Wall Street set for a slightly higher open amid earnings

U.S. stocks were set to open slightly higher on Monday morning as investors turned focus away from fears of rising rates to the latest batch of corporate earnings. ET, Dow futures were seen climbing 80 points, and indicated an almost 77 point rise at the open, while the S&P 500 and the Nasdaq were also expected to open in the black. Markets rebounded on Friday from a sharp sell-off in the previous session, with traders mostly switching their attention to the third-quarter earnings season. Beats


U.S. stocks were set to open slightly higher on Monday morning as investors turned focus away from fears of rising rates to the latest batch of corporate earnings. ET, Dow futures were seen climbing 80 points, and indicated an almost 77 point rise at the open, while the S&P 500 and the Nasdaq were also expected to open in the black. Markets rebounded on Friday from a sharp sell-off in the previous session, with traders mostly switching their attention to the third-quarter earnings season. Beats
Wall Street set for a slightly higher open amid earnings Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-22  Authors: ryan browne
Keywords: news, cnbc, companies, thirdquarter, amid, higher, vehicle, switching, trading, slightly, wall, et, activity, open, set, toy, turned, earnings, traders, street


Wall Street set for a slightly higher open amid earnings

U.S. stocks were set to open slightly higher on Monday morning as investors turned focus away from fears of rising rates to the latest batch of corporate earnings.

At around 4:30 a.m. ET, Dow futures were seen climbing 80 points, and indicated an almost 77 point rise at the open, while the S&P 500 and the Nasdaq were also expected to open in the black.

Markets rebounded on Friday from a sharp sell-off in the previous session, with traders mostly switching their attention to the third-quarter earnings season. Beats from Procter & Gamble, Honeywell and Schlumberger buoyed trading activity that day.

Energy management firm Halliburton, toy maker Hasbro, personal care company Kimberly-Clark and offroad vehicle manufacturer Polaris Industries will post their respective financial results before the bell on Monday.

In economic data, the Chicago Federal Reserve will release national activity index figures at 8:30 a.m. ET.


Company: cnbc, Activity: cnbc, Date: 2018-10-22  Authors: ryan browne
Keywords: news, cnbc, companies, thirdquarter, amid, higher, vehicle, switching, trading, slightly, wall, et, activity, open, set, toy, turned, earnings, traders, street


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Trump blasts Democrats on immigration amid migrant caravan crisis

Amid worsening tensions in the White House over refugees from Guatemala and Honduras flocking to the border, Trump took to Twitter and blamed Democrats for being weak on border security. With the November midterms just 17 days away, Trump has become more vocal about the border crisis. I want to build a wall,” Trump told the crowd. Meanwhile, former Vice President Joe Biden was also in Nevada, headlining a get-out-the vote rally for Democrats in Las Vegas. Trump has reportedly become frustrated b


Amid worsening tensions in the White House over refugees from Guatemala and Honduras flocking to the border, Trump took to Twitter and blamed Democrats for being weak on border security. With the November midterms just 17 days away, Trump has become more vocal about the border crisis. I want to build a wall,” Trump told the crowd. Meanwhile, former Vice President Joe Biden was also in Nevada, headlining a get-out-the vote rally for Democrats in Las Vegas. Trump has reportedly become frustrated b
Trump blasts Democrats on immigration amid migrant caravan crisis Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-20  Authors: matthew j belvedere, nicholas kamm, afp, getty images, reuters ueslei marcelino tpx
Keywords: news, cnbc, companies, migrant, caravan, democrats, wall, amid, immigration, blasts, house, white, crisis, trump, president, rally, issue, border


Trump blasts Democrats on immigration amid migrant caravan crisis

President Donald Trump on Saturday launched a new salvo in the fierce battle over immigration, blasting Democrats for obstructing his efforts to secure the border as thousands of Central American migrants flooded the dividing line between the U.S. and Mexico.

Amid worsening tensions in the White House over refugees from Guatemala and Honduras flocking to the border, Trump took to Twitter and blamed Democrats for being weak on border security. Calling attention to the “horrors taking place on the border,” the president urged Senate Minority Leader Chuck Schumer, D-New York, and House Minority Leader Nancy Pelosi, D-California, to work with the White House on a solution.

With the November midterms just 17 days away, Trump has become more vocal about the border crisis. At an election rally on Friday in front of thousands of supporters in Arizona, a state bordered by Mexico.

“Democrats want to throw your borders wide open to criminals. I want to build a wall,” Trump told the crowd. “The Democrats don’t care that a flood of illegal immigration is going to bankrupt our country.”

The president held a rally in rural Nevada on Saturday afternoon. Meanwhile, former Vice President Joe Biden was also in Nevada, headlining a get-out-the vote rally for Democrats in Las Vegas.

The president and Republicans are trying to fire up their base ahead of next month’s hotly-contested election, in an effort to stave off a possible “blue wave” that could see Democrats elected in large numbers.

Trump has reportedly become frustrated by efforts to stymie his tough stance on immigration, an issue that launched his 2016 election bid. Several publications this week reported an expletive-filled shouting match between White House Chief of Staff John Kelly and National Security Adviser John Bolton over the issue, sparking new concerns Kelly could resign.

In September, the president signed a spending bill to keep the government open, despite previously calling the measure “ridiculous” because it did not include funding for a wall along the southern border. White House budget director Mick Mulvaney told CNBC shortly after the House followed the Senate in passing the funding measure that the administration would take up the wall issue after the midterms.


Company: cnbc, Activity: cnbc, Date: 2018-10-20  Authors: matthew j belvedere, nicholas kamm, afp, getty images, reuters ueslei marcelino tpx
Keywords: news, cnbc, companies, migrant, caravan, democrats, wall, amid, immigration, blasts, house, white, crisis, trump, president, rally, issue, border


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Watch Bank of England Governor Mark Carney speak live in New York

[The stream is slated to start at 11:30 am ET. Please refresh the page if you do not see a player above at that time.] Mark Carney is the governor of the Bank of England, the UK’s equivalent of the Federal Reserve in the U.S. He is speaking at the Economic Club of New York. Read more:Bank of England Governor MarkCarney will stay in his role until January 2020Carney warns cabinet of no-deal Brexit property crashHere’s what Wall Street isn’t paying attention to from the Fed


[The stream is slated to start at 11:30 am ET. Please refresh the page if you do not see a player above at that time.] Mark Carney is the governor of the Bank of England, the UK’s equivalent of the Federal Reserve in the U.S. He is speaking at the Economic Club of New York. Read more:Bank of England Governor MarkCarney will stay in his role until January 2020Carney warns cabinet of no-deal Brexit property crashHere’s what Wall Street isn’t paying attention to from the Fed
Watch Bank of England Governor Mark Carney speak live in New York Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-19  Authors: jeff cox
Keywords: news, cnbc, companies, governor, england, rate, yorklike, watch, wall, york, mark, speak, uks, live, bank, zone, uk, warns, carney


Watch Bank of England Governor Mark Carney speak live in New York

[The stream is slated to start at 11:30 am ET. Please refresh the page if you do not see a player above at that time.]

Mark Carney is the governor of the Bank of England, the UK’s equivalent of the Federal Reserve in the U.S. He is speaking at the Economic Club of New York.

Like his American counterparts, Carney believes a prescription of slow but steady interest rate increases is best for the nation’s growth prospects as the UK prepares to leave the euro zone next year. The BOE also is looking to foster inflation around 2 percent.

The bank’s current policy rate is at 0.75 percent.

Read more:

Bank of England Governor MarkCarney will stay in his role until January 2020

Carney warns cabinet of no-deal Brexit property crash

Here’s what Wall Street isn’t paying attention to from the Fed


Company: cnbc, Activity: cnbc, Date: 2018-10-19  Authors: jeff cox
Keywords: news, cnbc, companies, governor, england, rate, yorklike, watch, wall, york, mark, speak, uks, live, bank, zone, uk, warns, carney


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Hasbro to cut workforce by less than 10%: WSJ

Toy maker Hasbro is expected to cut jobs as the toy industry continues to deal with the fallout from the bankruptcy of retailer Toys R Us, according to the Wall Street Journal. The company said Thursday that it would be trimming less than 10 percent of its workforce as part of “meaningful organizational changes” to continue its “ongoing transformation.” “While some of these changes are difficult, we must ensure we have the right teams in place with the right capabilities to lead the company into


Toy maker Hasbro is expected to cut jobs as the toy industry continues to deal with the fallout from the bankruptcy of retailer Toys R Us, according to the Wall Street Journal. The company said Thursday that it would be trimming less than 10 percent of its workforce as part of “meaningful organizational changes” to continue its “ongoing transformation.” “While some of these changes are difficult, we must ensure we have the right teams in place with the right capabilities to lead the company into
Hasbro to cut workforce by less than 10%: WSJ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-19  Authors: sarah whitten, michael springer, bloomberg, getty images
Keywords: news, cnbc, companies, hasbro, right, toy, wall, trimming, changes, wsj, york, transformationusa, workforce, cut, company


Hasbro to cut workforce by less than 10%: WSJ

Toy maker Hasbro is expected to cut jobs as the toy industry continues to deal with the fallout from the bankruptcy of retailer Toys R Us, according to the Wall Street Journal.

The company said Thursday that it would be trimming less than 10 percent of its workforce as part of “meaningful organizational changes” to continue its “ongoing transformation.”

USA Today reported the news Thursday.

“While some of these changes are difficult, we must ensure we have the right teams in place with the right capabilities to lead the company into the future,” Hasbro said in a statement.

These job cuts come just months after the company’s rival, Mattel, also said it was trimming its workforce and shuttering its New York Office.

Hasbro is scheduled to report third-quarter earnings before the market open Monday.


Company: cnbc, Activity: cnbc, Date: 2018-10-19  Authors: sarah whitten, michael springer, bloomberg, getty images
Keywords: news, cnbc, companies, hasbro, right, toy, wall, trimming, changes, wsj, york, transformationusa, workforce, cut, company


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Cramer Remix: It’s not a good time to be a company like United Rentals

CNBC’s Jim Cramer knew he had to explain the stark weakness in shares of United Rentals after the stock of the largest equipment rental company in the United States lost 15 percent on Thursday and hit another 52-week low Friday. “October has been a Freddy Krueger-esque nightmare for United Rentals. United Rentals is “incredibly cyclical,” meaning that its success is tied to the state of the economy. “In a potential Fed-mandated slowdown, stocks like United Rentals … become totally toxic.” And ev


CNBC’s Jim Cramer knew he had to explain the stark weakness in shares of United Rentals after the stock of the largest equipment rental company in the United States lost 15 percent on Thursday and hit another 52-week low Friday. “October has been a Freddy Krueger-esque nightmare for United Rentals. United Rentals is “incredibly cyclical,” meaning that its success is tied to the state of the economy. “In a potential Fed-mandated slowdown, stocks like United Rentals … become totally toxic.” And ev
Cramer Remix: It’s not a good time to be a company like United Rentals Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-19  Authors: elizabeth gurdus, vcg, getty images, peter foley, bloomberg, alex wong
Keywords: news, cnbc, companies, united, rentals, good, cramer, wall, slowdown, fed, interest, street, remix, crushed, company


Cramer Remix: It's not a good time to be a company like United Rentals

CNBC’s Jim Cramer knew he had to explain the stark weakness in shares of United Rentals after the stock of the largest equipment rental company in the United States lost 15 percent on Thursday and hit another 52-week low Friday.

“October has been a Freddy Krueger-esque nightmare for United Rentals. The darned thing is down 28 percent just since the beginning of the month,” the “Mad Money” host said.

Part of the problem? United Rentals is “incredibly cyclical,” meaning that its success is tied to the state of the economy. And the Federal Reserve’s interest rate hike agenda isn’t exactly boding well for the industrial giant, Cramer said.

“When the Fed signals that it’s going to keep raising interest rates, making new building more expensive, everybody on Wall Street knows that’s bad for business,” he said. “In a potential Fed-mandated slowdown, stocks like United Rentals … become totally toxic.”

And even though Cramer thought the company was actually doing “just fine,” he warned that the actual earnings results don’t matter to Wall Street in the same way they used to.

“Investors [are] looking for any excuse to bail because they know the numbers will be a crushed in a slowdown,” he said. “So be careful, because until the Fed relents, we could see many more cyclicals that get crushed after reporting good quarters that just happen to have a slight amount of hair on them.”


Company: cnbc, Activity: cnbc, Date: 2018-10-19  Authors: elizabeth gurdus, vcg, getty images, peter foley, bloomberg, alex wong
Keywords: news, cnbc, companies, united, rentals, good, cramer, wall, slowdown, fed, interest, street, remix, crushed, company


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Wall Street’s biggest Apple bull: China sales are ‘fuel in the engine’

Ives initiated coverage of Apple with an outperform rating and a 12-month price target of $310, higher than any other analyst on Wall Street. China, the world’s largest smartphone market, is the “fuel in the engine” for Apple, Ives said. The biggest question is whether consumers can “start to digest that higher price point” of Apple products, Ives said. “It’s really just executing on China, executing on the iPhone strategy,” that will propel Apple’s growth going forward, Ives said. Shares of App


Ives initiated coverage of Apple with an outperform rating and a 12-month price target of $310, higher than any other analyst on Wall Street. China, the world’s largest smartphone market, is the “fuel in the engine” for Apple, Ives said. The biggest question is whether consumers can “start to digest that higher price point” of Apple products, Ives said. “It’s really just executing on China, executing on the iPhone strategy,” that will propel Apple’s growth going forward, Ives said. Shares of App
Wall Street’s biggest Apple bull: China sales are ‘fuel in the engine’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-19  Authors: carmin chappell
Keywords: news, cnbc, companies, china, apple, services, engine, apples, sales, streets, wall, bull, ives, strategy, month, biggest, xs, higher, fuel, target, price


Wall Street's biggest Apple bull: China sales are 'fuel in the engine'

Strong Chinese demand and a growing services business are critical on Apple’s “yellow brick road” to a $1.5 trillion market cap, which Wedbush Securities analyst Dan Ives said is more than possible.

Ives initiated coverage of Apple with an outperform rating and a 12-month price target of $310, higher than any other analyst on Wall Street. His target is 40 percent higher than Apple’s closing price on Thursday.

Services are the “linchpin” to the company’s growth, Ives said in an interview with CNBC’s “Power Lunch” on Friday. He predicts that the services business could reach $50 billion in annual revenue “in the next year and a half.”

China, the world’s largest smartphone market, is the “fuel in the engine” for Apple, Ives said.

Ives acknowledges that growing trade tensions between China and the U.S. could pose a threat to Apple, but he said the company is “ahead of the curve” with its manufacturing strategy. The Apple Watch and AirPods earphones were exempted last month from a new round of Chinese import tariffs imposed by President Donald Trump.

The biggest question is whether consumers can “start to digest that higher price point” of Apple products, Ives said. The iPhone XS and XS Max models, launched this month, are the most expensive iPhones to date.

“It’s really just executing on China, executing on the iPhone strategy,” that will propel Apple’s growth going forward, Ives said.

Shares of Apple rose 1.3 percent Friday following the release of Ives’ note to clients in which he announced his $310 price target. The stock is up 29 percent year to date.


Company: cnbc, Activity: cnbc, Date: 2018-10-19  Authors: carmin chappell
Keywords: news, cnbc, companies, china, apple, services, engine, apples, sales, streets, wall, bull, ives, strategy, month, biggest, xs, higher, fuel, target, price


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There’s a new biggest Apple bull on Wall Street, and he expects a 40% surge

Wall Street has a new biggest Apple bull. Longtime technology analyst Daniel Ives, fresh off a move to Wedbush Securities from GBH Insights, initiated coverage of Apple with an outperform rating and a 12-month price target of $310. His forecast — higher than that of any other analyst on the Street — implies more than 40 percent upside over the next year from Thursday’s close. The XS Max, for example, includes a 6.5-inch display, larger than Samsung’s popular Galaxy Note 9, which has a 6.4-inch s


Wall Street has a new biggest Apple bull. Longtime technology analyst Daniel Ives, fresh off a move to Wedbush Securities from GBH Insights, initiated coverage of Apple with an outperform rating and a 12-month price target of $310. His forecast — higher than that of any other analyst on the Street — implies more than 40 percent upside over the next year from Thursday’s close. The XS Max, for example, includes a 6.5-inch display, larger than Samsung’s popular Galaxy Note 9, which has a 6.4-inch s
There’s a new biggest Apple bull on Wall Street, and he expects a 40% surge Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-19  Authors: thomas franck, david paul morris, bloomberg, getty images
Keywords: news, cnbc, companies, surge, theres, expects, 40, xs, ives, street, analyst, cycle, bull, biggest, apple, note, latest, wall, forecast, iphone


There's a new biggest Apple bull on Wall Street, and he expects a 40% surge

Wall Street has a new biggest Apple bull.

Longtime technology analyst Daniel Ives, fresh off a move to Wedbush Securities from GBH Insights, initiated coverage of Apple with an outperform rating and a 12-month price target of $310. His forecast — higher than that of any other analyst on the Street — implies more than 40 percent upside over the next year from Thursday’s close.

The analyst is so bullish because he believes the company will sell a lot more higher-priced iPhones next year than his peers expect.

“With positively trending average selling prices that we believe can approach about $800 in fiscal 2019 and healthy gross margins heading into this 2019 product cycle that are showing no signs of abating … we believe many of the growth fears on the Street have been alleviated around Apple in the near term,” Ives said in a note to clients Thursday.

With the investing world’s attention fixed on Apple’s ability to sell its latest generation of iPhones, Ives said he wouldn’t be surprised to see 350 million units upgraded during the next 12 to 18 months. Consensus estimates model iPhone shipments of about 220 million units, a projection he deemed potentially “conservative.” Ives also added the security to Wedbush’s “best ideas” list.

“This upcoming product cycle remains a linchpin for Cook & Co. to lay the groundwork for ‘steady’ iPhone growth for the next few years,” he added. “The three new iPhone releases with XS, XS Max, and XR released in September will help capture the underlying demand/upgrades among customers that have decided to bypass the 8/8+/X cycle last time around.”

The latest generation of phones under CEO Tim Cook exhibit a number of refinements from their iPhone X parents. While all three phones include now-staple features like facial recognition and wireless charging, those choosing to upgrade to the latest models have highlighted larger screens and improved memory.

The XS Max, for example, includes a 6.5-inch display, larger than Samsung’s popular Galaxy Note 9, which has a 6.4-inch screen.

Shares of Apple rose 1.4 percent in premarket trading Friday following Ives’s note. The stock has performance well so far this year, up 27 percent since January and 38 percent year over year.

Ives’s target vaults him ahead of Brian White at Monness Crespi Hardt, who has a $300 forecast. The average forecast of analysts on Wall Street is $239, according to FactSet. Apple closed at $216.02 on Thursday.

Ives will appear on CNBC’s ” Power Lunch ” Friday afternoon.


Company: cnbc, Activity: cnbc, Date: 2018-10-19  Authors: thomas franck, david paul morris, bloomberg, getty images
Keywords: news, cnbc, companies, surge, theres, expects, 40, xs, ives, street, analyst, cycle, bull, biggest, apple, note, latest, wall, forecast, iphone


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Wall Street is missing the mark on these sinking stocks, but some could make a comeback

A handful of beaten-down stocks could be screaming buys, at least if Wall Street forecasters are any indication. Names such as Western Digital, Micron and American Airlines have lost double-digits this year, putting them among stocks trading at the largest discounts to their respective average analyst price targets. Shares of Western Digital have sunk 33 percent in the past year and would have to surge around 75 percent to touch analysts’ average price target of $97.31, according to FactSet data


A handful of beaten-down stocks could be screaming buys, at least if Wall Street forecasters are any indication. Names such as Western Digital, Micron and American Airlines have lost double-digits this year, putting them among stocks trading at the largest discounts to their respective average analyst price targets. Shares of Western Digital have sunk 33 percent in the past year and would have to surge around 75 percent to touch analysts’ average price target of $97.31, according to FactSet data
Wall Street is missing the mark on these sinking stocks, but some could make a comeback Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-19  Authors: rebecca ungarino, brendan mcdermid, afp, getty images, kcna, thomas barwick getty images, source, lawrence mcdonald
Keywords: news, cnbc, companies, stock, comeback, rally, street, wall, micron, target, mark, think, thats, western, average, stocks, missing, price, trading, sinking


Wall Street is missing the mark on these sinking stocks, but some could make a comeback

A handful of beaten-down stocks could be screaming buys, at least if Wall Street forecasters are any indication.

Names such as Western Digital, Micron and American Airlines have lost double-digits this year, putting them among stocks trading at the largest discounts to their respective average analyst price targets. While these losses are severe even amid the broader market’s recent volatility, some strategists see a comeback in the making for a few of these names.

Shares of Western Digital have sunk 33 percent in the past year and would have to surge around 75 percent to touch analysts’ average price target of $97.31, according to FactSet data. The stock was trading at $56.74 per share on Friday.

The name may be reaching a bottom on the chart, said Craig Johnson, chief market technician at Piper Jaffray. But that still doesn’t make it technically compelling.

“It looks like to me that the analysts kind of missed the mark on this one, because this stock started making lower lows and lower highs back in about the March time frame. So from my perspective I think now we’re getting to an area of support at around $53 here on this chart,” Johnson said Thursday on CNBC’s “Trading Nation.”

“We’re starting to see a little bit of an inflection point, in terms of the momentum, and from my perspective I think you could have a relief rally here,” he added, but he said that’s a relief rally he would not buy at this juncture.

Micron, a semiconductor name that’s sunk in recent months, would have to rally by about 62 percent to reach its average analyst price target of $68.52. On Friday, stock was trading at $41.02 per share. That’s one name that could be poised to make a turnaround, said Stacey Gilbert, head of derivative strategy at Susquehanna. The firm covers Micron with a positive rating and a price target of $75.

Gilbert said one way to play that name would be through the options market.

“The volatility is not significantly high; it is elevated, but everything out there is elevated. It’s not astronomical, so I think investors who are looking for a name where there could be potential upside over the next year” could look to Micron by using calls, Gilbert said on Thursday.


Company: cnbc, Activity: cnbc, Date: 2018-10-19  Authors: rebecca ungarino, brendan mcdermid, afp, getty images, kcna, thomas barwick getty images, source, lawrence mcdonald
Keywords: news, cnbc, companies, stock, comeback, rally, street, wall, micron, target, mark, think, thats, western, average, stocks, missing, price, trading, sinking


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Bank of America downgrades homebuilder stocks as Wall Street grows increasingly bearish on housing

Bank of America Merrill Lynch downgraded homebuilder stocks Toll Brothers, PulteGroup and NVR and lowered its homebuilding estimates for 2018 and 2019. Lovallo downgraded Toll Brothers, PulteGroup and NVR shares to neutral from buy. The analyst trimmed his target on PulteGroup shares to $28 from $32 and NVR to $2,850 from $3,060. NVR shares skidded 3.8 percent, Toll Brothers shares rose 0.4 percent and PulteGroup fell 1.7 percent Thursday. Bank of America now expects housing starts to total 1.26


Bank of America Merrill Lynch downgraded homebuilder stocks Toll Brothers, PulteGroup and NVR and lowered its homebuilding estimates for 2018 and 2019. Lovallo downgraded Toll Brothers, PulteGroup and NVR shares to neutral from buy. The analyst trimmed his target on PulteGroup shares to $28 from $32 and NVR to $2,850 from $3,060. NVR shares skidded 3.8 percent, Toll Brothers shares rose 0.4 percent and PulteGroup fell 1.7 percent Thursday. Bank of America now expects housing starts to total 1.26
Bank of America downgrades homebuilder stocks as Wall Street grows increasingly bearish on housing Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-18  Authors: fred imbert, david paul morris, bloomberg, getty images
Keywords: news, cnbc, companies, starts, pultegroup, nvr, homebuilder, downgrades, price, wall, bank, stocks, grows, brothers, increasingly, month, toll, shares, street, housing, lowered, bearish


Bank of America downgrades homebuilder stocks as Wall Street grows increasingly bearish on housing

Bank of America Merrill Lynch downgraded homebuilder stocks Toll Brothers, PulteGroup and NVR and lowered its homebuilding estimates for 2018 and 2019.

“This morning BofA Merrill Lynch’s US economics team lowered its 2018-2019 housing starts and new home sales forecasts and thus we slightly temper our macro housing assumptions,” analyst John Lovallo said in a note Thursday.

Lovallo downgraded Toll Brothers, PulteGroup and NVR shares to neutral from buy. He also lowered his price target on Toll Brothers to $38 a share from $47. The analyst trimmed his target on PulteGroup shares to $28 from $32 and NVR to $2,850 from $3,060.

NVR shares skidded 3.8 percent, Toll Brothers shares rose 0.4 percent and PulteGroup fell 1.7 percent Thursday.

The downgrades and Bank of America’s reduced estimates for housing starts came after the Commerce Department said Wednesday that building permits fell 5.3 percent last month, more than expected.

Analysts at Credit Suisse downgraded homebuilding stocks, along with Home Depot and Lowe’s, earlier this week on higher rates hurting housing demand.

Homebuilders have been under pressure in October. The iShares U.S. Home Construction ETF (ITB) is down more than 11 percent for the month. This sharp drop coincides with a surge in interest rates. The 10-year note yield hit its highest level since 2011 last week.

Bank of America now expects housing starts to total 1.26 million this year and 1.3 million next year.

Lovallo said Toll’s valuation may be too high, given some moderation at the high end of the housing market.

“While TOL has executed well and is moving down market with more affordable product, its average selling price remains well above peers,” he said. “We believe a lower valuation multiple is warranted given potential absorption risk and deteriorating market sentiment, particularly as it relates to interest rate and affordability headwinds.”

As of Wednesday’s close, Toll Brothers’ stock had fallen more than 5 percent this month and more than 25 percent this year.

Lovallo said growth for PulteGroup could be challenging heading into 2019 because of the company’s strategy to drive down prices “coupled with a greater mix of product at move-up buyer price points.” He said NVR’s exposure to slower-growing markets like the mid-Atlantic “could present a headwind for the stock.”

To be sure, Lovallo said he is still “constructive” on U.S. homebuilders, “particularly those focused on affordable entry-level/first time homes.”


Company: cnbc, Activity: cnbc, Date: 2018-10-18  Authors: fred imbert, david paul morris, bloomberg, getty images
Keywords: news, cnbc, companies, starts, pultegroup, nvr, homebuilder, downgrades, price, wall, bank, stocks, grows, brothers, increasingly, month, toll, shares, street, housing, lowered, bearish


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PayPal jumps after reporting a beat on the top and bottom lines, growth in Venmo

Revenue: $3.68 billion vs. $3.66 billion, forecast by Refinitiv. Total payment volume for the peer-to-peer payment app Venmo rose 78 percent in the third quarter to roughly $17 billion. “I’m especially pleased with the strong overall momentum surrounding Venmo,” PayPal CEO Daniel Schulman said on a call with analysts Thursday. Mobile payment growth contributed to 40 percent of that payment volume, with 45 percent growth in mobile payment volume for the quarter. Its total payment transactions sur


Revenue: $3.68 billion vs. $3.66 billion, forecast by Refinitiv. Total payment volume for the peer-to-peer payment app Venmo rose 78 percent in the third quarter to roughly $17 billion. “I’m especially pleased with the strong overall momentum surrounding Venmo,” PayPal CEO Daniel Schulman said on a call with analysts Thursday. Mobile payment growth contributed to 40 percent of that payment volume, with 45 percent growth in mobile payment volume for the quarter. Its total payment transactions sur
PayPal jumps after reporting a beat on the top and bottom lines, growth in Venmo Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-18  Authors: kate rooney
Keywords: news, cnbc, companies, jumps, wall, beat, trading, total, venmo, payment, billion, reporting, quarter, growth, vs, paypal, volume, lines


PayPal jumps after reporting a beat on the top and bottom lines, growth in Venmo

PayPal reported third-quarter earnings and revenue that topped Wall Street estimates on Thursday, with a surge in payment volume for its peer-to-peer payment app Venmo.

Here’s how the company did compared with what Wall Street expected:

Earnings: 58 cents vs. 54 cents per share, forecast by Refinitiv.

Revenue: $3.68 billion vs. $3.66 billion, forecast by Refinitiv.

Shares of PayPal rose as much as 7.5 percent in after-hours trading Thursday and were trading near $83. The stock is up 13 percent year to date and 8 percent year over year.

The payment company’s revenue grew 14 percent in the third quarter to $3.68 billion, while earnings were up 26 percent.

Total payment volume for the peer-to-peer payment app Venmo rose 78 percent in the third quarter to roughly $17 billion. Investors had been hoping for good news on Venmo, which has struggled to prove itself as a moneymaker for its parent company.

“I’m especially pleased with the strong overall momentum surrounding Venmo,” PayPal CEO Daniel Schulman said on a call with analysts Thursday. “While it is still early, our monetization efforts appear to be reaching a tipping point.”

PayPal’s total payment volume jumped 25 percent to $143 billion during the same time frame, short of Refinitiv analysts’ expectations of $145 billion.

Mobile payment growth contributed to 40 percent of that payment volume, with 45 percent growth in mobile payment volume for the quarter. Its total payment transactions surged 27 percent to 2.5 billion total for the quarter.

The company added what it called a “record” 9.1 million accounts in the third quarter, up 15 percent from last quarter, closing the quarter with a total 254 million active accounts.


Company: cnbc, Activity: cnbc, Date: 2018-10-18  Authors: kate rooney
Keywords: news, cnbc, companies, jumps, wall, beat, trading, total, venmo, payment, billion, reporting, quarter, growth, vs, paypal, volume, lines


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