CNBC's Jim Cramer pinpoints the 10 drivers of the stock market's sell-off. Ten things need to change for the stock market to come back from its Monday declines , CNBC's Jim Cramer said as high-profile technology stocks Facebook FB and Apple AAPL led the major averages lower. Here are the various reasons that stocks are falling and what it would take for them to turn, according to Cramer: 1.
Reality continues to rain down on formerly high-flying big tech stocks. Sales growth in 2019 will probably be less explosive than 2018. Blame slowing user growth at the likes of Facebook or more competition for Amazon from the increasingly digitally savvy Target – the fact is the sales growth environment for big tech is taking a turn for the worse.
‘From a markets perspective, it’s going to be interesting. Paul Tudor Jones, a hedge-fund luminary, said he’s stress-testing his portfolio of corporate debt because he expects a tumultuous road ahead on the back of the Federal Reserve’s apparent commitment to normalizing interest rates and buttressed by corporate tax cuts from the Trump administration. Speaking at an economic forum in Greenwich, Conn., a hotbed for hedge funds, Jones said the Fed faces real challenges amid “the end of a 10-year run” of economic growth that many anticipate will soon come to a screeching, cyclical end.
Eric Schmidt joined Google as CEO in 2001 and led the tech company for the next decade as the company grew from a start-up to a corporate behemoth, whose parent company, Alphabet, now has a market cap of over $740 billion . "They were super smart, somewhat disorganized kinds of people," Schmidt told Tyler Cowen on the " Conversations with Tyler " podcast. "The recruiting started off as informal, but it ultimately became very, very structured," Schmidt said.
Finally, the political clouds over health care seem to have parted: Split party control of Congress following the midterms means Obamacare isn’t going anywhere, and proposals to curb drug prices are unlikely to pass both houses. “Health care is a defensive growth sector that we think should have a growth upturn over the next five years or so,” says Saira Malik, head of global equities at Nuveen. Marc Pinto, a portfolio manager at Janus Henderson, favors Merck, whose blockbuster immunotherapy treatment, Keytruda, has proved effective for a growing number of different cancers, enabling the pharma company to score a string of FDA approvals for new indications—and sell the drug to more patients.
U.S. stock index futures pointed to a lower open on Tuesday as a decline in Target shares pressured retailers, while the most popular technology stocks fell again. At around 7:53 a.m. ET, Dow Jones Industrial Average futures were down 275 points
Dan Suzuki, Richard Bernstein Advisors; Steve Grasso, Stuart Frankel; and CNBC's Rick Santelli, discuss today's big market drop.
Elon Musk, the Tesla and Boring Company CEO, is following through on his vow to sell “Lego-like” bricks. Musk has launched The Brick Store LLC, an offshoot of The Boring Company that will produce interlocking bricks made from dirt displaced from the tunnel-digging company’s machines. The new company filed a permit application in Hawthorne, California, asking permission to repaint a building that will serve as the Brick Store’s first brick-and-mortar location, TechCrunch reported.
There are plenty of things that can ruin a person’s retirement plans — divorce, illness, job loss, overspending. A recent study has revealed for the first time the 10 biggest causes of financial regret among those who have retired or are near to retirement. The survey was conducted by researchers from the RAND Corporation and the Max Planck Institute in Munich, Germany.
“Unless someone convinces me that all of us are going to go back to TVs and radios, I still think digital advertising is a place where the growth will continue,” says Melda Mergen, deputy global head of equities for Columbia Threadneedle Investments. Facebook, for one, is trading at its lowest valuation ever, just 19 times earnings—about the average of the S&P 500 and half as expensive as it was a year ago. “This may end up being one of the last buying opportunities,” says Dan Chung, CEO and CIO of Fred Alger Investments, who owns both stocks.
Not long ago, the iPhone maker was the toast of the market as the first U.S. company worth more than $1 trillion. Apple stock plunged 17%, wiping out nearly $190 billion in shareholder value. In September, Apple (ticker: AAPL) released the $999 iPhone XS and the $1,099 iPhone XS Max, followed by the midrange $749 iPhone XR in October.
According to the latest CEO confidence index from trade publication Chief Executive, CEOs now have their lowest confidence in business conditions for the next twelve months since October 2017. Over the weekend, we noted that some strategists have seen the market action since early October as a sign of investors exiting a 2018-type mindset in which strong earnings and economic growth were seen as tailwinds and rising rates just a periphery concern.
Shares of Nvidia Corp. dropped another 12% Monday as investors continue to punish the chipmaker following disappointing revenue and guidance in its third-quarter earnings results. Nvidia lost $19.73 to close at $144.70, and shares hit a new 52-week
Saudi Arabia's King Salman will inaugurate on Thursday the Waad Al-Shamaal project, a 440-square-km city for mining industries in the country's northern region, Al Arabiya TV said, quoting energy minister Khalid al-Falih. Saudi authorities estimate the region holds 500 million tonnes of phosphate ore, around 7 percent of global proven reserves, mainly in the Al Jalamid and Umm Wu'al areas between Arar and Turaif. Saudi Arabia’s efforts to build an economy that does not rely on oil and state subsidies involves a shift towards mining vast untapped reserves of bauxite, the main source of aluminium, as well as phosphate, gold, copper and uranium.
"Buy the dip," isn't working for the first time in 16 years, according to analysis from Morgan Stanley. "Such market behavior is rare and in the past has coincided with official bear markets (20 percent declines), recessions, or both," says Morgan Stanley equity strategist Michael Wilson. One of Wall Street's most famous proverbs of this bull market is backfiring.
The market could take another leg down, says BNY Mellon's Alicia Levine. State Street's Michael Arone doesn't see the end of the bull market, yet. The bull market is "in trouble," strategist Alicia Levine told CNBC on Monday.
Nov.19 -- Ray Dalio, founder at Bridgewater Associates, says years of low interest rates and quantitative easing have squeezed most of the returns out of U.S. assets. He speaks with Bloomberg Opinion columnist Barry Ritholtz at the Bloomberg Opinion Masters in Business event. Ritholtz's opinions are his own.
A look at the details surrounding Monday's ugly tech selloff, and more broadly the selling that has happened over the past two trading days, suggests there was some measure of capitulation going on. While almost no tech stocks were spared as the Nasdaq dropped 3% on Monday, it's notable that software firms accounted (by my counting) for 15 of the 22 tech names to drop by a double-digit percentage. , which continued selling off hard in response to the January quarter guidance it issued on Thursday afternoon, all of the others were Internet services firms.
The decline comes as the Nasdaq plummeted more than 3%, bringing its year-to-date gain to just 1.69%. Twilio, which has had a great year, is getting hammered. The cloud communications company fell 13.76% to $76.90 a share.
Netflix Inc. stock has fallen far enough and long enough to produce its first “death cross” pattern in nearly three years, and become the third member of the former FAANG technology darlings to suffer that bearish technical fate. A death cross refers to when a price chart’s 50-day moving average, viewed by many as a short-term trend tracker, crosses below the 200-day moving average, which many recognize as a dividing line between longer-term uptrends and downtrends.
2018 was a breakthrough year for Nvidia Corporation (NVDA), until it wasn't. Nvidia is a graphics processing chip manufacturer that currently generates most of its revenue from the sales of graphics processing units (GPUs), which are used for competitive gaming, professional visualization, and cryptocurrency mining. Riding on the coattails of a cryptocurrency boom, the graphics processing company soared 42.18% year-over-year to a record-high share price of $289.36 on October 1, 2018. Just over one month later, on November 15, 2018, Nvidia delivered disappointing Q3 FY19 revenue guidance, falling short of analysts' expectations by about $700 million.
MARKET PULSE The Dow Jones Industrial Average (DJIA) was sinking midday Monday, pressured by a decline in Boeing Co.'s stock (BA) and Apple Inc. to start the holiday-shortened week. Boeing shares were exacting a roughly 100-point toll
Facebook stock took a drubbing Monday as fallout from a blistering report settled in with investors, but analysts remain mostly bullish on the embattled company. On a day when tech stocks were trounced, (FB) stock (FB) was particularly hard hit, falling 5.7% to $131.59 per share—near its 52-week low. Facebook stock is down 25% for the year.
Investors ought to pay attention to the changing character of the U.S. stock market. Investors may want to prepare now and fine-tune their skills for a different kind of market. Please click here for the chart of money flows in 11 popular technology stocks.
Given that they are living longer, Americans need to be more prepared than ever for retirement, whether that’s in building their own savings in tax-advantaged accounts or investing with a professional financial advisor. Below, we examine data on retirement accounts like 401(k)s and IRAs to see how Americans are adapting to these changes. In order to track retirement savings and retirement account usage, we analyzed data from the Federal Reserve’s SCF (Survey of Consumer Finances) and specifically looked at data from 1989 to 2016.