatility,” Gordon said on CNBC’s “Trading Nation” on Tuesday. So far this year, PayPal has risen 14 percent, far better than the 1 percent advance on the S&P 500. PayPal moved above $88 earlier this week but then moved back below $85 during Tuesday’s sell-off. In this trade structure he is targeting a move up to tha
PayPal just entered a correction, but one trader bets the stock could see a huge year-end rally Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-05  Authors: keris lahiff, jaap arriens, nurphoto, getty images, adam jeffery, brendan mcdermid, kcna, thomas barwick getty images, source, lawrence mcdonald
Keywords: news, cnbc, companies, entered, yearend, rally, correction, bets, 88, roughly, paypal, huge, retest, support, trader, stock, selloff, usually, level, 92


PayPal just entered a correction, but one trader bets the stock could see a huge year-end rally

PayPal investors are checking out.

A sell-off on Tuesday sent the stock spiraling into a correction, having fallen more than 10 percent from its 52-week highs.

Todd Gordon, founder of TradingAnalysis.com, says the stock’s resilience has him betting on a breakout.

“The stock has hung in extremely well in this period of volatility,” Gordon said on CNBC’s “Trading Nation” on Tuesday.

So far this year, PayPal has risen 14 percent, far better than the 1 percent advance on the S&P 500.

While the stock has come under pressure recently, it has managed to hold key support levels on the way to breaking through resistance, says Gordon.

“We’ve held the 50-week moving average. You can see that has been key support on several occasions, and it looks like this time is no different and we should be able to go up and retest these old highs,” he said.

“We just did a nice double bottom here into the $76 level, and the stock has just come springing back into the $88 level,” a price it has tested three times, he said. “Usually when a stock tests a level on the third or fourth time, usually there’s enough conviction in the direction of that trend, which is up, to punch it through.”

PayPal moved above $88 earlier this week but then moved back below $85 during Tuesday’s sell-off. It is a 4.5 percent rally away from securing $88 again.

“What we’re looking to do here is take advantage of just a short-term $4 move here in PayPal. From $88 I like to get up towards about $92, just to retest those old highs,” he said.

Gordon is buying the $88 call and selling the $92 call with a Jan. 4 expiration. That $4 spread costs roughly $1.70. In this trade structure he is targeting a move up to that $92 level, roughly 9 percent higher from where it closed on Tuesday.


Company: cnbc, Activity: cnbc, Date: 2018-12-05  Authors: keris lahiff, jaap arriens, nurphoto, getty images, adam jeffery, brendan mcdermid, kcna, thomas barwick getty images, source, lawrence mcdonald
Keywords: news, cnbc, companies, entered, yearend, rally, correction, bets, 88, roughly, paypal, huge, retest, support, trader, stock, selloff, usually, level, 92


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This sell-off was caused by a computer-driven ‘footrace,’ Jim Cramer says

As CNBC’s Jim Cramer watched stocks nosedive in Tuesday’s trading session, one thing became abundantly clear to the longtime market-watcher: it “was all about the rise of the machines.” Cramer, host of “Mad Money,” drew a comparison with football. “Here’s the problem: there are now so many hedge funds using the same algorithm, same programs [that] there simply aren’t enough investors willing to take the other side of the trade. If we all know that stocks go down on certain triggers, then who the


As CNBC’s Jim Cramer watched stocks nosedive in Tuesday’s trading session, one thing became abundantly clear to the longtime market-watcher: it “was all about the rise of the machines.” Cramer, host of “Mad Money,” drew a comparison with football. “Here’s the problem: there are now so many hedge funds using the same algorithm, same programs [that] there simply aren’t enough investors willing to take the other side of the trade. If we all know that stocks go down on certain triggers, then who the
This sell-off was caused by a computer-driven ‘footrace,’ Jim Cramer says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-04  Authors: elizabeth gurdus
Keywords: news, cnbc, companies, hedge, caused, cramer, computerdriven, programs, money, footrace, funds, rates, sold, jim, market, stocks, selloff, trading


This sell-off was caused by a computer-driven 'footrace,' Jim Cramer says

As CNBC’s Jim Cramer watched stocks nosedive in Tuesday’s trading session, one thing became abundantly clear to the longtime market-watcher: it “was all about the rise of the machines.”

The major averages all fell more than 2 percent as a possible slowdown signal in the bond market and lingering trade fears rattled investors. The Dow Jones Industrial Average fell more than 800 points intraday.

Some attributed the dramatic declines to a lack of buyers, but Cramer already knew the culprits: complex algorithmic programs set up by professional money managers to sell when the odds of future market losses increase.

In other words, when an event that often precedes a recession occurs — in Tuesday’s case, short-term interest rates trading above long-term rates in a so-called yield curve inversion — some trading algorithms will automatically begin selling securities because the chances of an economic slowdown just got higher.

Cramer, host of “Mad Money,” drew a comparison with football. Some plays can seem very risky, but when you consider the percentage chances of them going right, there’s no choice but to implement them in the field. These programs make the same kind of calculation.

So, when the two-year and the five-year yield curves inverted on Tuesday, some hedge funds’ programs automatically sold the S&P 500, which tends to fall in times of economic weakness, and others automatically sold shares of the big banks, which suffer when long-term rates are lower, Cramer said.

“Why? Because historically, this situation has produced negative results for the bank stocks and these hedge funds are trying to get out ahead of others who fear those negative results but just don’t know they’re going to fear them. It’s a footrace,” he explained. “This curve, as they call it, overrides whatever you hear about good employment or consumer balance sheets or robust lending. It’s predictive.”

Worse, the charts are signaling more pain ahead: based on Cramer’s analysis, many hedge funds likely sold the S&P 500 when it dipped below its 200-day moving average because, in the past, that move tended to bring more downside.

“Here’s the problem: there are now so many hedge funds using the same algorithm, same programs [that] there simply aren’t enough investors willing to take the other side of the trade. If we all know that stocks go down on certain triggers, then who the heck would want to buy stocks?” Cramer said.

“That’s how you get a day like today, where the market goes into free-fall,” the “Mad Money” host continued. “When the percentages are against you and the algorithms are in charge, … nobody wants to try to be a hero and bet against them.”


Company: cnbc, Activity: cnbc, Date: 2018-12-04  Authors: elizabeth gurdus
Keywords: news, cnbc, companies, hedge, caused, cramer, computerdriven, programs, money, footrace, funds, rates, sold, jim, market, stocks, selloff, trading


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November jobs report could spark a major market sell-off: Invesco

A looming risk in next jobs report could tear into stocks, Invesco warns 3:49 PM ET Thu, 29 Nov 2018 | 02:04Invesco’s Kristina Hooper is concerned Wall Street is ignoring a major risk: Wage growth. But it may reclaim the spotlight as soon as Friday when the government releases its November jobs report. It cares about core inflation,” the firm’s chief global market strategist said Thursday on CNBC’s “Futures Now.” Hooper predicted trouble if wage growth mounts, because Wall Street uses it to dete


A looming risk in next jobs report could tear into stocks, Invesco warns 3:49 PM ET Thu, 29 Nov 2018 | 02:04Invesco’s Kristina Hooper is concerned Wall Street is ignoring a major risk: Wage growth. But it may reclaim the spotlight as soon as Friday when the government releases its November jobs report. It cares about core inflation,” the firm’s chief global market strategist said Thursday on CNBC’s “Futures Now.” Hooper predicted trouble if wage growth mounts, because Wall Street uses it to dete
November jobs report could spark a major market sell-off: Invesco Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-02  Authors: stephanie landsman, spencer platt, getty images, ludovic marin, afp, michael nagle, bloomberg, mathew lloyd, david a grogan
Keywords: news, cnbc, companies, market, wall, growth, spark, jobs, invesco, risk, selloff, hooper, wage, fed, inflation, major, report, street


November jobs report could spark a major market sell-off: Invesco

A looming risk in next jobs report could tear into stocks, Invesco warns 3:49 PM ET Thu, 29 Nov 2018 | 02:04

Invesco’s Kristina Hooper is concerned Wall Street is ignoring a major risk: Wage growth. But it may reclaim the spotlight as soon as Friday when the government releases its November jobs report.

Hooper believes if the number ticks up too high, it could hint at price pressures that may shift the Federal Reserve’s thinking on rates, and ultimately disrupt the bull market even more.

“Many have said we don’t have to worry about inflation right now because look at where oil prices are. That’s taking pressure off markets. But as we know, the Fed doesn’t care about headline inflation. It cares about core inflation,” the firm’s chief global market strategist said Thursday on CNBC’s “Futures Now.”

The Labor Department reported in October wages and salaries grew 3.1 percent in the third quarter — the biggest increase in a decade. Hooper predicted trouble if wage growth mounts, because Wall Street uses it to determine whether inflation is picking up momentum.

“It means that the Fed has less flexibility to take its foot off the accelerator” on rate hikes, said Hooper.


Company: cnbc, Activity: cnbc, Date: 2018-12-02  Authors: stephanie landsman, spencer platt, getty images, ludovic marin, afp, michael nagle, bloomberg, mathew lloyd, david a grogan
Keywords: news, cnbc, companies, market, wall, growth, spark, jobs, invesco, risk, selloff, hooper, wage, fed, inflation, major, report, street


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Ditch cyclical for tech, health-care stocks going into ‘weaker’ 2019: Credit Suisse

“You don’t want to be in cyclical stocks going into next year, because I think the economy is going to be weaker,” he said on “Fast Money.” “We upgraded health care because in an environment where you have slightly weaker growth — again, not recessionary, slightly weaker — you buy stuff like that,” Golub said. He also has more confidence in tech stocks. He argued that October’s sell-off, which ravaged tech companies, was a “technical sell-off” that was less about fundamentals and more about posi


“You don’t want to be in cyclical stocks going into next year, because I think the economy is going to be weaker,” he said on “Fast Money.” “We upgraded health care because in an environment where you have slightly weaker growth — again, not recessionary, slightly weaker — you buy stuff like that,” Golub said. He also has more confidence in tech stocks. He argued that October’s sell-off, which ravaged tech companies, was a “technical sell-off” that was less about fundamentals and more about posi
Ditch cyclical for tech, health-care stocks going into ‘weaker’ 2019: Credit Suisse Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-28  Authors: tyler clifford
Keywords: news, cnbc, companies, ditch, 2019, cyclical, think, golub, higher, stocks, going, credit, weaker, healthcare, slightly, tech, selloff, suisse


Ditch cyclical for tech, health-care stocks going into 'weaker' 2019: Credit Suisse

Stocks are heading higher, but you better tweak your portfolio, says Credit Suisse 6 Hours Ago | 05:44

The stock market is headed higher but investors should make some changes in their portfolios to accommodate shifts in the landscape, Credit Suisse chief equity strategist Jonathan Golub told CNBC on Wednesday.

“You don’t want to be in cyclical stocks going into next year, because I think the economy is going to be weaker,” he said on “Fast Money.”

In fact, he just downgraded industrials and materials. “I think growth wins again.”

Cyclical stocks, which include companies that sell discretionary products, tend to not do as well when the economy slows because consumers turn away from them. Consumer staples, on the other hand, usually maintain demand.

“We upgraded health care because in an environment where you have slightly weaker growth — again, not recessionary, slightly weaker — you buy stuff like that,” Golub said.

He also has more confidence in tech stocks. He argued that October’s sell-off, which ravaged tech companies, was a “technical sell-off” that was less about fundamentals and more about positioning.

“In the near term, I think that tech is going to bounce very hard,” Golub said.

Disclaimer


Company: cnbc, Activity: cnbc, Date: 2018-11-28  Authors: tyler clifford
Keywords: news, cnbc, companies, ditch, 2019, cyclical, think, golub, higher, stocks, going, credit, weaker, healthcare, slightly, tech, selloff, suisse


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Cramer: Volatility charts suggest now is the time to buy into stocks

After inspecting the charts of the Cboe Volatility Index — a market measure sometimes referred to as the “fear gauge” or the VIX — volatility expert Mark Sebastian thinks that the market could soon exit its bearish phase. But Sebastian, an expert in market panic, the founder of OptionPit.com and a colleague of CNBC’s Jim Cramer at RealMoney.com, told Cramer on Tuesday that the VIX’s charts suggest the worry among investors has subsided. “[The] charts … suggest that it’s time to start doing som


After inspecting the charts of the Cboe Volatility Index — a market measure sometimes referred to as the “fear gauge” or the VIX — volatility expert Mark Sebastian thinks that the market could soon exit its bearish phase. But Sebastian, an expert in market panic, the founder of OptionPit.com and a colleague of CNBC’s Jim Cramer at RealMoney.com, told Cramer on Tuesday that the VIX’s charts suggest the worry among investors has subsided. “[The] charts … suggest that it’s time to start doing som
Cramer: Volatility charts suggest now is the time to buy into stocks Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-27  Authors: elizabeth gurdus
Keywords: news, cnbc, companies, vix, cramer, money, selloff, sp, investors, suggest, charts, buy, stocks, volatility, sebastian, right, market


Cramer: Volatility charts suggest now is the time to buy into stocks

After inspecting the charts of the Cboe Volatility Index — a market measure sometimes referred to as the “fear gauge” or the VIX — volatility expert Mark Sebastian thinks that the market could soon exit its bearish phase.

Stocks have been trading choppily since early October, mainly on uncertainty surrounding the Trump administration’s tariff policy and the Federal Reserve’s plans for raising interest rates. The declines, led largely by shares of big-cap technology companies that reported earnings that Wall Street saw as underwhelming, have caused panic in the market.

But Sebastian, an expert in market panic, the founder of OptionPit.com and a colleague of CNBC’s Jim Cramer at RealMoney.com, told Cramer on Tuesday that the VIX’s charts suggest the worry among investors has subsided.

“[The] charts … suggest that it’s time to start doing some buying,” Cramer said on “Mad Money.” “[Sebastian] thinks you might not get another chance as good as this one for the rest of 2018. I don’t know if he’s right, but don’t you find it heartening when you consider how right Sebastian’s been in the past?”

In October, when stocks found some reprieve after a week of selling, Sebastian predicted that the pain wasn’t over yet, noting that the VIX’s peak doesn’t always coincide with the market’s real bottom. He was right, and the sell-off continued. It was only over when, three days later, the S&P 500 made its lowest low yet, but the VIX failed to make a higher high.

That trend is a cornerstone of Sebastian’s theory about the market’s current situation, Cramer said.

“Markets can indeed fall without the VIX rallying, albeit only for short periods of time,” he explained.

The reason is actually quite simple, according to Sebastian. Based on past sell-offs, like the ones seen in this chart of the S&P and the VIX in 2018, investors eventually get jaded enough that they stop hedging against market swings. That leads them to stop buying S&P options, sending the VIX — which tracks S&P option prices to measure implied volatility — lower.

This chart shows the VIX spiking during the first sell-off of 2018 in February, then essentially brushing off the second leg down in March, Cramer noted. That pattern repeats itself on a smaller scale in October and November.

“The sell-off in October blindsided a lot of people. The sell-off in the last couple of weeks blindsided nobody. Even investors who thought we were ready to rally knew that there was another down-leg possibility,” Cramer explained. “When the VIX and the S&P start behaving like this, Sebastian says it’s almost always a sign that the stock market is actually trying to find a bottom.”

Pairing that with the action of the Cboe VIX Volatility Index — a derivative of the VIX that has been dropping in recent days — Sebastian saw “an incredible sign” that a bottom may be at hand, the “Mad Money” host said.

When the VVIX is in free-fall, it means that money managers who bet on the action of the VIX itself think that volatility will go down, not up, Sebastian said. That means that the likelihood of dramatic market swings is, in their view, getting lower.

“Maybe the VIX is signalling that the Fed might be in one-and-wait mode — one rate hike and then wait and see — or that the president may actually have something positive up his sleeve when he has dinner with the Chinese president this weekend,” Cramer said. “Stranger things have happened, and if they do, the bear might finally, at last, hibernate.”

Stocks ended the day higher on renewed hope of a trade deal between the United States and China being made at this week’s G-20 summit. The VIX ticked up slightly to just above 19.


Company: cnbc, Activity: cnbc, Date: 2018-11-27  Authors: elizabeth gurdus
Keywords: news, cnbc, companies, vix, cramer, money, selloff, sp, investors, suggest, charts, buy, stocks, volatility, sebastian, right, market


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Hedge-fund veteran who called recent rout says selling is just getting started

The stock market sell-off is far from over, hedge-fund veteran Mark Yusko told CNBC on Tuesday. The volatile market has seen indexes hit lows not seen in years. During the October sell-off, Yusko said the downward momentum has started. One place is emerging markets, which are “really, really cheap.” They have “great cash flows, rising volumes, great yields,” Yusko said.


The stock market sell-off is far from over, hedge-fund veteran Mark Yusko told CNBC on Tuesday. The volatile market has seen indexes hit lows not seen in years. During the October sell-off, Yusko said the downward momentum has started. One place is emerging markets, which are “really, really cheap.” They have “great cash flows, rising volumes, great yields,” Yusko said.
Hedge-fund veteran who called recent rout says selling is just getting started Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-27  Authors: michelle fox
Keywords: news, cnbc, companies, selling, yusko, seen, market, selloff, morgan, called, rout, recent, investment, started, getting, veteran, going, great, really, hedgefund, think


Hedge-fund veteran who called recent rout says selling is just getting started

The stock market sell-off is far from over, hedge-fund veteran Mark Yusko told CNBC on Tuesday.

In fact, he sees a “long path” down between now and 2020.

“This year is going to continue to melt slowly, like a melting ice cube. I think next year, with the economic slowdown, it gets worse — probably double-digit drawdown. The big year is 2020, when the credit bubble starts to blow up,” he said on “Fast Money.”

Yusko is the founder, CEO and chief investment officer of Morgan Creek Capital. The firm is a privately owned investment advisor that provides services to institutional clients as well as pension plans, endowments, foundations and family offices.

“Every company has binged on cheap debt. They’ve over-levered,” Yusko added. “We are going to see a lot of defaults, just like 2002 with Enron and Worldcom. I think it’s going to get ugly.”

U.S. equities are heading to the end of the year with the possibility of ending in negative territory. The S&P 500 is up just 0.32 percent for the year, as of Tuesday’s close.

The volatile market has seen indexes hit lows not seen in years. Stocks had their worst Thanksgiving week since 2011, and in October the Dow Jones Industrial Average ended down 5.1 percent for the month, its biggest one-month fall since January 2016.

During the October sell-off, Yusko said the downward momentum has started. “You’re seeing all the sectors start to roll over one by one,” he said at the time. “It is really hard to make a bullish case at this point.”

However, there are places to hide, he said Tuesday. One place is emerging markets, which are “really, really cheap.” Another is master limited partnerships, or MLPs. They have “great cash flows, rising volumes, great yields,” Yusko said.

He also loves bitcoin long-term. Morgan Creek rolled out a cryptocurrency fund in August.

Disclaimer


Company: cnbc, Activity: cnbc, Date: 2018-11-27  Authors: michelle fox
Keywords: news, cnbc, companies, selling, yusko, seen, market, selloff, morgan, called, rout, recent, investment, started, getting, veteran, going, great, really, hedgefund, think


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