|Bid||27.26 x 28000|
|Ask||27.27 x 29200|
|Day's Range||27.14 - 27.70|
|52 Week Range||22.66 - 31.49|
|Beta (3Y Monthly)||1.57|
|PE Ratio (TTM)||9.70|
|Earnings Date||Oct 16, 2019|
|Forward Dividend & Yield||0.72 (2.66%)|
|1y Target Est||33.50|
Warren Buffett is making a big bet on two big names.Amazon and Bank of America. Berkshire Hathaway just revealed that it has boosted its stake in both companies. Yahoo Finance’s Alexis Christoforus and Brian Sozzi discuss.
When folks think of the Berkshire Hathaway (BRK.B) portfolio and its collection of holdings, most of which were selected by Chairman and CEO Warren Buffett, the companies that most readily come to mind are probably American Express (AXP), Coca-Cola (KO) and, more recently, Apple (AAPL).But a deep dive into Berkshire Hathaway's equity holdings reveals a more complicated picture.Berkshire Hathaway held positions in 47 separate stocks as of June 30, according to the most recent regulatory filing (Aug. 14) with the Securities and Exchange Commission - down from 48 in the first quarter of this year, as he dumped USG Corp. (USG). But the portfolio of "Buffett stocks" isn't as diversified as the number might suggest. In some cases, BRK.B holds more than one share class in the same company. Some holdings are so small as to be immaterial leftovers from earlier bets the Oracle of Omaha has yet to completely exit.And perhaps most importantly, Berkshire Hathaway's equity portfolio is actually pretty concentrated. The top six holdings account for almost 70% of the portfolio's total value. The top 10 positions comprise 80%. Banks and airlines, to cite a couple of sectors, carry quite a load in this portfolio. Then there's the fact that several Buffett stocks actually were picked by portfolio managers Todd Combs and Ted Weschler.Here, we examine each and every holding to give investors a better understanding of the entire Berkshire Hathaway portfolio. SEE ALSO: 50 Top Stocks That Billionaires Love
(Bloomberg) -- JPMorgan Chase & Co. plans to host a conference call on Tuesday to help clients make sense of markets after a week of wild swings for stocks and bonds.“In the wake of a rather violent decline in yields, inversion of the curve, and volatility in equity markets, we consider the role of poor liquidity and systematic flows in exacerbating these market moves,” JPMorgan strategists led by Marko Kolanovic wrote in an invitation to clients obtained by Bloomberg. A spokeswoman for the lender confirmed the event.The meeting comes after U.S. equities suffered one of the deepest sell-offs of the year on Aug. 14 and a key portion of the U.S. Treasury yield curve inverted for the first time in 12 years, stoking fears of a recession. President Donald Trump held a conference call that day with the chief executive officers of JPMorgan, Bank of America Corp. and Citigroup Inc.Kolanovic and strategist Munier Salem plan to address the bout of unusual illiquidity in U.S. equities and discuss the extent to which high-frequency trading is to blame for drops in market depth, according to the invitation. Joshua Younger, a fixed-income strategist, will lead a discussion on convexity hedging in rate markets.The bank said last week that measures of market depth in U.S. equities, Treasuries and currencies relative to the rest of the year have fallen below the average since 2010 -- a sign that market players don’t have as much capacity to absorb the trade-driven trends sweeping assets.Some Wall Street trading desks have warned that the sudden rupture of volatility could cause quant-driven funds to dump billions of dollars of stocks.(Adds conference call with president in third paragraph.)To contact the reporter on this story: Michelle F. Davis in New York at email@example.comTo contact the editors responsible for this story: Michael J. Moore at firstname.lastname@example.org, Josh Friedman, Linus ChuaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- With interest rates on 30-year U.S. debt hitting all-time lows this week, the government is once again considering whether to start borrowing for even longer.The U.S. Treasury Department said Friday that it wants to know what investors think about the government potentially issuing 50-year or 100-year bonds, going way beyond the current three-decade maximum.The government stressed that no decision has yet been made on ultra-long bonds, explaining that it’s looking to “refresh its understanding of market appetite.” The idea was broached before, back in 2017, but was shelved after receiving a less-than-warm reception.“This comes up every now and again,” said Gennadiy Goldberg, U.S. rates strategist at TD Securities. “Every time the takeaway is, there simply isn’t enough demand at that tenor, or at least there hasn’t been in the past.”The announcement follows a plunge in the 30-year yield to a record low this week below 2%, and also comes in the wake of many other nations opting to extend their borrowing profiles with so-called century bonds. Investors have snapped up 100-year bonds issued by the likes of Austria, although the experience of Argentina underscores some of the potential pitfalls of buying such long-maturity debt.The yield on America’s current benchmark 30-year bond spiked to its highs of the day and the curve steepened following the Treasury announcement. The 30-year rate climbed as much as 8 basis points on the day to 2.05%, before ending the session at around 2.03%. The yield spread between the U.S.’s longest-maturity debt and its two-year note widened the most in five weeks on Friday.The Treasury’s group of market consultants, the Treasury Borrowing Advisory Committee, has long been unenthusiastic on the prospect of an ultra-long issue, said Bruno Braizinha, director of U.S. rates research at Bank of America.The challenge for the Treasury would be to offer a yield attractive enough for the typical investor base of pension funds and institutions, while keeping a lid on the cost of borrowing for U.S. taxpayers.By Braizinha’s estimates, the yield on a 50-year issue would be expected to come in around 10-30 basis points above the 30-year rate.(Updates with yield spread in sixth paragraph)\--With assistance from Liz Capo McCormick, Benjamin Purvis and Katherine Greifeld.To contact the reporters on this story: Alexandra Harris in New York at email@example.com;Emily Barrett in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Benjamin Purvis at email@example.com, Nick Baker, Margaret CollinsFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Berkshire Hathaway (BRK.B, $198.31) Chairman and CEO Warren Buffett hasn't found much to his liking in 2019.The Oracle of Omaha bought and sold left and right at the end of 2018. He used the fourth quarter's near-bear market to snap up bargains and exit a few underperforming investments, amassing a total of 17 common-stock trades. But thanks to significantly higher prices across 2019, Buffett has dialed things down, making 10 such moves in Q1 and just six in the three months ended June 30.Nonetheless, we can gleam a few things from what Buffett is doing, so today we will take a look at the most recent changes to Berkshire Hathaway's equity portfolio.The U.S. Securities and Exchange Commission's own rules require Buffett to open up about these moves. All investment managers with more than $100 million in assets must file a Form 13F every quarter to disclose every change in stock ownership. That's an important level of transparency for anyone well-funded enough to significantly impact a stock with their investment. And in this case, it helps people who appreciate Buffett's insights track what he's doing - some investors view a Berkshire buy as an important seal of approval. (Just remember: A few of Berkshire's holdings are influenced or even outright decided by lieutenants Ted Weschler and Todd Combs.)Here's what Warren Buffett's Berkshire Hathaway was buying and selling during the second quarter of 2019, based on the most recent 13F that was filed on Aug. 14. The list includes six changes to the equity portfolio, and a notable seventh investment. SEE ALSO: The Berkshire Hathaway Portfolio: All 47 Buffett Stocks
Friday was a big day for investors. On Thursday, we said bulls would have liked to see a bigger rebound following Wednesday's brutal beating. But Friday proved strong, with U.S. stocks posting impressive gains across the board. * 10 Cheap Dividend Stocks to Load Up On Let's look at a few top stock trades going forward.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Top Stock Trades for Tomorrow: Advanced Micro Devices (AMD) Advanced Micro Devices (NASDAQ:AMD) has been all over the map lately. Luckily, we're getting new levels to work with on the charts.For now, the 100-day moving average is buoying the stock, with short-term uptrend support also helping to guide AMD higher. Ideally, bulls will see shares reclaim prior uptrend support (blue line), as well as the 20-day and 50-day moving averages.If AMD stock can do that, a test of resistance between $34 and $34.50 is on the table. If it can't reclaim these levels, they may act as resistance going forward. That puts the 100-day back on the table.If it falls below the 100-day, the $29.21 lows and the $27.65 lows are possible. Bank of America (BAC)Is Bank of America (NYSE:BAC) a safe buy? It's hard not to like the stock down here. Not only has this $26.25 to $26.50 area proven to be solid-range support for all of 2019, but BAC stock has put in three straight days with almost identical lows.The fact that these lows held gives longs a great risk/reward situation. $26 can be a stop out point for longs, while they look for a rebound higher. $27.50 is a conservative target, but $28 doesn't seem to be out of the picture.A rebound up to the 50-day and 100-day confluence near $28.75 also seams reasonable. Remember, this stock was at $31 a few weeks ago and these big shakeouts have usually been good buying opportunities. Near range support, it's a worthy risk. Facebook (FB)Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) is holding trend right now, while Amazon (NASDAQ:AMZN) has quite a bit of support nearby too. Facebook (NASDAQ:FB) though? Shares are looking suspect at the moment.So far, support is holding near $179 to $180, but downtrend resistance (blue line) is squeezing FB lower. Falling below most of its major moving averages isn't helping the bulls' case either.Over downtrend resistance will help, but for FB stock to really have upside potential, it needs to clear its 50-day and 100-day moving averages. Below $180, and range support at $160 is in play. General Electric (GE)What a wild ride this one has been on the past two days. Shares of General Electric (NYSE:GE) were pulverized on Thursday after a whistleblower cited concern over the company's accounting. The CEO shot back and put his money where his mouth is, buying $2 million worth of stock.The recent lows held well, as GE stock charges back toward $9. Now though, it's key to see if General Electric can reclaim the $9 to $9.25 area or if this zone acts as resistance. Deere (DE)Deere (NYSE:DE) stock is up almost 4% heading into the weekend after the company reported its quarterly results after the close. I don't love the set up in Deere, particularly given the current trading environment. However, shares did test roughly the same low for three straight sessions, all of which held.Anyone taking a long flyer on DE should note that level -- approximately $141 -- as their potential stop out mark. If shares break out over short-term downtrend resistance (blue line), a run to the 200-day is possible. If $142.50 holds as support, bulls can stay long.A breakdown below $141 could send DE stock down to $132.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long BAC, AMZN and GOOGL. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Dividend Stocks to Load Up On * The 10 Biggest Losers from Q2 Earnings * 5 Dependable Dividend Stocks to Buy The post 5 Top Stock Trades for Monday: AMD, BAC, FB, GE, DE appeared first on InvestorPlace.
It's hard to find a bargain stock with dividends growing quickly. Often they are overvalued and not worth buying. Another problem is these kind of stocks can't sustain the dividend growth. The trick to uncovering the best stocks to buy now is to search for fast-growing dividend stocks with low earnings-payout ratios. Even better if they're cheap.For example, fast growing tech companies reinvest their earnings in their business. They can't afford to pay dividends without sacrificing growth. Amazon (NASDAQ:AMZN) has never paid out a dividend but is growing very fast. The stock is not cheap as investors rely on steady growth, but its investors are willing to forgo dividends.Among the best stocks to buy now for value and income are business development companies (BDC). BDCs often raise their dividends at high rates, borrowing money or continually selling equity to finance dividend growth. Their payout ratios are high and the companies tend to be highly leveraged as a result.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBelow are five stocks selling below 10x earnings whose dividends have been rising 15% or more per year. The companies pay out less than 30% of their earnings in dividends. They reinvest the rest to maintain consistent growth. * 10 Cheap Dividend Stocks to Load Up On None of these stocks are turnarounds. They have been growing consistently for the past several years. You can rely on them to continue to increase their dividends at these rates. Best Value Stocks: CIT Group (CIT)2-Year Dividend Growth: +133%CIT Group (NYSE:CIT) is a bank holding company that has transformed itself into a vibrant, growing commercial lender after its demise in 2009. Earnings have been growing nicely as the company has divested itself of loss making divisions.In Q2 2018, CIT's dividends were at an annual rate of 64 cents. Three quarters later in Q1 2019, CIT raised the rate 56% to $1.00. And just recently in July CIT did it again - hiking the dividend to $1.40, up 40%.Analysts expect CIT to earn $4.96 this year. Its dividend represents just 28% of expected earnings. The stock now yields 3.1% and has a price-to-earnings ratio of 9.2x.CIT has been simplifying its commercial lending business, selling off non-core units, and strengthening its capital ratios. Its recent stock buybacks and dividends increases show that this is a very shareholder friendly company.Expect the company to continue to reward shareholders with consistent earnings and dividend increases. Bank of America (BAC)2-Year Dividend Growth: +50%Bank of America (NYSE:BAC), the U.S. bank holding company, has increased its quarterly dividends over the past two years from an annual rate of 48 cents to 72 cents, paid in July. In addition, BAC has been showing good operational growth, despite interest rate headwinds.BAC sports a 2.54% dividend yield and trades for just 10 times earnings per share. BAC reported Q2 earnings of 74 cents per share, which was up 17% over the past year.BAC can comfortably afford its dividend. The 72 cents annual dividend rate represents just 28% of its expected earnings per share of $2.84 for this year.BAC has a large and stable asset base with its consumer deposits and high earnings quality. It is well diversified with its Merrill Lynch brokerage arm, and an asset management business with $220 billion in assets under management. Their stable fees strengthen its lending business. * 10 Best Stocks to Buy and Hold Forever BAC has consistently grown its dividends. They rose 25% in 2018 and 20% in 2019. Expect the stock to continue to increase its earnings and dividends over the next year at a similar rate. Boyd Gaming (BYD)2-Year Dividend Growth Rate: +40%Boyd Gaming (NYSE:BYD) is a casino operator mainly focused on niche markets such as the local, non-Strip gambler in Las Vegas. Its revenue and earnings have picked up nicely over the past several years as U.S. economic growth, and disposable income, has grown.BYD has increased its dividend 40% over the past two years. This includes a 20% increase in 2018 and recently 17% increase to 28 cents on an annual basis. This represents just 16% of its expected earnings this year of $1.78 per share.BYD's dividend yield is 1.15%. There is plenty of room for the dividends to grow as Wall Street expects that the company will continue to show consistent earnings growth. As sports betting picks up speed across new states, now that the Supreme Court has OK'd it, BYD expects to participate in the growth in that arena.BYD is play on the economy continuing to steam ahead and the regional consumer's willingness to dispose of income at BYD's casinos. Expect the dividend to rise substantially over the next several years. Delta Air Lines (DAL)2-Year Dividend Growth: +32%Delta Air Lines (NYSE:DAL) has increased its dividend by over 32% over the past two years. In 2018 the dividend rose 14.8% and recently DAL set the annual rate at $1.61, up 15.1%. The stock is a general play on economic growth as well as its moves to diversity earnings.Delta's recent Q2 revenues were up 9% year-over-year. Earnings shot up an incredible 32%. Analysts are especially optimistic about the new credit card that DAL is going to co-brand in partnership with American Express (NYSE:AXP).The stock is still cheap, though. It trades at just 8.4x earnings which are expected to reach $7.10 for the year.Given that its dividend rate is $1.61, the pay-out ratio is 22%. So there is plenty of room for the company to continue to increase the dividend. Moreover, the stock sports a very attractive dividend yield of 2.71%. * 7 Great No-Load Mutual Funds for Retirement Portfolios Investors can expect DAL to consistently raise the dividend over the next several years. Citigroup (C)2-Year Dividend Growth: +59.4%Citigroup (NYSE:C) has raised its dividend almost 60% in the past two years. The dividend was up 41% in 2018 and this year Citigroup has hiked it another 13.3%.Citigroup is a play on strong economic growth in the U.S. The company has consistently produced solid revenue and earnings growth in the past 5 years.The company is well positioned to withstand any interest rate headwinds, should rates continue to fall. Deposits and loans have continued to grow despite interest rate cuts. Revenue was up 4% in the first half of 2019 and net income rose 13%.Citigroup's stock trades for less than 9x earnings per share. The dividend yield is very attractive at 3.1%. This is more than investors can make in their money market accounts.With the dividend set at $2.04, and earnings expected to be $7.64 this year, the payout ratio is only 26.7%. So there is still plenty of room for Citigroup to raise the dividend as earnings grows.Investors can expect Citigroup to raise its dividend over the next several years at a similar rate in 2019.As of this writing, Mark Hake, CFA does not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Dividend Stocks to Load Up On * The 10 Biggest Losers from Q2 Earnings * 5 Dependable Dividend Stocks to Buy The post 5 Value Stocks With Fast-Growing Dividends appeared first on InvestorPlace.
(Bloomberg) -- Investors terrified of the yield curve inversion may find solace in exchange-traded funds, according to Bank of America Corp.Strategist Mary Ann Bartels recommends ETFs focused on technology and energy stocks -- industries that have beaten the broader equity market following past bond inversions, a notorious harbinger of U.S. recessions.Energy stocks have an especially strong track record of outperformance following yield flips, and the fact that they’ve been “beaten down” should provide some cushion to any potential market weakness, according to Bartels. She recommends the Energy Select Sector SPDR Fund, or XLE, as the best way to gain exposure to the industry. Since 1965, the sector has outpaced the broader equity market 80% of the time in the 12 months that followed yield curve inversions, the study showed.The energy ETF rose about 14% in the 12 months after the 2005 yield inversion, beating the S&P 500 Index, and is down about 10% in August.Although not as successfully as energy, the tech sector has on average brushed off inversions and outperformed equities. And thanks to its exposure to growth and momentum factors, the industry is likely to continue to do so, according to the strategist. She recommends the Vanguard Information Technology ETF, known as VGT, which has fallen 4.1% so far this month.In contrast, consumer-discretionary stocks tend to lag the broader equity market following yield curve inversions, the bank said.(Updates prices.)\--With assistance from Rachel Evans.To contact the reporter on this story: Ksenia Galouchko in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Blaise Robinson at email@example.com, ;Jeremy Herron at firstname.lastname@example.org, Rita Nazareth, Brendan WalshFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Bank of America (BAC) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.
Charlotte's Legal Aid of North Carolina office is developing a program to have major companies "loan out" corporate lawyers to the nonprofit to work in three-month stints rather than having them take on individual pro bono assignments.
(Bloomberg Opinion) -- The company behind Aston Martin should take the plunge and raise some equity while it can. Aston Martin Lagonda Global Holdings Plc doesn’t need the money immediately. But the historic sportscar maker may in the future, and it would be better to secure the cushion now before its window of opportunity shuts entirely. Thursday’s brief 21% share price fall should focus minds.When Aston went public in October, it had a goal to produce about 7,200 cars this year, doubling to 14,000 in the “medium term” (understood as 2022). Last month it revised that first target down to 6,400 vehicles. Analysts are less optimistic about the future, with some now expecting Aston to deliver only 11,000-12,000 three years out.The shortfall matters. Aston’s business model is to use cash from car sales to fund development of its next models. Its yearly capital spending budget is roughly 300 million pounds ($362 million). Ongoing cash interest charges are estimated at about 65 million pounds. Operating cash flow is expected to be only 234 million pounds this year, according to Bank of America Merrill Lynch analysts. So Aston will have to dip into its 127 million pounds of cash reserves.Can the company pay its own way from 2020? Opinions diverge. The group is due to launch its DBX sports utility vehicle in the second quarter, aiding cash generation. Some analysts expect operating cash flow to pick up and capex to fall, facilitating a reduction in net debt. Others sees the cash equation remaining slightly out of balance, and net debt rising next year and in 2021 but falling sharply thereafter. Aston can fund itself without recourse to new money in both scenarios.But what if sales and cash generation fall sharply? There are three predictable risks: A badly managed Brexit could disrupt Aston’s supply chain more than it’s prepared for; the DBX might flop because of production snags or poor demand; a global economic slowdown would see Aston’s Asian and U.S. markets suffer from the same weakness that’s held Europe back this year.In any of these scenarios, Aston’s cash could run dry unless the group slammed the brakes on the business and slashed capex. That might be a solution if Aston didn’t also face a looming refinancing in 2022. In reality, it will not want to go into that leaking cash and with the business on hold.True, the carmaker could raise some new long-term debt now. This seems to be management’s preferred option. But it’s strange to be borrowing more when Aston is stretching to service its current debts. A 250-500 million pound rights offer would alleviate the strain, as BAML notes. With Aston’s market value now just 1 billion pounds, the chance to grab the top of that range may already have passed.The weak share price, having already fallen so far, may make underwriters more willing to support a capital raise. James Bond is careful to drive a bulletproof Aston. This balance sheet needs the same armor.To contact the author of this story: Chris Hughes at email@example.comTo contact the editor responsible for this story: James Boxell at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Hughes is a Bloomberg Opinion columnist covering deals. He previously worked for Reuters Breakingviews, as well as the Financial Times and the Independent newspaper.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Rating Action: Moody's upgrades to A2 enh. ratings on various tax credit funds gtd by Merrill Lynch Cap Services, Inc.. Global Credit Research- 15 Aug 2019. New York, August 15, 2019-- Moody's Investors ...
Plunging bond yields have sent the stock market into a tizzy. And "inverted yield curve" is the new buzzword littering news sites everywhere. In today's gallery, we'll shed light on what all the fuss is about and identify three bank stocks to sell.When investors see turbulent seas on the horizon, they seek shelter. And nothing is perceived as a safer place to hide from the storm than treasury bonds. The demand surge sends prices to the moon and yields (which move inverse to prices) into the basement. Buyers' appetite has been so voracious that the 30-year treasury yield just dipped below 2% for the first time ever.The beating in long-term rates has been so severe that they've fallen below short-term rates creating the so-called yield curve inversion. It's a signal that has precipitated every recession in the modern era and has investors justifiably spooked.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Stocks Under $5 to Buy for Fall And that brings us to bank stocks. When long-term interest rates fall below short-term interest rates, it puts a damper on their earnings potential. Throw in the specter of a recession, and you have a toxic brew poisoning the performance of financial companies.Let's take a closer look at three bank stocks to sell. Bank Stocks to Sell: Bank of America (BAC)Bank of America (NYSE:BAC) has been a ship without a rudder this year. Ever since its January rally reversed the fourth-quarter beatdown, BAC stock has been chopping in a range, unable to pick a direction. This month's market bloodbath has pushed BAC 15% off its highs.The stock is now testing the lower end of its range and is threatening a breakdown that would deal a nasty blow to its technical posture. Given the speed of last year's descent and the January rebound, there isn't much support between $26.50 and $22.50. The downside follow-through could be swift if buyers don't emerge to defend the $26.50 zone.Source: ThinkorSwim Even if we don't breach support, Bank of America's stock chart is a hot mess that will need time to heal. If you want to speculate on further downside, buying the November $28/$23 put spread for $1.80 is a solid idea. The risk is $1.80, and the reward is $3.20. Wells Fargo (WFC)Wells Fargo (NYSE:WFC) has fared worse than BAC this year. It completely reversed January's strength and is fast-approaching December's pivotal low of $43. If anything, the relative weakness makes WFC a more tempting target for bear trades and a better bank to bail on if you own it.All major moving averages are pointing lower, making it impossible to spin a bullish narrative. With the price submerged beneath these trend-following indicators, rallies remain suspect and strength is made for selling.Source: ThinkorSwim A break of $43 would push WFC stock to a six-year low and complete a multi-year top on its trend. If you're holding out hope that bulls swoop in to save it, then consider $43 your abandon ship point. * 15 Growth Stocks to Buy for the Long Haul To bank on additional weakness, consider buying the November $45/$40 put spread for $1.80. The risk is $1.80, and the reward is $3.20. Regional Banking ETF (KRE)Our final pick aims for the entire banking sector via the Regional Banking ETF (NYSEARCA:KRE). Its diversified holdings offer exposure to mid-size banks across the nation. It is thus very sensitive to economic shifts that adversely impact the sector.The past six months have seen a vicious tug-of-war between bulls and bears. This week's breakdown finally declared sellers the victor and spells trouble for KRE stock's technical posture. Yesterday's drop has the fund testing the $49 support area. A breakdown could send it back to December's low at $44.Source: ThinkorSwim If you believe bears will continue to roam through year-end, then buy the December $50/$45 put spread for $2. The risk is $2, and the reward is $3.As of this writing, Tyler Craig didn't hold a position in any of the aforementioned securities. Check out his recently released Bear Market Survival Guide to learn how to defend your portfolio against market volatility. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks Under $5 to Buy for Fall * 5 Stocks to Avoid Amid the Ongoing Trade War * 7 5G Stocks to Buy Now for the Future The post 3 Battered Bank Stocks to Bail On appeared first on InvestorPlace.
It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks...
(Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. U.S. retail sales rose by the most in four months on a surge in online purchases, offering some comfort for the economic-growth picture amid increasing recession fears that some other data Thursday may feed into.The value of overall retail sales climbed 0.7% in July after a downwardly revised 0.3% increase in the prior month, according to Commerce Department figures. Two regional Federal Reserve indexes for August came in higher than expected, but the central bank’s measure of factory output for July declined, jobless claims were higher than estimated last week and a measure of consumer sentiment posted the biggest two-week drop since 2011.The retail reading topped all estimates in a Bloomberg survey of economists that had called for a 0.3% gain. Sales in the “control group” subset, which some analysts view as a more reliable gauge of underlying consumer demand, jumped 1% and also exceeded the most optimistic projection after a 0.7% rise in June. The measure excludes food services, car dealers, building-materials stores and gasoline stations.The fifth-straight increase in retail sales shows Americans, buoyed by plentiful jobs and wage gains, are still spending -- a welcome sign as the trade war with China weighs on the global outlook with threats of new levies on consumer goods. Personal consumption, the biggest part of the economy, was the largest driver of the expansion in the second quarter.“The numbers are extremely strong and they come on the back of several good months in a row,” said Stephen Stanley, chief economist at Amherst Pierpont Securities LLC. “The main driver is the labor market, kicking off very good income gains. It’s a consumer that’s got plenty of wherewithal to spend.”What Bloomberg’s Economists Say“Consumers will remain the driving force behind economic growth in the second half of the year -- unless market volatility hinders consumer spirits to a critical degree.-- Yelena Shulyatyeva and Carl RiccadonnaClick here for the full note.Ten of 13 major retail categories increased, led by a 2.8% jump for non-store sellers, which include online shopping. Retail sales in July may have been propped up by Amazon.com Inc.’s 48-hour Prime Day event, which the company said surpassed sales from the previous Black Friday and Cyber Monday combined. The promotion also likely drove shoppers to rivals Walmart Inc. and Target Corp.Walmart on Thursday posted strong second-quarter sales and boosted its full-year outlook, and its chief financial officer said the company has used its scale to minimize price increases.U.S. sales at department stores climbed 1.2% for the best gain since October.Among the main categories, spending dropped at automobile dealers, while readings for both health and personal care stores and sports and hobby retailers dropped the most this year.Rate CutFed officials cut interest rates last month for the first time in a decade while saying the labor market remains strong and citing robust consumption despite growing headwinds. Still, President Donald Trump’s feud with Beijing adds to global growth risks as signs of fragility spread from Germany to China and Singapore, and investors continue to expect additional rate reductions.Stocks have slumped this week and yields on two-year U.S. Treasuries rose above 10-year notes for the first time since the financial crisis, an inversion that is widely viewed as a sign of coming recession.Fed officials are more likely to look at expectations for future data rather than the current figures, said Michelle Meyer, head of U.S. economics at Bank of America Corp. “In the past few weeks we’ve definitely seen more risk to the global outlook,” she said.Motor vehicle dealers saw spending drop 0.6% after increasing 0.3% in the previous month. Industry data from Wards Automotive Group previously showed July unit sales slipped to a three-month low.Excluding automobiles and gasoline, retail sales rose 0.9%, after a 0.6% gain the previous month.Labor MarketSeparate data showed labor market strength eased somewhat, though conditions remain tight overall.Jobless claims rose to a six-week high of 220,000 in the week ended Aug. 10, and a measure of continuing claims -- the number of unemployed Americans who qualify for benefits under the unemployment program -- jumped to 1.726 million in the prior week for the biggest gain since February. Economists had projected initial claims would rise to 212,000.Meanwhile, a measure of nonfarm productivity grew at a 2.3% pace in the second quarter, exceeding projections, after an upwardly revised 3.5% rate in the first quarter. Unit labor costs increased at a 2.4% pace after a 5.5% gain. That first-quarter figure was revised from a drop and became the biggest rise in five years.Get MoreSentiment among U.S. consumers tumbled for a second week in the largest back-to-back slide since March 2011. The Bloomberg Consumer Comfort Index decreased 1.7 points to 61.2 in the week ended Aug. 11.A separate report Thursday showed sentiment among U.S. homebuilders rose in August to match its 2019 high as mortgage rates tumbled, though a weaker outlook signaled concern that any gains will be temporary.The New York Fed’s Empire State index for August, which covers manufacturers in New York, rose to 4.8, bucking expectations for a decline. A similar gauge for the Philadelphia Fed’s region fell by less than projected, dropping to 16.8.(Updates with consumer comfort and other data in second paragraph and bullet points. An earlier version of this story corrected the second deck headline to show the factory indexes exceeded estimates, not both rising.)\--With assistance from Chris Middleton, Anne Riley Moffat and Ryan Haar.To contact the reporters on this story: Katia Dmitrieva in Washington at email@example.com;Reade Pickert in Washington at firstname.lastname@example.orgTo contact the editors responsible for this story: Scott Lanman at email@example.com, Vince GolleFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
U.S. stock futures are clawing their way higher after yesterday's beatdown.Source: Shutterstock Ahead of the bell, futures on the Dow Jones Industrial Average are up 0.65%, and S&P 500 futures are higher by 0.66%. Nasdaq-100 futures have added 0.73%.Yesterday's panic in the options pit resulted in eye-popping activity. Put trading rocketed to the moon with 27.6 million contracts traded. Calls were left in the dust but still saw above-average volume at 23 million contracts for the session.InvestorPlace - Stock Market News, Stock Advice & Trading TipsSimilar action at the CBOE drove the single-session equity put/call volume ratio rose to 0.84 -- its second-highest reading of the year. The 10-day moving average jumped to a new high for 2019 at 0.76.Options traders zeroed in on earnings reports yesterday. Macy's (NYSE:M) plunged on terrible results and Cisco (NASDAQ:CSCO) is aiming for a large down gap after a sad showing of its own. Elsewhere, Bank of America (NYSE:BAC) saw heavy options trading during yesterday's swoon.Let's take a closer look: Macy's (M)Macy's shares plunged 13% yesterday after delivering yet another disappointing earnings report. The dismal data weighed heavily on the entire retail sector driving the S&P Retail ETF (NYSEARCA:XRT) down just under 4% on the session. * 15 Growth Stocks to Buy for the Long Haul For the second quarter, the Cincinnati, Ohio-based department store saw earnings per share down over 50% year-over-year to 28 cents. Revenue came in at $5.55 billion. Both measures missed analyst forecasts, and the ire of disgruntled traders was on full display.M stock is now down 77% from its 2015 peak. Its price trend is bearish with descending moving averages across the board. Any time signs of a bottom emerge, an earnings announcement inevitably arrives to upend everything. Heed the message of the chart and steer clear of bullish plays.On the options trading front, calls outpaced puts on the day. Activity swelled to 830% of the average daily volume, with 190,069 total contracts traded. Calls claimed 57% of the session's sum.Implied volatility remains lofty, despite a small post-earnings volatility crush. At 51% it sits at the 70th percentile of its one-year range. Premiums are pricing in daily moves of 54 cents or 3.2%. Cisco (CSCO)Cisco Systems shares fell 7% after hours following an underwhelming earnings report of its own. Weakness in China was partly to blame for the company's disappointing forward guidance. For its fiscal fourth quarter, the technology giant posted earnings of $3.6 billion, or 83 cents a share, on revenue of $13.43 billion. Both measures topped analyst estimates, but investors found the company's forecasts worrisome.With this morning's drop, CSCO stock will open just under $47, well below its 200-day moving average. The sucker punch is giving back much of this year's gains and places Cisco deep into correction territory. Until the trend turns, rallies are suspect, and sellers hold the upper hand.On the options trading front, traders favored calls ahead of the report. Total activity jumped to 572% of the average daily volume, with 214,998 contracts traded; 73% of the trading came from call options alone.The options board was pricing in a move of $2.76 or 5.5%, so this morning's 7% plunge exceeds expectations and will deliver profits to long volatility strategies like straddles and strangles. Bank of America (BAC)The specter of a recession continues to hamper bank stocks. An inverted yield curve and plunging bond yields create a toxic backdrop for stocks like Bank of America. Its shares fell to a seven-month low amid massive distribution on Wednesday. Its peak-to-trough drawdown is now -15%, and BAC stock is on the verge of breaching a key support zone. * 7 5G Stocks to Buy Now for the Future While the stock is becoming desperately oversold in the short run, future bounces are born to be sold. There's simply too much overhead resistance at this point to comfortably bet on buyers.On the options trading front, calls proved more popular than puts despite the nasty price puke. Total activity popped to 251% of the average daily volume, with 640,676 contracts traded.The increased demand drove implied volatility up to 35%, pushing to the 54th percentile of its one-year range. Premiums now bake in daily moves of 59 cents or 2.2%.As of this writing, Tyler Craig didn't hold a position in any of the aforementioned securities. Check out his recently released Bear Market Survival Guide to learn how to defend your portfolio against market volatility. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks Under $5 to Buy for Fall * 5 Stocks to Avoid Amid the Ongoing Trade War * 7 5G Stocks to Buy Now for the Future The post Thursday's Vital Data: Macy's, Cisco and Bank of America appeared first on InvestorPlace.