General Electric shares continued to plumb new depths after Bank of America Merrill Lynch downgraded the troubled bellwether on Monday. The shares fell 1 percent Monday to $16.07 and touched an intraday low of $15.80, its lowest in six years. The stock fell last week below $17 a share after GE said earlier in the week it would take a $6.2 billion after-tax charge because of its GE Capital insurance portfolio and that it expects to contribute $14 billion over the next seven years to shore up the company's reserves. Analyst Andrew Obln told investors that the industrial conglomerate is likely to slash its 2018 outlook when it reports fourth-quarter results. Our outlook "reflects lower earnings
This man has a problem that many Americans would love to haveDMAMBMCMDMEPREVIEWZQZRZSZTZUDear Moneyist,My wife and I are in our mid 30s and have been blessed enough to be relatively debt-free and purchase our first home together.Should we use that $200
Don Taylor at the Franklin Rising Dividends Fund disregards companies’ current dividend yields when selecting stocks. Instead he focuses on the strength of their underlying businesses. If a company increases its sales, earnings and cash flow enough to support significant and consistent increases in dividends, its stock should perform well in the long run, he reasons. Taylor has used that strategy since he helped establish the $19.4 billion Franklin Rising Dividends Fund FRDPX, +0.55% in 1996. The fund’s strategy is to select companies that are expected to post double-digit increases in dividend payouts over the long term. “The core is underlying business growth,” Taylor said in an interview Jan.
Goldman Sachs’ private wealth management advisors are telling its wealthiest clients that stocks are not in a bubble and that the bull market likely continues. “We recommend that clients stay invested in equities notwithstanding currently high valuations and the constant cascade of warnings that we are in an equity bubble.
Getting old in America isn’t what it used to be. In a worldwide study, the U.S. fell to No. 17 (down three spots from last year) in the Natixis Global Asset Management Global Retirement Index. The index ranks 43 mainly developed countries on their ability to offer its citizens a secure retirement. Norway, Switzerland, Iceland and Sweden top the list. Why did the U.S. have such a dismal showing? The U.S. took hits in income equality, health care spending and life expectancy. While America may have the fifth-highest income per capita, we have the sixth lowest score for income equality, suggesting that retirement saving is difficult for average workers. Our life expectancy fell, yet we spend the
A personal defined-benefit plan provides a guaranteed payout in your retirement years, just like the defined-benefit plans of old. With a 401(k) plan, in contrast, the maximum amount you can invest tax-free each year is $18,500 (if you’re over 50, this amount increases to $24,500). With a defined-benefit plan, this maximum amount can be an order of magnitude larger.
The biggest political story all week was the impending government shutdown, which took effect at midnight on Friday. During the most recent 16-day shutdown in 2013, the S&P 500 gained 3.1%. Economists at Goldman Sachs estimated that each week the government is shut down in the first quarter would take 0.2% off first quarter GDP. Meanwhile, Treasury yields continued their recent market higher with the two-year Treasury yield settling above 2.05% and the 10-year Treasury settling at 2.64%, above the 2.63% Jeff Gundlach called out earlier this month as a key level for the benchmark government bond.
The potential deal, which could be announced as soon as Monday, would value Bioverativ at about $105 a share, the Journal reported. The price represents a 64 percent premium to Bioverativ stock's close on Friday on the Nasdaq. Bioverativ, a hemophilia drug maker, was separated from Biogen Inc early last year.
The Procter & Gamble Company PG is set to report second-quarter fiscal 2018 results on Jan 23, before market open. Last quarter, the company delivered a positive earnings surprise of 1.87%. Procter & Gamble has been struggling to boost sales for the last few years.
Pavel Bains of Bluzelle is watching the changes in cryptocurrency prices to see the effect on business models using blockchain.
Apple Inc. AAPL is reportedly bringing HomePod, a smart speaker integrated with Siri and aimed at the home automation market, in February. Taiwan-based Inventec, one of the two component suppliers of the smart speaker, made the announcement. Foxconn Technology Group is the other supplier. Apple’s launch of HomePad will help it take on other smart speakers like Amazon’s AMZN Echo and Alphabet’s GOOGL Google Home launched more than three years and one year ago, respectively.
You’ve spent your whole life saving for retirement . For many investors, the transition can be confusing or even traumatic. As investors approach this transition from saving to spending they should take three steps: start with a retirement income plan, keep their portfolio invested and diversified, and then rebalance their portfolio periodically to generate the cash they require.
Ford Motor Co. comes to the week of its fourth-quarter earnings release hobbled by weak guidance and lows for its stock. The auto maker is scheduled to report results after the bell on Wednesday. Ford’s guidance earlier this month has disappointed Wall Street, and analysts are likely to scour earnings for signs the company can weather the storm. Bright points for Ford F, -0.58% include its best-selling pickup trucks and SUVs, the type of vehicles that U.S. residents have taken a marked liking in recent years at the expense of sedans and compacts. The company is also looking at launching compact SUVs this year, which have also grown in popularity. “That’s where the profits are, and where the
Goldman Sachs is warning its wealthiest clients that there’s no doubt that the rise in bitcoin’s price (BTC) has pushed it into bubble territory. The firm’s Private Wealth Management division touched upon the cryptocurrency craze in a 108-page note titled “(Un)Steady as She Goes,” an annual outlook that’s sent to the firm’s private wealth management clients. The meteoric rise of cryptocurrencies has “moved beyond bubble levels,” Goldman’s Sharmin Mossavar-Rahmani and Brett Nelson write.
Adidas' focus on quality growth and margins will help drive up its stock, Macquarie analyst Andreas Inderst wrote. Inderst raised his price target to €223 ($272). The sneaker company has had strong share performance since 2015.
Ready for the week ahead? Rest assured it will be pretty crazy right from the get-go Monday. Yes, the Government Is Still Closed It has been a circus-filled weekend when it comes to the nation's politics. Investors enter the week with a partial government shutdown in full effect. A vote is expected to end the shutdown today at 10:00 a.m. As of right now, the outlook on the government shutdown being lifted by the start of trading Monday is grim as both Democrats and Republicans exchanged major body blows over the weekend. Interestingly -- if not alarmingly -- we have not received one cautionary note on markets by the biggest Wall Street firms with the government shutdown headed to day three.
Charles Rotblut, American Association of Individual Investors, provides insight to how investors are feeling about the markets.
French healthcare group Sanofi has agreed to buy U.S. haemophilia specialist Bioverativ for $11.6 billion, its biggest deal for seven years, which it said would strengthen its presence in treatments for rare diseases. Sanofi shares fell 3.4 percent by 0920 GMT, making the stock the worst performer on France's benchmark CAC-40 index and several analysts deemed the deal expensive. The move comes at a time of renewed interest by large drugmakers in smaller biotech firms and predictions by some experts that 2018 will see a substantial pick-up in mergers and acquisitions.
Though investors are sharply divided about the viability of cryptocurrencies over the long term, there is no denying that some savvy individuals were able to make an astronomical amount of money speculating on virtual currencies over the past several years. At the same time, though, it's easy to feel as if you are too late to cash in on the cryptocurrency craze, particularly if you didn't first buy bitcoin when it first came out several years ago. That being said, there are new digital currencies all the time, and while the top cryptocurrencies like bitcoin have grown to prohibitively high prices for some investors to make major inroads, there are new alternative coins which may be promising.
Republicans and Democrats are in no mood to settle their divide over immigration policy and come to an agreement to fund the government. Thus, the government closure will go into a third day and such a shutdown is expected to damage growth. All these have boosted the risk of greater fluctuations in the equity market that have largely scaled higher in recent years.
Apple Inc. announced a series of plans Wednesday that were celebrated as promises to hire thousands of workers and bring home all of its overseas cash. Well, not necessarily. Apple AAPL, -0.45% said in its release that the company planned to “create over 20,000 new jobs through hiring at existing campuses and opening a new one.” The key word there is “create,” which Apple really likes to use when discussing jobs: The company even has a portion of its website dedicated to “job creation” that claims it is “responsible for 2 million jobs” in the United States, most of which are jobs “attributable to the App Store ecosystem.” Apple currently employs 84,000 people in the U.S., it said Wednesday,
Global stocks were mixed on Monday as global investors mostly shrugged off the latest U.S. government shutdown. U.S. SHUTDOWN: A range of U.S. government services were suspended after lawmakers failed to agree on a new budget, but economists said the shutdown was unlikely to last long enough to cause much economic damage. ANALYST'S TAKE: "The much-anticipated shutdown of the U.S. government on Saturday did not trigger much of a knee-jerk reaction," said Margaret Yang of CMC Markets in a report.
Industrial goods manufacturer General Electric Company GE is scheduled to report fourth-quarter 2017 results before the opening bell on Jan 24. The company’s Healthcare segment is likely to report higher revenues in the quarter owing to improved market dynamics. Whether this can buoy the bottom line of the company remains to be seen.
Goldman Sachs says the government shutdown will result in a 0.2% reduction in first-quarter GDP for every week it persists. Expect the government shutdown to slowly drain the US economy, says Goldman Sachs. Now that the federal government has failed to successfully negotiate a funding bill, first-quarter gross domestic product (GDP) will slip by 0.2 percentage points for each week the shutdown persists, according to Goldman.
After a year of political spectacle, a government shutdown looks like it won’t divert investors from the economic and earnings tidings that have occupied Wall Street’s minds of late. Equity investors with the first chance to trade since the U.S. government officially entered a partial closure showed little concern that the world’s largest economy will stumble. Futures on the S&P 500 Index dipped just 0.1 percent as of 12:19 p.m. in Tokyo Monday, and benchmark 10-year Treasuries were little changed, after the Senate departed without a deal. U.S. stocks jumped to a record close Friday even as the impasse deepened in Washington. “I’m not overly worried,” Jurrien Timmer, head of global macro at Fidelity