- A + A BENGALURU (Oct 4): The Nasdaq led Wall Street higher on Tuesday as megacap growth and technology stocks gaining and US Treasury yields declined amid growing investor speculation that the Federal Reserve would temper its aggressive rate hike path. New orders for US-manufactured goods remained unchanged in August as expected, while US job openings, a measure of labour demand fell by the most in nearly 2-1/2 years in August. Following the economic data, yields on government bonds dipped for a second day on hopes of moderation in monetary policy even though San Francisco Federal Reserve Bank President Mary Daly said the central bank needs to deliver further interest rate hikes. "Job openings data coming in lower than expected points to a weakening labour market. If confirmed by the non-farm payrolls report on Friday it could give the Fed the cover to slow down its tightening," said Thomas Hayes, chairman and managing member of New York-based Great Hill Capital. … [Read more...] about Growth stocks lift Nasdaq 3% as Treasury yields ease
Blue chip stocks trading near 52 week low
Share to Twitter Share to Linkedin Shopify stock (NYSE: SHOP) continues to drift lower, falling by about 10% over the past month, taking its year-to-date decline to about 80%. While a bulk of the decline in the stock came earlier this year, as investors fled growth stocks as the Fed began its monetary tightening, Shopify’s underlying e-commerce business is also taking a hit as people return to physical stores, with high inflation and rising rates also weighing on consumer confidence. Shopify posted a tough set of Q2 2022 results with revenue growth slowing to 16% year-over-year versus the 57% growth the company posted in the year-ago quarter, with the company also swinging to a net loss, versus a profit a year ago. Now, given the magnitude of the rout in Shopify stock, it’s safe to assume that much of the recovery will hinge on macros. Thus far, the Fed has also not shown signs that it will ease on its rate hikes, with the bank raising rates yet again by … [Read more...] about Down 80% This Year, What Will It Take For Shopify Stock To Recover?
- A + A BENGALURU (Oct 4): Wall Street futures jumped on Tuesday (Oct 4) as retreating US Treasury yields bolstered demand for stocks, while investors awaited clues on how much further the US Federal Reserve would go with interest rate hikes to rein in surging prices. Data on job openings and factory orders will be in focus before the market opens, a day after a report showing weaker-than-expected manufacturing activity raised investor hopes that rising rates were taming demand for goods, helping the main indexes stage a strong rebound. However, Federal Reserve Bank of New York President John Williams argued on Monday that while there have been nascent signs of cooling inflation, underlying price pressures remain too high, which means the US central bank must press forward. The rebound in stocks on the first trading day of the final quarter follows the S&P 500's lowest close in nearly two years on Friday that capped its worst monthly performance since March … [Read more...] about Wall St futures jump as Treasury yields retreat
Share to Twitter Share to Linkedin For some folks, it’s almost a reflex to buy gold when inflation hits or volatility ramps up. In times like those, they simply flock to the yellow metal—no questions asked. But buying gold as a safe haven is a terrible idea, for one simple reason: it doesn’t work. The dumpster fire year we’re living through now provides an excellent example of gold’s ineffectiveness as an inflation hedge: while inflation soared (it sits at 8.3% as of August), gold has gone the other way, plunging 6.4% since January 1. That lousy performance isn’t just a one-off. Gold has actually fallen 7% in the last decade. In other words, if you’d held it over that time, it would have dragged down your returns. In other words, it’s pretty much the opposite of a safe haven! And if you’re looking for dividends, gold is an especially poor choice. Gold bars and coins, of course, pay zero dividends and come with costs to store and secure … [Read more...] about These 4 Gold Funds Are The Worst Buys You Could Make Now
Philippine shares rallied on Tuesday amid gains across the region and Wall Street on bets the influential US Federal Reserve would slow aggressive interest rate hikes to avoid a recession. The Philippine Stock Exchange Index jumped 3.54 percent, or 204.57 points, to 5,987.72, while the broader All Shares Index added 3.09 percent, or 96.35 points, to 3,210.48. The benchmark measure, which remains in bear market territory, pushed higher after briefly slipping below the 5,700 level on Monday. US stocks advanced overnight after disappointing manufacturing data raised hopes the Fed would shift from its tightening cycle to support economic growth. The Bangko Sentral ng Pilipinas separately warned speculators against taking advantage of volatile currency markets as the Philippine peso traded near its low of P59 against the greenback. All local stock exchange subsectors rose on Tuesday, led by holding firms and property, up 4.73 percent and 4.19 percent, respectively. Mining and oil also … [Read more...] about Shares buoyed by bets US Fed may end hawkish cycle
Share to Twitter Share to Linkedin Strong economic growth is crucial for a successful society. Without it, living standards languish, opportunities dry up, and resentment takes hold as people think they have no choice but to fight for their slice of a fixed economic pie. Greater worker productivity—creating more output with fewer inputs—is an important driver of economic growth. Labor productivity growth has been slow for years, but better policies would boost productivity and strengthen the U.S. economy. U.S. Economy is Struggling The U.S. economy is weakening. Real GDP growth was negative in both the first (-1.6%) and second quarter (-0.6%) of this year, and many economists predict growth to remain weak through the first half of 2023. Combine this low growth with 8% inflation and a plummeting stock market and it is not surprising that consumer sentiment is down 20% since last September. There are three ways to boost economic growth—add … [Read more...] about With A Recession Looming, Now Is A Great Time To Fix America’s Slow Labor Productivity Growth
Credit Suisse | Representative Image Credit Suisse Group AG’s Chief Executive Officer Ulrich Koerner said the bank is at a “critical moment” as it prepares for its latest overhaul, while stressing the bank’s strength. In the second carefully-worded memo sent to reassure staff in as many weeks, Koerner told employees not to confuse the “day-to-day” stock price performance with the Swiss firm’s “strong capital base and liquidity position.” The shares are hovering near a record low. Credit Suisse is in the throes of what is expected to be a major restructuring of the investment bank as Koerner seeks to return the lender to profitability and put an end to a string of scandals. While conceding that there is a lot of uncertainty and speculation both within and outside the bank, the CEO said he will be sending a regular update to staff until the results of its strategic review on Oct. 27, according to the memo, seen by Bloomberg and confirmed by a Credit Suisse spokesperson. … [Read more...] about Credit Suisse is at ‘critical moment’ as bank prepares for latest overhaul, CEO says
- A + A KUALA LUMPUR (Oct 4): Bursa Malaysia extended Monday's (Oct 3) gains to close higher on Tuesday, bolstered by the improving global sentiment and bargain-hunting activities in selected heavyweight stocks, a dealer said. At 5pm, the benchmark index advanced 11.74 points to end at 1,409.36 from Monday’s close of 1,397.62. It opened 6.14 points firmer at 1,403.76 and moved between 1,402.9 and 1,411.55 throughout the day. Market breadth was positive with gainers outpacing decliners 567 to 280, while 331 counters remained unchanged, 1,175 untraded, and 30 others suspended. Total turnover widened to 1.92 billion units worth RM1.46 billion from 1.79 billion units worth RM1.45 billion on Monday. Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said the FBM KLCI trended higher on Tuesday as investors continued to bargain hunt stocks at lower levels after recent selldowns. He said key regional indices also trended broadly higher after … [Read more...] about Bursa ends higher on improving global sentiment
A sign above the entrance to a Credit Suisse Group AG bank branch in Geneva, Switzerland, on Monday, July 25, 2022. Photographer: Jose Cendon/Bloomberg The UK government’s fiscal incontinence through unfunded tax cuts that dragged the Bank of England (BoE) back to quantitative easing (QE) took on a nasty turn last week. As UK gilt yields continued to fly, investors joined the dots to conclude that two of the biggest European investment banks were on the brink of collapse. Just like wildfire, the possibility of contagion and financial instability spread to other markets, particularly the US. But how did Credit Suisse and Deutsche Bank go from being poster boys to (potential) fallen angels? We explain: Also Read | Credit Suisse shares fall around 10% in early trading What happened in the UK last week? Close Ever since the UK government announced unfunded tax cuts on September 23, bond yields have been flying. The 10-year UK bonds now trade at around … [Read more...] about MC Explains | Credit Suisse and the darkening spectre of instability
Robert Hale became a billionaire capitalizing on the technology Alexander Graham Bell patented in 1876. But time’s up, and now the 21st century is calling. “G ood fun, good fun!” bellows Rob Hale on a recent Friday morning. It’s 6:30 a.m., and two dozen employees of Granite Telecommunications have gathered for one of their CEO’s favorite rituals: hourlong morning workouts, a grueling grind of pushups, squats, burpees, sit-ups, planks, jumping jacks and stair runs through the company’s four-story office headquarters in Quincy, Massachusetts, a blue-collar burb 10 miles south of Boston. Hale, 56, likes routine. His typical workday includes nabbing the parking lot’s fifth spot (five is his lucky number), downing four extra-large decaf Dunkin’ coffees (two in the morning, two in the afternoon), overseeing a second group workout at noon (this one, mercifully, 20 minutes), then getting home in time for dinner with Karen, his wife of 28 years. “My life is very regimented,” Hale … [Read more...] about This Dot Com Crash Survivor Bet On 100-Year-Old Landlines. Now He’s Boston’s Second Richest Entrepreneur.