European markets slip amid fears of global growth slowdown; UK retailer Asos down 36%

In terms of stocks, retail was down the most, by more than 1 percent. UK retail stocks are making heavy losses on Monday, with Asos down 34 percent, Next down 8 percent, Marks & Spencer down 4.6 percent Boohoo shares down 19.4 percent. On Monday, Asos cut its annual sales growth and profit margin forecasts, becoming the latest British retailer to highlight very poor November trading. On Friday, China reported weaker-than-expected retail sales data, growing at its weakest pace since November 2003


In terms of stocks, retail was down the most, by more than 1 percent. UK retail stocks are making heavy losses on Monday, with Asos down 34 percent, Next down 8 percent, Marks & Spencer down 4.6 percent Boohoo shares down 19.4 percent. On Monday, Asos cut its annual sales growth and profit margin forecasts, becoming the latest British retailer to highlight very poor November trading. On Friday, China reported weaker-than-expected retail sales data, growing at its weakest pace since November 2003
European markets slip amid fears of global growth slowdown; UK retailer Asos down 36% Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-17  Authors: spriha srivastava
Keywords: news, cnbc, companies, concerns, global, slowdown, week, sales, uk, fears, near, margin, slip, growth, stocks, european, asos, retail, markets, retailer, turmoil


European markets slip amid fears of global growth slowdown; UK retailer Asos down 36%

In terms of stocks, retail was down the most, by more than 1 percent. UK retail stocks are making heavy losses on Monday, with Asos down 34 percent, Next down 8 percent, Marks & Spencer down 4.6 percent Boohoo shares down 19.4 percent.

On Monday, Asos cut its annual sales growth and profit margin forecasts, becoming the latest British retailer to highlight very poor November trading. ASOS lowered its sales growth forecast for the 2018-19 year to 15 percent from 20-25 percent previously and cut its earnings before interest and tax (EBIT) margin target for the year to around 2 percent from 4 percent.

Meanwhile, basic resources found itself at the top of the best performing stocks, up 0.8 percent.

Market focus is largely attuned to concerns surrounding cooling global growth after soft economic data from China and Europe in the last week added further concerns. On Friday, China reported weaker-than-expected retail sales data, growing at its weakest pace since November 2003.

Stocks in Asia mostly traded higher trade on Monday following a report suggesting further turmoil for the markets in 2019.

The Bank of International Settlements (BIS), an umbrella group for the world’s central banks, said on Sunday that recent market tensions are a sign of more turmoil to come. It warned that a normalization of monetary policy is likely to trigger a flurry of sharp sell-offs in the near future.

Meanwhile, sterling hovered near its 20-month low touched last week, concerns that Britain was headed for a chaotic exit from the European Union increased.

Britain has just over 100 days to leave the bloc on March 29 and chances of a no-deal or a chaotic Brexit deal have gone up after strong oppositions to Prime Minister Theresa May’s draft deal.


Company: cnbc, Activity: cnbc, Date: 2018-12-17  Authors: spriha srivastava
Keywords: news, cnbc, companies, concerns, global, slowdown, week, sales, uk, fears, near, margin, slip, growth, stocks, european, asos, retail, markets, retailer, turmoil


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Asian stocks broadly higher as investors look to key US, China policy events

Stocks in Asia were mostly higher on Monday following a report suggesting further turmoil for the markets in 2019. The mainland Chinese markets were mixed by the end of their trading day after the country reported lower than expected economic datalast Friday. The Shanghai composite rose 0.16 percent to close at around 2,597.97 while the Shenzhen composite declined by 0.309 percent to end the trading day at about 1,323.31. One investor told CNBC’s “Squawk Box” on Monday that the bargain hunting f


Stocks in Asia were mostly higher on Monday following a report suggesting further turmoil for the markets in 2019. The mainland Chinese markets were mixed by the end of their trading day after the country reported lower than expected economic datalast Friday. The Shanghai composite rose 0.16 percent to close at around 2,597.97 while the Shenzhen composite declined by 0.309 percent to end the trading day at about 1,323.31. One investor told CNBC’s “Squawk Box” on Monday that the bargain hunting f
Asian stocks broadly higher as investors look to key US, China policy events Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-17  Authors: eustance huang
Keywords: news, cnbc, companies, chinese, shares, investors, broadly, higher, key, close, bank, day, losses, look, stocks, events, asian, trading, banks, markets, china, policy


Asian stocks broadly higher as investors look to key US, China policy events

Stocks in Asia were mostly higher on Monday following a report suggesting further turmoil for the markets in 2019.

Investors were setting their sights on key policy meetings in the coming week — ahead of the U.S. Federal Reserve’s upcoming interest rate meeting and as China on Tuesday marks the 40th anniversary of the country’s reforms under former leader Deng Xiaoping.

President Xi Jinping is expected to deliver a major speech on Monday. It comes as Beijing’s trade war with Washington spurs government advisors and think tanks to urge for urgent reforms in Asia’s largest economy.

The mainland Chinese markets were mixed by the end of their trading day after the country reported lower than expected economic datalast Friday. The Shanghai composite rose 0.16 percent to close at around 2,597.97 while the Shenzhen composite declined by 0.309 percent to end the trading day at about 1,323.31.

One investor told CNBC’s “Squawk Box” on Monday that the bargain hunting for Chinese shares has already started.

“Over the next few months, if there were to be any more weakness in the Chinese market, we think that there will be more investors coming in to buy,” said Khiem Do, head of Greater China investments at Barings. “The Chinese markets are actually quite cheap.”

Meanwhile, Hong Kong’s Hang Seng index was slightly higher in its final hour of trade.

In Japan, the Nikkei 225 rose 0.62 percent to close at 21,506.88 while the Topix index saw gains of 0.13 percent to finish the trading day at 1,594.20. Shares of conglomerate Softbank recovered from earlier losses during the session to gain 0.52 percent ahead of the anticipated public listing of its mobile unit on Dec. 19.

South Korea’s Kospi closed fractionally higher at 2,071.09.

Australia’s ASX 200 saw gains of 1 percent to close at 5,658.3, with almost all sectors in positive territory.

The heavily-weighted financial subindex, however, slipped 0.11 percent, with shares of Australia’s so-called Big Four banks mostly seeing losses. Australia and New Zealand Banking Group dropped 1.57 percent, Westpac shed 0.92 percent and National Australia Bank slipped 0.59 percent. Commonwealth Bank of Australia, on the other hand, recovered from earlier losses to rise 0.65 percent.

“The ‘Santa Rally’ which had been hoped for has proven to be frustratingly elusive; and now markets are quite happy, if not desperate, for at least a dovish line to be thrown by the FOMC (and other global central banks),” said Mizuho Bank in a note on Monday, in reference to the U.S. central bank’s upcoming Federal Open Market Committee meeting on Dec. 18 and 19.


Company: cnbc, Activity: cnbc, Date: 2018-12-17  Authors: eustance huang
Keywords: news, cnbc, companies, chinese, shares, investors, broadly, higher, key, close, bank, day, losses, look, stocks, events, asian, trading, banks, markets, china, policy


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Hong Kong stocks stuck between a ‘rock and a hard place’ for 2019

Hong Kong stocks are closing out a rough year and the outlook for 2019 remains largely negative, according to analysts and investors. “I would say it’s between a rock and a hard place,” Hao Hong, managing director and head of research at BOCOM International in Hong Kong, told CNBC earlier this month about the outlook for the market. Hong Kong, a semi-autonomous former British colony over which Beijing resumed control in 1997, is a major trade and financial services hub vulnerable to the whims of


Hong Kong stocks are closing out a rough year and the outlook for 2019 remains largely negative, according to analysts and investors. “I would say it’s between a rock and a hard place,” Hao Hong, managing director and head of research at BOCOM International in Hong Kong, told CNBC earlier this month about the outlook for the market. Hong Kong, a semi-autonomous former British colony over which Beijing resumed control in 1997, is a major trade and financial services hub vulnerable to the whims of
Hong Kong stocks stuck between a ‘rock and a hard place’ for 2019 Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-15  Authors: kelly olsen
Keywords: news, cnbc, companies, place, vulnerable, outlook, 2019, market, stuck, trade, rock, hong, stocks, financial, hard, economy, china, growth, kong


Hong Kong stocks stuck between a 'rock and a hard place' for 2019

Hong Kong stocks are closing out a rough year and the outlook for 2019 remains largely negative, according to analysts and investors.

Headwinds from a weakening economy in China, the Beijing-Washington trade war, concerns about signs of emerging U.S. weakness and an expected slowdown in local initial public offerings after a banner 2018 are seen as likely to weigh on the market.

The benchmark Hang Seng Index closed Friday at 26,094.79, down about 13 percent for the year as the end of 2018 approaches. It has slumped some 22 percent from its peak of 33,484.08 on Jan. 29.

“I would say it’s between a rock and a hard place,” Hao Hong, managing director and head of research at BOCOM International in Hong Kong, told CNBC earlier this month about the outlook for the market.

Hong cited the expectation of a broad slowdown in China’s economy during the first half combined with volatility on Wall Street in the U.S., where less aggressive interest rate hikes by the Federal Reserve underscore worries growth in the world’s largest economy is waning.

Hong said the Hang Seng is clearly in the process of finding a bottom, but added: “I don’t think people should be hoping for a V-shaped rebound in the market.”

Hong Kong, a semi-autonomous former British colony over which Beijing resumed control in 1997, is a major trade and financial services hub vulnerable to the whims of larger economies, given its proximity to China and the Hong Kong dollar’s peg to the U.S. currency.

“Hong Kong … is vulnerable to further escalating U.S.-China trade tensions, possible disorderly tightening of global financial conditions, slower-than-expected growth in Mainland China, and a sharp housing market correction,” the International Monetary Fund said in a statement last week at the conclusion of regular consultations with local authorities.

Citi, in a report dated Dec. 5, said it expects Hong Kong banks to underperform the broader market next year as weak credit demand suppresses earnings and on concern over potential for capital outflows.

Ronald Wan, non-executive chairman at Partners Financial Holdings, suggested that a breakthrough in the tariff conflict in the form of China opening up key business sectors to meet U.S. demands is unlikely, while China’s economic growth is set to slow.

“I think the market will be even more challenging,” he said on Dec. 6 of next year’s outlook for Hong Kong.


Company: cnbc, Activity: cnbc, Date: 2018-12-15  Authors: kelly olsen
Keywords: news, cnbc, companies, place, vulnerable, outlook, 2019, market, stuck, trade, rock, hong, stocks, financial, hard, economy, china, growth, kong


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Cramer Remix: Adobe and Costco are broken stocks, not broken companies

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.” That means investors have to be exceedingly careful and choose their buys wisely, the “Mad Money” host said, choosing the stocks of Adobe, Costco and Johnson & Johnson to illustrate his point. “Adobe and Costco must’ve had shortfalls. But stock-pickers who are open to a wider frame of reference for these stocks — say, several months rather than several


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.” That means investors have to be exceedingly careful and choose their buys wisely, the “Mad Money” host said, choosing the stocks of Adobe, Costco and Johnson & Johnson to illustrate his point. “Adobe and Costco must’ve had shortfalls. But stock-pickers who are open to a wider frame of reference for these stocks — say, several months rather than several
Cramer Remix: Adobe and Costco are broken stocks, not broken companies Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-14  Authors: elizabeth gurdus, mary f calvert, mark abramson, bloomberg, getty images, olivia michael, adam jeffery
Keywords: news, cnbc, companies, costco, stock, investors, remix, pessimism, stocks, johnson, worst, say, companies, broken, cramer, adobe


Cramer Remix: Adobe and Costco are broken stocks, not broken companies

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.”

That means investors have to be exceedingly careful and choose their buys wisely, the “Mad Money” host 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.

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Company: cnbc, Activity: cnbc, Date: 2018-12-14  Authors: elizabeth gurdus, mary f calvert, mark abramson, bloomberg, getty images, olivia michael, adam jeffery
Keywords: news, cnbc, companies, costco, stock, investors, remix, pessimism, stocks, johnson, worst, say, companies, broken, cramer, adobe


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Stocks broke key level and could aim for the year’s low

The S&P 500 closed at 2,599 Friday, below the psychological 2,600 level and the October low of 2,603. The S&P fell below 2,600 earlier this week but did not close below it until Friday. If momentum remains negative, and we trade well below 2,600, we could see a test of the 2530, 2550 February low,” Redler said. “I think it”s deeply oversold…More important than the Friday close is how the market reacts to the Fed next week,” he said. The S&P 500 has also been forming a head and shoulders patte


The S&P 500 closed at 2,599 Friday, below the psychological 2,600 level and the October low of 2,603. The S&P fell below 2,600 earlier this week but did not close below it until Friday. If momentum remains negative, and we trade well below 2,600, we could see a test of the 2530, 2550 February low,” Redler said. “I think it”s deeply oversold…More important than the Friday close is how the market reacts to the Fed next week,” he said. The S&P 500 has also been forming a head and shoulders patte
Stocks broke key level and could aim for the year’s low Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-14  Authors: patti domm, spencer platt, getty images
Keywords: news, cnbc, companies, aim, sp, week, key, range, stocks, lows, 500, market, 2600, level, broke, low, think, fed


Stocks broke key level and could aim for the year's low

The S&P 500 could be getting ready to test a new range around the lows of the year that it reached in February — a level that is as much as 3 percent below current levels.

The S&P 500 closed at 2,599 Friday, below the psychological 2,600 level and the October low of 2,603. The S&P fell below 2,600 earlier this week but did not close below it until Friday.

Scott Redler, a partner with T3Live.com, said traders are now watching the range between 2,530 and 2,550. The intra-day low from February was 2,532.

The Fed meeting in the coming week could be a pivotal point for the market. The Fed is expected to raise rates but it is also expected to lower its forecast for additional rate hikes and emphasize it will move cautiously.

“I think traders are waiting for the Fed on Wednesday but they’re waiting to see the action in the first few days of next week. If momentum remains negative, and we trade well below 2,600, we could see a test of the 2530, 2550 February low,” Redler said.

He added the Fed could be a positive catalyst helping the market find a short term bottom into the end of the year. “The question is where will that short term bottom be,” he said.

Robert Sluymer, technical strategist at Fundstrat, said he is more concerned about how the market navigates the whole range of lows from this year.

“I think it”s deeply oversold…More important than the Friday close is how the market reacts to the Fed next week,” he said. “There’s an intraday low at May at 2,600. We’re basically testing the April lows. ..I think we’re down into a range and testing it.”

The S&P 500 has also been forming a head and shoulders pattern, considered a negative sign for the market.


Company: cnbc, Activity: cnbc, Date: 2018-12-14  Authors: patti domm, spencer platt, getty images
Keywords: news, cnbc, companies, aim, sp, week, key, range, stocks, lows, 500, market, 2600, level, broke, low, think, fed


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Stocks could struggle after record outflows, history shows

Investors just pulled money out of stocks at a record pace and, if history is any indication, equities could struggle before recovering. Such strong outflows are typically seen as a contrarian indicator to buy back into stocks, but it could take some time for equities to start climbing back. Using Kensho Analytics, CNBC found the median gain for the S&P 500 one week after these outflows is just 0.4 percent. Stocks start turning significantly higher after three months, the analysis shows. The S&P


Investors just pulled money out of stocks at a record pace and, if history is any indication, equities could struggle before recovering. Such strong outflows are typically seen as a contrarian indicator to buy back into stocks, but it could take some time for equities to start climbing back. Using Kensho Analytics, CNBC found the median gain for the S&P 500 one week after these outflows is just 0.4 percent. Stocks start turning significantly higher after three months, the analysis shows. The S&P
Stocks could struggle after record outflows, history shows Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-14  Authors: fred imbert, brendan mcdermid
Keywords: news, cnbc, companies, sp, outflows, pulled, struggle, stocks, worst, shows, record, history, median, dec, start, trade


Stocks could struggle after record outflows, history shows

Investors just pulled money out of stocks at a record pace and, if history is any indication, equities could struggle before recovering.

Data compiled by the Lipper team at Refinitiv showed investors pulled $46.2 billion from U.S. equity mutual funds and exchange-traded funds between Dec. 5 and Dec. 12. This is the biggest one-week outflow on record, according to Lipper.

Such strong outflows are typically seen as a contrarian indicator to buy back into stocks, but it could take some time for equities to start climbing back.

CNBC looked at the 10 largest weekly outflow numbers over the past 10 years. Using Kensho Analytics, CNBC found the median gain for the S&P 500 one week after these outflows is just 0.4 percent. Returns a month after are not great either, with the median coming in at 0.3 percent.

Stocks start turning significantly higher after three months, the analysis shows. The S&P 500’s three-month median return after these outflows tops 3 percent. The index’s median gain six months after outflows hits 4 percent.

Investors are draining money from stocks as Wall Street grapples with uncertainty around the U.S.-China trade war and fears over a possible global economic slowdown.

The U.S. and China are working toward striking a permanent deal on trade after agreeing Dec. 1 to a 90-day truce on tariffs. However, experts fear the grace period will not be enough to put together a deal that addresses the issues concerning both China and the U.S.

Meanwhile, the Chinese government reported Friday November industrial output numbers that were the worst in four years alongside its worst retail sales growth data since 2003. This led to a sharp sell-off in U.S. stocks on Friday, with the Dow Jones Industrial Average falling more than 500 points at its session low.


Company: cnbc, Activity: cnbc, Date: 2018-12-14  Authors: fred imbert, brendan mcdermid
Keywords: news, cnbc, companies, sp, outflows, pulled, struggle, stocks, worst, shows, record, history, median, dec, start, trade


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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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Fed meeting could be pivotal for stock market looking for ‘knight in shining armor’

The Fed is expected to raise interest rates Wednesday by a quarter point, and the pressure is on for Fed Chairman Jerome Powell to sound dovish — but not too dovish. Fed officials are also expected to revisit their fed funds rate forecasts and roll back some of the rate hikes expected in the next several years. “Equities are hoping that the Fed is almost done or [for] signals that they’re going to pause. Robert Sluymer, technical strategist at Fundstrat, said key for the stock market will be how


The Fed is expected to raise interest rates Wednesday by a quarter point, and the pressure is on for Fed Chairman Jerome Powell to sound dovish — but not too dovish. Fed officials are also expected to revisit their fed funds rate forecasts and roll back some of the rate hikes expected in the next several years. “Equities are hoping that the Fed is almost done or [for] signals that they’re going to pause. Robert Sluymer, technical strategist at Fundstrat, said key for the stock market will be how
Fed meeting could be pivotal for stock market looking for ‘knight in shining armor’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-14  Authors: patti domm, adam jeffery
Keywords: news, cnbc, companies, stock, meeting, knight, armor, week, stocks, rate, dovish, market, pivotal, economy, theyre, fed, think, looking, shining, expected


Fed meeting could be pivotal for stock market looking for 'knight in shining armor'

The Fed may not be able to turn the tide for the stock market in the week ahead, but it could soothe some of the wild volatility that has been crushing stocks since October.

The Fed is expected to raise interest rates Wednesday by a quarter point, and the pressure is on for Fed Chairman Jerome Powell to sound dovish — but not too dovish. Fed officials are also expected to revisit their fed funds rate forecasts and roll back some of the rate hikes expected in the next several years.

“Equities are hoping that the Fed is almost done or [for] signals that they’re going to pause. I think it’s too premature for them to do that,” said George Goncalves, head of fixed income strategy at Nomura. “The Fed was a little too optimistic for next year, and now they’ve got to come down. The recent price action is almost an overshoot on the bearish side.”

The Fed should tweak its economic forecast, and it could note that it has concerns about global growth. Powell is also expected to hold a briefing, where he could discuss Fed officials’ concerns about the impact of trade wars and possibly financial conditions.

There has been some speculation the Fed could hold off on a rate hike Wednesday, but it is widely expected to move forward and use its forecast and dovish tone to ease market fears that it is moving too aggressively.

“Is the change in tone going to be enough to jump-start this market that only reacts to bad news? It may well be. It may be the pivot point,” said Art Hogan, chief market strategist at B. Riley FBR.

Some strategists said if the Fed sparks a rally, there’s a chance stocks could find a near-term bottom.

Robert Sluymer, technical strategist at Fundstrat, said key for the stock market will be how it trades coming out of the Fed meeting. “I think it’s huge,” he said. “A tremendous number of stocks have been selling off through 2018. You have a lot of weak stocks, but they’re also deeply oversold from an intermediate standpoint. … My guess is coming out of the Fed you’re going to see some relief from that.”

Sluymer said the market is testing the lows of its 2018 trading range. The S&P 500 closed at 2,599, off 1.9 percent Friday and 1.2 percent for the week. It is now down 2.8 percent for the year.

“I think the markets want way too much out of the Fed. Market participants want a knight in shining armor,” said Goncalves. Goncalves said Nomura expects the Fed to eliminate one of the rate hikes in its collective forecast for next year, taking it to two instead of three on its so-called “dot plot.”

Trade-war worries and the Fed’s interest rate hikes have topped the list of what’s scaring risk markets and sending buyers into safe havens like Treasurys. On Friday, stocks plunged after a surprise slowing of consumer and industrial data in China, even though U.S. retail sales were strong and economists upped their outlook for fourth-quarter growth to 3 percent.

But the U.S. economy is expected to grow at a slower pace next year, and the Fed is expected to emphasize its policy decisions will be dependent on data. Economists expect growth to fall from about 3 percent to 2.4 percent next year, according to CNBC/Moody’s Analytics rapid GDP update.

“If the Fed sounds overtly too dovish, it sounds like they’re trying to appease the equity market. If they end up being too dovish they run the risk of having us wonder what they know that we don’t know,” said Goncalves.

Patrick Palfrey, equity strategist at Credit Suisse, said the economic outlook and earnings expectations are still solid but the global economy has weakened somewhat and the market has to adjust. “If you look at valuations in the sell-off, what the market is pricing at the moment is a recession, an economic recession or a profit recession. The question is when you look at ISM or the pace of job gains, the question is are they recessionary? And the answer is no,” Palfrey said.

Goncalves said the Fed will be careful not to be too fearful about the economy. “The economy is not yet at a point where you can say clearly that we’re heading for a downfall,” he said.

Besides the Fed in the week ahead, there are a few earnings reports, including Oracle on Monday, Micron and FedEx on Tuesday, and Nike on Thursday.

Economic reports include homebuilders sentiment on Monday, home sales Wednesday and personal income and durable goods Friday.


Company: cnbc, Activity: cnbc, Date: 2018-12-14  Authors: patti domm, adam jeffery
Keywords: news, cnbc, companies, stock, meeting, knight, armor, week, stocks, rate, dovish, market, pivotal, economy, theyre, fed, think, looking, shining, expected


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Recession fears are overblown, stocks will hit new highs: Federated

Wall Street angst over a possible recession may be increasing, but one bull refuses to waver. Federated Investors’ Steve Chiavarone believes there’s nothing on the horizon that suggests the 2018 market corrections will become a massive downturn next year. Rather, he sees stocks hitting fresh record highs — citing labor market trends, inflation levels, the Treasury yield curve and credit spreads as key factors contributing to a favorable economic and market environment. “We don’t have any of the


Wall Street angst over a possible recession may be increasing, but one bull refuses to waver. Federated Investors’ Steve Chiavarone believes there’s nothing on the horizon that suggests the 2018 market corrections will become a massive downturn next year. Rather, he sees stocks hitting fresh record highs — citing labor market trends, inflation levels, the Treasury yield curve and credit spreads as key factors contributing to a favorable economic and market environment. “We don’t have any of the
Recession fears are overblown, stocks will hit new highs: Federated Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-14  Authors: stephanie landsman, spencer platt, getty images, michael nagle, bloomberg, picture alliance, kcna, thomas barwick getty images, source, lawrence mcdonald
Keywords: news, cnbc, companies, 20, yield, 2018, fears, street, market, 500, recession, hit, growth, highs, overblown, yearthe, stocks, federated, dont


Recession fears are overblown, stocks will hit new highs: Federated

Wall Street angst over a possible recession may be increasing, but one bull refuses to waver.

Federated Investors’ Steve Chiavarone believes there’s nothing on the horizon that suggests the 2018 market corrections will become a massive downturn next year.

Rather, he sees stocks hitting fresh record highs — citing labor market trends, inflation levels, the Treasury yield curve and credit spreads as key factors contributing to a favorable economic and market environment.

“We don’t have any of the early signs of recession. Yet, we have a market where despite 20 percent earnings growth, the P/Es [price-earnings ratios] have fallen 20 percent,” the fund manager said on CNBC’s “Trading Nation” on Friday. “What that tells us is the market is pricing in recession in 2019. We just don’t think that is going to happen.”

Yet, it appears the Street isn’t convinced.

The major indexes ended the week deep in the red, with the Dow plummeting almost 500 points on Friday mainly due to global growth jitters. It’s now off 2.5 percent so far this year.

The S&P 500, which closed at its lowest level since April, is off more than 12 percent from its all-time high of 2940 hit on September 21 and 2.75 percent for 2018.


Company: cnbc, Activity: cnbc, Date: 2018-12-14  Authors: stephanie landsman, spencer platt, getty images, michael nagle, bloomberg, picture alliance, kcna, thomas barwick getty images, source, lawrence mcdonald
Keywords: news, cnbc, companies, 20, yield, 2018, fears, street, market, 500, recession, hit, growth, highs, overblown, yearthe, stocks, federated, dont


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China says it will suspend its 25 percent additional tariff on US autos

China to suspend tariffs on US automobiles and auto parts 3 Hours Ago | 03:49China has said it will temporarily halt its additional 25 percent tariff on vehicles made in the United States. The Chinese finance ministry said on its website that China will suspend 25 percent tariffs on 144 vehicles and auto parts originating from the U.S. and 5 percent tariffs on an additional 67 auto items. The U.S. has slapped a 25 percent tariff on finished vehicles built in China and 10 percent on most auto par


China to suspend tariffs on US automobiles and auto parts 3 Hours Ago | 03:49China has said it will temporarily halt its additional 25 percent tariff on vehicles made in the United States. The Chinese finance ministry said on its website that China will suspend 25 percent tariffs on 144 vehicles and auto parts originating from the U.S. and 5 percent tariffs on an additional 67 auto items. The U.S. has slapped a 25 percent tariff on finished vehicles built in China and 10 percent on most auto par
China says it will suspend its 25 percent additional tariff on US autos Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-14  Authors: david reid, china daily
Keywords: news, cnbc, companies, vehicles, 25, suspend, stocks, chinese, tariff, autos, tariffs, additional, parts, sales, auto, china, trade


China says it will suspend its 25 percent additional tariff on US autos

China to suspend tariffs on US automobiles and auto parts 3 Hours Ago | 03:49

China has said it will temporarily halt its additional 25 percent tariff on vehicles made in the United States.

The relief will last for three months staring from January 1, as part of an agreed truce between Beijing and Washington.

The Chinese finance ministry said on its website that China will suspend 25 percent tariffs on 144 vehicles and auto parts originating from the U.S. and 5 percent tariffs on an additional 67 auto items.

U.S. President Donald Trump and President Xi Jinping agreed to lessen the impact of trade tariffs for the first 90 days of 2019, following a dinner in Argentina on December 1.

The U.S. has slapped a 25 percent tariff on finished vehicles built in China and 10 percent on most auto parts. China’s 40 percent tariff on U.S. car imports will now reduce to 15 percent for 90 days.

That brings the auto tariffs in China back down to the same level as before the point that the two countries began imposing tit-for-tat levies.

Tariffs help the big three?

Ina note released Thursday, auto analysts at the Swiss bank UBS said trade risks continue to linger and that under their worst scenario, U.S. sales could slump by as much as 12 percent.

But UBS highlighted Ford, General Motors and Fiat Chrysler as potential winners should tariffs prohibit imports, as all three have capacity to boost domestic production.

Meanwhile, auto sales in China fell 14 percent in November over the same month in 2017, the Chinese Association of Automobile Manufacturers said Tuesday.

That slowdown, while part blamed on the trade war, is also reflective of Chinese domestic demand losing steam.

And Anna-Marie Baisden, head of autos research at Fitch Solutions told CNBC on Friday that getting a tariff deal in place may not spark fresh demand.

“Lowering tariffs might not actually make a big difference because the Chinese market is slowing anyway so even domestic brands are suffering,” she said via email.

European auto stocks hit hard

Auto stocks in Europe were among the leading losers on Friday following a steep drop in the number of new car registrations.

European car sales dropped 8.1 percent in November, falling for the third straight month after the introduction of a new emissions-testing regime in September.

The Stoxx 600 Autos sector dipped 2.2 percent following the data but has since pared losses. At 6:02 a.m. Eastern Time, the index of major European auto and auto-supplier stocks was lower by 1.4 percent.


Company: cnbc, Activity: cnbc, Date: 2018-12-14  Authors: david reid, china daily
Keywords: news, cnbc, companies, vehicles, 25, suspend, stocks, chinese, tariff, autos, tariffs, additional, parts, sales, auto, china, trade


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