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Stocks got back on the horse on Wednesday, with both the Dow and S&P 500 indexes finishing at their second-highest levels ever, as investors continue to smile on strong economic growth prospects.
Stocks got back on the horse on Wednesday, with both the Dow and S&P 500 indexes finishing at their second-highest levels ever, as investors continue to smile on strong economic growth prospects.
(Bloomberg) -- Warren Buffett’s Berkshire Hathaway Inc. exited a bet on Synchrony Financial during the first quarter as the company continued to pare back its investments in financial firms.Berkshire reported Monday that it no longer held any shares in Synchrony, a bet that had totaled nearly $699 million at year-end, and trimmed its Wells Fargo & Co. holding to just over 675,000 shares as of March 31. It added shares in insurance broker Aon Plc, which is seeking to close a deal with rival Willis Towers Watson Plc.Buffett’s company has spent the last year revamping its holdings in financial firms, sticking by a massive stake in Bank of America Corp. valued at $39.1 billion, while exiting investments in JPMorgan Chase & Co. and Goldman Sachs Group Inc. A more than three-decade investment in Wells Fargo, which once ranked as the company’s largest common stock bet, has been slowly disappearing in recent years and totaled just $26.4 million at the end of the first quarter.Meanwhile, Berkshire has dug even deeper into the insurance-brokerage industry. The bet on Aon, disclosed in a quarterly filing, comes just months after Berkshire revealed a stake in its rival Marsh McLennan. Aon and Willis Towers Watson have agreed to sell some assets to help ease regulatory concerns around their proposed combination. The Aon holding was valued at about $943 million at the end of the first quarter.In February, Berkshire disclosed three bets, including the Marsh McLennan stake, that it had been building up in secret. The company then spent the first quarter taking those bets in different directions, ramping up its stake in Marsh McLennan and Verizon Communications Inc. while cutting a Chevron Corp. holding roughly in half.Buffett and two of his key deputies, Todd Combs and Ted Weschler, oversee investments for the conglomerate’s $282 billion stock portfolio. The firm ended up increasing two other bets -- a stake in Kroger Co. and a holding in furniture company RH -- during the first quarter.(Updates with stake sizes, Verizon, Chevron, Kroger and RH starting in second paragraph.)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- U.S. stocks fell for the first time in three sessions and the dollar weakened as investors mulled risks to the economic outlook including inflation and a spike in Covid-19 cases in parts of the world.Technology and communication services led the benchmark S&P 500 into the red, while energy shares rose. Apple and Microsoft weighed on the tech-heavy Nasdaq 100. Semiconductor stocks continued to be under pressure, with the Philadelphia Semiconductor Index dropping as low as 10% from a peak in early April.“Investors should brace for further bouts of volatility, driven by inflation data along with other risks, such as setbacks in curbing the pandemic,” wrote UBS Global Wealth Management’s Chief Investment Officer Mark Haefele. “But we don’t see inflation concerns ending the rally in stocks, which we expect to be led by cyclical parts of the market as the global economic reopening broadens.”Oil edged up as rising optimism around a demand recovery in regions such as the U.S. offset Covid-19 flare-ups in parts of Asia.Bitcoin tumbled to as low as $42,133 before stabilizing after a volatile weekend that saw Tesla Inc. Chief Executive Elon Musk whipsaw prices with a series of tweets that touched on the energy usage of the cryptocurrency and whether he was selling. Coinbase Global Inc. fell to a record low and below the reference price used in its April direct listing. Gold climbed to the highest in more than three months.Federal Reserve Vice Chair Richard Clarida said during a webinar that weaker-than-expected April payroll report shows “we have not made substantial further progress” on the central bank’s goals for employment and inflation laid out as thresholds to begin scaling back the central bank’s massive monthly bond purchases.Concerns that policy makers may have to pull back support sooner than expected to quell rising inflation have weighed on global equities. Investors this week will parse the minutes from the Federal Open Market Committee’s latest meeting for any discussion about accelerating price pressures, and hints of a timeline for reducing asset purchases.“Expect this volatility to continue as the market searches for direction,” said Mike Loukas, chief executive officer at TrueMark Investments. “The release of the Fed minutes on Wednesday will be interesting. With earnings season almost over, inflation will continue to hold center stage.”Elsewhere, the Stoxx Europe 600 Index edged lower and stocks in Asia were mixed.Click here for MLIV’s Question of the Day: How Far Can East-West Stocks Divergence Go?Here are some key events this week:Reserve Bank of Australia publishes minutes of its latest meeting TuesdayThe Fed publishes minutes from its April meeting Wednesday, which may provide clues to officials’ views on the recovery and how they define “transitory” when it comes to inflationThese are some of the main moves in markets:StocksThe S&P 500 fell 0.3% as of 4 p.m. New York timeThe Nasdaq 100 fell 0.6%The Dow Jones Industrial Average fell 0.2%The MSCI World index was little changedCurrenciesThe Bloomberg Dollar Spot Index fell 0.2%, falling for the third straight day, the longest losing streak since May 10The euro rose 0.1% to $1.2158The British pound rose 0.3% to $1.4142The Japanese yen rose 0.2% to 109.17 per dollarBondsThe yield on 10-year Treasuries advanced one basis point to 1.64%Germany’s 10-year yield advanced one basis point to the highest in about two yearsBritain’s 10-year yield was little changed at 0.86%CommoditiesWest Texas Intermediate crude rose 1.5% to $66 a barrelGold futures rose 1.6%, the most since May 7More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- AT&T Inc. was once the poster child for firms willing to sacrifice their credit ratings for the sake of debt-fueled acquisitions. Now, the company is making its biggest push yet to cut debt and ditch its long-held status as the world’s largest borrower.The telecom giant will reduce net debt by $43 billion as a part of a plan to spin off its media operations in a deal with Discovery Inc., according to an investor presentation accompanying the announcement. If its gross debt of $190 billion declines by roughly the same amount, AT&T would drop behind Verizon Communications Inc. in the rankings of the most indebted non-financial companies globally, according to data compiled by Bloomberg.AT&T has been on a yearslong effort to tame a debt load that once swelled to about $200 billion, largely accumulated via its 2018 acquisition of Time Warner Inc. With the Discovery transaction, AT&T will reach its goal of reducing leverage to 2.5 times a year ahead of schedule, and possibly spare bondholders from any potential ratings action that would push it closer to speculative grade.“This is a big step forward to reaching that leverage goal,” said Bloomberg Intelligence analyst Stephen Flynn. “Debt reduction should be the No. 1 priority.”AT&T’s bonds were among the best performers in the U.S. investment-grade market Monday. The most actively-traded securities, the 3.5% bonds due 2053, tightened 11 basis points, the most since November, according to Trace. The annual cost to protect AT&T’s debt against default for five years dropped the most since February.AT&T has chipped away at its debt load and streamlined its business through a series of refinancings, exchange offers and asset sales in recent years. Yet it recently deviated from its debt diet when it pledged to spend up to $23 billion on spectrum to expand its 5G network, a move largely financed by bonds and loans.That drew a downgrade from Fitch Ratings and a negative outlook from S&P Global Ratings in March. Verizon, which borrowed $25 billion in the year’s largest bond sale to help fund its own spectrum purchases, saw its positive outlook changed to stable by Moody’s Investors Service.U.S.Square Inc. is looking to raise $2 billion from a debut junk-bond sale, one of the largest inaugural new issues of the year, according to data compiled by Bloomberg. Eight other deals kicked off marketing Monday.High-grade issuance is set to remain strong and steady this week, with $30 billion to $35 billion of fresh supply expected following a $42 billion week headlined by Amazon.com Inc.’s jumbo saleRally-weary U.S. junk bonds posted the biggest loss in two months last week. Still, investor demand remained robust, with more than $13 billion of deals pricedBank of America expects U.S. investment-grade corporate debt spreads to widen “in coming months” as Treasury yields push higherFor deal updates, click here for the New Issue MonitorFor more, click here for the Credit Daybook AmericasEuropePrimary market participants expect the SSA sector to maintain its dominance of weekly activity, according to a survey conducted by Bloomberg News on May 14. Public-sector borrowers have led sales for 16 out of 19 weeks this year, according to data compiled and analyzed by Bloomberg.Some 16 mandates hit screens, including an inaugural green bond from Air LiquideOther borrowers planning sales include engineering and technology company Technip Energies, which will hold investor calls on Monday and Tuesday ahead of an inaugural euro seven-year saleCovered bond supply is set to get a boost from Raiffeisen-Landesbank Steiermark and United Overseas Bank, while Spanish lender Cajamar is planning a Tier 2AsiaIndian dollar bonds have been rebounding in recent weeks on bargain hunting after the Covid-19 crisis left them among Asia’s worst performers at times last month.Spreads on investment-grade Asian dollar bonds narrowed 2-3 basis points on Monday, according to tradersThere was mix of investment-grade and high-yield bond deals in the primary market on Monday, including HSBC Holdings Plc and National Australia Bank Ltd.China Huarong Asset Management Co. has reached funding agreements with state-owned banks to ensure it can repay debt through at least the end of August, by which time the company aims to have completed its 2020 financial statements, people familiar with the matter saidMore stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
The payments will reach more than 65 million children, according to senior administration officials.
The air is leaking out of the crypto complex, led by sharp declines in popular trades, including bitcoin, dogecoin and crypto platform Coinbase Global on Monday.
(Bloomberg) -- JD Logistics Inc., the delivery arm of e-commerce giant JD.com Inc., is seeking to raise as much as HK$26.4 billion ($3.4 billion) in its Hong Kong initial public offering, seizing on China’s online shopping boom sparked by the coronavirus pandemic.The warehousing and shipping company is selling 609.2 million shares at HK$39.36 to HK$43.36 each, according to a statement published in the South China Morning Post. The company will start taking investor orders from Monday and is set to begin trading on May 28 in Hong Kong. The deal is expected to be priced on May 21, according to the terms of the IPO obtained by Bloomberg News.At $3.4 billion, JD Logistics would be the second-largest IPO in the city this year, after Kuaishou Technology’s $6.2 billion listing in February. Hong Kong has seen two other blockbuster JD.com-related offerings in the past 12 months, including online health-care unit JD Health International Inc.’s $4 billion IPO in December, as well as its own second listing in June, which raised $4.6 billion.JD Logistics’ first-time share sale comes as Hong Kong’s market shrugs off concerns over inflation. The city has hosted $20.5 billion worth of IPOs so far this year, nearly seven times the $3 billion raised in the same period in 2020, data compiled by Bloomberg show.Created in 2007 and set up as a standalone unit under JD.com a decade later, JD Logistics’ networks include both so-called last mile and longer distance lines, as well as cold chain and bulky item networks, according to its prospectus. It operated more than 900 warehouses across China as of the end of 2020.The logistics firm’s revenue climbed 47% in 2020 to 73.4 billion yuan, the prospectus shows. The company reported a net loss of 4.1 billion yuan last year, compared to 2.2 billion yuan in 2019. It plans to use the proceeds from the IPO to upgrade and expand its logistics networks, develop advanced technologies and to expand its customer base.JD Logistics has attracted seven cornerstone investors to its offering, who agreed to subscribe for about $1.53 billion of stock, according to the terms.The cornerstone investors are:SoftBank Vision Fund $600 millionTemasek Holdings Pte about $220 millionBlackstone Group Inc. $150 millionTiger Global $200 millionChina Chengtong Holdings Group Ltd. $160 millionMatthews Asia $100 millionOaktree Capital $100 millionBofA Securities Inc., Goldman Sachs Group Inc. and Haitong International Securities Group Ltd. are joint sponsors for the listing.(Updates with details of cornerstone investors from term sheet.)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
The crypto car drove to the dump Monday as most blockchain assets fell.
Dividend stocks are always popular. They offer investors a clear path to returns, with regular cash payments and a yield – a return on the original investment – that usually far exceeds bond yields. But not all dividend stocks are created equal, and some offer better opportunities than others. Dividend yield is a key metric. Among S&P listed companies the average yield is only 2%. However, the highest yields aren’t always the way to go. Investors should also consider share appreciation or upside potential – these factors aren’t always connected to dividends, but they will affect the general returns available from a given stock. To that end, we’ve used the TipRanks database to pull up two high-yield dividend stocks that share a profile: a Buy-rating from the Street’s analyst corps; considerable upside potential; and a dividend yielding over 8%. Let’s take a closer look. New York Mortgage Trust (NYMT) We’ll start with a real estate investment trust (REIT), a logical place to turn for high dividend returns. REITs typically pay out higher than average dividends, as a way of complying with profit-return regulations in the tax code. New York Mortgage Trust, which holds a portfolio of adjustable-rate residential mortgage loans, commercial mortgages, and non-agency mortgage-backed securities, is typical of its niche, both in the quality of its portfolio and its high yield dividend. In its recent 1Q21 financial release, NYMT listed several metrics of interest to investors. The company sold off non-agency RMBS and CMBS totaling $111.6 million, purchased $347.3 million in residential loans, and finished the quarter with $4.72 billion in total assets. The company saw net investment income of $30.3 million, and was able to fund its dividend payment, to the tune of 10 cents per common share. At that payment rate, the dividend yields 8.91%. This was the second dividend declaration in a row at 10 cents; the company has been gradually increasing the payment since cutting it back last summer during the worst of the corona crisis. B. Riley analyst Matt Howlett was impressed by NYMT’s management of the recent economic crisis, and that factor takes a lead role in his recent initiation report. “Over the last decade, NYMT has delivered among the highest economic return within the space due in part to strong asset selection, low leverage, and a highly efficient operating structure. While the March 2020 liquidity crisis was a setback for the industry, NYMT managed the crisis admirably, in our view, and avoided any major wear and tear on the company. In fact, we argue that as NYMT has rebuilt, its originations have become more direct (acquiring loans vs. securities), and its cost of capital has been declining,” Howlett opined. In line with these comments, Howlett rates the stock a Buy, and his $6 price target implies a one-year upside potential of 36%. Based on the current dividend yield and the expected price appreciation, the stock has ~45% potential total return profile. (To watch Howlett’s track record, click here) Overall, there are four recent reviews on record for NYMT, and they break down to 2 Buys, 1 Hold, and 1 Sell for a Moderate Buy consensus rating. The shares are selling for $4.45, and the average price target of $5.17 suggests room for ~17% upside from that level. (See NYMT stock analysis on TipRanks) Global Net Lease (GNL) Next up, Global Net Lease, is another REIT. The portfolio here is built on commercial real estate properties. A review of the company’s portfolio shows 306 such properties, totaling 37.2 million square feet of leasable space, let to 130 tenants. GNL operates in 10 countries, and boasts that 99.7% of its total square footage has been leased. The average lease has 8.3 years remaining – an important factor, as the long term provides stability to the portfolio. In the first quarter of 2021, GNL showed a top line of $89.4 million, up 12.8% from the year-ago quarter. The company ran a net loss, but at $800,000 that loss was significantly smaller than the $5 million lost in 1Q20. Net operating income was up from $71.9 million one year ago to $81.8 million in 1Q21. GNL reported sound liquidity in the quarter, with $262.9 million in cash or cash equivalents and an additional $88.6 million available in credit. And most importantly, GNL reported collecting 100% of rents due in Q1. GNL declared a 40 cent dividend for common shareholders during the quarter, and through it distributed a total of $36.2 million. At that rate, the dividend annualizes to $1.60 and gives a high yield of 8.59%. The dividend was cut last year during the corona crisis, but has been kept stable for five quarters since then. All of this adds up to a company that is sound on fundamentals of its business, and that has attracted notice from analyst Bryan Maher. In his note for B. Riley, Maher writes, “GNL's strong portfolio metrics provide for an attractive setup for the balance of 2021…. Given that GNL, in our view, is not over-levered and can borrow at exceedingly low rates, combined with prudent use of its in-place ATM, we are not concerned about the REIT's ability to finance acquisitions to hit our $300.0M target for 2021.” The analyst summed up, "Given GNL's well-crafted industrial/ office net lease portfolio and strong operating metrics, we reiterate our Buy rating on the shares." The Buy rating comes with a $23 price target attached. At current share price, that implies an upside of ~25% for the next 12 months. (To watch Maher’s track record, click here) Some stocks fly under the radar, and GNL is one of those. Maher's is the only recent analyst review of this company. (See GNL stock analysis on TipRanks) To find good ideas for dividend stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights. Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
Consequently, data retrieved from Glassnode affirmed the Bitcoin supply held by long term holders has returned to accumulation mode, even as price dips.
AT&T ruined a lot of shareholder value by trying to get success in the media business, a veteran media analyst Craig Moffett tells Yahoo Finance Live.
Berkshire Hathaway took a stake of more than $900 million in insurance broker (AON) and sold off nearly all of its longtime investment in (WFC) (WFC) in the first quarter. Berkshire’s quarterly 13-F filing released late Monday showed a new position of about 4.1 million shares in Aon (ticker: AON). Berkshire (BRK.A, BRK.B) has been steadily selling its stake in Wells Fargo since early 2020.
‘When same-sex marriage became a possibility in New York, he declined to consider it because he did not want to take on any possible financial obligations that a future divorce might entail.’
Cathie Wood's firm believes the concern about Bitcoin mining's impact on the environment is misguided.
The telecom company has long been a favorite of dividend investors, but its hefty debt load had called into question the sustainability of its payout.
The hedge fund investor's closed-end fund continues to trade at a big discount to its asset value despite solid gains in 2021 and huge returns in 2019 and 2020.
(Bloomberg) -- It’s a Wall Street nightmare. You score hundreds of millions of dollars on a trade and you just can’t get paid.That’s what Goldman Sachs Group Inc. faces in a transaction pitting its traders against Mexico’s dominant power company, championed by none other than President Andres Manuel Lopez Obrador, according to people with knowledge of the matter. At issue: roughly $400 million the Wall Street bank believes it’s owed from a natural-gas trade that went wild when a deep freeze hit Texas in February.In private discussions with Goldman Sachs, state-owned utility Comision Federal de Electricidad has blamed rogue traders, ejected staff and even hinted that the side lacking financial sophistication in the trade was, perhaps, the Wall Street bank, the people said.If the impasse continues to escalate, it risks dragging the bank into a political blowup.The freakishly cold storm that battered the central U.S. set off sweeping blackouts as ice formed on wind turbines and some pipelines froze, forcing oil and gas wells to shut. As power suppliers and traders struggled to track down fuel to meet obligations, prices skyrocketed. The surge benefited companies that happened to be on the right side of trades, but their ability to collect depends on what happens to gas suppliers, power generators and utility customers, some of whom have filed price-gouging lawsuits.The cost of paying Goldman Sachs could ultimately come from Mexican households, many of whom were left without power in the winter -- not so much because of local malfunctions but because authorities in Texas cut off fuel exports when their own lightly regulated system failed. It’s little surprise then that officials south of the border are reluctant to write a check to a giant U.S. bank.Yet anybody who bails on such a bet risks becoming persona non grata on Wall Street, complicating their future access. On the other side, Goldman’s leaders have to consider how angry they want to make the government of Mexico, a market where the firm has been expanding.The descriptions of the dispute and the underlying transaction between Goldman and a CFE subsidiary were provided by people with knowledge of the matter, who asked not to be identified publicly discussing the talks. A representative for Goldman Sachs didn’t comment for this story.The bank and CFE are heading into arbitration over the matter, a spokeswoman for the utility told a Whatsapp chat room with journalists on Monday, noting “the CFE considers that it has solid and sufficient arguments.”On the face of it, it was a routine natural-gas contract. Goldman had entered into the arrangement with CFE International, an arm of CFE. The investment bank’s obligations were tied to a monthly index of gas prices, while the CFE unit would be exposed to daily rates at certain hubs, such as the Waha hub in West Texas.The daily price there surged by nearly 100 times, whereas the monthly price was left largely unchanged, leaving the CFE subsidiary on the hook for an unusually large amount. But instead of the contract getting settled in the Wall Street firm’s favor, the situation has devolved into an acrimonious spat.The Mexican utility has argued that the traders who initiated the deal at its subsidiary weren’t authorized to do so, and some of them have since left, the people said. CFE has also argued it shouldn’t have to fulfill the contract because of the unforeseeable, extreme price action. And it has asserted that Goldman failed to strike a rock-solid contract because it didn’t get an explicit nod from the parent company as a guarantor on the trade, undermining the bank’s ability to extract the money.For Goldman, the dispute boils down to a contractual obligation that its counterparty is duty-bound to fulfill, even if the debt resulted from unforeseen disaster. The bank has also privately argued that such a trade was routinely carried out between the two sides and that the subsidiary even represented in documentation that it had a guarantee from the parent company, a person close to Goldman said. Chat logs during the deal indicate that CFE’s subsidiary was seeking approvals on various aspects of the trade from its parent, the person said.It’s unclear how and when Goldman will be able to realize the money it insists it’s owed, especially as CFE becomes a central part of the Mexican president’s campaign to reshape the domestic energy market.Read More: Mexico Blames U.S. as Energy Crisis Spills Across the BorderSince winning in a landslide in 2018, Lopez Obrador has sought to roll back energy reforms by his predecessor and has said he wants to turn CFE back into an economic champion. He’s broadly blamed private companies for fleecing the nation in deals hatched with corrupt officials, and he’s taken particular issue with gas contracts that he says unfairly benefited businesses at the expense of the state utility.“We are going to continue to comply with the commitment not to increase the price of electricity, even with speculation and the increases in gas prices that are taking place in Texas and the United States,” he said during his morning press conference on Feb. 18.(Updates with comment from CFE spokeswoman in ninth paragraph.)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
The company’s decision to unwind its media efforts has broad ramifications for the telecom and content world—and investors.
The relief bill the president signed in March is giving states money for direct payments.
Coinbase Global on Monday said it plans to sell $1.25 billion of convertible debt. Its stock closed below its $250 reference price for the first time since the crypto platform listed on the Nasdaq exchange in mid-April.
Hertz buy-and-hold investors who speculated on the bankrupt company's stock last year are being rewarded handsomely as are buyers of the joke cryptocurrency Doge. Here's what that means.