So far, 2019 is the year of boring, predictable markets. Rejoice for now weary investors because sentiment could turn at the drop of a dime...or a Trump tweet on China trade relations.
Mr. Market shrugged off a ghastly fourth quarter sales and profit update from tech bellwether Samsung amid challenging times in the memory chip space. Slowing smartphone sales were also a key factor in Samsung not predicting a return to growth until the second half of 2019. Mental note for the future: Apple is Samsung’s largest customer, so the former’s big sales warning last week is unwelcome.
That muted reaction by traders to seemingly more bad tech news (see aforementioned Apple warning last week) is a positive for those that believe the “Christmas Eve Massacre” marked the short-term low for stocks.
But proceed with caution, bulls. Samsung’s update — joining Apple, FedEx, Delta and others to warn on recent business trends — is a red flag not to be taken lightly. Sluggish demand for memory chips used in data centers by the likes of Amazon and IBM isn’t exactly a vote of confidence in the first half 2019 capital expenditure cycle.
Here are several things in the world of finance you probably missed on Tuesday. Also, visit Yahoo Finance at 9:00 p.m. ET tonight to watch President Donald Trump’s address to the nation from the Oval Office.
Verizon bullish on 5G
Yahoo Finance’s Tech Editor Daniel Howley chatted it up with Verizon CEO @HansVestberg_ at the Consumer Electronics Show during ‘On the Move.’ Verizon is the parent company of Verizon Media Group, which owns Yahoo Finance. Vestberg said he continues to be very bullish on Verizon’s big 5G rollout. The interview follows day two of Yahoo Finance’s launch of eight consecutive hours of live streaming of business news.
Sears averts death, for now
Bankrupt Sears managed to avert a liquidation, for the moment. A bankruptcy court judge gave failed Sears CEO Eddie Lampert until Wednesday evening to post $120 million to participate in a Jan. 14 auction for the company’s assets. Lampert’s $4.4 billion bid for select assets will be weighed against that of liquidators.
The below tweet sums up the current situation.
Highlight: "Sears is like a cockroach right now," @briansozzi says after CEO Eddie Lampert gets a second chance to save the company. "You just can’t quite stomp on it and kill it. This is usually the case within these bankruptcy proceedings." https://t.co/ObzMOMFjVy pic.twitter.com/wvAjpOy26b— Yahoo Finance (@YahooFinance) January 8, 2019
Harley-Davidson moves forward with electric
The 115-year-old motorcycle maker said its first-ever electric bike dubbed LiveWire will be available for pre-order in August. Sticker price: a cool $29,799. The Harley-Davidson faithful quickly descended on the internet to slam the bike’s price and OK range of 110 miles in the city.
Harley-Davidson CEO Matt Levatich tells Yahoo Finance the LiveWire is a “huge” moment for the company and that he is “pumped” for the debut. The internet should give Harley-Davidson a break with this snazzy bike.
Brian Sozzi is an editor-at-large at Yahoo Finance. Follow him on Twitter @BrianSozzi
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