|Day's Range||25,942.83 - 26,052.32|
|52 Week Range||19,732.36 - 26,153.42|
Yahoo Finance's Seana Smith, Andy Serwer, and Ethan Wolff-Mann discuss the implications for the market if the government shuts down.
Companies are starting to lay out just how much shareholders will benefit from lower corporate taxes. The answer is: a lot.
The stock's price action is making some market watchers hesitant about buying the name at this juncture, but say it could keep surging still.
The S&P 500 and the Nasdaq edged higher on Friday following positive brokerage recommendations on a bunch of consumer names, but the Dow was reined in by losses in IBM. Philip Morris, Nike and Home Depot rose between 1.3 percent and 4 percent as analysts expect lower taxes and improving trends to boost their earnings.
On Thursday, January 18, 2018, Pimco, one of the world’s largest asset management firms, said that it’s time for investors to be cautious. The global economic adviser at Pimco, Joachim Fels, recently shared his view on the market in an interview with Bloomberg TV. PIMCO wrote, “The fact that the fear is gone is the main reason why we should be worried.
Today, Deutsche Bank's John Inch warns that GE's cash squeeze, along with mounting liquidity pressures, may mean that it's forced to raise equity capita. GE has stated before that it will not inject parent cash into GE Capital, and Inch argues that given that GE still appears overvalued on a sum-of-the-parts basis, with declining earnings, it might want to raise that equity capital sooner rather than later, while its stock is "still elevated." Yes, that's because Inch, who has a Sell rating on GE, still thinks the stock has farther to fall, even after its 46% tumble in the past year. Inch has a $15 price target on the stock, and sees plenty of risks beyond the equity capital raise, including additional mandated insurance reserve contributions, increasing debt (and debt rating downgrades that make it more expensive to borrow), and another dividend cut.
World equity markets climbed to a record on Friday as the U.S. dollar languished near three-year lows and a U.S. government shutdown loomed, while U.S. Treasury yields continued their steady rise to hit their highest levels since September 2014. President Donald Trump postponed plans to leave Washington while the U.S. Congress faced a midnight deadline to come up with funding legislation to avoid the shutdown. Legislation to stave off an imminent federal government shutdown encountered obstacles in the Senate on Thursday night, despite the passage of a month-long funding bill by the House of Representatives hours earlier.
No one in his position has ever talked up stocks as much as Donald Trump, and it's worth considering whether the cheerleading is risking a bubble.