Jim Cramer, CNBC’s “Mad Money” host and a prominent fixture among market commentators, on Monday said the market is enduring “a very serious correction,” underscored by the fact that there are few fundamental reasons for the market’s current downtrend. During CNBC’s “Halftime Report,” Cramer said notable is a slump in shares of so-called FANG names — the highflying quartet of Facebook Inc. (FB) Amazon.com Inc. (AMZN) Netflix Inc. (NFLX)and Google parent Alphabet Inc. (GOOGL)(GOOG) that are among the most influential on Wall Street due to their massive market values and the degree by which investors have piled into those investments for hope of consistent growth. All of those companies are in a corrective phase, defined as a drop of at least 10% from a recent peak, and Netflix and Facebook shares have shed around a third of their values since hitting 52-week peaks.
Now, analysts at Goldman Sachs are forecasting more pain ahead, pointing to the investment bank's bear market indicator that is "flashing red" at its highest levels in five decades. Bear market indicator is at 73%, its highest since the late 1960s—early 1970s.
Warren Buffett's Berkshire Hathaway reported a new stake in J.P. Morgan as of the end of September. Half of Berkshire's top 10 holdings are in big U.S. banking companies. Warren Buffett's Berkshire Hathaway reported its third-quarter holdings on Wednesday, revealing a new $4 billion stake in J.P. Morgan Chase JPM .
Shares of PG&E Corp. plummeted as much as 32 percent Wednesday after the company said it had exhausted its revolving credit lines, signaling it was shoring up its cash to prepare for a possible credit downgrade to junk. The utility’s filing also may have marked the start of a campaign to get bailed out by California’s lawmakers -- as it was after last year’s fires. “Watching this whole thing play out, it’s like a slow motion train wreck,” said John Bartlett, utility portfolio manager at Reaves Asset Management.
Semiconductor stocks, like the rest of the broader tech market, have been under heavy pressure in late 2018. A slowdown in the semiconductor market as well as the tariff wars between China and the U.S. have also affected sentiment in the sector. Although many of these chip stocks, including Intel (NASDAQ:INTC), Advanced Micro Devices (NASDAQ:AMD) and Nvidia (NASDAQ:NVDA), are much cheaper than they were at the start of September, investors should not expect the choppiness in individual share prices to be over yet.
Suze Orman broke the internet earlier this month when she told the “Afford Anything” podcast that those buying into the FIRE movement (financial independence, retire early) better save at least $5 million to achieve that goal. “Her views ruffled a lot of feathers, but after crunching the numbers, I have to agree — $5 million sounds about right if you want to retire before the age of 60,” the Financial Samurai blog’s Sam Dogen said. Dogen says 40 is the absolute earliest he’d recommend anybody retire, although even then, that’s asking a lot out of your investments.
Canopy Growth Corporation saw its shares fall 13% on Wednesday after reporting disappointing earnings that included a revenue decline. Analysts had expected better results from Canopy after Canada launched legal recreational marijuana sales on Oct. 17. Canopy Growth CEO Bruce Linton doesn’t disagree.
Jim Cramer uses a story about a real-life bear encounter to illustrate how investors should approach the stock market's bearish moves.
During the third quarter, Berkshire Hathaway snapped up a new position in JPMorgan Chase (JPM) of 35.6 million shares, making it the 10th largest stock holding. “I should’ve [invested],” Buffett said at the time.
Buffett’s Berkshire Hathaway Inc. has sold its last Walmart Inc. shares, according to a filing Wednesday, ending a relationship that dates back more two decades. The world’s largest retailer was once one of Berkshire’s five biggest equity holdings as recently as 2014, valued at more than $5 billion, but Amazon.com Inc.’s encroachment since then has prompted Berkshire to pare down that stake. Walmart shares have risen 2.8 percent this year, compared with Amazon’s 37 percent boost.
A diverse array of growth and value stocks, ranging from small- to mega-cap names, all 10 of the best stocks to buy for 2019 look like attractive opportunities for the long-term investor. While the running gag with Starbucks is there's "one on every corner," that punchline still rings hollow in some parts of the globe. The company's biggest growth opportunity is in the China/Asia Pacific region, where it opened 278 new stores between July and September alone.
Nvidia NVDA stock slipped 1% during regular trading hours Wednesday just one day before the company is set to report its quarterly financial results. Nvidia has been a graphics chip powerhouse for years, and its recently launched GPUs based on its new Turing architecture are expected to be a game-changer in the gaming industry. Meanwhile, Nvidia is set to benefit from the growth of cloud computing, AI, and machine learning.
When planning for retirement, it is important to figure out what income you will need and where that income will come from once you leave the workforce. For most American retirees, Social Security benefits will provide an important source of income in retirement, but many people aren’t sure when they should start taking the benefits. Social Security benefits include retirement and disability income, Medicare and Medicaid, and survivor benefits.
Stocks with a strong history of dividend growth year over year form a healthy portfolio with greater scope of capital appreciation as opposed to simple dividend paying stocks or those that have high yields. Dividend growth reflects a sustainable business model, a long track of profitability, rising cash flows, good liquidity, a strong balance sheet and some value characteristics. All these superior fundamentals make dividend growth stocks promising investments for the long term.
Banks get hammered. The financial fallout of the midterms. With Tony Dwyer, Canaccord Genuity, CNBC's Melissa Lee and the Fast Money traders, Brian Kelly, Karen Finerman and Guy Adami.
Since the beginning of October, Verizon Communications (NYSE:VZ) has been one of the best stocks in the market. Indeed, many names have outperformed VZ stock over the period. A nearly 10% rise in six weeks for a mature, low-growth name like Verizon stock is impressive.
A halving of the dividend a month later and Warren Buffett bailing on GE a few months later were further signs of deterioration. Also, that pesky analyst Stephen Tusa of JPMorgan hasn't stopped torturing bulls, with negative note after negative note. All of this has buried GE stock, causing it to fall from $11 before earnings on Oct. 30 to new lows of $7.72 just a few days ago.
While this sounds impressive, it still wasn’t enough to impress BABA stock investors. Although this year’s single day event beat last year’s numbers, Wall Street was still disappointed, so the stock fell on the news. Beyond this recent drop, 2018 has been a generally tough year for Alibaba stock: In fact, it is down 20% year-to-date. The iShares China Large-Cap ETF (NYSEARCA:FXI) is only down 13% for the same period, so even compared to that, BABA stock still lags.
Semiconductor stocks have had it very easy for the last few years. In looking for semiconductor stocks to dump I’m looking for companies that investors had overreached for, but where the final collapse has not yet come. Put the cash in your pocket while it’s still on the table.
The purchases, which were revealed in securities filings on Wednesday, may be leaving large investors with steep losses if Apple continues its more than 15 percent decline for the month so far. Mutual fund giant Fidelity added 7 million shares, bringing its total holdings to 110.9 million shares, regulatory filings and data from research firm Symmetric.io show. Janus Henderson Group added 3.3 million shares for a total of 20.8 million shares and J.P. Morgan Chase & Co boosted its holding to 42.7 million shares after adding 1.3 million.
PG&E Corp. shares fell another 22% on Wednesday to bring their week-to-date losses to 36%, after the utility said its insurance may not cover the possible losses from the worst wildfire in California history. The parent of Pacific Gas and Electric (PCG) , with about 16 million customers in California, has seen its stock lose 50% of its value in five sessions. The company’s bonds also tumbled and accounted for three of the top 10 most actively traded investment-grade bonds of the day.
Citigroup (C) closed the most recent trading day at $63.50, moving -1.98% from the previous trading session. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $17.95 billion, up 4.05% from the year-ago period. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
The investments were disclosed in a Wednesday regulatory filing detailing Berkshire's U.S.-listed stocks as of Sept. 30, following a quarter when the Omaha, Nebraska-based conglomerate spent $17.7 billion on equities. According to the filing, Berkshire owned $829 million of PNC stock, $460 million of the insurer Travelers, and $2.13 billion of Oracle, the database software company. “While nervous investors fear the end of the economic recovery, Mr. Buffett is buying economically sensitive bank stocks," said Bill Smead, who runs Smead Capital Management Inc in Seattle and owns Berkshire stock.
In the wake of this selloff, Nvidia might not have to deliver particularly great numbers in its October quarter (fiscal third quarter) report to get a thumbs-up from investors. Nvidia also provides quarterly sales guidance in its earnings reports. TheStreet will be live-blogging Nvidia's report when it arrives after the close on Thursday, along with its earnings call, which starts at 5:30 p.m. EST.
Advanced Micro Devices (NASDAQ:AMD) consistently squares off against the world’s toughest competitors in the most lucrative markets. What makes this accomplishment so impressive is that Advanced Micro Devices stock has been a different animal since the end of September. On the positive end of the scale, AMD has gained market share against long-time archnemesis Intel (NASDAQ:INTC).