BAC-PB - Bank of America Corporation

NYSE - NYSE Delayed Price. Currency in USD
26.62
0.00 (0.00%)
At close: 4:02PM EDT

26.62 0.00 (0.00%)
After hours: 4:17PM EDT

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Previous Close26.62
Open26.65
Bid26.63 x 800
Ask26.95 x 800
Day's Range26.53 - 26.65
52 Week Range24.75 - 27.17
Volume154,272
Avg. Volume162,473
Market Cap266.071B
Beta (3Y Monthly)1.60
PE Ratio (TTM)9.47
EPS (TTM)2.81
Earnings DateN/A
Forward Dividend & Yield1.50 (5.61%)
Ex-Dividend Date2019-07-31
1y Target EstN/A
Trade prices are not sourced from all markets
  • American City Business Journals

    Bank of America holds steady as largest deposit holder in South Florida

    Bank of America is the largest holder of deposits in South Florida, even as its number of physical branches continue to decline. The Charlotte, North Carolina-based bank had 188 branches in the tri-county area as of June 2019, compared to 193 in 2018.

  • Chase gaining on rivals in downtown Boston
    American City Business Journals

    Chase gaining on rivals in downtown Boston

    Within five months of opening in Downtown Crossing, Chase put itself within striking distance of several competitors that have been in the neighborhood for years, according to the FDIC data.

  • JPMorgan rising, Bank of America still on top: These are the banks that capture local market share
    American City Business Journals

    JPMorgan rising, Bank of America still on top: These are the banks that capture local market share

    Greater Washington’s retail banking market may have new entrants vying for business and upstarts gaining market share, but the biggest players remain the same. The overall top 10 banks by deposits in Greater Washington remain unchanged, according to the data, which is an FDIC snapshot of deposits in the region as of June 30.

  • Warren Buffett Loves Insurance Stocks, and Here’s Why
    TipRanks

    Warren Buffett Loves Insurance Stocks, and Here’s Why

    Earlier this year marked 52 years since Warren Buffett first bought into the insurance industry. His initial foray was modest, by current standards; he paid $8.6 million dollars to acquire National Indemnity. On the surface, it didn’t look like such a great deal. National was worth $6.7 million, so Buffett paid a premium of $1.9 million to control the company. But controlling the company was not his main goal.What Buffett was really after was National’s float – the cash the company controlled as a result of the natural lag between receiving premiums and paying policies. At the time, National Indemnity controlled $19.4 million in float – that is, it had collected that much in premiums and had not yet received customer claims against it. In controlling the company, Buffett controlled the float. Instead of putting it into safe, low-yield investments – as insurers usually did – Buffett started on his current path, of investing other people’s money into higher-yielding investments. The capital was the customer’s, of course, but the profits on it were Berkshire Hathaway’s (BRK.B – Get Report).National Indemnity remains, to this day, a subsidiary of Berkshire Hathaway. Buffett prefers owning or controlling insurance companies outright, rather than investing in the stock, as ownership comes with control of the float – and Berkshire’s float totaled $114.5 billion at the end of 2017. Some of that money, however, gets invested in insurance companies, and there are currently two insurers in Buffett’s portfolio.We’ve dipped into TipRanks’ Stock Screener database to find out where some of Buffett’s favorite ‘float’ stocks stand in today’s market. Globe Life, Inc.Formerly known as Torchmark, the company changed its name and stock ticker in August of this year to become Globe Life (GL – Get Report). Globe Life is a holding company, owning in its turn a variety of life and health insurance providers. It’s a microcosm of Buffett’s own attitude toward the insurance industry – control the companies that sell the policies, and in your turn control the float.Globe Life, as an investment, is a good fit for Warren Buffett. He has held the stock since 2001, and has enjoyed the 10.5% annualized return it has brought in. GL pays out a modest but reliable dividend of 0.73%, paying 69 cents per share annually. The stock has appreciated 84.7% in the last five years, and is up 27% year-to-date.So, the long-term fundamentals of the stock look healthy, which is what Buffett has always said he looks for in an investment. In an oft-quoted quip, Buffett says, “Our favorite investment horizon is forever.” The most recent review, however, doesn’t rate the stock as highly. GL holds a Moderate Sell rating, and the average price target of $86 suggests a 9% downside from the current share price of $94.Despite the low rating, GL continues to be a solid performer in its industry. In its last reported quarter, the company showed EPS of $1.67, a 1.2% positive surprise from the $1.65 forecast and a 5% increase from the year-ago quarter. Sales were also robust, adding 4% in Q2. In short, the fundamentals show why Buffett continues to own over 6.35 million shares of GL, worth more than $568 million. Travelers Companies, Inc.With Travelers, we get to the second largest casualty insurer in the US, and the third largest underwriter of personal insurance. Travelers (TRV – Get Report) is an industry leader and blue chip giant of the stock market, and the company’s stock performance shows why Buffett has invested over $890 million in 5.9 million shares.TRV is up 22% year-to-date, notably higher than the S&P 500’s 19% gain, and the five-year gain is an impressive 75%. Like most of the stocks that Buffett keeps, TRV pays out a dividend, 2.23% with an annualized payment of $3.28 per share. Travelers has been a Berkshire investment since 2018, but expect Buffett’s company to hold this stake for the long haul. Berkshire Hathaway is already Travelers’ seventh largest investor, with 2.3% of the company’s stock.A weak second quarter pushed TRV shares down in the analysts’ estimation, and the stock currently gets a Hold from the consensus rating. 5-star analyst Mark Dwelle, of RBC Capital, described the company’s situation after the Q2 report: “The quarter was weighed down by higher commercial auto severity and non-catastrophe weather-related claims, even though neither is seen as a significant drag for Travelers' future quarters.” Dwelle gave TRV a hold, but raised his price target by 10% to $160. His target suggests an 8.8% upside to the stock.Shares in TRV are selling for $30.03, and the average price target of $158 gives the stock an upside potential of 8%. Bank of America CorporationInsurance companies are not the only industry that rides on float. Banks, which take customer deposits and hold them until they are withdrawn, are the essence of float. And Buffett has long placed them among his favorite holdings. Per the most recent 13F filing, Berkshire Hathaway’s largest bank holding is Bank of America (BAC – Get Report). Buffett owns 927,248,600 shares of BAC, worth an estimated $26.89 billion. The bank makes up 12.92% of Berkshire’s portfolio.BAC stock has shown solid gains in recent years, appreciating 91% on the five-year horizon. The year-to-date gain is 22%. BAC shares pay out a 2.39% dividend, although the low share price keeps the payout to a modest 72 cents per share.Morgan Stanley analyst Betsy Graseck gives the stock a Buy rating with a $31 price target, saying, “BAC has the most efficient consumer bank in our coverage with an expense ratio of only 45%. The consumer division has generated 1400bp of improvement in the expense ratio over the past five years as it has driven up revenues while bringing expenses down.” Her target implies an modest upside of 3%.Weighing in from Oppenheimer, Chris Kotowski was more bullish. He increased his price target from $42 to $43, suggesting an impressive 42% upside potential to the BAC.Overall, BAC shares have a Moderate Buy rating, based on 4 buys and 3 holds given in the past three months. Shares are selling for $30, and the $34 average price target implies an upside potential of 13%.Visit TipRanks’ Trending Stocks page, and find out what stocks have Wall Street’s undivided attention.

  • Naspers's Prosus Unit Divides Investment Bank Opinions
    Bloomberg

    Naspers's Prosus Unit Divides Investment Bank Opinions

    (Bloomberg) -- Prosus NV, which listed in Amsterdam just last week, is splitting opinion among the first investment banks to cover the stock.While Jefferies rates the Naspers Ltd. tech-investments unit underperform, Bank of America Merrill Lynch recommends that investors buy the stock.Jefferies began coverage of Prosus, which owns a 31% stake in Chinese tech giant Tencent Holdings Ltd., with a price target of 61 euros, implying a downside of around 16% from current levels.Analyst Ken Rumph wrote in a note that there is “frustration” that while Naspers and Prosus have been good investors, there has been no return of any gains. While unattractive operations were spun off and the Dutch listing accessed more passive capital, the e-commerce disclosure remains “thin” for a public company, Rumph also said. He expects Prosus’s net asset value to be largely driven by Tencent.“After current index flows, we expect Prosus to trade back toward a wider discount as active investors realize they have an ambitious patient capital investor, not a value-maximizing wind-up on their hands,” he wrote in a note.Bank of America Merrill Lynch analyst Cesar Tiron is more optimistic, with his 97-euro price objective implying potential upside of 33%. Prosus offers exposure to “best-in-class” emerging-market internet assets, he wrote in a note.Cape Town-based Naspers carved out Prosus for a separate listing to attract a more global investor base and realize more value, while weakening the group’s dominance over the Johannesburg stock exchange.Prosus shares fell as much as 2.1% Monday and traded at 72.97 euros as of 12:47 p.m. Amsterdam time, with the retreat taking them 4% below their 76 euros debut level last Wednesday.Last week, Spin-Off Research began its coverage of Prosus with a buy rating and 99 euros price target.(Updates to add BofAML rating and analyst comments.)To contact the reporter on this story: Kit Rees in London at krees1@bloomberg.netTo contact the editors responsible for this story: Celeste Perri at cperri@bloomberg.net, John Viljoen, Paul JarvisFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Ultra-Low Rates Are No Panacea for Stocks
    Bloomberg

    Ultra-Low Rates Are No Panacea for Stocks

    (Bloomberg Opinion) -- September is only halfway done and already the S&P 500 Index is up 20% for the year. This is a remarkable achievement, given that earnings growth has stalled and the bond market is pricing in almost a 40% chance of a recession over the next 12 months. That just shows the degree to which lower interest rates have supported stocks. And yet, as is often the case in life, too much of a good thing isn’t always, well, good.This year’s rally – during which the S&P 500’s forward price-to-earnings multiple expanded to 17.6 from 14.5 at the start of January – can be credited to the Federal Reserve’s dovish pivot, which led to the central bank’s first rate cut since 2008 and sparked big declines in market rates. The yield on the benchmark 10-year Treasury note dropped to as low as 1.43% earlier this month from 2.80% back in January.Simple discounted cash-flow analysis shows how lower rates make future earnings more valuable now, justifying higher multiples for equities even without profit growth. So, logic would dictate that the lower rates go, the better for equities. But the experience in Europe shows that there comes a point where ever lower rates begin to work against stocks.In a research note last week, the strategists at Bank of America pointed out how even though 10-year bond yields in Germany have fallen below zero, stocks there only trade at a multiple of about 14 times earnings. That’s little changed from mid-2014, when yields were around 1.25% and the European Central Bank cut its benchmark deposit rate to below zero. The same is true for the broader euro zone, with the Euro Stoxx 600 Index trading at 14.5 times projected earnings, not much different from mid-2014.Of course, the euro zone’s struggles are worse than the U.S. Still, the increasing globalization of the world economy means America is having a much harder time shrugging off the slowdown elsewhere. Morgan Stanley says the U.S.’s share of global gross domestic product has shrunk from 22% in 1990 to 15% today. That’s a big reason traders are pricing in at least three more Fed rate cuts over the next 12 months, bringing its target rate for overnight loans between banks to 1.50% from 2.25% currently.On top of that, the number of Wall Street strategists slashing their Treasury yield estimates has grown in recent weeks, citing the outlook for weaker global growth and inflation. UBS Group AG and BNP Paribas SA, which are among the select group of dealers authorized to trade with the Fed, both slashed their 10-year forecasts, predicting yields will drop to 1% by the end of 2019. Could yields go even lower, tracking those in Europe and Japan by following below zero? Former Fed Chairman Alan Greenspan doesn’t thing that’s a crazy idea, telling Bloomberg News last month that he wouldn’t be surprised if they turned negative.It’s true that the stock market posted a massive rally between early 2009 and mid-2015, rising as much as 215%, as the Fed kept rates near zero and pumped money directly into the financial system via quantitative easing. But that was a time when investors largely believed that central banks still had a lot of arrows left in their quivers to stimulate the economy. That’s not really the case now. The S&P 500 fell four straight days after the Fed cut rates on July 31, dropping a total of 5.59%.Also back then, profits were in recovery mode and stocks were relative cheap, with the forward price-to-earnings ratio holding below 14 for much of that time and peaking at around 17 times in late 2014 – about where it is now - just before the S&P 500 turned in its first annual decline since 2008. This year, though, earnings growth is flat and Bank of America’s strategists are telling its clients that forecasts for an 11% increase next year are “too high.” Stocks have had a good run, with the S&P 500 closing last week at 3,007. The median estimate of strategists surveyed by Bloomberg in January only expected the benchmark to rise to 2,913 this year. But with economists moving up their time frame for when the next recession will hit to 2020 from 2021, earnings estimates coming down and price-to-earnings ratios on the high side, it won’t be easy for stocks to keep marching higher even if the Fed does continue to slash rates.  To contact the author of this story: Robert Burgess at bburgess@bloomberg.netTo contact the editor responsible for this story: Beth Williams at bewilliams@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Robert Burgess is an editor for Bloomberg Opinion. He is the former global executive editor in charge of financial markets for Bloomberg News. As managing editor, he led the company’s news coverage of credit markets during the global financial crisis.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

  • China’s Economy Slows Again, Adding Pressure for Policy Action
    Bloomberg

    China’s Economy Slows Again, Adding Pressure for Policy Action

    (Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. China’s slowdown is deepening just as risks for the global economy mount, piling pressure on the authorities to do more to support growth.Industrial output rose 4.4% from a year earlier in August, the lowest for a single month since 2002, while retail sales came in below expectations. Fixed-asset investment slowed to 5.5% in the first eight months, with the private sector lagging state investment for the 6th month.The data add support to the argument that policy makers’ efforts to brake the slowing economy aren’t sufficient as the nation grapples with structural downward pressure at home, the risk of yet-higher tariffs on exports to the U.S. and now surging oil prices. Nomura International Ltd. said this all raises the likelihood that the People’s Bank of China will cut its medium-term lending rate on Tuesday.“In terms of policy room, we still think there’s quite a lot for both the Ministry of Finance and the PBOC, but now it’s a matter of whether they want to use it,” Helen Qiao, chief Greater China economist at Bank of America Merrill Lynch said on Bloomberg television. “What I worry about is that policy makers are hesitating at the moment because of the potential implications on the long term impact, so they’re really fallen behind the curve.”The Shanghai Composite swung between gains and losses before closing slightly lower. Futures contracts on China’s 10-year government bond regained losses after the data release to close at 0.07% higher on Monday.The slowdown in output was almost across the board, with food processing and general equipment manufacturing unchanged from last year. Car output rose after declining for four months. Growth in sales of consumer goods slowed to 7.2%, the lowest since April this year, but there was an increase in food sales. The unemployment rate fell to 5.2% from 5.3% in July, within the narrow band it has occupied all year even amid the slowdown.The record oil price surge after a strike on a Saudi Arabian oil facility couldn’t have come at a worse time for China and a world economy already in the grip of a deepening downturn. While the severity of the impact will depend on how long the oil price spike endures, it risks further eroding fragile business and consumer confidence amid the ongoing U.S.-China dispute and already slowing global demand.Saudi Arabia is the largest single source of China’s crude oil imports, which in turn supply about 70% of total demand.After China’s data release on Monday by the National Bureau of Statistics, Citigroup Inc. lowered its growth forecast for the world’s second-biggest economy to 6.2% for this year from 6.3% previously, and to 5.8% from 6% for 2020.“We don’t expect a growth rebound in the fourth quarter anymore, with the new forecast flat at 6.1% year on year,” wrote Yu Xiangrong, a Hong Kong-based economist with Citigroup, referring to the quarterly outlook. “In particular, we now hold a more cautious view on the recovery of infrastructure investment and retail sales.”The People’s Bank of China cut the amount of cash banks must hold as reserves this month to the lowest level since 2007, though it’s still holding off on cutting borrowing costs more broadly.Some 265 billion yuan ($37.5 billion) of 1-year loans from the PBOC to banks will mature on Tuesday. The central bank will likely roll-over at least some of these, giving it an opportunity to cut the rate it charges.Analysts are divided on whether the PBOC would actually take the chance to cut. Some see the need for more significant easing while the other argue the authorities would like to avoid announcing multiple stimulus at once, and they’ll watch the U.S. Federal Reserve before taking any actions themselves. The Fed is expected to cut rates this week.Morgan Stanley expects borrowing costs to be cut by 10-15 basis points as early as this week, likely in the form of an medium-term lending rate cut.What Bloomberg’s Economists Say..“We expect policy support to continue at a measured pace as Chinese authorities strive to put a floor under the slowing economy. Yet, officials are bracing for a long war, and are careful not to deplete their policy ammunition.”-- Chang Shu and David Qu, Bloomberg EconomicsFor the full note click hereIt’s getting more difficult to “safeguard 6%” expansion in the third quarter and growth will likely slow further from the pace in the second quarter, China International Capital Corp. economists led by Eva Yi wrote in a note. Not only is it necessary, but there is room to step up the intensity of counter-cyclical adjustment in a timely manner to make sure economic growth won’t slip below the targeted growth range of 6-6.5%, Yi said.There are likely to be more easing measures including cuts to banks’ reserve ratios and the PBOC’s mid-term lending rate, although that cut probably wouldn’t happen this week, said Peiqian Liu, China economist at Natwest Markets Plc in Singapore. The pace of economic slowdown is faster than expected and the impact of the trade war on Chinese manufacturers has been relatively big, she said.Goodwill TalksNegotiators from China and the U.S. plan to have two rounds of face-to-face negotiations in coming weeks. Both sides have taken steps to show goodwill, and U.S. officials are considering an interim deal to delay tariffs with China, people familiar with the matter told Bloomberg.However, even if those talks do go well and get the negotiations back on track, it may not be enough.“Even a reprieve on the trade front, with U.S. and Chinese negotiators back at the table, will not in itself cure China’s growth malaise,” said Frederic Neumann, co-head of Asian economics research at HSBC Holdings Plc in Hong Kong. “There is a growing risk that keeping the reins too tight may push growth much lower.”(Updates with Morgan Stanley comments and markets reaction.)\--With assistance from Amanda Wang, Tian Chen, Yinan Zhao, Enda Curran, Dan Murtaugh and Claire Che.To contact Bloomberg News staff for this story: Miao Han in Beijing at mhan22@bloomberg.net;Tomoko Sato in Tokyo at tsato3@bloomberg.net;Kevin Hamlin in Beijing at khamlin@bloomberg.netTo contact the editors responsible for this story: Jeffrey Black at jblack25@bloomberg.net, James MaygerFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • PJT Hires BofA's Baladi to Build Up Europe TMT Banking
    Bloomberg

    PJT Hires BofA's Baladi to Build Up Europe TMT Banking

    (Bloomberg) -- PJT Partners Inc. has hired Bank of America Corp. dealmaker Antonin Baladi to build up its European technology, media and telecommunications investment banking business, people familiar with the matter said.The London-based banker is joining PJT in a senior role, the people said, asking not to be identified because the information is private. Baladi, who was Bank of America’s head of media and internet investment banking for Europe, the Middle East and Africa, had been with the firm since 2010, according to his LinkedIn profile.Representatives for Bank of America and New York-based PJT declined to comment.PJT’s founder Paul J. Taubman has long been one of Wall Street’s top telecom and media dealmakers and has been on a hiring spree since taking his boutique advisory firm public in 2015. He has added several health care-focused partners, poached a top initial public offerings banker from UBS Group AG and last year hired David Perdue from Goldman Sachs Group Inc. to work on private equity deals.Taubman, 58, told analysts in July the firm feels “very positive” about its European franchise and is expanding its footprint in the region as it wins mandates in more industries and geographies. The number of strategic advisory partners at PJT globally will increase by five in the third quarter, including a partner who will focus on cross-divisional initiatives, Taubman said at the time.Below the partner level, PJT has hired more than 30 advisory professionals this year, he said. Global companies listed in the U.K. are attracting strategic takeover interest despite a challenging macroeconomic backdrop, and private equity activity is expected to rise in Europe given dislocations in stock prices, according to Taubman.PJT ranks eighth among advisers on U.S. mergers and acquisitions this year with an 11.1% market share, up from 12th place for all of 2018. In Europe, it ranks 29th this year with a 1.5% market share, according to data compiled by Bloomberg. Its largest deal to date in the region was its work with the independent board committee of Sky Plc on the U.K. satellite broadcaster’s takeover by Comcast Corp. last year.Shares of PJT shares have risen 14% in U.S. trading this year, outpacing rival Moelis & Co. but trailing Evercore Inc.’s 17% gain.To contact the reporters on this story: Dinesh Nair in London at dnair5@bloomberg.net;Myriam Balezou in London at mbalezou@bloomberg.netTo contact the editors responsible for this story: Ben Scent at bscent@bloomberg.net, Amy ThomsonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Investing.com

    Stocks - Wall Street Tumbles as Attack on Saudi Hits Oil Supply

    Investing.com – Wall Street fell after a weekend attack on Saudi Arabian oil installations crippled 5% of the world’s oil supply, raising fears for the global economy and increasing the risk of war between the U.S. and Iran.

  • Blindsided Bond Traders Can’t Count on Fed Dots
    Bloomberg

    Blindsided Bond Traders Can’t Count on Fed Dots

    (Bloomberg Opinion) -- Heading into September, the $16 trillion U.S. Treasury market was signaling dark days ahead for America’s economy.On Aug. 28, 30-year yields dropped to an all-time low of 1.9%, a shocking figure that indicated no fear of inflation or sustained growth. By Sept. 3, bond traders were betting the Federal Reserve would slash its benchmark lending rate to below 1% before the November 2020 presidential election, from an effective rate of 2.13% now. Many measures of the U.S. yield curve remained inverted. Recession signals flashed just about anywhere investors looked.Now, just days before the Fed’s next interest-rate decision, the outlook is remarkably brighter. Last week, the core consumer price index data showed a 2.4% increase in August relative to a year earlier, the strongest pickup in inflation since 2008. Retail sales also beat expectations. Before that, average hourly earnings and the ISM non-manufacturing gauge topped estimates, helping to push Citigroup Inc.’s U.S. economic surprise index close to a 2019 high.Much like the economists caught unawares, bond traders were also shocked, to say the least. By Friday, two-year yields had climbed 37 basis points from their lows earlier this month, while yields on 10- and 30-year bonds rose by almost 50 basis points, including a sharp double-digit increase on Friday. The only two comparable moves in the past several years occurred during the so-called Taper Tantrum in 2013 and after the presidential election in November 2016.Effectively, traders’ thinking comes down to this: Fed Chair Jerome Powell said nothing in his speech before the central bank’s blackout period to dissuade them from pricing in an interest-rate reduction this Wednesday. But, what then? The logical place to turn, it would seem, is the central bank’s economic projections, and in particular its “dot plot,” which aggregates officials’ expectations for the future path of interest rates. It’s due for an update this week for the first time since the June meeting. At that time, the median dot called for zero cuts to the fed funds rate in 2019, and only one reduction in 2020. Obviously, things changed in a way policy makers didn’t see coming.And therein lies the problem with relying on the dot plot. The Fed, for better or worse, is flying as blind as any time in the past few years, due in no small part to the unpredictability of President Donald Trump’s continuing trade war with China. Powell diplomatically acknowledged as much during his Sept. 6 remarks: “Sometimes it’s easy to get unanimity on things when the path is clear,” he said. “Other times it’s murky out there and there’s a range of views. This is one of those times.”Of course, that won’t stop Wall Street from predicting what those views will look like come Wednesday at 2 p.m. New York time. Strategists at Bank of America Corp. see the median for 2019 dropping to 1.625%, effectively indicating central bankers will cut rates once more either in October or December; after that, they expect the Fed to signal no changes throughout 2020, with gradual increases to resume again in 2021 and 2022. TD Securities strategists also expect the Fed to signal another cut before year-end. John Herrmann at MUFG Securities Americas says he counts at least five of the 17 dot-plot participants who would dissent over another reduction in rates after September’s. Add a few more to the mix after strong readings on inflation and retail sales, and maybe the Fed will signal a pause for the rest of the year.Rather than take a stab at what the dot plot will look like, Jon Hill at BMO Capital Markets focused instead on the question of whether the dots should simply be ignored:“In the best of times, it would correspond to the FOMC's path-dependent baseline scenario, assuming their baseline economic forecasts play out. This was arguably the case for much of 2017 and 2018 and corresponded to a regular and predictable quarter-point hiking cadence.Alternatively, in moments like this — when uncertainty is elevated and even the axiom that 'cutting rates will help spur growth' is up for debate — it's hard to interpret the dot plot as more than a general inclination and bias regarding the outlook. This has enormous value in providing insight into the Fed's reaction function to macroeconomic developments. Given the number of moving pieces, Powell wants to maintain flexibility both with regards to the current stance but also forward guidance.”This advice – to not read too much into the precise levels of the dots – is probably bond traders’ best bet. Powell has made it abundantly clear that he and his colleagues are focused on doing what’s necessary to sustain the expansion. That means if economic data persistently weaken, they will ease policy. And if Trump ratchets up the trade-war rhetoric, as he did less than 24 hours after the Fed’s last meeting, they will also probably ease policy.  It also has to be said that the Fed has shown time and again to take its cues from the bond market. Traders had priced in a quarter-point rate cut on July 31 way back in early June, and Powell opted not to push back even though he probably could have. If policy makers think the economy is strong, but market prices suggest the opposite, investors have history on their side to anticipate the central bank will ultimately capitulate.It’s hard to say whether that trend ought to be comforting or frightening for bond traders, given the swift correction in Treasuries this month. Because if the Fed is flying blind, then so, too, are economists and investors, to some extent. A Bloomberg survey of 57 analysts, released on Sept. 13, showed a median estimate of 1.7% for the 10-year U.S. yield at year-end. The highest forecast was for 2.58%, and the lowest was 1%. The difference of opinion only widens in 2020.Obviously, whether Treasuries soar to new records or keep unwinding their recent gains will have enormous implications for profits and losses among bond investors. Unfortunately for those looking for some direction, the Fed’s dot plot won’t be the guiding light to put them on the right side of the trade.To contact the author of this story: Brian Chappatta at bchappatta1@bloomberg.netTo contact the editor responsible for this story: Beth Williams at bewilliams@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Brian Chappatta is a Bloomberg Opinion columnist covering debt markets. He previously covered bonds for Bloomberg News. He is also a CFA charterholder.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

  • Eco-Friendly Phone Companies Brace for 5G’s Energy Bill
    Bloomberg

    Eco-Friendly Phone Companies Brace for 5G’s Energy Bill

    (Bloomberg) -- The next generation of telecommunications technology could be the key to ending years of stagnation in the industry. But it’s also set to create a difficult dilemma for European phone companies.Carriers shelled out $80 billion to power the world’s antennas last year, according to Nokia Oyj. The prospect of having to raise spending on electricity – energy demand could triple with the introduction of 5G equipment, according to industry body GSMA – won’t sit well with phone companies that are already struggling to pay their dividends. At the same time, firms such as BT Group Plc and Vodafone Group Plc have pledged to slash emissions, and that will require a rapid shift to renewable energy.Just as carriers are about to roll out vast quantities of power-hungry gear, they’re also promising to save the planet. And funds are tight. Accomplishing everything at the same time could be a tall order.“If they have set up ambitious targets for overall power consumption and CO2 emissions, those could potentially be in conflict when they start to roll out 5G,” said Jerker Berglund, industry consultant at JB Sustainable Approach AB. “Reducing total power consumption is going to be a challenge.”5G could unleash a 1,000-fold jump in data demand for connecting factories and cars and supercharging mobile devices, according to the GSMA. That’s an irresistible sales prospect for a telecom industry whose revenues have yet to recover from a slump that started in 2015.Next-generation antennas and masts can be 10 times more energy efficient than 4G’s. However, these power savings could get swamped by the surge in demand for new applications. 5G will link up billions of things that have never been connected before. To accommodate all these new connections, masts might have as many as 128 antennas, versus just four or eight on a typical 4G mast. Bouncing signals through cities may require thousands of transmitters and receivers to be bolted onto rooftops and street furniture. This looks like it will all require a lot more bandwidth, and a lot more power.What’s more, carriers can’t afford the cost of swapping out all their equipment at once, Berglund said. The rollout will have to happen gradually, so many masts will still carry less efficient 4G, 3G and 2G antennas alongside 5G ones. This situation could last for years – some 3G kit is still in place 18 years after that technology was introduced.This article is part of Covering Climate Now, a global collaboration of more than 250 news outlets to highlight the climate change story.Electricity already makes up about a third of carriers’ average operational costs, according to Nokia, and raising this will pressure balance sheets when the industry isn’t in a good place to cope. Vodafone has cut its dividend to conserve cash to pay for spectrum and capital investment. Bank of America Merrill Lynch analysts said Monday they expect BT to slash its dividend by as much as 40% to fund capital expenditure and price cuts.“As we consume more, power’s going up, and the industry is trying to bring that down as much as possible,” said Henry Calvert, head of future networks at the GSMA, the mobile industry trade body. “There’s a lot of activity in the industry about making the power we use more efficient.”But whatever fixes carriers make to lower energy bills – sharing networks, getting masts to autonomously power down at times of low data demand, introducing “beam-forming’’ so smart antennas can pinpoint devices instead of pumping out data indiscriminately – the surge in power usage creates a challenge for meeting emissions goals.Deutsche Telekom AG, for example, pledged a 90% reduction in carbon emissions between 2017 and 2030. In total, European carriers will have to reduce carbon dioxide emissions by 6 million metric tons within 11 years to achieve their carbon targets, BloombergNEF analyst Kyle Harrison said in a research note.One solution is for the telecom companies to shift their power supply to renewables, but this can’t be done at the flick of a switch. Clean-energy contracts are complicated and can take years to negotiate.Carriers will be under pressure to sign new ones quickly to cope with 5G’s power demands, Harrison said. They’ll be vulnerable to striking bad deals, and price fluctuations in energy markets can turn some arrangements that initially look good into losers in the longer term. “The switch to 5G is going to put more pressure on telecoms to purchase clean energy and reduce their emissions,” he said. “Many clean energy deals can result in losses for corporations. Telecoms will need to put extra consideration into this as their power demand goes up, especially if losses will impact their investments into 5G.”To contact the author of this story: Thomas Seal in London at tseal@bloomberg.netTo contact the editor responsible for this story: Jennifer Ryan at jryan13@bloomberg.netFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Barrons.com

    Bank of America Stock Is Out of Favor — and Worth Betting On

    Investors could buy the bank’s October $29 call options that expire on Oct. 25. The trade positions investors at the forefront of potentially favorable events and lets them take advantage of cheap implied volatility.

  • Deposit wars: These are the banks in control of the Nashville market
    American City Business Journals

    Deposit wars: These are the banks in control of the Nashville market

    Nashville's pool of available deposits surged during the past decade, newly released federal data shows. Since 2010, the region's amount of available deposits has grown by 66% — to $64.1 billion, up from $38.5 billion, according to the Federal Deposit Insurance Corp. It's yet another metric to help quantify just how rapidly the region's economy is expanding. For the second year in a row, Nashville-based Pinnacle Bank (Nasdaq: PNFP) topped the annual ranking of which banks control the most market share.

  • Bank of America widens lead as Greater Baltimore's biggest bank
    American City Business Journals

    Bank of America widens lead as Greater Baltimore's biggest bank

    Bank of America Corp. remains Greater Baltimore's biggest bank after it continued to widen the gap between itself and its largest competitors during the last year, according to data released Friday by the Federal Deposit Insurance Corp. The Charlotte-based banking giant's deposits increased 3.2% to $22 billion as of June 30, compared to $21.3 billion the same time a year ago. Bank of America's market share rose slightly from 29.4% to 29.6%. With $1.4 trillion in deposits nationally, Bank of America (NYSE: BAC) is the second-largest bank in the U.S. behind JPMorgan Chase & Co. M&T Bank (NYSE: MTB), the second-largest bank in Greater Baltimore, grew deposits and gained market share after seeing both numbers dip last year.

  • 5 Great Warren Buffett Stocks to Hold Through the Next Recession
    InvestorPlace

    5 Great Warren Buffett Stocks to Hold Through the Next Recession

    If Warren Buffett does one thing right, it has to be his ability to pick stocks that will deliver through thick and thin. Buffett's entire M.O. is based on long term investing -- choosing stocks that deliver steadily rising revenues/profits, holding them for decades, and collecting a big pile dividend checks along the way. This simple strategy has helped the Oracle of Omaha become one of the world's richest human beings and constantly generate gains for Berkshire Hathaway (NYSE:BRK.B).However, the economy hasn't always cooperated with Buffett. Over his long investing career, the U.S. economy has experienced plenty of ups and downs.But for the Oracle, this hasn't been a problem. The key for many Warren Buffett stocks comes down to their quality. Buffett only focuses on those firms with low debt, strong cash flows, rising sales, and top-notch management teams. This allows them to perform well even during recessions. While their share prices may falter a bit, their underlying businesses won't. That helps Buffett sleep well at night.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Discount Retail Stocks to Buy for a Recession And it can help you sleep well at night as well. With the economy getting dicey, it makes sense to take a page out of his playbook and focus on quality. With that, here are five Warren Buffett stocks to hold through the next recession. M&T Bank Corporation (MTB)Source: Shutterstock There's no doubt that Warren Buffett loves banks. He has stakes in several major ones including Bank of America (NYSE:BAC) and PNC (NYSE:PNC). But one of the most conservative could be M&T Bank (NYSE:MTB). Buffett has held shares in MTB since 2001.MTB isn't a super well-known bank. However, it's no slouch and is a large regional operator with assets in New York, Maryland, and Pennsylvania, as well as Washington, D.C. This super-regional status of 750 branches focused on some of the nation's best state economies has allowed M&T to benefit from strong loan demand and growing deposit base.The reason why M&T is such a great bank to hold during downturns comes down to its business model. The firm simply doesn't mess with "risky stuff." There's no prop trading like BAC, risky mezzanine loans or subordinated debt on its balance sheet. Just regular, boring banking.But that has been great for MTB shareholders. Because of this, M&T has been a rock star during recessions. In fact, during the last recession, the firm saw some of the lowest percentage credit losses among its peers. Moreover, it was only one of two banks in the S&P 500 that did not cut its dividend.Going back further, MTB has not posted a loss in 171 consecutive quarters. The best part is that even with things getting dicey and rates falling, M&T still managed to realize net interest margin improvements last quarter.Given its history and conservative run nature, M&T might be one of the safest stocks in Warren Buffett's entire portfolio. Moody's (MCO)Source: Daniel J. Macy / Shutterstock.com One of the tenants of almost all Warren Buffett stocks is an irreplaceable moat. That is, a company offers something that no one else does and not many consumers can do without. Moody's Corporation (NYSE:MCO) is a perfect example of that.MCO provides credit ratings, research, and risk analysis services for investors, banks and government agencies. Much like your credit score, this rating is a vital component for determining creditworthiness. In fact, a company can't issue a bond without a ratings agency giving it the go-ahead. This includes Warren Buffett and Berkshire's many subsidiaries themselves. And considering that there are only three main ratings agencies around, Moody's is in a very enviable position.MCO features relatively low overhead and cost of doing business. This creates a very high-profit margin. Last quarter, Moody's pulled in a whopping $4.5 billion in revenues and managed to score a high 57.5% profit margin from these sales.This high margin is worth buying MCO stock alone. However, the story could get better for Moody's if a recession hits. That's because investors will need to rely on data and risk analysis, even more to help uncover potential problems or values. If a firm wants to raise funds during the downturn, it'll have to tap MCO whether they like it or not. * 10 Battered Tech Stocks to Buy Now Thanks to this moat and need, Moody's could be one of the best Warren Buffett stocks to own during the recession. Coca-Cola (KO)Source: phloxii / Shutterstock.com Of all the stocks in Warren Buffett's portfolio, Coca-Cola (NYSE:KO) seems like the obvious recession-resistant play. After all, the consumer staple features plenty of steady demand and its products are enjoyed by millions of people each and every day. I'm drinking a Cherry Coke right now while writing this. This steadfast nature has served KO through thick and thin. Moreover, it's rewarded shareholders with 55 years' worth of dividend increases.So yes, Coca-Cola is a boring play and has everything you'd want to ride out the recession.The kicker is, there's plenty of growth under the hood of KO as well. This comes from new moves into healthier beverages. Times are changing and not everyone wants a surgery soda. As a result, sparkling water, juices, teas, and other healthy drinks are now a priority at Coke. These items come with some decent margins and now sales for these products account for about half of KO's total pie.KO is even getting big into data mining and artificial intelligence. Every time you create a combination on one of its Freestyle machines, pick up a six-pack of juice, you're creating plenty of user data. And now, KO has partnered with several tech firms to start digging into that data. This already helped create new flavor combos like Orange Vanilla Coke as well as provide insight into consumer behavior. It's an edge that KO can use down the road to keep revenues going, predict trends and ultimately, reward shareholders even during a recession.All in all, KO has a great combination of boring and exciting attributes. Globe Life (GL)Source: Shutterstock Warren Buffett is fanatical about the insurance industry and many firms are top stocks in Berkshire's portfolio. It's easy to see why. Property and casualty insurers collect payments for policies. The beauty is that they don't have to pay the money back unless there is a claim.However, insurers don't just sit on that money. They invest it and this "float" and interest earned on that float can provide plenty of dividends and cash for the insurance firm. In fact, the reason why Berkshire Hathaway has been so successful is that its insurance operations, like GEICO, provide so much return on their floats. Of these insurance names, Globe Life (NYSE:GL) could be an interesting choice.Formally known as Torchmark, Buffett has owned GL shares since 2001 and the insurer has been a good bet. Globe Life is one of the nation's largest life insurance agencies. The key to that comes from its staggered rate term policies. Rather than have the same premium cost for the entire 10 or 20 years, GL policy premiums reset every five years or so as holders move into different age brackets. Moreover, Globe Life also offers many low death-benefit policies versus rivals. This has allowed GL to scale up in size.It has also allowed Globe Life to be pretty profitable. Last quarter continued that trend with EPS jumping more than 5%, while sales increased by 4%. Meanwhile, GL saw some big gains on its investment portfolio and float. * 10 Healthcare Stocks to Buy Despite the Headlines With longs operating history -- since 1900 -- long dividend history, and conservative approach to investments, GL could the sleeper insurance stock in Buffet's portfolio. Amazon (AMZN)Thanks to the insight of many of his lieutenants, Buffett has begun to move into the world of technology. And that includes a stake in one of the best firms around: Amazon (NASDAQ:AMZN).Source: Eric Broder Van Dyke / Shutterstock.com AMZN continues to be the leader in ecommerce and has used its very profitable cloud-computing assets to help drive its retail operations. This has resulted in lower prices for consumers, faster shipping times, and an overall better experience. And Amazon is not done yet. The firm continues to find new ways of making money from advertising and its own gadgets.As a result, AMZN throws off a lot of cash. That's probably what drove Buffett into the stock in the first place.But as a recession play, AMZN has a lot to offer. When money gets tight, consumers generally trade down to private label brands. Amazon now has hundreds of them that cost less than premium products. Moreover, the ability to take advantage of Amazon's lower-selling prices overall makes it a powerful money-saving retailer for consumers. On the corporate side, its AWS cloud division continues to offer money saving tools for business.In the end, the recession should damper Amazon's growth potential. That makes it a powerful player in Buffett's portfolio.At the time of writing, Aaron Levitt held a long position in AMZN stock. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Big IPO Stocks From 2019 to Watch * 7 Discount Retail Stocks to Buy for a Recession * 7 Stocks to Buy Benefiting From Millennial Money The post 5 Great Warren Buffett Stocks to Hold Through the Next Recession appeared first on InvestorPlace.

  • Barrons.com

    Rich Pluta: A Leap of Faith at Merrill

    RICH PLUTA HAD MADE a big jump in life, from working-class roots in Chicago’s South Side to a successful career as a top Merrill Lynch broker. Sitting down with Barron’s Advisor, the Merrill lifer, who now heads the 10-person Pluta/Katz Group, explains why the risk-taking was worth it. Q: Where are you from, Rich?

  • InvestorPlace

    9 Hot Stocks to Buy Now

    [Editor's note: "9 Hot Stocks to Buy Now" was previously published in August 2019. It has since been updated to include the most relevant information available.]It's a different market than it was at the beginning of 2018.It's a choppier, more cautious environment. That's not a bad thing, however. After a basically uninterrupted post-election rally, several stocks have seen pullbacks that provide more attractive entry points. Others simply haven't received their due credit from the market.InvestorPlace - Stock Market News, Stock Advice & Trading TipsWhile there might be reasons for caution overall -- inverted yield curve, trade war concerns -- more opportunities exist as well.This more and more looks like a "stockpicker's market." For those stockpickers, here are nine stocks to buy that look particularly attractive. * 7 Discount Retail Stocks to Buy for a Recession Hot Stocks to Buy Now: Exxon Mobil (XOM)Past year performance: 5.6%Source: Shutterstock I'm as surprised as anyone that Exxon Mobil Corporation (NYSE:XOM) makes this list. I've long been skeptical toward XOM. The internal hedge between upstream and downstream operations makes Exxon stock a surprisingly poor play on higher oil prices. Overall, that leads XOM to stay relatively rangebound, as it has been for basically a decade now.With the dividend yield just below 5% and a 15.6 times forward price-earnings (P/E) multiple, Exxon Mobil stock looks like a value play. Meanwhile, management is forecasting that the company's earnings can double by 2025, adding a modest growth component to the story.Obviously, there's a risk that Exxon management is being too optimistic. Years of underperformance relative to peers like Chevron (NYSE:CVX) and even BP (NYSE:BP) has eroded the market's confidence. If Tesla Inc (NASDAQ:TSLA) can lead a true electric car revolution, that, too, could impact demand and pricing going forward. Nathan's Famous (NATH)Past year performance: -18.8 %In this market, recommending a restaurant owner, let alone a hot dog restaurant owner, might seem silly at best. But there's a strong bull case for Nathan's Famous, Inc. (NASDAQ:NATH).Source: FlickrNATH, too, has mostly seen a steady decline since late 2018, although it's rebounded slightly in recent weeks. The stock touched a 52-week (and all-time) high just over $100 in July 2018. It's since come down about 30%, yet the story hasn't really changed all that much.Revenues grew by just about 8% in fiscal 2018. The company's agreement with John Morrell, who manufactures Nathan's product for retail sale and Sam's Club operations, offers huge margins, while its bottom line continues to grow. Food service sales similarly are increasing. * 7 Discount Retail Stocks to Buy for a Recession The restaurant business has been choppier, but it remains profitable. The "mostly franchised" model there is similar to those of Domino's Pizza (NYSE:DPZ) and Yum! Brands (NYSE:YUM), among others, all of whom are getting well above-market multiples.All told, Nathan's has an attractive licensing model, which leverages revenue growth across the operating businesses. And yet, at 12x EV/EBITDA, the stock trades at a significant discount to peers. Bank of America (BAC)Past year performance: -2.3%Bank of America Corp (NYSE:BAC) is still below its 2018 high and has gained well over 100% from July 2016 lows. Trading has been a bit choppier of late, and there's a case, perhaps, to wait for a better entry point.Source: Shutterstock But I've liked BAC stock for some time now, and, as I wrote previously, I don't see any reason to back off yet. Earnings growth should be solid for the foreseeable future.BofA itself has executed nicely over the past few years. The company's credit profile is solid and its stock has outperformed other big banks.And despite the big run, it's not as if BAC is expensive. The stock still trades at less than ten times 2019 EPS estimates. Unless the economy turns south quickly, that seems too cheap. So it looks like the big run in Bank of America stock isn't over yet. Roku (ROKU)Past year performance: 127%Roku Inc (NASDAQ:ROKU) undoubtedly is the riskiest stock on this list, and there certainly is a case for caution. The company remains unprofitable and a 19x EV/revenue multiple isn't cheap.Source: Shutterstock But with more than 30 million active users, Roku is a fast-growing platform deserving of its high-ish multiple. This year, Roku looks to build a true content ecosystem, and from a subscriber standpoint, already has surpassed Charter Communications (NASDAQ:CHTR) and trails only AT&T (NYSE:T) and Comcast Corporation (NASDAQ:CMCSA).Again, this is a high-risk play but it's also a high-reward opportunity. * 7 Discount Retail Stocks to Buy for a Recession Margins in the platform segment are very attractive and should allow Roku to turn profitable relatively quickly. International markets remain largely untapped. There's a case for waiting for a better entry point, or selling puts. But I like ROKU at these levels for the growth/high-risk portion of an investor's portfolio. Brunswick (BC)Past year performance: -21%Down 21% over the past year, Brunswick Corporation (NYSE:BC) is due for a breakout. The boat, engine and fitness equipment manufacturer is trading around $54, and despite a boating sector that has roared of late, the industry leader has been mostly left out.Source: Shutterstock Efforts to build out a fitness business have had mixed results and may support some of the market's skepticism toward the stock. But Brunswick now is spinning that business off, returning to be a boating pure-play. * 7 Discount Retail Stocks to Buy for a Recession Cyclical risk is worth noting, and there are questions as to whether millennials will have the same fervor for boating as their parents. But at ten times forward EPS, BC is easily worth those risks.And if the stock finally can break through resistance, a breakout toward $70-plus seems likely. Pfizer (PFE)Past year performance: -14.5%Few investors like the pharmaceutical space at this point or even healthcare as a whole. But amidst that negativity, Pfizer Inc. (NYSE:PFE) looks forgotten.Source: Shutterstock This still is the most valuable drug manufacturer in the world. It trades at just 13 times forward EPS, a multiple that suggests profits will stay basically flat in perpetuity. To top it off, PFE offers a 3.85% dividend yield.Obviously, there are risks here. Drug pricing continues to be subject to political scrutiny (though the spotlight seems to have dimmed of late). Revenue growth has flattened out of late.But Pfizer still is growing its top line, which rose about 2% last year and 2% year-over-year in Q2. Tom Taulli previously cited three reasons to buy Pfizer stock -- and I think he's got it about right. Valmont Industries (VMI)Past year performance: 4%Valmont Industries, Inc. (NYSE:VMI) offers a diversified portfolio business and has been relatively weak across the board of late. The irrigation business has been hit by years of declining farm income. Support structures manufactured for utilities and highways have seen choppy demand due to uneven government spending. Mining weakness has had an impact on Valmont's smaller businesses as well.Source: Shutterstock Valmont is a cyclical business where the cycles simply haven't been much in the company's favor. Yet that should start to change. 5G and increasing wireless usage should help the company's business with cellular phone companies.Irrigation demand almost has to return at some point. And a possible infrastructure plan from the Trump Administration would benefit Valmont as well. * 7 Discount Retail Stocks to Buy for a Recession Concerns about the tariffs on steel likely have hit VMI. But many of Valmont's contracts are "pass-through," which limits the direct impact of those higher costs on the company itself. Despite uneven demand, EPS has been growing steadily and should do so in 2019 as well. American Eagle Outfitters (AEO)Past year performance: -29%American Eagle Outfitters (NYSE:AEO) is one of the, if not the, best stocks in retail, and that's kind of the problem. Mall retailing, in particular, has been a very tough space over the past few years, and it's not just the impact of Amazon.com, Inc. (NASDAQ:AMZN) and other online retailers. Traffic continues to decline, which pressures sales and has led to intense competition on price, hurting margins.Source: Mike Mozart via Flickr (Modified)But American Eagle has survived rather well so far, keeping comps positive and earnings stable. And yet this stock, too, trades at around 11.5x EPS,. And American Eagle has an ace in the hole: its aerie line, which continues to grow at a breakneck pace.The company's bralettes and other products clearly are taking share from L Brands Inc (NYSE:LB) unit Victoria's Secret. And the e-commerce growth in that business, and for American Eagle as a whole, suggests an ability to dodge the intense pressure on mall-based retailers.In short, American Eagle isn't going anywhere. There's enough here to suggest American Eagle can eke out some growth, and a 3.1% dividend provides income in the meantime.The stock already is recovering, being one of the only on this list with a positive chart over the past year, and AEO stock should continue to perform well. Longer-term, there's still room for consistent growth and more upside. United Parcel Service (UPS)Past year performance: 1.8% United Parcel Service, Inc. (NYSE:UPS) is going to have to spend to add capacity, and in this space, too, there's the ever-present threat of Amazon.Source: Shutterstock But UPS is an entrenched leader, along with rival FedEx Corporation (NYSE:FDX), and it at worst can co-exist with Amazon. Ecommerce growth overall should continue to increase demand; there's enough room for multiple players in the global market. * 7 Discount Retail Stocks to Buy for a Recession Meanwhile, the selloff and benefits from tax reform mean that UPS now is trading at just 14 times analysts' 2019 consensus EPS estimate. And the stock yields a healthy 3.44%. Investors clearly see a risk that growth will decelerate, but UPS stock is priced as if that deceleration is guaranteed.As of this writing, Vince Martin is long shares of Exxon Mobil. He has no positions in any other securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Big IPO Stocks From 2019 to Watch * 7 Discount Retail Stocks to Buy for a Recession * 7 Stocks to Buy Benefiting From Millennial Money The post 9 Hot Stocks to Buy Now appeared first on InvestorPlace.

  • Already a hit, the Roval is now central to Charlotte Motor Speedway’s growth plans
    American City Business Journals

    Already a hit, the Roval is now central to Charlotte Motor Speedway’s growth plans

    Marcus Smith’s drive to remake the fall race at Charlotte Motor Speedway sparked a rise in attendance, sponsorships and TV ratings. CBJ looks at how the Roval road course is just the latest in a series of innovations at the massive Concord complex.

  • Sponsor roster at Charlotte Motor Speedway has big Carolinas connections
    American City Business Journals

    Sponsor roster at Charlotte Motor Speedway has big Carolinas connections

    To hear Frank Suarez of the North Carolina Education Lottery tell it, motorsports fans and lottery players have a lot in common. Both enjoy the anticipation of a potential win, and both like to have fun.

  • 6 Stocks With Low Price-Sales Ratios
    GuruFocus.com

    6 Stocks With Low Price-Sales Ratios

    Johnson & Johnson tops the list Continue reading...

  • 4 5-Star Companies to Consider as Dow Eclipses 27,000
    GuruFocus.com

    4 5-Star Companies to Consider as Dow Eclipses 27,000

    Stocks have 5-star predictability rank and high business quality Continue reading...

  • 5 Top Stock Trades for Friday: A Bank Run in Play?
    InvestorPlace

    5 Top Stock Trades for Friday: A Bank Run in Play?

    The S&P 500 is flirting with new all-time highs. The recent rally has been fast, and some names have done better than others. Today's top stock trades center around the banks. Top Stock Trades for Tomorrow 1: iShares TLT Bond ETFNo one seems to care about the buybacks, dividends and low valuations from the banks. But one big driver has been rates, and thus, bonds. So let's look at the iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) first.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe TLT has demanded plenty of traders' attention since the beginning of August. That's when bonds began to explode higher to the upside, rallying from $132 to $148 in just a few weeks. * 10 Stocks to Sell in Market-Cursed September The ETF twice topped out in the $148+ area, and has now retreated in five of the past six sessions. Investors who are looking for a long trade in TLT may consider buying on a test of the 50-day moving average. That's a reasonable risk/reward area with $137.50 just below. Notice how the recent decline in TLT has helped pave the way for a run higher in the banks? If you're not trading TLT, that's great, but consider keeping the ETF up on the monitor for a clue on what's going on with the banks. Top Stock Trades for Tomorrow 2: Bank of AmericaRemember a few weeks ago when we flagged the long trade in Bank of America (NYSE:BAC)? We liked this setup because of the reasonable risk/reward BAC stock was presenting buyers, as it bobbed near range support between $26 and $26.50.Now pushing toward $30, longs are likely considering booking some profits near current levels. I want to see if BAC stock can press into range resistance between $30.50 and $31. Top Stock Trades for Tomorrow 3: CitigroupCitigroup (NYSE:C) has a very similar setup, bouncing off $61 range support and now trying to hurdle $70. If it can, it puts a retest of $72 on the table, with a possible run up to trend resistance (blue line). On the downside, longs will want to see the 50-day moving average hold as support. Top Stock Trades for Tomorrow 4: JPMorganLike the two previous banks, JPMorgan (NYSE:JPM) held range support near $104. However, this one has a lot more "oomph" than the two above. Shares are already over $116 range resistance and making new highs. I'd love to see JPM continue higher, turning trend resistance (blue line) into trend support. At the very least though, see that $116 holds as support from here. Below could usher in a flush down to the 50-day moving average. Remember, as hot as some of these banks have been, they are still coming into or are near key resistance levels. In the past, these levels have held them in check, even when the news has been bullish. So stay disciplined, don't be greedy and let price guide your decision making -- not your bias! Resistance will either break and lead to higher prices or hold steady and send stocks lower. Top Stock Trades for Tomorrow 5: Goldman SachsGoldman Sachs (NYSE:GS) has really struggled, but man has this one been strong over the past few days. * 10 Battered Tech Stocks to Buy Now Over $221 and a continuation rally can take hold. However, if it rejects GS, look to see how it responds to a test of the 50-day. If it attracts buyers, another $220 test is in the cards. If it fails as support or has a tepid response, uptrend support (purple line) could be in the cards. 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 and C. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Battered Tech Stocks to Buy Now * 7 Strong-Buy Stocks Hedge Funds Are Buying Now * The 7 Best Penny Stocks to Buy The post 5 Top Stock Trades for Friday: A Bank Run in Play? appeared first on InvestorPlace.

  • Undervalued Bank of America Stock Needs to Catch a Break
    InvestorPlace

    Undervalued Bank of America Stock Needs to Catch a Break

    Since the onset of the financial crisis, Bank of America (NYSE:BAC) has resolved the bad loans from its purchase of subprime lender Countryside. However, a healthy balance sheet is not reflected in the BAC stock price. Even as the bank shows record profits, BAC stock is still trading at approximately 9-times earnings.Source: 4kclips / Shutterstock.com This summer, it looked like Bank of America stock would finally catch a break. BofA announced a capital allocation plan where it will buy back $30.9 billion of stock in the next 12 months. But the rug got pulled out underneath BAC and all bank stocks.First, the trade war with China continued to escalate. Second, the Federal Reserve ended a three-year cycle of a tighter monetary policy by raising interest rates. Although its fundamentals still look good, investors have a critical question regarding BAC stock price: will it get some help from the Fed?InvestorPlace - Stock Market News, Stock Advice & Trading Tips Will the Fed Continue Draining the Punch Bowl?Modest and measured interest rate hikes that started in 2015 and ended in December 2018 gave banks a nice lift. BAC stock rose higher than most of its peers. One reason for this, pointed out by InvestorPlace contributor James Brumley was the banks unusually large amount of non-interest bearing deposits, which account for 23% of its total funding sources. * 10 Stocks to Sell in Market-Cursed September However, the party for bank stocks may be ending. Investors and analysts widely anticipated the Fed's rate cut in July. However, as the chief financial analyst for Bankrate, Greg McBride, CFA remarked:Not only is a quarter point move largely inconsequential to household budgets, but credit care and home equity rates are still notably higher than they were two or three years ago.Following the rate cut announcement, Fed Chair Jerome Powell would not commit to further rate cuts. However, he wouldn't rule them out either. Despite uncertainty in the U.S. economy, the uncertainty in the global economy is perhaps a bigger threat. An accommodative monetary policy could affect BAC stock more than others. BAC Stock Is Priced for Zero GrowthAn old saying is there's a difference between price and value. Right now, by many measures, Bank of America stock does not reflect its intrinsic value. One common measure of intrinsic value is a stock's book value.BAC currently has a book value of 1.05. To put that in context, my colleague Will Ashworth cited that when you remove Bank of America, the average price-to-book ratio of the remaining 14 largest U.S. banks (in terms of total assets) is 1.24.For BAC stock to trade at book value means that investors are not giving the equity a premium to its liquidation price. That means its vast network of branches, bankers, Merrill Lynch, U.S. Trust, and other systems have no bearing on the BAC stock price.Another factor that should give investors reason to believe BofA is undervalued is its capital allocation plan. Starting on July 1 of this year, BAC intends to repurchase $30.9 billion dollars of stock. That's approximately $2.5 billion of stock per month.At the equity's current price, BAC will be buying about 4.5 million shares each day. If Bank of America stock remains flat, the company will repurchase approximately 1.1 billion shares. That's about 12% of their total share count (approximately 9.3 billion shares) when all is said and done. BAC is Likely to See Its Dividend IncreaseBanks like Bank of America can only pay out 30% of their earnings as a dividend. This means that for a "big bank" like BAC, stock buybacks are the only other option for diverting earnings.However, one benefit of BofA buying back 1.1 billion shares over the next 12 months is that the dividend per share should actually increase regardless whether the bank makes a higher total profit. And of course, if GDP continues to grow, BAC profit should as well, which will further increase the dividend payout. Where Does BAC Stock Go from Here?The answer to this question will depend, in part, on the Federal Reserve's upcoming decision on interest rates. If the Fed, as many increasingly expect lowers interest rates again, it is likely to prevent BAC stock from pushing past its current level of resistance.If, however, the Fed were to hold rates steady, or indicate that any cut would be their last for the year, the stock could push higher. The best advice for investors now may be to hope for the best and plan for the worst.As of this writing, Chris Markoch did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Sell in Market-Cursed September * 7 of the Worst IPO Stocks in 2019 * 7 Best Stocks That Crushed It This Earnings Season The post Undervalued Bank of America Stock Needs to Catch a Break appeared first on InvestorPlace.

  • Bloomberg

    Aramco May Shun Direct IPO Sales to U.S. Funds on Legal Risk

    (Bloomberg) -- Saudi Aramco is considering a structure for its initial public offering that would prevent it from marketing the deal directly to fund managers in the U.S., people with knowledge of the matter said.The state-owned oil giant wants to avoid litigation risks that could result from selling the deal to U.S.-based institutions, according to the people, who asked not to be identified because the information is private. Aramco is consulting with its bankers on the pros and cons of different deal structures, and it hasn’t made any final decision, the people said.Many foreign IPOs rely on the “Rule 144A” structure, which allows overseas companies to market offerings to institutional investors in the U.S. The method being considered by Aramco is a so-called “Regulation S only” transaction, which would limit it to selling stock to foreign buyers and overseas units of U.S. fund houses, the people said.While that means that Aramco could still market the IPO to big investors like BlackRock Inc. and Fidelity Investments via their foreign affiliates, U.S. institutions without overseas subsidiaries would be left out. That would limit the pool of potential buyers for an offering that’s slated to be one of the biggest equity offerings in history.Saudi Crown Prince Mohammed Bin Salman, the architect of the IPO plan, has previously said he expects Aramco to be valued at over $2 trillion.Given those lofty expectations, Aramco will need all the help it can get to sell the deal. It has selected firms including Bank of America Corp., Citigroup Inc., Credit Suisse Group AG, Goldman Sachs Group Inc., JPMorgan Chase & Co. and Morgan Stanley for top roles on the transaction, people with knowledge of the matter said earlier this week.Aramco is choosing as many as nine joint global coordinators including some Middle Eastern banks, according to the people. Saudi officials have also held discussions with some of the kingdom’s wealthiest families about becoming anchor investors in the offering, Bloomberg News has reported.Aramco is planning to sell shares on the Saudi stock exchange as soon as November and plans plans to hold a kick-off meeting with underwriters as soon as this week, people with knowledge of the matter have said. The company, formally known as Saudi Arabian Oil Co., didn’t immediately respond to a request for comment.Other Saudi companies have started taking steps to rope in U.S. investors after the country began allowing foreign fund managers direct access to one of the world’s most restricted major stock exchanges. Earlier this year, mall operator Arabian Centres Co. conducted the first IPO by a Saudi company under Rule 144A, raising $659 million, data compiled by Bloomberg show. (Updates with details of bank hires in sixth paragraph.)\--With assistance from Abbas Al Lawati and Archana Narayanan.To contact the reporters on this story: Dinesh Nair in London at dnair5@bloomberg.net;Matthew Martin in Dubai at mmartin128@bloomberg.net;Myriam Balezou in London at mbalezou@bloomberg.netTo contact the editors responsible for this story: Ben Scent at bscent@bloomberg.net, ;Shaji Mathew at shajimathew@bloomberg.net, ;Stefania Bianchi at sbianchi10@bloomberg.net, Amy ThomsonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Financial Times

    Venezuelan refugees put strain on Brazilian border town

    One month ago, Eliezer Cariño walked across the Venezuelan border into Brazil’s impoverished Roraima state, making the gruelling 220km journey to the capital Boa Vista on foot. “In Brazil, you can find food. The second is the absence of options upon arrival in Brazil.