U.S. Markets close in 1 hr 31 mins

How A Dangerous Court Ruling Could Give China The Lead In 5G Technology

Loren Thompson

Despite a chronic trade deficit in advanced technology products, the United States remains a global trendsetter for networking and telecommunications. U.S. companies are currently in a battle with Chinese state-influenced enterprises like Huawei that will determine whether American dominance continues into the era of 5G communications. 

5G is the next big leap in mobile networking, a cluster of technologies that will deliver greatly increased speed, bandwidth and reliability to users. The U.S. Department of Defense has said that 5G is critical to future military applications such as autonomous vehicles, multispectral sensor fusion and battlefield robots. 

But whether America’s economy and warfighters will benefit fully from 5G depends in large part on who sets the standards and provides key technology. U.S. companies largely wrote the book for how 3G and 4G mobile technologies were introduced, but 5G is shaping up to be a zero-sum game between American tech companies and their Chinese rivals. 

Against that backdrop, a federal district court decision in May is threatening to undercut the advantages that U.S. companies have in the 5G race, delivering an early victory to China. The decision found that the current U.S. leader in 5G technology, a company called Qualcomm, was violating antitrust law, and directed it to offer its portfolio of intellectual property to rivals at concessionary prices. 

Judge Lucy Koh, who wrote the decision, did not dispute Qualcomm’s ownership of the technologies in question. Licensing patented technology to smartphone producers and other tech companies has long been a core feature of the company’s business model. But she found that Qualcomm’s failure to share it at subjectively “fairer” prices was tantamount to anti-competitive behavior—banned by the Sherman Antitrust Act of 1890 and subsequent federal standards. 

The district court ruling was rendered pursuant to a case brought by the Federal Trade Commission during the waning days of the Obama Administration. But other federal agencies were aghast at the breadth and implications of Judge Koh’s decision, which in effect required Qualcomm to offer its technologies to Chinese competitors at fire-sale prices. The case was immediately appealed with complaints questioning the ruling filed by three heavy-weight government entities. 

Read the original article.

  • CNBC’s Jim Cramer: Here comes the panic, but don’t rush to buy the dip
    Business
    MarketWatch

    CNBC’s Jim Cramer: Here comes the panic, but don’t rush to buy the dip

    That's how CNBC host Jim Cramer described Monday's sharp selloff in the stock market, which is shaping up to be the worst we've seen in several months amid mounting fears of the spread of the coronavirus. So is it time for a little bottom-fishing ahead of a very crowded docket of earnings report in the coming days? We've been saying over and over if we get an exogenous event that's when you get the sell off, that's when you have to buy,” Cramer explained.

  • Typical Retirement Savings By Age Groups: Are Yours Bigger?
    Business
    Investor's Business Daily

    Typical Retirement Savings By Age Groups: Are Yours Bigger?

    Active savers — in this case, Americans who own an IRA and-or a 401(k) account in the custody of Fidelity Investments — had savings for retirement of $215,400 as of Sept. according to new data IBD has obtained from Fidelity. In contrast, the average for all working-age families is shockingly low.

  • Analysts: 2 Big 8% Dividend Stocks to Buy (And 1 to Sell)
    Business
    TipRanks

    Analysts: 2 Big 8% Dividend Stocks to Buy (And 1 to Sell)

    Dividends provide a steady income stream, whether markets go up or down. With that in mind, we delved into the market data from TipRanks.com to get the lowdown on 3 high-yield dividend stocks, two of which analysts think are set to shine in 2020, and one whose prospects aren't quite as bright. Viper has exploration rights in more than 14,000 acres in the Midland, which are exploited by third parties and subsidiaries who then pay the royalties that make up Viper's income.

  • Fog grounded choppers at time of Bryant crash
    News
    Associated Press Videos

    Fog grounded choppers at time of Bryant crash

    The helicopter carrying Kobe Bryant and eight others that crashed into a hillside outside Los Angeles was flying in foggy conditions considered dangerous enough that local police agencies grounded their choppers. All nine people on board died. Jan.

  • Business
    MarketWatch

    Dow down 414 points on losses for American Express, UnitedHealth stocks

    Dragged down by losses for shares of American Express and UnitedHealth, the Dow Jones Industrial Average is in a selloff Monday morning. The Dow (DJIA) was most recently trading 414 points lower (-1.4%), as shares of American Express (AXP) and UnitedHealth (UNH) have contributed to the blue-chip gauge's intraday decline. American Express's shares have fallen $6.09 (4.5%) while those of UnitedHealth are off $9.60 (3.3%), combining for a roughly 106-point drag on the Dow.

  • The main reason for the stock market’s decline is NOT the coronavirus
    Business
    MarketWatch

    The main reason for the stock market’s decline is NOT the coronavirus

    The coronavirus is getting a bum rap as the cause of the stock market's recent weakness. That decline gathered steam on Monday, when the Dow Jones Industrial Average (DJIA) was at one point down more than 500 points. It's not that any of us should have sympathy for the virus, of course.

  • One of the most successful stock-market investors says these 3 events ‘would definitely trigger a bear market’
    Business
    MarketWatch

    One of the most successful stock-market investors says these 3 events ‘would definitely trigger a bear market’

    Stanley Druckenmiller, one of Wall Street's most successful investors, acknowledges that the markets are riding high and that investors may be able to finally breathe freely in the short term after a number of shocks, but says investors should be wary of three events that could knock assets into a bear market. One of the reasons I'm pretty sanguine right now is I think we're close enough to the election, at least we can breathe for a few months,” he told Bloomberg Television during a recent interview. But there are a trio of situations that could upend that optimism — and perhaps permanently.

  • Business
    Barrons.com

    Coronavirus Isn’t the Stock Market’s Biggest Problem This Week, Strategist Warns

    Longtime stock-market bull and National Securities chief market strategist Art Hogan is bearish ahead of what looks to be a very busy week of trading. My guess is if we're going to rationalize a market that's pretty stretched right here, it's going to happen right now,” he said in a CNBC interview. We have about a third of the S&P 500 reporting.

  • Liz Weston: Retirees' top money regrets
    Business
    Associated Press

    Liz Weston: Retirees' top money regrets

    In a previous column, I detailed retirees' biggest lifestyle regrets, such as not traveling more before their health gave out and not communicating clearly with a partner about what they hoped retirement would be like. The big ones, of course, are starting to save too late and not saving enough, but there are other common regrets, according to certified financial planners from the Financial Planning Association and the Alliance of Comprehensive Planners. About 1 out of 3 Social Security recipients apply for benefits at the earliest age, which is 62.

  • Business
    Barrons.com

    3 Biotech Stocks Are Soaring Because Everyone Wants a Coronavirus Vaccine

    Shares of a handful of small and mid-sized biotechs that are working on vaccines for the Wuhan coronavirus were soaring on Monday, as worries over the spread of the illness weigh on the broader markets. “Companies stating their interest in development vaccines for coronavirus are likely too late, as we saw similar commentary around SARS and other similar situations,” wrote Jefferies health care trading desk analyst Jared Holz in a note Monday morning. The news reports bumping the three biotech stocks relate to early-stage programs using novel scientific modalities to move quickly on possible vaccines for the disease, which has killed at least 80 people worldwide.

  • U.S.
    TheStreet.com

    Afghanistan Plane Crash Unlikely Linked to Boeing; US Military Investigating

    Boeing Co. shares extended declines Monday after reports that one of its planes was involved in a crash in the Taliban-controlled Afghan province of Ghazni. Later reports, however, indicated that the aircraft involved in the crash could belong to the U.S. Military, and the acting CEO of Ariana Afghan has said none of his company's fleet have been reported missing. A Taliban spokesperson later claimed responsibility for the crash, while a U.S. Military spokesperson told the Associated Press that the Army was investigating the claims.

  • Did Changing Sentiment Drive International Business Machines's (NYSE:IBM) Share Price Down By 21%?
    Business
    Simply Wall St.

    Did Changing Sentiment Drive International Business Machines's (NYSE:IBM) Share Price Down By 21%?

    Unfortunately, that's been the case for longer term International Business Machines Corporation (NYSE:IBM) shareholders, since the share price is down 21% in the last three years, falling well short of the market return of around 50%. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. International Business Machines saw its EPS decline at a compound rate of 5.1% per year, over the last three years.

  • Millennials Score Big On 3 Stocks (You May Not Own Yet)
    Business
    Investor's Business Daily

    Millennials Score Big On 3 Stocks (You May Not Own Yet)

    If you only own the S&P 500, you're missing out on three of millennials' biggest winning bets. Consumer discretionary Tesla and industrial sector member Uber are the two most valuable U.S. companies not yet in the S&P 500, says Howard Silverblatt, index strategist at S&P Dow Jones Indices. And then there's consumer discretionary Alibaba, which is based in China.

  • Mortgage Rates Slide Again and Head Toward All-Time Lows
    Business
    MoneyWise

    Mortgage Rates Slide Again and Head Toward All-Time Lows

    Mortgage rates that had been sitting on the slopes have gone back on their downhill course this week — possibly on their way to record territory. “Rates fell to the lowest level in three months and are about a quarter point above all-time lows,” said Sam Khater, chief economist with Freddie Mac, in a statement on the mortgage giant's latest weekly survey. If you're shopping for a home or are thinking about a refinance, you might compare mortgage rates and find you have the perfect opportunity to save serious money on interest.

  • This basket of dividend growth stocks can help your portfolio stand out in 2020
    Business
    MarketWatch

    This basket of dividend growth stocks can help your portfolio stand out in 2020

    Analysts at Goldman Sachs are highlighting a “dividend growth basket” of stocks at a time when valuations for the U.S. stock market have shot up to their second-highest level since June 2002. In the firm's recent “U.S. Weekly Kickstart” report Jan. 3, the analysts, led by David Kostin, recommended investors be cautious and look for “growth at a reasonable price,” but also included a group of dividend stocks with low price-to-earnings valuations relative to the S&P 500 (SPX) that also appear likely to continue raising their dividend payouts more quickly than the broader market.

  • Park Rangers Find 2 People Dead in Rocky Mountain National Park
    U.S.
    Meredith Videos

    Park Rangers Find 2 People Dead in Rocky Mountain National Park

    Park rangers in Colorado's Rocky Mountain National Park found two people dead while searching for a reportedly suicidal person.

  • Roth IRA Contributions with No Job?
    Business
    Investopedia

    Roth IRA Contributions with No Job?

    The internal Revenue Service (IRS) gets a little grumpy if you contribute to a Roth individual retirement account (IRA) without what it calls earned income. You don't necessarily need a formal job to contribute to a Roth IRA. Although it's not true in all cases, if you're paying taxes on any type of income from working, there's a good chance that you can make Roth IRA contributions.

  • Earnings Beat: Skyworks Solutions, Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models
    Business
    Simply Wall St.

    Earnings Beat: Skyworks Solutions, Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

    As you might know, Skyworks Solutions, Inc. (NASDAQ:SWKS) recently reported its quarterly numbers. The result was positive overall - although revenues of US$896m were in line with what analysts predicted, Skyworks Solutions surprised by delivering a statutory profit of US$1.50 per share, modestly greater than expected. This is an important time for investors, as they can track a company's performance in its report, look at what top analysts are forecasting for next year, and see if there has been any change to expectations for the business.

  • Dow Jones Futures Plunge As Coronavirus Spreads Rapidly; Apple, Tesla Lead Huge Earnings Week
    Business
    Investor's Business Daily

    Dow Jones Futures Plunge As Coronavirus Spreads Rapidly; Apple, Tesla Lead Huge Earnings Week

    Dow Jones futures tumbled Monday morning, along with S&P 500 futures and Nasdaq futures. The stock market rally retreated last week on China's coronavirus, which has continued to spread rapidly. Meanwhile, Apple, Advanced Micro Devices, Tesla, Microsoft and Facebook headline a huge week for earnings.

  • We Wouldn't Be Too Quick To Buy The Goodyear Tire & Rubber Company (NASDAQ:GT) Before It Goes Ex-Dividend
    Business
    Simply Wall St.

    We Wouldn't Be Too Quick To Buy The Goodyear Tire & Rubber Company (NASDAQ:GT) Before It Goes Ex-Dividend

    Goodyear Tire & Rubber's next dividend payment will be US$0.16 per share, on the back of last year when the company paid a total of US$0.64 to shareholders. Based on the last year's worth of payments, Goodyear Tire & Rubber has a trailing yield of 4.5% on the current stock price of $14.2. We love seeing companies pay a dividend, but it's also important to be sure that laying the golden eggs isn't going to kill our golden goose!

  • Stock soars for Cincinnati firm that could help combat coronavirus
    World
    American City Business Journals

    Stock soars for Cincinnati firm that could help combat coronavirus

    The value of Meridian Bioscience Inc. stock soared by nearly 40% on Monday on news that one of the firm's test kits is being used by diagnostic companies and laboratories in China to develop fast and accurate screening assays for the deadly new strain of coronavirus. The respiratory illness was first detected in Wuhan, China, but has spread rapidly to other countries. China has restricted travel for 35 million people because of the virus, which has been linked to 81 deaths and nearly 3,000 other cases.

  • Chipotle, Google, Tesla, Amazon, Berkshire Hathaway: Companies to Watch
    Business
    Yahoo Finance

    Chipotle, Google, Tesla, Amazon, Berkshire Hathaway: Companies to Watch

    UBS has boosted the stock to neutral and raised its price target to $900 a share. U.S. State Attorneys General will meet Justice Department attorneys this week to share information on their investigations into Google (GOOGL), according to multiple news reports. Elon Musk is making a few environmental promises.

  • Business
    Barrons.com

    AT&T Reports Earnings Wednesday. Here’s What To Expect.

    On the other, changing technologies and consumer preferences keep the pressure high on its DirecTV satellite TV and WarnerMedia entertainment units. AT&T (ticker: T) is scheduled to report its fourth-quarter earnings on Wednesday before the market opens. Any new details about AT&T's capital allocation priorities—the balance between dividend payments, share buybacks, investments, and debt reduction—will also be a focus.

  • Business
    Barrons.com

    Apple Reports Earnings Tomorrow. Here’s What To Expect.

    As Apple stock's (ticker: AAPL) remarkable recent performance demonstrates, expectations are sky high. Apple stock has more than doubled since the beginning of 2019, rallying about 10% already in 2020. Apple's guidance for the fiscal first quarter, ended December, called for revenue of $85.5 billion to $89.5 billion.

  • Business
    Barrons.com

    Apple’s Earnings Could Cause Its Stock to Fall. How to Protect Its Gains With Options.

    J.P. Morgan has told its clients to do something that is both unusual and rare: Hedge (AAPL) stock ahead of its Tuesday earnings report. The bank has advised clients that investor expectations are incredibly high—perhaps too high—ahead of Apple's (ticker: AAPL) fiscal first-quarter earnings report that will be released after Tuesday's market close. Apple's stock is trading around 24 times J.P. Morgan's earnings estimates.