Reported 2 months ago
A sudden spike in credit risk measures has led to a pause in US corporate bond sales, raising concerns about a potential economic slowdown. The increase in perceived default risk was noted globally, with US corporate credit spreads reaching their highest levels since March 2023. Analysts now emphasize the impact of weakening job growth and expectations for aggressive rate cuts by the Federal Reserve, suggesting that corporations may prioritize caution in debt issuance during uncertain economic conditions.
Source: YAHOO
Reported 2 months ago
The stock market experienced a significant sell-off on Monday, driven by fears over the U.S. economy's health, with the Dow Jones Industrial Average plunging more than 800 points and the Nasdaq dropping nearly 4%. The market is reeling from a lackluster jobs report and fears that the Federal Reserve may be too slow in cutting interest rates. Several major companies, including Apple and Nvidia, saw substantial declines, while global markets echoed similar trends, particularly after a surprising interest rate hike from the Bank of Japan led to a spike in the Japanese Yen.
Source: YAHOO
Reported 2 months ago
Glencore Plc has agreed to pay $152 million following a Swiss investigation that concluded a six-year series of legal inquiries into corruption, particularly concerning bribery of a Congolese official. Although Glencore denied acknowledging wrongdoing, the company opted not to appeal to resolve the matter, contributing to over $1.7 billion paid globally for similar investigations. The Swiss Attorney General's Office indicated that the fine was influenced by Glencore's cooperation during the investigation.
Source: YAHOO
Reported 2 months ago
Global markets experienced a significant drop over the weekend due to heightened recession concerns, leading to declines in U.S. stock markets, particularly in the tech sector and cryptocurrency. The Nasdaq faced its worst opening day in four years. Hosts Seana Smith and Brad Smith on Morning Brief discussed the impact on various sectors and companies amid the sell-off.
Source: YAHOO
Reported 2 months ago
On Monday, the CBOE Volatility Index, a key measure of investor anxiety on Wall Street, experienced its largest intraday spike ever as U.S. stock futures plummeted, raising recession fears. The VIX soared to a peak of 65.73, marking an increase of about 42 points from the previous Friday's close, while the stock market continued to see significant declines, reminiscent of historical market crises.
Source: YAHOO
Reported 2 months ago
A significant drop in two-year Treasury yields below ten-year yields has reignited concerns about a potential recession in the US. This dynamic suggests that the Federal Reserve may need to swiftly cut interest rates, as current financial conditions appear too tight. Following a recent jobs report indicating a rise in unemployment, market indicators are predicting aggressive rate cuts, possibly beginning in September. Economists warn that delays in Fed action may signal worsening economic conditions, prompting discussions about the necessity for intervention.
Source: YAHOO
Reported 2 months ago
Elon Musk has remarked that Warren Buffett appears to be anticipating a market correction following Berkshire Hathaway's sale of approximately half its Apple stock. Musk's comments came after a Twitter user highlighted Buffett's substantial cash reserves. He criticized the Federal Reserve for not lowering interest rates, suggesting that the current financial landscape is challenging for finding better investment opportunities than Treasury bills.
Source: YAHOO
Reported 2 months ago
Investors pulled more than $800 million from commodity exchange-traded funds (ETFs) last week, marking the largest outflow since December 2022. This decline in investment comes amid worries about the economic health of the U.S. and China, leading to a drop in commodity prices. The Bloomberg Commodity Spot Index reported a 1% decrease for the year, influenced by weak job data in the U.S. and growth concerns in China.
Source: YAHOO
Reported 2 months ago
In pre-market trading on Monday, US stock futures are experiencing significant declines, continuing a tech-centric sell-off triggered by last week's weak jobs data. Major tech companies like Nvidia and Apple are facing severe losses, and Japan's Nikkei 225 has also dropped by over 12%. Meanwhile, Bitcoin has fallen sharply, reaching a six-month low, dropping by up to $11,000.
Source: YAHOO
Reported 2 months ago
Kellanova's stock surged up to 20% after reports that Mars Inc. is contemplating acquiring the snackmaker, potentially valued at $30 billion. This move would enable Mars to diversify its mostly chocolate-centric portfolio and enhance its international presence. Kellanova, which split from Kellogg last year, continues to perform strongly, increasing earnings and market guidance, despite challenges faced by competitors in the snack industry.
Source: YAHOO
Reported 2 months ago
U.S. Federal Reserve officials, including Chicago Fed President Austan Goolsbee, expressed that the economy is not in a recession despite weaker-than-expected job data. They indicated that the Fed may consider rate cuts to prevent a downturn if economic indicators continue to show signs of slowing. Policymakers remain focused on balancing the labor market and inflation, with discussions about potential rate adjustments depending on future economic data.
Source: YAHOO
Reported 2 months ago
Hurricane Debby is set to dump heavy rainfall and cause significant flooding along the US East Coast after making landfall in Florida. With potential rainfall amounts reaching up to 30 inches in some areas, including parts of Georgia and the Carolinas, substantial flash and urban flooding is expected. Emergency declarations have been made in several states, and federal assistance has been approved as the storm leads to power outages and flight cancellations. The slow movement of Debby could exacerbate flooding conditions throughout the affected regions.
Source: YAHOO
Reported 2 months ago
Major Wall Street strategists are warning investors about the increasing risks of an economic slowdown that could impact the stock market. Morgan Stanley's Michael Wilson highlighted a weakening consumer environment and unfavorable risk-reward for equities, while JPMorgan's Mislav Matejka pointed to disappointing business activity and earnings outlook. Despite these bearish sentiments, there is speculation from some traders that the tech sector selloff may be nearing an end, suggesting a possible dip-buying opportunity.
Source: YAHOO
Reported 2 months ago
Elon Musk has relaunched a lawsuit against OpenAI and CEO Sam Altman, claiming that the company prioritized profits over public good. Musk, who co-founded OpenAI, argues that Altman altered its original mission to focus on generative AI for financial gain. The lawsuit seeks to nullify OpenAI's licensing agreement with Microsoft, alleging that it falls outside the partnership's original goals. This follows Musk's prior withdrawal of a similar lawsuit, which accused the organization of straying from its initial altruistic intent.
Source: YAHOO
Reported 2 months ago
Apple and Nvidia led a significant sell-off in technology stocks, marking a downturn in the so-called Magnificent Seven companies which include Alphabet, Amazon, Meta Platforms, Microsoft, and Tesla. Concerns over a potential U.S. recession and Berkshire Hathaway's recent decision to reduce its Apple stake contributed to a loss of nearly $1 trillion in market value. This decline followed a weak U.S. payrolls report and ongoing fears about delayed returns on substantial AI investments.
Source: YAHOO
Reported 2 months ago
Three strong dividend stocks have hit 52-week lows and present attractive buying opportunities. Kraft Heinz, Hershey, and Starbucks have all seen significant declines of 30% to 65% from their previous highs due to various external pressures, such as inflation and weak consumer spending. Despite these challenges, they continue to offer high dividend yields—4.51% for Kraft Heinz, 2.78% for Hershey, and 2.88% for Starbucks. Investors may find these stocks appealing as they provide stable dividends during economic downturns.
Source: YAHOO
Reported 2 months ago
Tyson Foods reported a better than expected third-quarter revenue and profit, boosted by a rebound in meat sales and lower animal feed costs. The company's shares increased by 2.8%, aided by gains in its chicken division, which saw a significant turnaround after past challenges. Tyson has also adjusted its fiscal outlook, narrowing its operating income forecast for 2024, and announced plans to improve chicken supply alignment with customer demand. However, its beef segment continues to face challenges with rising cattle costs.
Source: YAHOO
Reported 2 months ago
Tesla has faced challenges this summer, including a decline in demand for electric vehicles and increased competition, resulting in a 16% drop in stock price. Despite these setbacks and a postponed robotaxi unveiling, L&F Investor Services CEO Alexandra Merz remains optimistic about Tesla's future. In a discussion with Yahoo Finance Executive Editor Brian Sozzi, she highlights Musk's potential to leverage his AI ventures to benefit the company, maintaining a bullish outlook on Tesla's stock.
Source: YAHOO
Reported 2 months ago
Wall Street is experiencing a significant downturn as recession fears take hold, causing major U.S. stock indices, including the Dow Jones, Nasdaq, and S&P 500, to decline sharply. Tech giants like Nvidia, Apple, Microsoft, and Tesla, along with cryptocurrencies such as Bitcoin, are seeing substantial losses during this widespread market sell-off.
Source: YAHOO
Reported 2 months ago
Following disappointing job growth in July, Wall Street is pushing for a Federal Reserve interest rate cut in September, with analysts sharply revising their forecasts. The Fed chairman, Jerome Powell, has left the possibility of maintaining current rates open until December, but the unexpected increase in unemployment and lower job numbers have sparked concerns about the economy's health. As international markets react negatively, calls for aggressive rate cuts grow louder, with some suggesting a total decrease of 100 basis points by year-end.
Source: YAHOO
Reported 2 months ago
In a market filled with rapidly growing but overvalued stocks, Alphabet (NASDAQ: GOOG) emerges as a solid choice for a balanced investment portfolio. Despite emerging competition from OpenAI's SearchGPT, Google's search engine retains over 90% market share, allowing for consistent revenue and profits. The company's strategy of share buybacks and a growing dividend can sustain market-beating returns, making its stock appealing at a price in line with the S&P 500. Analysts predict robust revenue growth, further cementing Alphabet's position as a reliable investment.
Source: YAHOO
Reported 2 months ago
Recent IRS changes affecting how the step-up in basis applies to irrevocable trusts could significantly alter inheritance strategies. Previously, beneficiaries enjoyed a step-up in basis for inherited assets, but the new rule requires these assets to be included in the taxable estate of the grantor for the step-up to apply. This might complicate estate planning, prompting individuals using irrevocable trusts to reassess their strategies to ensure beneficial outcomes for heirs. Engaging with a financial advisor could be crucial for navigating these changes effectively.
Source: YAHOO
Reported 2 months ago
Investors looking for opportunities during stock market sell-offs should consider buying shares of Alphabet and Visa. Alphabet, the parent company of Google, boasts impressive revenue growth driven mainly by digital advertising, while Visa leverages its extensive transaction network to generate substantial profits. Both companies currently trade at reasonable price-to-earnings ratios compared to their historical averages, making them attractive options for long-term growth investors.
Source: YAHOO
Reported 2 months ago
Nvidia's stock fell by 7.4% in early trading, extending its one-month decline to about 23%, driven by a broader tech stock pullback and reports of a design flaw causing delays in its new AI chips, known as Blackwell. Analysts are optimistic about long-term growth linked to Blackwell, despite potential short-term volatility in earnings as the company prepares for the new chip's production and delivery.
Source: YAHOO
Reported 2 months ago
With expectations of upcoming interest rate cuts, investors are turning towards small-cap stocks and dividend-paying stocks. The article highlights three appealing options: Dominion Energy, which benefits from a booming data center market, Realty Income, a REIT known for its reliable dividends, and Truist Financial, a regional bank poised for growth as rates decrease. Each offers solid dividend yields and potential for price recovery as interest rates come down.
Source: YAHOO