Market participants have attributed that decisive drop in the Dow Jones Industrial Average (DJIA) , the S&P 500 index (SPX)and the Nasdaq Composite Index (COMP)to worries about the long-term prospects for a tariff resolution between China and the U.S. and the so-called inversion of a portion of the Treasury yield curve, spelling economic gloom in the U.S. Kramer hypothesized in a Tuesday blog that reports that Prime Minister Theresa May was being required, by virtue of parliamentary vote that held her in contempt, to publish the legal advice she’d received about Brexit, played a key role in sending shivers through markets, adding to the already downbeat tone of the trading session. Here’s how Kramer put it, adding that the decline took hold at 12:04 p.m. Eastern time on Dec. 4: “But you know what happened around noon today? ‘Government to publish Brexit legal advice in full after MPs find it in contempt of UK Parliament,’ ” he wrote, citing a BBC report.
After cutting 70 jobs from its management ranks this fall, Alaska Air Group Inc. is turning to its supply chain to cut costs after its $2.6 billion Virgin America takeover. The SeaTac-based airline is working to reduce the number of vendors it does business with across the U.S. while signing bigger deals with those it keeps, all to shave at least $20 million from expenses in 2019 and 2020. The airline outlined its plans recently with Wall Street financial analysts and investors in New York, according to SEC filings and transcripts.
In an effort to expand the company’s footprint and diversify its services, a Phoenix-based construction group has acquired a Louisiana firm for nearly $300 million. Phoenix-based Centuri Construction Group Inc., a wholly-owned subsidiary of Southwest Gas Holdings Inc., acquired 80 percent ownership of Linetec Services LLC for $299 million in cash. Centuri has the option to acquire the remaining 20 percent ownership over the next five years.
Stocks in Asia were poised for a mixed open as investors weighed the outlook for trade talks and growth. Futures had signaled a flat start to equity trading in Japan and Hong Kong before the dive in contracts on the S&P 500 Index. U.S. President Donald Trump said China is sending “very strong signals” following trade discussions in Argentina, as uncertainty remains over what commitments were made between the two nations.
Algorithms programmed to sell securities on the same triggers were behind the massive decline, he says. 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.
The latest data on homebuilder sentiment shows a sharp downturn in confidence during November with the NAHB’s housing market index falling by the most in 8.5 years. And recent earnings from one of the country’s most prominent homebuilders isn’t going to bolster sentiment in the space.
Lam Research Corp. on Wednesday said CEO Martin Anstice resigned amid an investigation into allegations of misconduct. The Fremont company, one of the world's biggest chip equipment businesses, said the board and and external law firm are investigating allegations of misconduct in the workplace. President and Chief Operating Officer Tim Archer is taking over as CEO.
The Federal Reserve, in its quest for the elusive soft landing, exerts more direct control over the nation’s economic levers. Elections are often referendums on the economy, and so it was with George H.W. Bush, sailing into office after the Reagan Revolution “delivered” returns of 30.6% and 61.5% in the S&P 500 over Reagan’s two terms.
A year ago, Alexandria Ocasio-Cortez was working as a waitress. In recent weeks Ocasio-Cortez has remained characteristically transparent, discussing her difficulties renting an apartment in Washington D.C. and live-streaming conversations with her constituents while she cooks dinner. Over the weekend, the Congresswoman-elect said that the health insurance she will receive as a member of Congress will cost significantly less than the health insurance she paid for as a waitress.
CNBC's Jim Cramer talks about what to expect tomorrow after Tuesday's market sell-off.
Futures for the S&P 500 (ES=F) rose 0.6%, or 16.25 points, as of 9:29 a.m. ET. Dow (YM=F) futures advanced 0.44%, or 110 points, after shedding nearly 800 points as of market close on Tuesday. Nasdaq (NQ=F) futures rose 0.66%, or 45 points.
Chinese investors unloaded more than $1 billion in U.S. real estate in the third quarter, extending their recent retreat from hotels, office buildings and other foreign property under pressure from Beijing to reduce debt and curb money sent abroad. Insurers, conglomerates and other big investors from China sold $1.05 billion worth of U.S. real estate in the third quarter, while purchasing $231 million of property, according to data firm Real Capital Analytics. The second quarter marked the first time these investors sold more U.S. property than they bought during a quarter since 2008.
Now is a great time for workers looking for a job . According to the latest jobs report from the Bureau of Labor Statistics , the American economy added 250,000 jobs in October, and unemployment remained at just 3.7 percent, the lowest since 1969
The Social Security Administration has announced a 2.8 percent increase to benefits in 2019. There are two ways to find out just how much you will receive: through your online Social Security account or paper statements you receive in the mail. If you're like other retirees, you're eager to see just how big your Social Security check will be next year.
Wells Fargo says a computer glitch is partly to blame for an error affecting an estimated 545 customers who lost their homes. The giant bank filed papers with the Securities and Exchange Commission last month, revealing it incorrectly denied 870 loan modification requests. About 60 percent of those homeowners went into foreclosure.
Jim Cramer highlights high-quality slowdown stocks that he says investors should consider buying gradually into weakness.
The inversion rattled investors, as it typically has been a harbinger of recession. The big Treasury-rate inversion, between the two-year and 10-year, hasn't happened yet, but it looks close and would have a ripple effect through the U.S. economy. For sophisticated bond market investors, no three words invoke more fear and debate than "inverted yield curve." Yet many individual investors don't understand inversion and why a healthy fixed-income market is so critical to their financial well-being.
Given that the new lower tax rates are set to expire, it seems like an even better idea. Also, what happens if there is no change in my tax brackets? If the present tax rate upon conversion (P) is less than the tax rate that would apply when funds came out of the account in the future (F), a conversion is a winner.
Gwen Merz, 28, is doing something she thought she’d never have to do again: hunt for a job. Earlier in her 20s, she set a goal to “retire” from full-time work at age 35, but she later decided to move that date up to 27. She wasn’t going to “retire
Carmakers were initially buoyed by the claim of an "incredible" trade deal emerging from Trump's dinner Sunday with Chinese President Xi Jinping. The White House has now backpedaled, acknowledging there was no deal in place to roll back automotive tariffs. The Chinese had levied a tariff of 25 percent and was set to roll the penalty back to just 15 percent.
In the oil and gas industry, the shale revolution has changed the business in multiple ways. The U.S. has been transformed from one of the world’s leading oil importers into the world’s largest producer of oil and gas. Fracking in the Permian basin has created bottlenecks as the existing infrastructure cannot cope with rising production.
Warren Buffett's Berkshire Hathaway recently repurchased close to $1 billion of its own stock, a move made after the billionaire investor changed the trigger he uses for stock buybacks. Intrinsic value is a concept that Buffett has talked about a lot over the years, but it is not an easy stock market valuation method for investors to master, though it is important at times of elevated asset prices.
There was capitulation in the markets Tuesday. After what was initially perceived to be a substantial step forward between the U.S. and China in trade talks over the weekend, the stock market, reflected by the S&P 500 Index (SPX) enjoyed a big increase Monday. The S&P 500 tumbled 3.2% Tuesday, the Dow Jones Industrial Average (DJIA) dropped 3.10%, and the Nasdaq Composite Index (COMP) plunged 3.80%.
U.S. stock-index futures were showing modest gains early Wednesday, following ugly losses of at least 3% for the three main indexes in the previous session. Although, the market is closed as the nation mourns former President George H.W. Bush, who died Friday at 94, electronic trading of stock-index futures is still taking place. Futures for the Dow Jones Industrial Average (YMZ8) were up 114 points, or 0.5%, at 25,160, those for the S&P 500 index (ESZ8) were up 16.30 points to reach 2,718, a gain of 0.6%, while the Nasdaq-100 (NQZ8) climbed 45 points, or 0.7%, at 6,848.25.
Will the yield curve invert, with short-term interest rates pushing their way above long-term interest rates … a relatively rare scenario that’s all too often associated with a troubled economy? A true inverted yield curve has not happened yet, but as of right now we’re as close to an inverted yield curve as we’ve been in a decade. Translation: It sure couldn’t hurt to go ahead and make plans for an inverted yield curve, just in case that’s how things take shape.