Markets Report: Wall St rises on US-China trade hopes

Washington and Beijing are getting close to agreeing on the amount of tariffs to be rolled back, Bloomberg reported, a day after comments from US president Donald Trump and commerce secretary Wilbur Ross dampened hopes of a possible near-term agreement.

A record run for the three main indices, fuelled by optimism on trade, came to a halt at the end of last week as political risks heightened between the countries over Hong Kong.

The back-and-forth on trade has made investors wary after the final month of 2018 was the worst December on Wall Street since the Great Depression.

Tariff-exposed semiconductor companies also rose, with the Philadelphia Semiconductor index up 1.8pc. Shares of Apple gained 0.7pc.

Markets had a knee-jerk reaction to the ADP National Employment Report, which showed US private employers added the fewest jobs in six months in November.

In mid-morning trade, the Dow Jones Industrial Average was up 210.03 points, or 0.76pc, at 27,712.84, the S&P 500 was up 24.42 points, or 0.79pc, at 3,117.62 and the Nasdaq Composite was up 62.35 points, or 0.73pc, at 8,583.

All of the 11 major S&P 500 sectors were trading higher, with energy stocks gaining the most as oil prices surged 3pc.

Google parent Alphabet rose 1.5pc as Sundar Pichai took over as CEO after Larry Page and Sergey Brin stepped aside.

Johnson & Johnson gained 1.3pc after it said recent tests showed Johnson’s Baby Powder was free of asbestos.

Expedia jumped 8.8pc – the most on the S&P 500 – after its CEO and finance head resigned.

In London, the FTSE 100 also rose on the back of improved US-China trade sentiment. It advanced 0.3pc, boosted by Asia-exposed HSBC and oil majors. Heavyweight miners gave up initial losses to lend further support.

That helped Britain’s blue-chip index shrug off losses in exporter

Read More Here...

Out of compliance: How delisting distracts from a turnaround

A retail turnaround is already a complex project rife with challenges, both external and internal. From the outside, consumers can be fickle and discount-minded. From the inside, merchandise misses or operational failures require new teams and new ideas. 

Meanwhile, a retailer’s poor sales can send shares spiraling down as investors lose confidence. If the stock price gets below a certain threshold (usually $1) for too long a time, the retailer gets another item for its to-do list — a notice from the stock exchange that the price needs to recover or they’re in danger of getting kicked off. This year, several retailers in various industry segments, including Rite Aid, Pier 1, J.C. Penney and Ann Taylor owner Ascena, have faced or are currently facing a delisting. 

While a too-low share price may be the most common reason for a delisting scare, there are other paths there. For example, the stock exchanges (for most publicly traded retailers in the U.S. that means the Nasdaq or the New York Stock Exchange), stipulate that, in order to trade in their markets, a variety of criteria must be met, including a minimum number of common shares (not held by officers, directors or “beneficial owners​”) and a minimum number of “makers” (banks or brokerage companies ready with buy and sell orders).

However it happens, dealing with a delisting notice is just one more headache for a company that is almost certainly already struggling, according to Alon Kapen, a partner at law firm Farrell Fritz, who heads its emerging companies and venture capital practice group​ and has helped companies climb back into the good graces of stock exchanges.

“All this is an enormous distraction to management at a time when they’re under enormous business pressure, when they’re shutting down stores and facing the realities of the

Read More Here...

Should You Buy BlackBerry Limited (BB)?

Before putting in our own effort and resources into finding a good investment, we can quickly utilize hedge fund expertise to give us a quick glimpse of whether that stock could make for a good addition to our portfolios. The odds are not exactly stacked in investors’ favor when it comes to beating the market, as evidenced by the fact that less than 49% of the stocks in the S&P 500 did so during the third quarter. The stats were even worse in recent years when most of the advances in the market were due to large gains by FAANG stocks. However, one bright side for individual investors was the strong performance of hedge funds’ top consensus picks. This year hedge funds’ top 20 stock picks outperformed the S&P 500 Index by 9.9 percentage points through the end of November. Thus, we can see that the tireless research and efforts of hedge funds to identify winning stocks can work to our advantage when we know how to use the data. While not all of their picks will be winners, our odds are much better following their best stock picks than trying to go it alone.

BlackBerry Limited (NYSE:BB) investors should pay attention to an increase in activity from the world’s largest hedge funds recently. BB was in 28 hedge funds’ portfolios at the end of September. There were 25 hedge funds in our database with BB positions at the end of the previous quarter. Our calculations also showed that BB isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings and see the video below for Q2 rankings).

Video: Click the image to watch our video about the top 5 most popular hedge fund stocks.

At the moment there are many indicators stock market investors have at

Read More Here...

Is KLA Corporation (KLAC) A Good Stock To Buy?

Looking for stocks with high upside potential? Just follow the big players within the hedge fund industry. Why should you do so? Let’s take a brief look at what statistics have to say about hedge funds’ stock picking abilities to illustrate. The Standard and Poor’s 500 Index returned approximately 26% in 2019 (through November 22nd). Conversely, hedge funds’ 20 preferred S&P 500 stocks generated a return of nearly 35% during the same period, with the majority of these stock picks outperforming the broader market benchmark. Coincidence? It might happen to be so, but it is unlikely. Our research covering the last 18 years indicates that hedge funds’ consensus stock picks generate superior risk-adjusted returns. That’s why we believe it is wise to check hedge fund activity before you invest your time or your savings on a stock like KLA Corporation (NASDAQ:KLAC).

Is KLA Corporation (NASDAQ:KLAC) going to take off soon? The best stock pickers are getting more bullish. The number of long hedge fund bets inched up by 4 recently. Our calculations also showed that KLAC isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings and see the video below for Q2 rankings).

Video: Click the image to watch our video about the top 5 most popular hedge fund stocks.

In the financial world there are plenty of tools stock market investors have at their disposal to analyze stocks. Two of the less known tools are hedge fund and insider trading moves. Our experts have shown that, historically, those who follow the top picks of the top money managers can outpace the market by a superb margin (see the details here).

Andrew Sandler of Sandler Capital Management

Unlike the largest US hedge funds that are convinced Dow will soar past 40,000 or the world’s most bearish hedge fund that’s more convinced than ever

Read More Here...

Here is What Hedge Funds Think About Yandex NV (YNDX)

Is Yandex NV (NASDAQ:YNDX) a good equity to bet on right now? We like to check what the smart money thinks first before doing extensive research on a given stock. Although there have been several high profile failed hedge fund picks, the consensus picks among hedge fund investors have historically outperformed the market after adjusting for known risk attributes. It’s not surprising given that hedge funds have access to better information and more resources to predict the winners in the stock market.

Is Yandex NV (NASDAQ:YNDX) ready to rally soon? The smart money is getting more optimistic. The number of long hedge fund positions went up by 5 in recent months. Our calculations also showed that YNDX isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings and see the video below for Q2 rankings).

Video: Click the image to watch our video about the top 5 most popular hedge fund stocks.

To most stock holders, hedge funds are assumed to be unimportant, old investment tools of yesteryear. While there are more than 8000 funds with their doors open today, Our researchers choose to focus on the moguls of this group, around 750 funds. These hedge fund managers oversee bulk of all hedge funds’ total asset base, and by keeping an eye on their best picks, Insider Monkey has revealed a few investment strategies that have historically outperformed the market. Insider Monkey’s flagship short hedge fund strategy outstripped the S&P 500 short ETFs by around 20 percentage points a year since its inception in May 2014. Our portfolio of short stocks lost 27.8% since February 2017 (through November 21st) even though the market was up more than 39% during the same period. We just shared a list of 7 short targets in our latest quarterly update .

Unlike

Read More Here...

U.S. stocks fall for 3rd straight day over more trade worries

Stocks closed broadly lower and bond prices rose sharply on Wall Street Tuesday after President Donald Trump cast doubt over the potential for a trade deal with China this year.

Technology companies, banks and industrial stocks accounted for much of the sell-off, which extended the S&P 500’s losing streak to a third day. Utilities and real estate stocks rose as traders favored less-risky assets.

Trump said he has “no deadline” for a trade deal and doesn’t mind waiting until after the 2020 election to make one. Investors had been hoping for a deal this year, or at least enough progress to stave off new U.S. tariffs on Chinese goods, including smartphones and laptops, scheduled to start Dec. 15.

Tensions between the two nations flared anew last week after Trump signed legislation expressing U.S. support for pro-democracy demonstrators in Hong Kong.

“We’re running out of time and the markets are finally woken up to ‘Hey, there’s a risk out there and maybe things aren’t going to be all good after all,’” said Randy Frederick, vice president of trading & derivatives at Charles Schwab.

The S&P 500 index fell 20.67 points, or 0.7 percent, to 3,093.20. The Dow Jones Industrial Average lost 280.23 points, or 1 percent, to 27,502.81. The index was briefly down 457 points.

The Nasdaq dropped 47.34 points, or 0.6 percent, to 8,520.64. The Russell 2000 index of smaller company stocks gave up 4.95 points, or 0.3 percent, to 1,602.63.

Pressure has been building on Washington and Beijing to complete what Trump has called a limited “Phase 1” deal before the new tariffs on Chinese goods kick in Dec. 15.

“We’re less than two weeks away from new tariffs that will be implemented on a bunch of consumer goods that have never had tariffs on them, and I think

Read More Here...

Asian markets gain on renewed optimism about U.S.-China trade deal

Asian shares were rising Thursday amid renewed hopes a U.S. trade deal with China may be nearing, despite tough recent talk from President Donald Trump.

Japan’s benchmark Nikkei 225 NIK, +0.80%   gained 0.7% in early trading, while Australia’s S&P/ASX 200 XJO, +1.14%   added nearly 1%. South Korea’s Kospi 180721, -0.30%   slipped 0.5%. Hong Kong’s Hang Seng HSI, +0.33%   was up 0.4% while the Shanghai Composite SHCOMP, +0.32%   rose 0.4%. Benchmark indexes in Taiwan Y9999, +0.63%  , Singapore STI, +0.51%   and Indonesia JAKIDX, +0.52%   advanced.

Among individual stocks, Nippon Steel 5401, +6.61%   jumped in Tokyo trading, while SoftBank 9984, +1.69% ,  Fast Retailing 9983, +0.33%   and Honda 7267, +1.55%   also posted gains. In Hong Kong, Apple component makers Sunny Optical 2382, +3.61%   and AAC 2018, +2.72%  surged, and oil producer CNOOC 883, +1.08%   also rose. Hyundai Motor 005380, -2.46%   sank in South Korea after announcing a $52 billion investment in electric and autonomous cars over the next five years. Beach Energy BPT, +3.90%   and Woodside Petroleum WPL, +1.94%   gained in Australia.

Shares on Wall Street finished higher Wednesday, with the gains snapped a three-day losing streak for the S&P 500. The U.S. market has swung sharply for months on every hint of progress about talks between the world’s largest economies, and Asian regional indexes have tended to reflect those fluctuations.

In the latest development, Bloomberg News reported that U.S. negotiators expect a “Phase 1” trade agreement to be completed before U.S. tariffs are set to rise on Chinese products Dec. 15.

The report came a day after Trump said he wouldn’t mind waiting until after the 2020 elections for a deal, a remark that officials reportedly called off the cuff but nevertheless sent markets skidding.

“The

Read More Here...

ASX set for more heavy losses as Trump says China trade deal can wait

Tensions between the two nations flared anew last week after Trump signed legislation expressing US support for pro-democracy demonstrators in Hong Kong.

“We’re running out of time and the markets are finally woken up to ‘Hey, there’s a risk out there and maybe things aren’t going to be all good after all,”‘ said Randy Frederick, vice president of trading & derivatives at Charles Schwab.

The S&P 500 index fell 20.67 points, or 0.7 per cent, to 3,093.20. The Dow Jones Industrial Average lost 280.23 points, or 1 per cent, to 27,502.81. The index was briefly down 457 points.

The Nasdaq dropped 47.34 points, or 0.6 per cent, to 8,520.64. The Russell 2000 index of smaller company stocks gave up 4.95 points, or 0.3 per cent, to 1,602.63.

Stocks have been racking up losses this week, giving up some of the market’s solid gains from a strong November rally fueled partly by investor optimism about the prospects for a trade deal between Washington and Beijing.

Pressure has been building on both sides to complete what Trump has called a limited “Phase 1” deal before the new tariffs on Chinese goods kick in December 15.

“We’re less than two weeks away from new tariffs that will be implemented on a bunch of consumer goods that have never had tariffs on them, and I think that’s when the consumer really starts to feel the pain,” Frederick said.

Wall Street is also weighing the potential for an expanded series of trade disputes. On Tuesday, Trump proposed tariffs on $US2.4 billion in French products in retaliation for a tax on global tech giants including Google, Amazon and Facebook. That follows a threat Monday to raise tariffs on steel and aluminum from Argentina and Brazil.

The lack of a trade deal before the

Read More Here...

Sensex, Nifty Seen Lower Ahead Of RBI Policy Meet

Indian shares may open on a cautious note on Thursday after oil prices jumped over 4 percent overnight on data showing a steeper than expected weekly drop in crude oil inventories and amid expectations that OPEC and its allied producers would extend production curbs.

Investors also await the outcome of the Reserve Bank of India’s (RBI) fifth monetary policy meet of the financial year 2019-20, due later in the day amid expectations the central bank will deliver its sixth straight interest-rate cut despite a spike in inflation.

Benchmark indexes Sensex and the Nifty rose around 0.4 percent on Wednesday after a survey showed that India’s services sector activity recovered in November amid a rise in new business intakes and job creation.

Asian markets traded mostly higher this morning and the dollar weakened on the back of weak U.S. data released overnight, while oil dipped slightly after sharp gains in the previous session.

U.S. stocks rose for the first time in four sessions overnight after reports suggested that a phase-one trade U.S.-China trade deal was still in the works and a partial resolution would be completed before another set of China tariffs kick in on Dec. 15.

The Dow Jones Industrial Average and the tech-heavy Nasdaq Composite rose around half a percent while the S&P 500 added 0.6 percent.

European stocks also closed higher on Wednesday as renewed optimism about a potential U.S.-China trade deal as well as encouraging service sector activity data from China helped investors shrug off weak U.S. data on private sector job growth and service sector activity.

The pan-European Stoxx 600 advanced 1.2 percent. The German DAX rallied 1.2 percent, France’s CAC 40 index climbed 1.3 percent and the U.K.’s FTSE 100 gained 0.4 percent.

For comments and feedback contact: [email protected]

Read More Here...

Wall Street gains on hopes that US-China trade deal still on track

“The trade war will be the key driver of sentiment in the immediate few weeks,” DBS Group analysts wrote in a report.

Beyond China, Trump has been pushing ahead on trade disputes all around the world recently. On Tuesday, he proposed tariffs on $US2.4 billion ($3.5 billion) in French products in retaliation for a tax on global tech giants including Google, Amazon and Facebook. That follows a threat on Monday to raise tariffs on steel and aluminium from Argentina and Brazil.

Loading

The trade war has hurt manufacturers and weighed on economic growth around the world. Central banks have cut interest rates and unloaded stimulus to help spur growth. In the United States, a strong job market is also helping to prop up the economy.

Financial and health care stocks accounted for a big slice of the rally. Communication services, industrial and technology companies also helped lift the market.

Keeping score

The S&P 500 was up 0.7 per cent as of 2:07 pm New York time. It was on track to recover about a third of its losses from the prior three days.

The Dow Jones Industrial Average climbed 192 points, or 0.7 per cent, to 27,695, and the Nasdaq composite rose 0.6 per cent.

European stock indexes were higher, while Asian markets sank.

Yields

Treasury yields also recouped some of their sharp drops from earlier in the week. Rising optimism on trade means less demand for safe investments, and when prices for Treasurys fall, their yields rise.

The yield on the 10-year Treasury rose to 1.78 per cent from 1.71 per cent late on Tuesday. It was at 1.83 per cent on Monday.

Energised

A rebound in the price of crude sent oil-related stocks to the market’s biggest gains. Energy stocks in the S&P 500

Read More Here...