- Nicole Goodkind at Daily Ticker15 hrs ago
China’s economy grew by 7.4% in the first quarter of 2014, the slowest rate since September 2012 and below the 7.5% target set by the Chinese government.
“The big picture is that this did miss the [Chinese] government’s target which is what raises eyebrows because China is the ‘engine of global growth’,” says The Daily Ticker’s Lauren Lyster. “But the truth is that’s what the economy is supposed to do there. They are trying to wean themselves off of their desperate addiction to investment-led growth.”
Retail sales in China were up 12.2% year-over-year, beating expectations but industrial production missed estimates at 8.8% and fixed asset investment also slowed down. “Clearly they have a slowdown going on,” says The Daily Ticker’s Aaron Task, “and they’re trying to manage it.”
- Aaron Task at Daily Ticker16 hrs ago
In conjunction with the April 15 tax deadline, the organization Americans for Tax Fairness released its annual report on Walmart and the Walton Family.
Subtitled "How Taxpayers Subsidize Americas's Biggest Employer and Richest Family," the report concludes the company and its founding family received $7.8 billion in tax breaks and taxpayer subsidies in 2013, featuring:
Walmart(WMT)calls the report "inaccurate and misleading” and even some who support its overall focus take issue with the specific findings.
- Bernice Napach at Daily Ticker17 hrs ago
Spring is usually the time when potential home buyers hit the road in search of that perfect house, and sales pick up. But this spring isn't looking so sunny.
Housing starts in March rose less than expected, at a 2.8% annual rate, housing permits fell 2.4% and pending home sales in February fell to their lowest level in almost two and a half years. Homebuyer traffic in 40 major U.S. markets in March was down about a third from a year ago, according to a Credit Suisse index. Related: Housing outlook "still very positive," says PIMCO's Kiesel
"We might have already seen the peak of the recovery," says The Daily Ticker's Aaron Task. "Unless overall economic activity picks up and wages pick up we may be plateauing in the housing market."
- Bernice Napach at Daily Ticker1 day ago
Consumer prices are still rising at a rate below the Fed's 2% annual target but they're creeping higher, weighing on households already under pressure from stagnant incomes. Consumer prices in March rose 0.2%, or 1.5% over the past 12 months, largely because food prices are climbing. Food prices were up 0.4% in March -- but three times as much for just meat, poultry fish and eggs. On an annualized basis that selective food index was up 5.1%. Beef prices alone are at a 27-year high. Related: How 4 companies control almost all the meat you eat
- Morgan Korn at Daily Ticker1 day ago
Monday's stock market rally may have convinced investors that the carnage is over but "scars still remain" from last week's big selloff, says The Daily Ticker's Aaron Task. Monday's rally helped the major indices erase some recent losses but they're still down for the month and year.
"This selloff is largely emotion driven," explains Yahoo's Jeff Macke in the video above. "Investors have to manage their emotions."
Ukraine's crackdown on pro-Russian separatists, China's slowing economy and other geopolitical concerns are priced in to the market and cannot be blamed for the dramatic drop in momentum stocks, notes Macke.
- Nicole Goodkind at Daily Ticker1 day ago
Leggings and sweatpants, once thought exclusively to be for the gym, have now surpassed jeans as the pants of choice…at least for teens. Activewear now comprises 28% of teen apparel purchases, up from 6% in 2008. And "Athleisure" wear (an industry term for athletic wear that can be worn away from the gym) makes up 14.4% of purchases.
In a semi-annual study released this week by Piper Jaffray, teens ranked the top fashion trend as leggings/lululemon (LULU) and the top clothing brand as Nike (NKE). Denim, which typically ranks in the top 10 fashion trends, was nowhere to be found.
- Aaron Pressman at Daily Ticker2 days ago
Tim Cook may have wanted to double down on secrecy at Apple (AAPL), as he said a few yeas ago, but give the company’s size and global scale, it’s proving impossible. As we draw closer to this year’s Apple updates, the level and detail of leaks is again on the rise. When your global supply chain has to start ramping up to make tens of millions of phones, there is seemingly no way to prevent the constant leaks.
Last week, we got a round up of rumors covering the entire product line from KGI Securities analyst Ming-Chi Kuo, considered more reliable than most (though hardly perfect, I’m still waiting for my iPhone with 128 GB of storage. He did get the gold case option and fingerprint sensor correct, however.)
- Nicole Goodkind at Daily Ticker2 days ago
More bad news ahead for General Motors (GM) as the public sifts through the 250,000 documents released by lawmakers last week that highlight the carmaker’s 10-year denial of auto-safety problems.
GM CEO Mary Barra is waiting on two more reports that address how to deal with compensation for victims and repercussions for GM. GM reports earnings on April 24, and the outlook may be negative for the first time in four years given the recent recall of nearly 7 million cars.
Related: GM’s image problem worsens
Recent email revelations show that GM senior executives have known about the cars’ switching problems since at least 2011. Barra testified that she did not became aware of the problem until last December.
So what does this mean for the stock? “It’s certainly one of the cheapest car companies in the universe right now,” says David Nelson, chief strategist at Belpointe. “And sometimes buying headline risk like this can be an opportunity.”
- Bernice Napach at Daily Ticker2 days ago
Stocks opened slightly higher Monday following a big beating last week that left the Nasdaq (IXIC)down 3.1%, its biggest weekly percentage decline in almost two years. The Dow (^DJI)slipped 2.4% last week.
The major averages could fall even further says David Nelson, chief strategist at Belpointe Capital.
- Aaron Task at Daily Ticker2 days ago
After a rapid rotation out of high-flying growth stocks and into value names, the bull market's music seemed to stop last week -- save for the faint sound of Martha and the Vandellas' "Nowhere to Run" playing in the background.
But while the selling has spread beyond formerly high flying tech and biotech names, David Winters, manager of the $2.3 billion Wintergreen Advisers funds, says there's still great value in value stocks.
As as "the bloom has come off the rose" of the "most speculative securities" investors are "realizing you'd rather go for the steak than the sizzle," Winters says. "We think there's a lot of steak out there that's available for big discounts: you can get filet mignon for chuck prices."
Winters' favorite cuts of beef (stock) include: